Press Releases

Similarweb Announces Fourth Quarter 2021 Results Above Prior Guidance and Strong Progress on All Key Metrics

Fourth quarter 2021 revenue grew 51% year-over-year to $40.2 million

NRR for $100K+ ARR customers increases to 125%

Introduces strong guidance for Q1 and 2022 with revenue growth over 40%

TEL AVIV, Israel--(BUSINESS WIRE)-- Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading platform for digital intelligence, today announced financial results for its fourth quarter ended December 31, 2021.

“Q4 closed an outstanding and record-breaking year for us,” said Or Offer, Founder and CEO of Similarweb. “Similarweb provides companies with critical insights and actionable intelligence that helps them win online and accelerate their growth. In 2021, we continued our strong business execution, as can be seen by record revenue growth rate, record customer growth rate, record NRR and record multi-year deals. We are entering 2022 with very strong momentum and we are extremely excited about what lies ahead.”

Fourth Quarter 2021 Financial Highlights

Revenue

• Total revenue was $40.2 million, an increase of 51%, compared to $29.4 million for the fourth quarter of 2020.
• Total ARR was $165 million, an increase of 44%, compared to the fourth quarter of 2020.

Operating loss

• GAAP operating loss was $(22.9) million, compared to $(6.0) million for the fourth quarter of 2020.
• GAAP net loss per share was $(0.32), compared to $(0.48) for the fourth quarter of 2020.
• Non-GAAP operating loss was $(18.4) million, compared to $(4.7) million for the fourth quarter of 2020.
• Non-GAAP operating loss per share was $(0.25), compared to $(0.31) for the fourth quarter of 2020.

Cash

• Cash and cash equivalents totaled $128.9 million as of December 31, 2021, compared to $159.1 million as of September 30, 2021.
• Free cash flow was $(11.5) million, compared to $(1.4) million for the fourth quarter of 2020.

Full Year 2021 Financial Highlights

Revenue

• Total revenue was $137.7 million, an increase of 47%, compared to $93.5 million for 2020.

Operating loss

• GAAP operating loss was $(66.1) million, compared to $(19.7) million for 2020
• GAAP net loss per share was $(1.30), compared to $(1.58) for 2020.
• Non-GAAP operating loss was $(51.7) million, compared to $(14.9) million for 2020.
• Non-GAAP operating loss per share was $(0.97), compared to $(1.03) for 2020.

Cash

• Free cash flow was $(30.4) million, compared to $(4.9) million for 2020.

Recent Business Highlights

• Signed a new data licensing agreement with App Annie, allowing access to an important set of App Annie’s mobile application data, which will be incorporated into our platform.
• Grew number of customers to 3,487 as of December 31, 2021, an increase of 28% compared to December 31, 2020.
• Grew average annual revenue per customer to $48K in the fourth quarter of 2021, an increase of 18% compared to the fourth quarter of 2020.
• Grew number of customers with ARR of $100,000 or more to 271, an increase of 45% compared to December 31, 2020.
• Customers with ARR of $100,000 or more contributed 51% of the total ARR as of December 31, 2021, compared to 49% as of December 31, 2020.
• Dollar-based net retention rate for customers with ARR of $100,000 or more increased to 125% as compared to 113% in the fourth quarter of 2020.
• Overall dollar-based net retention rate increased to 113% as compared to 101% in the fourth quarter of 2020.
• Multi-year deals now comprise 33% of our overall ARR, compared to 25% as of December 31, 2020.
• Remaining performance obligations increased 60% year over year, to $137.5 million as of December 31, 2021.

Financial Outlook

“We are pleased with another exceptionally strong and record-breaking quarter,” said Jason Schwartz, Chief Financial Officer of Similarweb. “Our investments across the business are paying off and fueling our continued rapid growth. On that basis, we are issuing strong guidance for the first quarter and full year 2022.”

• Q1 2022 Guidance
  • Total revenue between $41.1 million and $41.5 million, representing 40% growth year over year at the mid range.
  • Non-GAAP operating loss between ($20.5) million and ($20.9) million.
• FY 2022 Guidance
  • Total revenue between $193.0 million and $194.0 million, representing 41% growth year over year at the mid range.
  • Non-GAAP operating loss between ($83.0) million and ($84.0) million, reflecting continued investment to further expand our data moats through the previously reported acquisition of Embee Mobile and the data licensing agreement with App Annie, as well as increased investment in R&D and in our go-to-market which is designed to support our continued growth plans.

The Company’s first quarter and 2022 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, 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, the most directly comparable GAAP measure to non-GAAP operating loss, and similarly cannot provide a reconciliation between its forecasted non-GAAP operating loss and forecasted operating loss 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 today, February 16, 2022. 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 (877) 407-0726 toll-free and at (201) 689-7806 internationally.

About Similarweb: As a trusted platform for understanding online behavior, millions of people rely on Similarweb insights to strengthen their knowledge of the digital world. We empower anyone — from the curious individual to the enterprise business leader — to make smarter decisions by understanding why things happen across the digital ecosystem.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to the expected performance of our business, future financial results, strategy, the potential impacts of the COVID-19 pandemic and associated global economic uncertainty, long-term growth and overall future prospects and the size and our ability to capitalize on our market opportunity. 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 variety of assumptions, uncertainties, risks and factors that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) challenges associated with forecasting our revenue given our recent growth and rapid technological development, (ii) our history of net losses and desire to increase operating expenses, thereby limiting our ability to achieve profitability, (iii) challenges related to effectively managing our growth, (iv) intense competition in the market and services categories in which we participate, (v) potential reductions in participation in our contributory network and/or increase in the volume of opt-out requests from individuals with respect to our collection of their date, or a decrease in our direct measurement dataset, which could lead to a deterioration in the depth, breadth or accuracy of our data, (vi) our inability to attract new customers and expand subscriptions of current customers, (vii) changes in laws, regulations, and public perception concerning data privacy or change in the patterns of enforcement of existing laws and regulations, (viii) our inability to introduce new features or solutions and make enhancements to our existing solutions, (ix) real or perceived errors, failures, vulnerabilities or bugs in our platform, (x) potential security breaches to our systems or to the systems of our third-party service providers, (xi) our inability to obtain and maintain comprehensive and reliable data to generate our insights, (xii) changes in laws and regulations related to the Internet or changes in the Internet infrastructure itself that may diminish the demand for our solutions, and (xiii) failure to effectively develop and expand our direct sales capabilities, which could harm our ability to increase the number of organizations using our platform and achieve broader market acceptance for our solutions.

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 final prospectus for our initial public offering filed with the SEC on May 12, 2021 in connection with our initial public offering 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.

Certain information contained in this press release relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the Company's own internal estimates and research. While the Company believes these third-party sources to be reliable as of the date of this press release, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of any information obtained from third-party sources. In addition, all of the market data included in this press release involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while we believe our own internal research is reliable, such research has not been verified by any independent source.

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. Non-GAAP operating income (loss) represents GAAP operating income (loss) less share-based compensation, retention payments related to business combinations, amortization of intangible assets, non-recurring expenses in relation to our initial public offering and certain other non-recurring items.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220216005501/en/

Press Contact:
Richard Krueger
Similarweb
press@similarweb.com

Investor Contact:
Annie Rosenberg
The Blueshirt Group, for Similarweb
ir@similarweb.com

Source: Similarweb Ltd.

Released February 16, 2022