Similarweb Announces Second Quarter 2024 Results

Revenue growth accelerated for the third consecutive quarter

Fourth consecutive quarter of non-GAAP operating profit

Raising guidance for 2024 revenue and non-GAAP operating profit

TEL AVIV, Israel--(BUSINESS WIRE)-- Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its second quarter ended June 30, 2024. The Company published a letter to shareholders from management discussing these results, which can be accessed at the link: https://ir.similarweb.com/financials/quarterly-results, located on the Company's investor relations website.

“We delivered another strong quarter with accelerating revenue and customer growth, record profitability and solid free cash flow, providing us with the confidence to raise our 2024 revenue and profit guidance,” stated Or Offer, Co-Founder and CEO of Similarweb. “Revenue growth in the second quarter accelerated to 13%, the third consecutive quarter of accelerating growth. We believe revenue growth will continue to accelerate in the second half of 2024 and have reflected this in our outlook. We increased our customer base by 17% to more than 5,000 customers, including our first eight-figure ARR customer.” Offer concluded, “We are just beginning to tap into the vast potential of our data and the addressable markets we serve.”

Second Quarter 2024 Financial Highlights

  • Total revenue was $60.6 million, an increase of 13% compared to $53.7 million for the second quarter of 2023.
  • GAAP operating loss was $(1.0) million or (2)% of revenue, compared to $(9.8) million or (18)% of revenue for the second quarter of 2023.
  • GAAP net loss per share was $(0.01), compared to $(0.12) for the second quarter of 2023.
  • Non-GAAP operating profit was $5.3 million or 9% of revenue, compared to non-GAAP operating loss of $(3.5) million or (6)% of revenue for the second quarter of 2023.
  • Non-GAAP operating profit per share was $0.07, compared to non-GAAP operating loss per share of $(0.04) for the second quarter of 2023.
  • Cash and cash equivalents totalled $61.8 million as of June 30, 2024, compared to $71.7 million as of December 31, 2023.
  • Net cash provided by (used in) operating activities was $7.3 million, compared to $(2.3) million for the second quarter of 2023.
  • Free cash flow was $6.3 million, compared to $(2.8) million for the second quarter of 2023.

Recent Business Highlights

  • Grew number of customers to 5,034 as of June 30, 2024, an increase of 17% compared to June 30, 2023.
  • Grew number of customers with ARR of $100,000 or more to 383, an increase of 8% compared to June 30, 2023.
  • Secured the first 8-figure ARR customer after signing a large contract with an existing customer.
  • Customers with ARR of $100,000 or more contributed 60% of the total ARR as of June 30, 2024, compared to 55% as of June 30, 2023.
  • Dollar-based net retention rate for customers with ARR of $100,000 or more was 109% in the second quarter of 2024, an increase from the first quarter of 2024.
  • Overall dollar-based net retention rate was 99% in the second quarter of 2024, an increase from the first quarter of 2024.
  • 44% of our overall ARR is contracted under multi-year subscriptions as of June 30, 2024, as compared to 42% as of June 30, 2023.
  • Remaining performance obligations increased 24% year-over-year, to $216.6 million as of June 30, 2024, as compared to $174.8 million as of June 30, 2023.
  • Acquired 42matters AG, a leading app intelligence provider based in Zurich, Switzerland, on July 1, 2024.
  • Extended the $75 million SVB Credit Facility for an additional 2-year term through December 31, 2026.

Financial Outlook

"Revenue growth continued to accelerate this quarter, driven by new customer acquisition and improving retention,” stated Jason Schwartz, Chief Financial Officer of Similarweb. “Our operational performance this quarter highlights our commitment to disciplined execution." He further noted, “We achieved a fourth consecutive quarter of operating profit and generated $16 million in free cash flow in the first half of 2024. Given these results, which exceeded our expectations, we are raising our revenue and non-GAAP operating profit outlook for the full year 2024." Schwartz emphasized the company's progress, saying, “We are making significant strides towards our long-term profit and free cash flow targets.”

