Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Similarweb Announces Record First Quarter 2022 Results By: Similarweb Ltd. via Business Wire May 10, 2022 at 16:15 PM EDT First quarter 2022 revenue grew 51% year-over-year to $44.3 million NRR for $100K+ ARR customers increased to 127% Remaining performance obligations increased 68% year-over-year to $159.1 million Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital intelligence company, today announced financial results for its first quarter ended March 31, 2022. 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 are strong out of the gate in 2022 with another record-breaking quarter,” said Or Offer, Founder and CEO of Similarweb. “Our customers are benefiting tremendously from the critical insights we provide that help them win in their markets and accelerate their growth. Our momentum continues to build and we are extremely excited about what lies ahead". First Quarter 2022 Financial Highlights Total revenue was $44.3 million, an increase of 51% compared to $29.4 million for the first quarter of 2021. GAAP operating loss was $(26.2) million, compared to $(11.6) million for the first quarter of 2021. GAAP net loss per share was $(0.34), compared to $(0.78) for the first quarter of 2021. Non-GAAP operating loss was $(19.8) million, compared to $(8.7) million for the first quarter of 2021. Non-GAAP operating loss per share was $(0.26), compared to $(0.56) for the first quarter of 2021. Cash and cash equivalents totaled $125.0 million as of March 31, 2022, compared to $128.9 million as of December 31, 2021. Free cash flow was $(4.3) million, compared to $1.9 million for the first quarter of 2021. Normalized free cash flow was $(4.0) million, compared to $1.9 million for the first quarter of 2021. Recent Business Highlights Grew number of customers to 3,664 as of March 31, 2022, an increase of 27% compared to March 31, 2021. Grew average annual revenue per customer to approximately $49,500 in the first quarter of 2022, an increase of 18% compared to the first quarter of 2021. Grew number of customers with ARR of $100,000 or more to 297, an increase of 48% compared to March 31, 2021. Customers with ARR of $100,000 or more contributed 53% of the total ARR as of March 31, 2022, compared to 49% as of March 31, 2021. Dollar-based net retention rate for customers with ARR of $100,000 or more increased to 127% as compared to 115% in the first quarter of 2021. Overall dollar-based net retention rate increased to 115% as compared to 103% in the first quarter of 2021. Multi-year deals now comprise 35% of our overall ARR, compared to 26% as of March 31, 2021. Remaining performance obligations increased 68% year over year, to $159.1 million as of March 31, 2022, as compared to $94.9 million as of March 31, 2021. Financial Outlook “We are excited about our strong start and record-breaking quarter” said Jason Schwartz, Chief Financial Officer of Similarweb. “Our investments across the business contributed momentum that fuels our growth. We are raising our outlook for the full year 2022”. Q2 2022 Guidance Total revenue between $45.5 million and $45.9 million, representing 41% growth year over year at the mid-point of the range. Non-GAAP operating loss between $(23.0) million and $(23.5) million. This includes Non-GAAP gross margin anticipated in the range of 73% to 74%. FY 2022 Guidance Total revenue between $196.0 million and $197.0 million, representing 43% growth year over year at the mid-point of the range. Non-GAAP operating loss between ($82) million and ($83) million, which includes Non-GAAP gross margin anticipated in the range of 75% to 76%, reflecting continued investment to further expand our data moats through the previously reported acquisitions of Embee Mobile and SimilarTech, and the data licensing agreement with data.ai (formerly App Annie), as well as increased investment in research and development and in our go-to-market which is designed to support our continued growth plans. The Company’s second quarter and full year 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. 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 to 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, May 11, 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 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 second quarter and full year of 2022 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 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 data, 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, (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 and (xiv) the impact that global events, such as ongoing COVID-19 pandemic, including variants of COVID-19 or other public health crises and the Russian military operations in Ukraine, and any related economic downturn could have on our or our customers' businesses, financial condition and results of operations. 