Similarweb(SMWB) - 2025 Q1 - Quarterly Report

Similarweb Q1 2025 Earnings Release Financial & Business Highlights The company reported accelerated revenue growth and expanded its customer base, achieving its sixth consecutive quarter of positive free cash flow - Revenue growth accelerated to 14% in Q1 2025, up from 12% in Q1 2024[1] - The company launched several new products during the quarter, including App Intelligence, AI Chatbot data, and three new AI Agents to enhance its market intelligence offerings[3] Q1 2025 Financial Highlights Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $67.1M | $59.0M | +14% YoY | | GAAP Operating Loss | $(9.3)M | $(2.7)M | Increased Loss | | GAAP Operating Margin | (14)% | (5)% | Decreased | | GAAP Net Loss per Share | $(0.11) | $(0.03) | Increased Loss | | Non-GAAP Operating (Loss)/Profit | $(1.3)M | $2.8M | Profit to Loss | | Non-GAAP Operating Margin | (2)% | 5% | Decreased | | Non-GAAP Net Loss/Profit per Share | $(0.02) | $0.04 (basic) | Profit to Loss | Q1 2025 Business & Operational Highlights Key Business Metrics as of March 31, 2025 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Customers | 5,767 | 4,846 (approx) | +19% YoY | | Customers with ARR > $100k | 411 | 377 (approx) | +9% YoY | | Overall NRR | 101% | 98% | +3 p.p. | | NRR for Customers > $100k ARR | 111% | 107% | +4 p.p. | | Remaining Performance Obligations (RPO) | $252.7M | $213.6M | +18% YoY | | Multi-year Subscriptions (% of ARR) | 52% | 42% | +10 p.p. | Cash Flow Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $4.9M | $10.1M | | Free Cash Flow | $4.4M | $9.7M | | Normalized Free Cash Flow | $4.9M | $9.7M | Financial Outlook The company provided positive full-year guidance, projecting 15% revenue growth and a return to Non-GAAP operating profitability for FY 2025 Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $285.0M - $288.0M | | YoY Growth (Midpoint) | ~15% | | Non-GAAP Operating Profit | $1.0M - $4.0M | Second Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $68.6M - $69.0M | | Non-GAAP Operating Loss | $(1.0)M - $(0.5)M | Consolidated Financial Statements The statements show a slight decrease in total assets, an increased GAAP net loss driven by higher expenses, and positive net cash from operations Consolidated Balance Sheets Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59,567 | $63,869 | | Total current assets | $126,918 | $141,356 | | Total assets | $237,687 | $242,911 | | Deferred revenue (current) | $109,170 | $108,232 | | Total liabilities | $213,705 | $215,403 | | Total shareholders' equity | $23,982 | $27,508 | Consolidated Statements of Comprehensive Income (Loss) Q1 Income Statement Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $67,087 | $58,982 | | Gross Profit | $53,117 | $46,286 | | Total Operating Expenses | $62,408 | $48,970 | | Loss from Operations | $(9,291) | $(2,684) | | Net Loss | $(9,259) | $(2,733) | | Net Loss Per Share (basic & diluted) | $(0.11) | $(0.03) | - Total share-based compensation costs increased to $5.8 million in Q1 2025 from $4.1 million in Q1 2024, contributing to the higher operating loss[25] Consolidated Statements of Cash Flows Q1 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,886 | $10,064 | | Net cash used in investing activities | $(9,910) | $(4,341) | | Net cash provided by financing activities | $562 | $(22,329) | | Net decrease in cash | $(4,302) | $(16,842) | | Cash at end of period | $59,567 | $54,890 | - Cash used in investing activities increased significantly in Q1 2025 to $9.9 million, primarily due to a $9.3 million payment for business combinations[27] Reconciliation of GAAP to Non-GAAP Financial Measures The report reconciles GAAP to non-GAAP results by adjusting for items like share-based compensation and business combination-related costs Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Loss from operations (GAAP) | $(9,291) | | Share-based compensation | $5,809 | | Retention payments (business combinations) | $1,559 | | Amortization of intangibles (business combinations) | $660 | | Non-GAAP operating loss | $(1,263) | Reconciliation to Free Cash Flow and Normalized Free Cash Flow (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $4,886 | | Purchases of property and equipment, net | $(501) | | Free cash flow | $4,385 | | Deferred payments (business combinations) | $485 | | Normalized free cash flow | $4,870 |