  • Q3 2024 Guidance
    • Total revenue estimated between $62.5 million and $63.0 million, representing approximately 15% growth year over year at the mid-point of the range.
    • Non-GAAP operating profit estimated between $2.8 million and $3.2 million.
  • FY 2024 Guidance
    • Total revenue estimated between $246.0 million and $248.0 million.
    • Non-GAAP operating profit estimated between $13.0 million and $15.0 million.

The Company’s third quarter and full year 2024 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss and gross margin, the most directly comparable GAAP measures to non-GAAP operating loss and non-GAAP gross margin, respectively, and similarly cannot provide a reconciliation of these measures to their closest GAAP equivalents without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 8:30 a.m. Eastern Time on Wednesday, August 7, 2024. A live webcast of the call can be accessed from Similarweb’s Investor Relations website at https://ir.similarweb.com. An archived webcast of the conference call will also be made available on the Similarweb website following the call. The live call may also be accessed via telephone at (888) 437-3179 toll-free and at (862) 298-0702 internationally.

About Similarweb

Similarweb powers businesses to win their markets with Digital Data. By providing essential web and app data, analytics, and insights, we empower our users to discover business opportunities, identify competitive threats, optimize strategy, acquire the right customers, and increase monetization. Similarweb products are integrated into users’ workflow, powered by advanced technology, and based on leading comprehensive Digital Data.

Learn more: Similarweb | Similarweb Digital Data
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Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our guidance for the third quarter and full year of 2024 described under "Financial Outlook". Forward-looking statements include all statements that are not historical facts. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements reflect our current views regarding our intentions, products, services, plans, expectations, strategies and prospects, which are based on information currently available to us and assumptions we have made. Actual results may differ materially from those described in such forward-looking statements and are subject to a number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to achieve or sustain profitability; (v) anticipated trends, growth rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of Israel's war with Hamas and other terrorist organizations and potential hostilities with Iran or Lebanon on geopolitical and macroeconomic conditions or on our company and business; (vi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (vii) the costs and success of our sales and marketing efforts and our ability to promote our brand; (viii) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (ix) our ability to effectively manage our growth, including continued international expansion; (x) our reliance on certain third party platforms and sources for the collection of data necessary for our solutions; (xi) our ability to protect our intellectual property rights and any costs associated therewith; (xii) our ability to identify and complete acquisitions that complement and expand our reach and platform; (xiii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business, including in Israel, the United States, the European Union, the United Kingdom and other jurisdictions where we elect to do business; (xiv) our ability to compete effectively with existing competitors and new market entrants; and (xv) the growth rates of the markets in which we compete.

These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Form 20-F filed with the Securities and Exchange Commission on February 28, 2024, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.

Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. Except as required by law, we undertake no duty to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release contains certain financial measures that are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, non-GAAP financial measures have limitations as an analytical tool and are presented for supplemental informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software costs. Normalized free cash flow represents free cash flow less capital investments related to the Company's new headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, as applicable and indicated in the below tables.

Other Metrics

Customer acquisition costs (CAC) represent the portion of sales and marketing expenses allocated to acquire new customers. Customer retention costs (CRC) represent the portion of sales and marketing expenses allocated to retain existing customers and to increase existing customers’ subscriptions. Annual recurring revenue (ARR) represents the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. CAC payback period is the estimated time in months to recover CAC in terms of incremental gross profit that newly acquired customers generate. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage.