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 March 25, 2022, 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 and payments received in connection with these capital investments. Non-GAAP operating income (loss), non-GAAP gross profit, Non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represents 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 above 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 Sheet U.S. dollars in thousands (except share and per share data) December 31, March 31, 2021 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 128,879 $ 125,019 Restricted deposits 11,474 11,462 Accounts receivable, net 31,017 30,531 Deferred contract costs 8,470 9,512 Prepaid expenses and other current assets 7,847 10,986 Total current assets 187,687 187,510 Property and equipment, net 6,356 20,054 Deferred contract costs, non-current 9,208 9,933 Operating lease right-of-use assets — 40,760 Intangible assets, net 11,617 10,576 Goodwill 11,318 11,318 Other non-current assets 813 813 Total assets $ 226,999 $ 280,964 Liabilities and shareholders' (deficit) equity Current liabilities: Accounts payable $ 11,303 $ 27,020 Payroll and benefit related liabilities 17,969 20,264 Deferred revenues 76,676 89,656 Other payables and accrued expenses 28,199 28,394 Operating lease liabilities — 504 Total current liabilities 134,147 165,838 Deferred revenues, non-current 2,074 1,612 Operating lease liabilities, non-current — 46,032 Deferred rent 2,602 — Other long-term liabilities 3,262 3,200 Total liabilities 142,085 216,682 Shareholders' (deficit) equity Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2021 and March 31, 2022 (unaudited), 74,847,609 and 75,397,202 shares issued as of December 31, 2021 and March 31, 2022 (unaudited), 74,845,441 and 75,395,034 outstanding as of December 31, 2021 and March 31, 2022 (unaudited), respectively; 205 207 Additional paid-in capital 324,614 329,503 Accumulated other comprehensive income 160 246 Accumulated deficit (240,065 ) (265,674 ) Total shareholders' equity 84,914 64,282 Total liabilities and shareholders' equity $ 226,999 $ 280,964 Similarweb Ltd. Consolidated Statement of Comprehensive Income (Loss) U.S. dollars in thousands (except share and per share data) Three Months Ended March 31, 2021 2022 (Unaudited) Revenues $ 29,413 $ 44,280 Cost of revenues 6,273 13,095 Gross profit 23,140 31,185 Operating expenses: Research and development 8,984 14,713 Sales and marketing 19,600 30,342 General and administrative 6,107 12,311 Total operating expenses 34,691 57,366 Loss from operations (11,551 ) (26,181 ) Finance (expenses) income, net (347 ) 822 Loss before income taxes (11,898 ) (25,359 ) Income taxes 216 250 Net loss $ (12,114 ) $ (25,609 ) Net loss per share attributable to ordinary shareholders, basic and diluted $ (0.78 ) $ (0.34 ) Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 15,467,710 75,035,966 Net loss (12,114 ) (25,609 ) Other comprehensive income (loss), net of tax Change in unrealized gain (loss) on cashflow hedges (260 ) 86 Total other comprehensive income (loss), net of tax (260 ) 86 Total comprehensive loss $ (12,374 ) $ (25,523 ) Share based compensation costs included above: U.S. dollars in thousands Three Months Ended March 31, 2021 2022 (in thousands) Cost of revenues $ 30 $ 146 Research and development 1,365 1,209 Sales and marketing 626 1,373 General and administrative 861 1,075 Total $ 2,882 $ 3,803 Similarweb Ltd. Consolidated Statement of Cash Flows U.S. dollars in thousands Three Months Ended March 31, 2021 2022 (Unaudited) Cash flows from operating activities: Net loss $ (12,114 ) $ (25,609 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 520 3,049 Finance expense 149 231 Unrealized (gain) loss from hedging future transactions (75 ) 4 Share-based compensation 2,882 3,803 Provision for accrued interest on Credit Facility (53 ) — Changes in operating assets and liabilities: Operating lease right-of-use assets and liabilities, net — 3,177 Decrease in accounts receivable, net 925 486 Increase in deferred contract costs (1,118 ) (1,767 ) (Decrease) increase in prepaid expenses and other current assets (240 ) 1,104 Increase in other non-current assets (900 ) — Increase in accounts payable 1,989 1,494 Increase in deferred revenue 9,448 12,518 Decrease in deferred rent (121 ) — Increase (decrease) in other long-term liabilities 140 (62 ) Increase in other payables and accrued expenses 897 2,486 Net cash provided by operating activities 2,329 914 Cash flows from investing activities: Purchases of property and equipment, net (451 ) (4,784 ) Capitalized internal-use software costs — (380 ) (Increase) decrease in restricted deposits (488 ) 12 Decrease in short-term investments 9,975 — Net cash provided by (used in) investing activities 9,036 (5,152 ) Cash flows from financing activities: Payment of deferred offering costs (387 ) — Proceeds from exercise of share options 338 609 Borrowings under Credit Facility 30,000 — Repayment of Credit Facility (26,800 ) — Net cash provided by financing activities 3,151 609 Effect of exchange rates on cash and cash equivalents (149 ) (231 ) Net increase (decrease) in cash and cash equivalents 14,367 (3,860 ) Cash and cash equivalents, beginning of period 23,943 128,879 Cash and