Similarweb Announces Third Quarter 2021 Results Above Guidance Range

Similarweb Ltd., a leading platform for digital intelligence, today announced financial results for its third quarter ended September 30, 2021.

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“Given the continued, increasing demand for our solutions, we are issuing strong guidance for the fourth quarter and raising our full year revenue guidance.”

“Q3 was Similarweb’s best quarter yet. We continued to execute well, and I’m especially pleased that we exceeded $150M in ARR, just one year after we reached the $100M ARR milestone, while driving record NRR across the business. Similarweb delivers powerful data and insights that helps companies understand their markets better than their competitors, take action faster, and grow their revenues. In Q3 we continued our strong revenue growth, expanded our existing customer relationships, and achieved breakthrough deals with new products. These results reinforce our confidence in our opportunity, our strategy, and the investments we’re making in our future,” said Or Offer, Founder and CEO of Similarweb.

Third Quarter 2021 Financial Highlights

• Total revenue was $35.6 million, an increase of 46% compared to the third quarter of 2020.
• GAAP operating loss was $(16.7) million, compared to $(4.8) million for the third quarter of 2020.
• Non-GAAP operating loss was $(13.9) million, compared to $(2.4) million for the third quarter of 2020.
• GAAP earnings per share, basic and diluted, was $(0.23), compared to $(0.40) for the third quarter of 2020.
• Free cash flow was $(17.1) million, compared to $(2.3) million compared to the third quarter of 2020.
• Cash and cash equivalents totaled $159.1 million as of September 30, 2021, as compared to $177.0 million as of June 30, 2021.

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Recent Business Highlights

• Dollar-based net retention rate for customers with ARR of $100,000 or more increased to 122% as compared to 114% in the third quarter of 2020.
• Overall dollar-based net retention rate increased to 110% as compared to 101% in the third quarter of 2020.
• Grew number of customers with ARR of $100,000 or more to 245, an increase of 48% compared to September 30, 2020.
• Customers with ARR of $100,000 or more contributed 51% of the total ARR as of September 30, 2021, compared to 47% as of September 30, 2020.
• Grew number of customers to 3,242 as of September 30, 2021, an increase of 27% compared to September 30, 2020.
• Grew average annual revenue per customer to $45.0K in the third quarter of 2021, an increase of 16% compared to the third quarter of 2020.
• Announced the acquisition of Embee Mobile, a San Francisco-based mobile insights provider and market leader in mobile audience analytics, consumer panels and mobile sampling.

Financial Outlook

“We are pleased with another quarter of strong financial and operational performance for the business,” said Jason Schwartz, Chief Financial Officer of Similarweb. “Given the continued, increasing demand for our solutions, we are issuing strong guidance for the fourth quarter and raising our full year revenue guidance.”

• Q4 2021
  • Total revenue between $37.5 million and $37.9 million.
  • Non-GAAP operating loss between ($18.8) million and ($19.2) million. This includes approximately $3 million of incremental operating costs related to the acquisition of Embee Mobile, which we expect to close this quarter.

• FY 2021
  • Total revenue between $135.0 million and $135.4 million, up from prior range of $129.0 million to $130.0 million.
  • Non-GAAP operating loss between ($52.1) million and ($52.5) million.

The Company’s fourth quarter and 2021 financial outlook is based on 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.

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