 

Similarweb Ltd.
Consolidated Balance Sheets
U.S. dollars in thousands (except share and per share data)

 
 

 

December 31,

 

June 30,

 

 

2023

 

 

 

2024

 

 

 

 

(Unaudited)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

71,732

 

 

$

61,791

 

Restricted deposits

 

10,020

 

 

 

10,309

 

Accounts receivable, net

 

47,869

 

 

 

38,631

 

Deferred contract costs

 

11,165

 

 

 

10,962

 

Prepaid expenses and other current assets

 

5,599

 

 

 

7,704

 

Total current assets

 

146,385

 

 

 

129,397

 

Property and equipment, net

 

28,630

 

 

 

27,141

 

Deferred contract costs, non-current

 

9,845

 

 

 

9,465

 

Operating lease right-of-use assets

 

36,007

 

 

 

35,815

 

Goodwill and Intangible assets, net

 

17,652

 

 

 

19,989

 

Other non-current assets

 

494

 

 

 

447

 

Total assets

$

239,013

 

 

$

222,254

 

Liabilities and shareholders' equity

 

 

 

Current liabilities:

 

 

 

Borrowings under Credit Facility

$

25,000

 

 

$

 

Accounts payable

 

8,422

 

 

 

5,037

 

Payroll and benefit related liabilities

 

20,437

 

 

 

16,755

 

Deferred revenue

 

99,968

 

 

 

108,000

 

Other payables and accrued expenses

 

23,263

 

 

 

24,760

 

Operating lease liabilities

 

7,095

 

 

 

6,834

 

Total current liabilities

 

184,185

 

 

 

161,386

 

Deferred revenue, non-current

 

878

 

 

 

694

 

Operating lease liabilities, non-current

 

35,329

 

 

 

32,885

 

Other long-term liabilities

 

3,074

 

 

 

3,846

 

Total liabilities

 

223,466

 

 

 

198,811

 

Shareholders' equity

 

 

 

Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2023 and June 30, 2024 (unaudited), 78,653,046 and 80,921,451 shares issued as of December 31, 2023 and June 30, 2024 (unaudited), 78,650,878 and 80,919,283 outstanding as of December 31, 2023 and June 30, 2024 (unaudited), respectively;

 

216

 

 

 

222

 

Additional paid-in capital

 

367,558

 

 

 

379,799

 

Accumulated other comprehensive income (loss)

 

872

 

 

 

(8

)

Accumulated deficit

 

(353,099

)

 

 

(356,570

)

Total shareholders' equity

 

15,547

 

 

 

23,443

 

Total liabilities and shareholders' equity

$

239,013

 

 

$

222,254

 

 

Similarweb Ltd.
Consolidated Statements of Comprehensive Income (Loss)
U.S. dollars in thousands (except share and per share data)

 
 

 

Six Months Ended June 30,

 

Three Months Ended June 30,

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

(Unaudited)

 

(Unaudited)

Revenue

$

106,431

 

 

$

119,619

 

 

$

53,681

 

 

$

60,637

 

Cost of revenue

 

24,651

 

 

 

25,240

 

 

 

12,575

 

 

 

12,544

 

Gross profit

 

81,780

 

 

 

94,379

 

 

 

41,106

 

 

 

48,093

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

28,253

 

 

 

25,778

 

 

 

13,902

 

 

 

12,239

 

Sales and marketing

 

55,088

 

 

 

51,097

 

 

 

26,422

 

 

 

25,857

 

General and administrative

 

21,276

 

 

 

21,141

 

 

 

10,539

 

 

 

10,950

 

Total operating expenses

 

104,617

 

 

 

98,016

 

 

 

50,863

 

 

 

49,046

 

Loss from operations

 

(22,837

)

 

 

(3,637

)

 

 

(9,757

)

 

 

(953

)

Finance income, net

 

1,965

 

 

 

1,278

 

 

 

610

 

 

 

823

 

Loss before income taxes

 

(20,872

)

 

 

(2,359

)

 

 

(9,147

)

 

 

(130

)

Provision for income taxes

 

255

 

 

 

1,112

 

 

 

146

 

 

 

608

 

Net loss

$

(21,127

)

 

$

(3,471

)

 

$

(9,293

)

 

$

(738

)

Net loss per share attributable to ordinary shareholders, basic and diluted

$

(0.27

)

 

$

(0.04

)

 

$

(0.12

)

 

$

(0.01

)

Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted

 

77,222,490

 

 

 

79,969,425

 

 

 

77,579,279

 

 

 

80,570,892

 

Net loss

$

(21,127

)

 