cash equivalents, end of period $ 38,310 $ 125,019 Supplemental disclosure of cash flow information: Interest paid $ 391 $ (17 ) Taxes paid $ 134 $ 60 Supplemental disclosure of non-cash operating, investing and financing activities: Offering costs incurred during the period included in accounts payable and accrued expenses $ 971 $ — Additions to operating lease right-of-use assets and liabilities $ — $ 4,279 Deferred proceeds from exercise of share options included in other current assets $ — $ 479 Deferred costs of property and equipment incurred during the period included in accounts payable $ — $ 10,542 Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures Reconciliation of GAAP gross profit to non-GAAP gross profit Three Months Ended March 31, 2021 2022 (In thousands) GAAP gross profit $ 23,140 $ 31,185 Add: Share-based compensation expenses 30 146 Retention payments related to business combinations — 690 Amortization of intangible assets related to business combinations 1,041 Non-recurring expenses related to termination of lease agreement and others 9 Non-GAAP gross profit $ 23,170 $ 33,071 Non-GAAP gross margin 79 % 75 % Reconciliation of Loss from operations (GAAP) to Non-GAAP operating loss Three Months Ended March 31, 2021 2022 (In thousands) Loss from operations $ (11,551 ) $ (26,181 ) Add: Share-based compensation expenses 2,882 3,803 Adjustment of fair value of contingent consideration related to business combinations — 552 Retention payments related to business combinations — 712 Amortization of intangible assets related to business combinations — 1,041 Non-recurring expenses related to termination of lease agreement and others — 318 Non-GAAP operating loss $ (8,669 ) $ (19,755 ) Non-GAAP operating margin (29 ) % (45 ) % Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended March 31, 2021 2022 (In thousands) GAAP research and development $ 8,984 $ 14,713 Less: Share-based compensation expenses 1,365 1,209 Non-recurring expenses related to termination of lease agreement and others — 23 Non-GAAP research and development $ 7,619 $ 13,481 GAAP sales and marketing $ 19,600 $ 30,342 Less: Share-based compensation expenses 626 1,373 Retention payments related to business combinations — 22 Non-recurring expenses related to termination of lease agreement and others — 271 Non-GAAP sales and marketing $ 18,974 $ 28,676 GAAP general and administrative $ 6,107 $ 12,311 Less: Share-based compensation expenses 861 1,075 Adjustment of fair value of contingent consideration related to business combinations — 552 Non-recurring expenses related to termination of lease agreement and others — 15 Non-GAAP general and administrative $ 5,246 $ 10,669 Reconciliation of Net cash used in operating activities (GAAP) to Free cash flow and normalized free cash flow Three Months Ended March 31, 2021 2022 (In thousands) Net cash provided by operating activities $ 2,329 $ 914 Purchases of property and equipment, net (451 ) (4,784 ) Capitalized internal use software costs — (380 ) Free cash flow $ 1,878 $ (4,250 ) Purchases of property and equipment related to the new headquarters — 4,456 Payments received in connection with purchases of property and equipment — (4,169 ) Normalized free cash flow $ 1,878 $ (3,963 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006185/en/Contacts Press Contact: Richard Krueger Similarweb press@similarweb.com | Investor Contact: Raymond "RJ" Jones Similarweb ir@similarweb.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Similarweb Announces Record First Quarter 2022 Results By: Similarweb Ltd. via Business Wire May 10, 2022 at 16:15 PM EDT First quarter 2022 revenue grew 51% year-over-year to $44.3 million NRR for $100K+ ARR customers increased to 127% Remaining performance obligations increased 68% year-over-year to $159.1 million Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital intelligence company, today announced financial results for its first quarter ended March 31, 2022. 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 are strong out of the gate in 2022 with another record-breaking quarter,” said Or Offer, Founder and CEO of Similarweb. “Our customers are benefiting tremendously from the critical insights we provide that help them win in their markets and accelerate their growth. Our momentum continues to build and we are extremely excited about what lies ahead". First Quarter 2022 Financial Highlights Total revenue was $44.3 million, an increase of 51% compared to $29.4 million for the first quarter of 2021. GAAP operating loss was $(26.2) million, compared to $(11.6) million for the first quarter of 2021. GAAP net loss per share was $(0.34), compared to $(0.78) for the first quarter of 2021. Non-GAAP operating loss was $(19.8) million, compared to $(8.7) million for the first quarter of 2021. Non-GAAP operating loss per share was $(0.26), compared to $(0.56) for the first quarter of 2021. Cash and cash equivalents totaled $125.0 million as of March 31, 2022, compared to $128.9 million as of December 31, 2021. Free cash flow was $(4.3) million, compared to $1.9 million for the first quarter of 2021. Normalized free cash flow was $(4.0) million, compared to $1.9 million for the first quarter of 2021. Recent Business Highlights Grew number of customers to 3,664 as of March 31, 2022, an increase of 27% compared to March 31, 2021. Grew average annual revenue per customer to approximately $49,500 in the first quarter of 2022, an increase of 18% compared to the first quarter of 2021. Grew number of customers with ARR of $100,000 or more to 297, an increase of 48% compared to March 31, 2021. Customers with ARR of $100,000 or more contributed 53% of the total ARR as of March 31, 2022, compared to 49% as of March 31, 2021. Dollar-based net retention rate for customers with ARR of $100,000 or more increased to 127% as compared to 115% in the first quarter of 2021. Overall dollar-based net retention rate increased to 115% as compared to 103% in the first quarter of 2021. Multi-year deals now comprise 35% of our overall ARR, compared to 26% as of March 31, 2021. Remaining performance obligations increased 68% year over year, to $159.1 million as of March 31, 2022, as compared to $94.9 million as of March 31, 2021. Financial Outlook “We are excited about our strong start and record-breaking quarter” said Jason Schwartz, Chief Financial Officer of Similarweb. “Our investments across the business contributed momentum that fuels our growth. We are raising our outlook for the full year 2022”. Q2 2022 Guidance Total revenue between $45.5 million and $45.9 million, representing 41% growth year over year at the mid-point of the range. Non-GAAP operating loss between $(23.0) million and $(23.5) million. This includes Non-GAAP gross margin anticipated in the range of 73% to 74%. FY 2022 Guidance Total revenue between $196.0 million and $197.0 million, representing 43% growth year over year at the mid-point of the range. Non-GAAP operating loss between ($82) million and ($83) million, which includes Non-GAAP gross margin anticipated in the range of 75% to 76%, reflecting continued investment to further expand our data moats through the previously reported acquisitions of Embee Mobile and SimilarTech, and the data licensing agreement with data.ai (formerly App Annie), as well as increased investment in research and development and in our go-to-market which is designed to support our continued growth plans. The Company’s second quarter and full year 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. 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 to 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, May 11, 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 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 second quarter and full year of 2022 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 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 data, 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, (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 and (xiv) the impact that global events, such as ongoing COVID-19 pandemic, including variants of COVID-19 or other public health crises and the Russian military operations in Ukraine, and any related economic downturn could have on our or our customers' businesses, financial condition and results of operations. 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 March 25, 2022, 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 and payments received in connection with these capital investments. Non-GAAP operating income (loss), non-GAAP gross profit, Non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represents 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 above 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 Sheet U.S. dollars in thousands (except share and per share data) December 31, March 31, 2021 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 128,879 $ 125,019 Restricted deposits 11,474 11,462 Accounts receivable, net 31,017 30,531 Deferred contract costs 8,470 9,512 Prepaid expenses and other current assets 7,847 10,986 Total current assets 187,687 187,510 Property and equipment, net 6,356 20,054 Deferred contract costs, non-current 9,208 9,933 Operating lease right-of-use assets — 40,760 Intangible assets, net 11,617 10,576 Goodwill 11,318 11,318 Other non-current assets 813 813 Total assets $ 226,999 $ 280,964 Liabilities and shareholders' (deficit) equity Current liabilities: Accounts payable $ 11,303 $ 27,020 Payroll and benefit related liabilities 17,969 20,264 Deferred revenues 76,676 89,656 Other payables and accrued expenses 28,199 28,394 Operating lease liabilities — 504 Total current liabilities 134,147 165,838 Deferred revenues, non-current 2,074 1,612 Operating lease liabilities, non-current — 46,032 Deferred rent 2,602 — Other long-term liabilities 3,262 3,200 Total liabilities 142,085 216,682 Shareholders' (deficit) equity Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2021 and March 31, 2022 (unaudited), 74,847,609 and 75,397,202 shares issued as of December 31, 2021 and March 31, 2022 (unaudited), 74,845,441 and 75,395,034 outstanding as of December 31, 