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Similarweb(SMWB) - 2024 Q4 - Annual Report

Similarweb Fourth Quarter and Fiscal Year 2024 Results Financial Highlights The company achieved accelerated revenue growth and its first full year of positive non-GAAP operating profit and free cash flow - Revenue growth accelerated to 15% in 2024 from 13% in 202312 - Achieved the first full year of positive non-GAAP operating profit and free cash flow12 - The company plans to increase investment in sales and R&D for 2025 to capitalize on the AI revolution2 Fourth Quarter 2024 Financial Highlights Revenue grew 16% year-over-year to $65.6 million, while non-GAAP operating profit and free cash flow decreased Q4 2024 Key Financial Metrics | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $65.6M | $56.8M | +16% | | GAAP Operating Loss | $(3.6)M | $(1.1)M | Increased Loss | | GAAP Net Loss per Share | $(0.07) | $(0.04) | Increased Loss | | Non-GAAP Operating Profit | $2.6M | $4.7M | -45% | | Non-GAAP Operating Profit per Share (basic) | $0.03 | $0.06 | -50% | | Free Cash Flow | $2.7M | $3.5M | -23% | Fiscal Year 2024 Financial Highlights Full-year revenue increased by 15% to $249.9 million with a significant turnaround to profitability on a non-GAAP basis Fiscal Year 2024 Key Financial Metrics | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $249.9M | $218.0M | +15% | | GAAP Operating Loss | $(9.7)M | $(28.8)M | Reduced Loss | | GAAP Net Loss per Share | $(0.14) | $(0.38) | Reduced Loss | | Non-GAAP Operating Profit/(Loss) | $15.0M | $(4.8)M | Turnaround to Profit | | Non-GAAP Operating Profit per Share (basic) | $0.19 | $(0.06) | Turnaround to Profit | | Free Cash Flow | $27.4M | $(5.4)M | Turnaround to Positive | Recent Business Highlights The company saw strong customer growth, improved retention rates, and an increased commitment to multi-year contracts - Total customer count grew 17% year-over-year to 5,5348 - The number of customers with ARR of $100,000 or more grew 11% to 405, and they now account for 61% of total ARR8 Key Retention and Contract Metrics (as of Q4 2024) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Overall NRR | 101% | 98% | +3 p.p. | | NRR for customers with ARR >$100k | 112% | 107% | +5 p.p. | | ARR from multi-year subscriptions | 49% | 42% | +7 p.p. | | Remaining Performance Obligations (RPO) | $246.0M | $195.2M | +26% | Financial Outlook The company projects approximately 15% revenue growth for fiscal year 2025 while maintaining non-GAAP operating profitability Q1 2025 Guidance The company anticipates revenue between $66.0 million and $66.5 million with a slight non-GAAP operating loss for Q1 2025 Q1 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $66.0M - $66.5M | | Non-GAAP Operating Loss | $(1.5)M - $(1.0)M | FY 2025 Guidance Full-year 2025 revenue is guided to grow 15% at the midpoint, with non-GAAP operating profit between $1.0 million and $4.0 million Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $285.0M - $288.0M | | Non-GAAP Operating Profit | $1.0M - $4.0M | Consolidated Financial Statements The statements show improved profitability with a reduced net loss and a significant turnaround in cash from operations for fiscal year 2024 Consolidated Balance Sheets Total assets increased slightly to $242.9 million, while total liabilities decreased, strengthening the company's equity position Balance Sheet Summary (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $63,869 | $71,732 | | Total current assets | $141,356 | $146,385 | | Total assets | $242,911 | $239,013 | | Liabilities & Equity | | | | Deferred revenue (current) | $108,232 | $99,968 | | Total current liabilities | $177,192 | $184,185 | | Total liabilities | $215,403 | $223,466 | | Total shareholders' equity | $27,508 | $15,547 | Consolidated Statements of Comprehensive Income (Loss) Revenue grew to $249.9 million in 2024, and the GAAP net loss significantly narrowed to $(11.5) million from the prior year Income Statement Summary (in thousands) | Account | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Revenue | $249,913 | $218,019 | | Gross Profit | $195,099 | $170,929 | | Loss from operations | $(9,664) | $(28,807) | | Net loss | $(11,457) | $(29,373) | | Net loss per share, basic and diluted | $(0.14) | $(0.38) | Consolidated Statements of Cash Flows Net cash from operating activities was $30.2 million in 2024, a substantial positive shift from a cash use in 2023 Cash Flow Summary (in thousands) | Account | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $30,174 | $(3,038) | | Net cash used in investing activities | $(18,700) | $(2,586) | | Net cash (used in) provided by financing activities | $(18,837) | $1,192 | | Net decrease in cash and cash equivalents | $(7,863) | $(6,078) | | Cash and cash equivalents, end of period | $63,869 | $71,732 | Reconciliation of GAAP to Non-GAAP Measures This section details adjustments for non-recurring items, reconciling the GAAP operating loss to a non-GAAP profit for FY 2024 Reconciliation of Operating (Loss) Profit The FY 2024 GAAP operating loss of $(9.7) million was adjusted to a $15.0 million non-GAAP profit, mainly via non-cash expenses FY 2024 Operating Profit Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Loss from operations (GAAP) | $(9,664) | | Add: Share-based compensation expenses | $17,615 | | Add: Retention payments related to business combinations | $1,886 | | Add: Amortization of intangible assets | $4,862 | | Add: Secondary offering costs | $350 | | Non-GAAP operating profit | $15,049 | Reconciliation of Free Cash Flow Net cash from operations of $30.2 million was adjusted to a free cash flow of $27.4 million for fiscal year 2024 FY 2024 Free Cash Flow Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $30,174 | | Less: Purchases of property and equipment, net | $(1,430) | | Less: Capitalized internal use software costs | $(1,304) | | Free cash flow | $27,440 | | Add: Deferred payments in relation to business combinations | $265 | | Normalized free cash flow | $27,705 |