$

(3,471

)

 

$

(9,293

)

 

$

(738

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

Change in unrealized (loss) gain on cashflow hedges

 

(232

)

 

 

(880

)

 

 

45

 

 

 

(363

)

Total other comprehensive (loss) income, net of tax

 

(232

)

 

 

(880

)

 

 

45

 

 

 

(363

)

Total comprehensive loss

$

(21,359

)

 

$

(4,351

)

 

$

(9,248

)

 

$

(1,101

)

 

 

 

 

 

 

 

 

Share-based compensation costs included above:

U.S. dollars in thousands

 
 

 

Six Months Ended June 30,

 

Three months Ended June 30,

 

2023

 

2024

 

2023

 

2024

 

(Unaudited)

(Unaudited)

Cost of revenue

$

327

 

$

390

 

$

172

 

$

223

Research and development

 

2,850

 

 

2,802

 

 

1,460

 

 

1,357

Sales and marketing

 

2,730

 

 

1,991

 

 

1,356

 

 

806

General and administrative

 

3,191

 

 

3,402

 

 

1,701

 

 

2,072

Total

$

9,098

 

$

8,585

 

$

4,689

 

$

4,458

 

Similarweb Ltd.
Consolidated Statements of Cash Flows
U.S. dollars in thousands

 
 

 

Six Months Ended June 30,

 

Three Months Ended June 30,

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

(Unaudited)

 

(Unaudited)

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(21,127

)

 

$

(3,471

)

 

$

(9,293

)

 

$

(738

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

5,112

 

 

 

5,139

 

 

 

2,572

 

 

 

2,619

 

Finance expense

 

869

 

 

 

466

 

 

 

662

 

 

 

230

 

Unrealized loss from hedging future transactions

 

4

 

 

 

60

 

 

 

31

 

 

 

29

 

Share-based compensation

 

9,098

 

 

 

8,585

 

 

 

4,689

 

 

 

4,458

 

Loss (gain) from sale of equipment

 

1

 

 

 

(7

)

 

 

(1

)

 

 

(3

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Change in operating lease right-of-use assets and liabilities, net

 

(2,415

)

 

 

(2,513

)

 

 

(1,190

)

 

 

(242

)

Decrease in accounts receivable, net

 

5,633

 

 

 

9,619

 

 

 

4,989

 

 

 

2,626

 

Decrease in deferred contract costs

 

2,590

 

 

 

583

 

 

 

1,141

 

 

 

170

 

Increase in other current assets

 

(880

)

 

 

(2,917

)

 

 

(1,130

)

 

 

(1,593

)

Decrease (increase) in other non-current assets

 

417

 

 

 

47

 

 

 

(14

)

 

 

14

 

Increase (decrease) in accounts payable

 

343

 

 

 

(3,258

)

 

 

1,402

 

 

 

(799

)

Increase (decrease) in deferred revenue

 

2,941

 

 

 

7,316

 

 

 

(4,302

)

 

 

328

 

(Decrease) increase in other non-current liabilities

 

(319

)

 

 

620

 

 

 

(225

)

 

 

426

 

Decrease in other liabilities and accrued expenses

 

(4,246

)

 

 

(2,857

)

 

 

(1,636

)

 

 

(181

)

Net cash (used in) provided by operating activities

 

(1,979

)

 

 

17,412

 

 

 

(2,305

)

 

 

7,344

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property and equipment, net

 

(1,315

)

 

 

(908

)

 

 

(183

)

 

 

(540

)

Capitalized internal-use software costs

 

(707

)

 

 

(469

)

 

 

(274

)

 

 

(469

)

Increase in restricted deposits

 

(87

)

 

 

(289

)

 

 

(43

)

 

 

(121

)

Payment for business combinations, net of cash acquired

 

 

 

 

(3,833

)

 

 

 

 

 

(24

)

Net cash used in investing activities

 

(2,109

)

 

 

(5,499

)

 

 

(500

)

 

 

(1,154

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

1,830

 

 

 

3,057

 

 