2021 and March 31, 2022 (unaudited), respectively; 205 207 Additional paid-in capital 324,614 329,503 Accumulated other comprehensive income 160 246 Accumulated deficit (240,065 ) (265,674 ) Total shareholders' equity 84,914 64,282 Total liabilities and shareholders' equity $ 226,999 $ 280,964 Similarweb Ltd. Consolidated Statement of Comprehensive Income (Loss) U.S. dollars in thousands (except share and per share data) Three Months Ended March 31, 2021 2022 (Unaudited) Revenues $ 29,413 $ 44,280 Cost of revenues 6,273 13,095 Gross profit 23,140 31,185 Operating expenses: Research and development 8,984 14,713 Sales and marketing 19,600 30,342 General and administrative 6,107 12,311 Total operating expenses 34,691 57,366 Loss from operations (11,551 ) (26,181 ) Finance (expenses) income, net (347 ) 822 Loss before income taxes (11,898 ) (25,359 ) Income taxes 216 250 Net loss $ (12,114 ) $ (25,609 ) Net loss per share attributable to ordinary shareholders, basic and diluted $ (0.78 ) $ (0.34 ) Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 15,467,710 75,035,966 Net loss (12,114 ) (25,609 ) Other comprehensive income (loss), net of tax Change in unrealized gain (loss) on cashflow hedges (260 ) 86 Total other comprehensive income (loss), net of tax (260 ) 86 Total comprehensive loss $ (12,374 ) $ (25,523 ) Share based compensation costs included above: U.S. dollars in thousands Three Months Ended March 31, 2021 2022 (in thousands) Cost of revenues $ 30 $ 146 Research and development 1,365 1,209 Sales and marketing 626 1,373 General and administrative 861 1,075 Total $ 2,882 $ 3,803 Similarweb Ltd. Consolidated Statement of Cash Flows U.S. dollars in thousands Three Months Ended March 31, 2021 2022 (Unaudited) Cash flows from operating activities: Net loss $ (12,114 ) $ (25,609 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 520 3,049 Finance expense 149 231 Unrealized (gain) loss from hedging future transactions (75 ) 4 Share-based compensation 2,882 3,803 Provision for accrued interest on Credit Facility (53 ) — Changes in operating assets and liabilities: Operating lease right-of-use assets and liabilities, net — 3,177 Decrease in accounts receivable, net 925 486 Increase in deferred contract costs (1,118 ) (1,767 ) (Decrease) increase in prepaid expenses and other current assets (240 ) 1,104 Increase in other non-current assets (900 ) — Increase in accounts payable 1,989 1,494 Increase in deferred revenue 9,448 12,518 Decrease in deferred rent (121 ) — Increase (decrease) in other long-term liabilities 140 (62 ) Increase in other payables and accrued expenses 897 2,486 Net cash provided by operating activities 2,329 914 Cash flows from investing activities: Purchases of property and equipment, net (451 ) (4,784 ) Capitalized internal-use software costs — (380 ) (Increase) decrease in restricted deposits (488 ) 12 Decrease in short-term investments 9,975 — Net cash provided by (used in) investing activities 9,036 (5,152 ) Cash flows from financing activities: Payment of deferred offering costs (387 ) — Proceeds from exercise of share options 338 609 Borrowings under Credit Facility 30,000 — Repayment of Credit Facility (26,800 ) — Net cash provided by financing activities 3,151 609 Effect of exchange rates on cash and cash equivalents (149 ) (231 ) Net increase (decrease) in cash and cash equivalents 14,367 (3,860 ) Cash and cash equivalents, beginning of period 23,943 128,879 Cash and cash equivalents, end of period $ 38,310 $ 125,019 Supplemental disclosure of cash flow information: Interest paid $ 391 $ (17 ) Taxes paid $ 134 $ 60 Supplemental disclosure of non-cash operating, investing and financing activities: Offering costs incurred during the period included in accounts payable and accrued expenses $ 971 $ — Additions to operating lease right-of-use assets and liabilities $ — $ 4,279 Deferred proceeds from exercise of share options included in other current assets $ — $ 479 Deferred costs of property and equipment incurred during the period included in accounts payable $ — $ 10,542 Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures Reconciliation of GAAP gross profit to non-GAAP gross profit Three Months Ended March 31, 2021 2022 (In thousands) GAAP gross profit $ 23,140 $ 31,185 Add: Share-based compensation expenses 30 146 Retention payments related to business combinations — 690 Amortization of intangible assets related to business combinations 1,041 Non-recurring expenses related to termination of lease agreement and others 9 Non-GAAP gross profit $ 23,170 $ 33,071 Non-GAAP gross margin 79 % 75 % Reconciliation of Loss from operations (GAAP) to Non-GAAP operating loss Three Months Ended March 31, 2021 2022 (In thousands) Loss from operations $ (11,551 ) $ (26,181 ) Add: Share-based compensation expenses 2,882 3,803 Adjustment of fair value of contingent consideration related to business combinations — 552 Retention payments related to business combinations — 712 Amortization of intangible assets related to business combinations — 1,041 Non-recurring expenses related to termination