Financial and Business Highlights Similarweb reported a 13% revenue increase to $53.7 million in Q2 2023, with significant operating margin improvement and customer base expansion Q2 2023 Financial Highlights (vs. Q2 2022) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $53.7M | $47.6M | +13% | | GAAP Operating Loss | $(9.8)M | $(26.5)M | Improved | | GAAP Operating Margin | (18)% | (55.6)% | +37.6 p.p. | | Non-GAAP Operating Loss | $(3.5)M | $(19.8)M | Improved | | Non-GAAP Operating Margin | (6)% | (42)% | +36 p.p. | | GAAP Net Loss per Share | $(0.12) | $(0.29) | Improved | | Non-GAAP Net Loss per Share | $(0.04) | $(0.26) | Improved | - The company launched 'SimilarAsk' in beta, its new generative AI assistant designed to answer questions using Similarweb's digital data2 Key Business Metrics as of June 30, 2023 (YoY) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Customers | 4,301 | +12% | | Customers with ARR > $100k | 356 | +15% | | Overall Dollar-Based NRR | 101% | Down from 115% | | NRR for Customers > $100k ARR | 109% | Down from 127% | | Remaining Performance Obligations | $174.8M | +9% | - Free cash flow showed significant improvement, with a usage of $(2.8) million in Q2 2023 compared to $(28.9) million in Q2 20225 Financial Outlook The company projects continued revenue growth for Q3 and FY2023, aiming for sustained positive free cash flow by Q4 2023 Q3 & Full Year 2023 Guidance | Period | Metric | Guidance Range | YoY Growth (Mid-point) | | :--- | :--- | :--- | :--- | | Q3 2023 | Total Revenue | $54.1M - $54.5M | ~9% | | | Non-GAAP Operating Loss | $(2.8)M - $(3.2)M | N/A | | FY 2023 | Total Revenue | $216.0M - $218.0M | ~12% | | | Non-GAAP Operating Loss | $(16.0)M - $(17.0)M | N/A | - The company expects to reach sustained positive free cash flow in the fourth quarter of 202386 Consolidated Financial Statements This section presents the unaudited consolidated financial statements for Q2 2023, including Balance Sheets, Income, and Cash Flow Statements Consolidated Balance Sheets As of June 30, 2023, total assets were $226.0 million, with cash at $73.0 million, and total shareholders' equity at $12.3 million Balance Sheet Summary (in thousands) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $72,980 | $77,810 | | Total Assets | $226,009 | $246,045 | | Deferred revenue (Current) | $96,778 | $93,195 | | Total Liabilities | $213,754 | $224,094 | | Total Shareholders' equity | $12,255 | $21,951 | Consolidated Statements of Comprehensive Income (Loss) For Q2 2023, revenue grew to $53.7 million, with a significant reduction in operating loss to $(9.8) million and net loss to $(9.3) million Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $53,681 | $47,586 | | Gross Profit | $41,106 | $33,582 | | Loss from Operations | $(9,757) | $(26,466) | | Net Loss | $(9,293) | $(22,061) | | Net Loss Per Share | $(0.12) | $(0.29) | Consolidated Statements of Cash Flows Net cash used in operating activities significantly improved to $(2.3) million in Q2 2023, with cash and equivalents at $73.0 million Cash Flow Summary - Three Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,305) | $(13,050) | | Net cash used in investing activities | $(500) | $(19,524) | | Net cash provided by financing activities | $1,098 | $2,386 | | Net decrease in cash | $(2,369) | $(31,094) | | Cash and cash equivalents, end of period | $72,980 | $93,925 | Reconciliation of GAAP to Non-GAAP Financial Measures This section details adjustments from GAAP to non-GAAP metrics, reconciling operating loss and cash flow by excluding non-recurring items Reconciliation of GAAP to Non-GAAP Operating Loss - Q2 2023 (in thousands) | Line Item | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Loss from operations (GAAP) | $(9,757) | $(26,466) | | Share-based compensation | $4,689 | $4,763 | | Retention payments (business combinations) | $405 | $542 | | Amortization of intangibles | $1,201 | $1,129 | | Other adjustments | $0 | $371 | | Non-GAAP operating loss | $(3,462) | $(19,788) | Reconciliation to Free Cash Flow - Q2 2023 (in thousands) | Line Item | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,305) | $(13,050) | | Purchases of property and equipment, net | $(183) | $(14,836) | | Capitalized internal use software costs | $(274) | $(995) | | Free cash flow | $(2,762) | $(28,881) |
Similarweb(SMWB) - 2023 Q2 - Quarterly Report