 

438

 

 

 

386

 

Proceeds from employee share purchase plan

 

660

 

 

 

555

 

 

 

660

 

 

 

555

 

Repayment of Credit Facility

 

 

 

 

(25,000

)

 

 

 

 

 

 

Payments of contingent consideration, net

 

(2,363

)

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

127

 

 

 

(21,388

)

 

 

1,098

 

 

 

941

 

Effect of exchange rates on cash and cash equivalents

 

(869

)

 

 

(466

)

 

 

(662

)

 

 

(230

)

Net (decrease) increase in cash and cash equivalents

 

(4,830

)

 

 

(9,941

)

 

 

(2,369

)

 

 

6,901

 

Cash and cash equivalents, beginning of period

 

77,810

 

 

 

71,732

 

 

 

75,349

 

 

 

54,890

 

Cash and cash equivalents, end of period

$

72,980

 

 

$

61,791

 

 

$

72,980

 

 

$

61,791

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

Interest received, net

$

(40

)

 

$

(557

)

 

$

(46

)

 

$

(322

)

Taxes paid

$

1,613

 

 

$

848

 

 

$

1,557

 

 

$

16

 

Supplemental disclosure of non-cash financing activities:

 

 

 

 

 

 

 

Additions to operating lease right-of-use assets and liabilities

$

780

 

 

$

4,453

 

 

$

610

 

 

$

2,055

 

Share-based compensation included in capitalized internal-use software

$

33

 

 

$

33

 

 

$

33

 

 

$

33

 

Deferred proceeds from exercise of share options included in other current assets

$

42

 

 

$

27

 

 

$

26

 

 

$

27

 

Deferred costs of property and equipment incurred during the period included in accounts payable

$

41

 

 

$

6

 

 

$

(80

)

 

$

6

 

Deferred payments in relation to business combinations held in escrow

$

1,269

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

Schedule A: Business combinations

 

 

 

 

 

 

 

Working capital (deficit), net (excluding cash and cash equivalents)

 

 

 

 

(217

)

 

 

 

 

Property, plant and equipment

 

 

 

 

18

 

 

 

 

 

Goodwill and other intangible assets

 

 

 

 

4,684

 

 

 

 

 

Deferred taxes, net

 

 

 

 

(152

)

 

 

 

 

 

$

 

 

$

4,333

 

 

 

 

 

Less non-cash:

 

 

 

 

 

 

 

Deferred cash payments

$

 

 

$

(500

)

 

 

 

 

Total

$

 

 

$

3,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures

Reconciliation of GAAP gross profit to non-GAAP gross profit

 
 

 

Six Months Ended June 30,

 

Three months Ended June 30,

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

(In thousands)

(In thousands)

GAAP gross profit

$

81,780

 

 

$

94,379

 

 

$

41,106

 

 

$

48,093

 

Add:

 

 

 

 

 

 

 

Share-based compensation expenses

 

327

 

 

 

390

 

 

 

172

 

 

 

223

 

Retention payments related to business combinations

 

306

 

 

 

25

 

 

 

218

 

 

 

25

 

Amortization of intangible assets related to business combinations

 

2,335

 

 

 

2,224

 

 

 

1,167

 

 

 

1,138

 

Non-GAAP gross profit

$

84,748

 

 

$

97,018

 

 

$

42,663

 

 

$

49,479

 

Non-GAAP gross margin

 

80

%

 

 

81

%

 

 

79

%

 

 

82

%

 

Reconciliation of Loss from operations (GAAP) to Non-GAAP operating (loss) income

 
 

 

Six Months Ended June 30,

 

Three months Ended June 30,

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

(In thousands)

(In thousands)

Loss from operations

$

(22,837

)

 

$

(3,637

)

 

$

(9,757

)

 

$

(953

)

Add:

 

 

 

 

 

 

 

Share-based compensation expenses

 

9,098

 

 

 

8,585

 

 

 

4,689

 

 

 

4,458

 

Retention payments related to business combinations

 

687

 

 

 