of lease agreement and others — 318 Non-GAAP operating loss $ (8,669 ) $ (19,755 ) Non-GAAP operating margin (29 ) % (45 ) % Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended March 31, 2021 2022 (In thousands) GAAP research and development $ 8,984 $ 14,713 Less: Share-based compensation expenses 1,365 1,209 Non-recurring expenses related to termination of lease agreement and others — 23 Non-GAAP research and development $ 7,619 $ 13,481 GAAP sales and marketing $ 19,600 $ 30,342 Less: Share-based compensation expenses 626 1,373 Retention payments related to business combinations — 22 Non-recurring expenses related to termination of lease agreement and others — 271 Non-GAAP sales and marketing $ 18,974 $ 28,676 GAAP general and administrative $ 6,107 $ 12,311 Less: Share-based compensation expenses 861 1,075 Adjustment of fair value of contingent consideration related to business combinations — 552 Non-recurring expenses related to termination of lease agreement and others — 15 Non-GAAP general and administrative $ 5,246 $ 10,669 Reconciliation of Net cash used in operating activities (GAAP) to Free cash flow and normalized free cash flow Three Months Ended March 31, 2021 2022 (In thousands) Net cash provided by operating activities $ 2,329 $ 914 Purchases of property and equipment, net (451 ) (4,784 ) Capitalized internal use software costs — (380 ) Free cash flow $ 1,878 $ (4,250 ) Purchases of property and equipment related to the new headquarters — 4,456 Payments received in connection with purchases of property and equipment — (4,169 ) Normalized free cash flow $ 1,878 $ (3,963 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006185/en/Contacts Press Contact: Richard Krueger Similarweb press@similarweb.com | Investor Contact: Raymond "RJ" Jones Similarweb ir@similarweb.com
First quarter 2022 revenue grew 51% year-over-year to $44.3 million NRR for $100K+ ARR customers increased to 127% Remaining performance obligations increased 68% year-over-year to $159.1 million
Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital intelligence company, today announced financial results for its first quarter ended March 31, 2022. 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 are strong out of the gate in 2022 with another record-breaking quarter,” said Or Offer, Founder and CEO of Similarweb. “Our customers are benefiting tremendously from the critical insights we provide that help them win in their markets and accelerate their growth. Our momentum continues to build and we are extremely excited about what lies ahead". First Quarter 2022 Financial Highlights Total revenue was $44.3 million, an increase of 51% compared to $29.4 million for the first quarter of 2021. GAAP operating loss was $(26.2) million, compared to $(11.6) million for the first quarter of 2021. GAAP net loss per share was $(0.34), compared to $(0.78) for the first quarter of 2021. Non-GAAP operating loss was $(19.8) million, compared to $(8.7) million for the first quarter of 2021. Non-GAAP operating loss per share was $(0.26), compared to $(0.56) for the first quarter of 2021. Cash and cash equivalents totaled $125.0 million as of March 31, 2022, compared to $128.9 million as of December 31, 2021. Free cash flow was $(4.3) million, compared to $1.9 million for the first quarter of 2021. Normalized free cash flow was $(4.0) million, compared to $1.9 million for the first quarter of 2021. Recent Business Highlights Grew number of customers to 3,664 as of March 31, 2022, an increase of 27% compared to March 31, 2021. Grew average annual revenue per customer to approximately $49,500 in the first quarter of 2022, an increase of 18% compared to the first quarter of 2021. Grew number of customers with ARR of $100,000 or more to 297, an increase of 48% compared to March 31, 2021. Customers with ARR of $100,000 or more contributed 53% of the total ARR as of March 31, 2022, compared to 49% as of March 31, 2021. Dollar-based net retention rate for customers with ARR of $100,000 or more increased to 127% as compared to 115% in the first quarter of 2021. Overall dollar-based net retention rate increased to 115% as compared to 103% in the first quarter of 2021. Multi-year deals now comprise 35% of our overall ARR, compared to 26% as of March 31, 2021. Remaining performance obligations increased 68% year over year, to $159.1 million as of March 31, 2022, as compared to $94.9 million as of March 31, 2021. Financial Outlook “We are excited about our strong start and record-breaking quarter” said Jason Schwartz, Chief Financial Officer of Similarweb. “Our investments across the business contributed momentum that fuels our growth. We are raising our outlook for the full year 2022”. Q2 2022 Guidance Total revenue between $45.5 million and $45.9 million, representing 41% growth year over year at the mid-point of the range. Non-GAAP operating loss between $(23.0) million and $(23.5) million. This includes Non-GAAP gross margin anticipated in the range of 73% to 74%. FY 2022 Guidance Total revenue between $196.0 million and $197.0 million, representing 43% growth year over year at the mid-point of the range. Non-GAAP operating loss between ($82) million and ($83) million, which includes Non-GAAP gross margin anticipated in the range of 75% to 76%, reflecting continued investment to further expand our data moats through the previously reported acquisitions of Embee Mobile and SimilarTech, and the data licensing agreement with data.ai (formerly App Annie), as well as increased investment in research and development and in our go-to-market which is designed to support our continued growth plans. The Company’s second quarter and full year 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. 