819

 

 

 

405

 

 

 

591

 

Amortization of intangible assets related to business combinations

 

2,403

 

 

 

2,347

 

 

 

1,201

 

 

 

1,227

 

Non-recurring expenses related to termination of lease agreement and others

 

13

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating (loss) income

$

(10,636

)

 

$

8,114

 

 

$

(3,462

)

 

$

5,323

 

Non-GAAP operating margin

 

(10

)%

 

 

7

%

 

 

(6

)%

 

 

9

%

 

Reconciliation of GAAP operating expenses to non-GAAP operating expenses

 
 

 

Six Months Ended June 30,

 

Three months Ended June 30,

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

(In thousands)

(In thousands)

GAAP research and development

$

28,253

 

 

$

25,778

 

 

$

13,902

 

 

$

12,239

 

Less:

 

 

 

 

 

 

 

Share-based compensation expenses

 

2,850

 

 

 

2,802

 

 

 

1,460

 

 

 

1,357

 

Retention payments related to business combinations

 

 

 

 

16

 

 

 

 

 

 

16

 

Non-GAAP research and development

$

25,403

 

 

$

22,960

 

 

$

12,442

 

 

$

10,866

 

Non-GAAP research and development margin

 

24

%

 

 

19

%

 

 

23

%

 

 

18

%

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

55,088

 

 

$

51,097

 

 

$

26,422

 

 

$

25,857

 

Less:

 

 

 

 

 

 

 

Share-based compensation expenses

 

2,730

 

 

 

1,991

 

 

 

1,356

 

 

 

806

 

Retention payments related to business combinations

 

381

 

 

 

778

 

 

 

187

 

 

 

550

 

Amortization of intangible assets related to business combinations

 

68

 

 

 

123

 

 

 

34

 

 

 

89

 

Non-recurring expenses related to termination of lease agreement and others

 

13

 

 

 

 

 

 

 

 

 

 

Non-GAAP sales and marketing

$

51,896

 

 

$

48,205

 

 

$

24,845

 

 

$

24,412

 

Non-GAAP sales and marketing margin

 

49

%

 

 

40

%

 

 

46

%

 

 

40

%

 

 

 

 

 

 

 

 

GAAP general and administrative

$

21,276

 

 

$

21,141

 

 

$

10,539

 

 

$

10,950

 

Less:

 

 

 

 

 

 

 

Share-based compensation expenses

 

3,191

 

 

 

3,402

 

 

 

1,701

 

 

 

2,072

 

Non-GAAP general and administrative

$

18,085

 

 

$

17,739

 

 

$

8,838

 

 

$

8,878

 

Non-GAAP general and administrative margin

 

17

%

 

 

15

%

 

 

16

%

 

 

15

%

 

Reconciliation of Net cash (used in) provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow

 
 

 

Six Months Ended June 30,

 

Three months Ended June 30,

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

(In thousands)

(In thousands)

Net cash (used in) provided by operating activities

$

(1,979

)

 

$

17,412

 

 

$

(2,305

)

 

$

7,344

 

Purchases of property and equipment, net

 

(1,315

)

 

 

(908

)

 

 

(183

)

 

 

(540

)

Capitalized internal use software costs

 

(707

)

 

 

(469

)

 

 

(274

)

 

 

(469

)

Free cash flow

$

(4,001

)

 

$

16,035

 

 

$

(2,762

)

 

$

6,335

 

 

 

 

 

 

 

 

 

Purchases of property and equipment related to the new headquarters

 

1,100

 

 

 

 

 

 

52

 

 

 

 

Payments received from escrow in relation to contingent consideration

 

(380

)

 

 

 

 

 

 

 

 

 

Normalized free cash flow

$

(3,281

)

 

$

16,035

 

 

$

(2,710

)

 

$

6,335

 

 

Press Contact:
David Carr
Similarweb
press@similarweb.com

Investor Contact:
Rami Myerson
Similarweb
rami.myerson@similarweb.com

Source: Similarweb Ltd.