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 to 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, May 11, 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 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 second quarter and full year of 2022 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 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 data, 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, (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 and (xiv) the impact that global events, such as ongoing COVID-19 pandemic, including variants of COVID-19 or other public health crises and the Russian military operations in Ukraine, and any related economic downturn could have on our or our customers' businesses, financial condition and results of operations. 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 March 25, 2022, 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 and payments received in connection with these capital investments. Non-GAAP operating income (loss), non-GAAP gross profit, Non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represents 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 above 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 Sheet U.S. dollars in thousands (except share and per share data) December 31, March 31, 2021 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 128,879 $ 125,019 Restricted deposits 11,474 11,462 Accounts receivable, net 31,017 30,531 Deferred contract costs 8,470 9,512 Prepaid expenses and other current assets 7,847 10,986 Total current assets 187,687 187,510 Property and equipment, net 6,356 20,054 Deferred contract costs, non-current 9,208 9,933 Operating lease right-of-use assets — 40,760 Intangible assets, net 11,617 10,576 Goodwill 11,318 11,318 Other non-current assets 813 813 Total assets $ 226,999 $ 280,964 Liabilities and shareholders' (deficit) equity Current liabilities: Accounts payable $ 11,303 $ 27,020 Payroll and benefit related liabilities 17,969 20,264 Deferred revenues 76,676 89,656 Other payables and accrued expenses 28,199 28,394 Operating lease liabilities — 504 Total current liabilities 134,147 165,838 Deferred revenues, non-current 2,074 1,612 Operating lease liabilities, non-current — 46,032 Deferred rent 2,602 — Other long-term liabilities 3,262 3,200 Total liabilities 142,085 216,682 Shareholders' (deficit) equity Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2021 and March 31, 2022 (unaudited), 74,847,609 and 75,397,202 shares issued as of December 31, 2021 and March 31, 2022 (unaudited), 74,845,441 and 75,395,034 outstanding as of December 31, 2021 and March 31, 2022 (unaudited), respectively; 205 207 Additional paid-in capital 324,614 329,503 Accumulated other comprehensive income 160 246 Accumulated deficit (240,065 ) (265,674 ) Total shareholders' equity 84,914 64,282 Total liabilities and shareholders' equity $ 226,999 $ 280,964 Similarweb Ltd. Consolidated Statement of Comprehensive Income (Loss) U.S. dollars in thousands (except share and per share data) Three Months Ended March 31, 2021 2022 (Unaudited) Revenues $ 29,413 $ 44,280 Cost of revenues 6,273 13,095 Gross profit 23,140 31,185 Operating expenses: Research and development 8,984 14,713 Sales and marketing 19,600 30,342 General and administrative 6,107 12,311 Total operating expenses 34,691 57,366 Loss from operations (11,551 ) (26,181 ) Finance (expenses) income, net (347 ) 822 Loss before income taxes (11,898 ) (25,359 ) Income taxes 216 250 Net loss $ (12,114 ) $ (25,609 ) Net loss per share attributable to ordinary shareholders, basic and diluted $ (0.78 ) $ (0.34 ) Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 15,467,710 75,035,966 Net loss (12,114 ) (25,609 ) Other comprehensive income (loss), net of tax Change in unrealized gain (loss) on cashflow hedges (260 ) 86 Total other comprehensive income (loss), net of tax (260 ) 86 Total comprehensive loss $ (12,374 ) $ (25,523 ) Share based compensation costs included above: U.S. dollars in thousands Three Months Ended March 31, 2021 2022 (in thousands) Cost of revenues $ 30 $ 146 Research and development 1,365 1,209 Sales and marketing 626 1,373 General and administrative 861 1,075 Total $ 2,882 $ 3,803 Similarweb Ltd. Consolidated Statement of Cash Flows U.S. dollars in thousands Three Months Ended March 31, 2021 2022 (Unaudited) Cash flows from operating activities: Net loss $ (12,114 ) $ (25,609 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 520 3,049 Finance expense 149 231 Unrealized (gain) loss from hedging future transactions (75 ) 4 Share-based compensation 2,882 3,803 Provision for accrued interest on Credit Facility (53 ) — Changes in operating assets and liabilities: Operating lease right-of-use assets and liabilities, net — 3,177 Decrease in accounts receivable, net 925 486 Increase in deferred contract costs (1,118 ) (1,767 ) (Decrease) increase in prepaid expenses and other current assets (240 ) 1,104 Increase in other non-current assets (900 ) — Increase in accounts payable 1,989 1,494 Increase in deferred revenue 9,448 12,518 Decrease in deferred rent (121 ) — Increase (decrease) in other long-term liabilities 140 (62 ) Increase in other payables and accrued expenses 897 2,486 Net cash provided by operating activities 2,329 914 Cash flows from investing activities: Purchases of property and equipment, net (451 ) (4,784 ) Capitalized internal-use software costs — (380 ) (Increase) decrease in restricted deposits (488 ) 12 Decrease in short-term investments 9,975 — Net cash provided by (used in) investing activities 9,036 (5,152 ) Cash flows from financing activities: Payment of deferred offering costs (387 ) — Proceeds from exercise of share options 338 609 Borrowings under Credit Facility 30,000 — Repayment of Credit Facility (26,800 ) — Net cash provided by financing activities 3,151 609 Effect of exchange rates on cash and cash equivalents (149 ) (231 ) Net increase (decrease) in cash and cash equivalents 14,367 (3,860 ) Cash and cash equivalents, beginning of period 23,943 128,879 Cash and cash equivalents, end of period $ 38,310 $ 125,019 Supplemental disclosure of cash flow information: Interest paid $ 391 $ (17 ) Taxes paid $ 134 $ 60 Supplemental disclosure of non-cash operating, investing and financing activities: Offering costs incurred during the period included in accounts payable and accrued expenses $ 971 $ — Additions to operating lease right-of-use assets and liabilities $ — $ 4,279 Deferred proceeds from exercise of share options included in other current assets $ — $ 479 Deferred costs of property and equipment incurred during the period included in accounts payable $ — $ 10,542 Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures Reconciliation of GAAP gross profit to non-GAAP gross profit Three Months Ended March 31, 2021 2022 (In thousands) GAAP gross profit $ 23,140 $ 31,185 Add: Share-based compensation expenses 30 146 Retention payments related to business combinations — 690 Amortization of intangible assets related to business combinations 1,041 Non-recurring expenses related to termination of lease agreement and others 9 Non-GAAP gross profit $ 23,170 $ 33,071 Non-GAAP gross margin 79 % 75 % Reconciliation of Loss from operations (GAAP) to Non-GAAP operating loss Three Months Ended March 31, 2021 2022 (In thousands) Loss from operations $ (11,551 ) $ (26,181 ) Add: Share-based compensation expenses 2,882 3,803 Adjustment of fair value of contingent consideration related to business combinations — 552 Retention payments related to business combinations — 712 Amortization of intangible assets related to business combinations — 1,041 Non-recurring expenses related to termination of lease agreement and others — 318 Non-GAAP operating loss $ (8,669 ) $ (19,755 ) Non-GAAP operating margin (29 ) % (45 ) % Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended March 31, 2021 2022 (In thousands) GAAP research and development $ 8,984 $ 14,713 Less: Share-based compensation expenses 1,365 1,209 Non-recurring expenses related to termination of lease agreement and others — 23 Non-GAAP research and development $ 7,619 $ 13,481 GAAP sales and marketing $ 19,600 $ 30,342 Less: Share-based compensation expenses 626 1,373 Retention payments related to business combinations — 22 Non-recurring expenses related to termination of lease agreement and others — 271 Non-GAAP sales and marketing $ 18,974 $ 28,676 GAAP general and administrative $ 6,107 $ 12,311 Less: Share-based compensation expenses 861 1,075 Adjustment of fair value of contingent consideration related to business combinations — 552 Non-recurring expenses related to termination of lease agreement and others — 15 Non-GAAP general and administrative $ 5,246 $ 10,669 Reconciliation of Net cash used in operating activities (GAAP) to Free cash flow and normalized free cash flow Three Months Ended March 31, 2021 2022 (In thousands) Net cash provided by operating activities $ 2,329 $ 914 Purchases of property and equipment, net (451 ) (4,784 ) Capitalized internal use software costs — (380 ) Free cash flow $ 1,878 $ (4,250 ) Purchases of property and equipment related to the new headquarters — 4,456 Payments received in connection with purchases of property and equipment — (4,169 ) Normalized free cash flow $ 1,878 $ (3,963 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006185/en/
Press Contact: Richard Krueger Similarweb press@similarweb.com | Investor Contact: Raymond "RJ" Jones Similarweb ir@similarweb.com