Similarweb Ltd.

Good day, ladies and gentlemen, and welcome to the SimilarWeb Q3 Fiscal 2021 Earnings Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Annie Rosenberg. Ma'am, the floor is yours.

Thank you, Operator. During this call, we will make forward-looking statements related to our business, including statements related to the expected performance of our business, future financial results, strategy, the potential impact of the COVID-19 pandemic and associated global economic uncertainty, long-term growth, and overall future prospects. These statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected or implied during the call. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. Please review our filings with the SEC, including our final prospectus and section entitled Risk Factors Therein, filed with the SEC on May 12, 2021, for discussion of the factors that could cause our results to differ. Also note, that the forward-looking statements on this call are based on information available as of today's date. We disclaim any obligation to update any forward-looking statements except as required by law. As a reminder, certain financial measures we use in this presentation and on our call today 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. A reconciliation between these GAAP and non-GAAP financial measures is included in our earnings press release, which can be found on our investor relations website at ir.similarweb.com. With that, I will turn the call over to Or Ofer, CEO of SimilarWeb.

Thank you, Annie, and thank you all for joining us here today for our Q3 2021 earning call. It's great to be here with all of you this morning. Our team is executing at a very high level, and we delivered a very strong result for the quarter. As a result, we are pleased to raise our revenue guidance for the full year of 2021 to $135 million, representing a 45% growth year-over-year. Q3 was a strong quarter. in which we achieved a number of new milestones. First and foremost, I'm proud and excited to report that in Q3, we saw our ARR exceeded $150 million just one year after we reached the $100 million ARR back in Q3 2020. Also, in the quarter, our gap revenue increased 46% year-over-year to $35.6 million, this result exceeding our guidance. Q3 was a record quarter for us for both new customer acquisition and retention. Our customer base grew by 174 accounts, including the addition of amazing new logos across a diversity of industries, including Volkswagen Group, Toshiba Electronics, the London School of Economics, Royal Caribbean, Quest Diagnostic, and News Crop Australia. Our most significant growth comes in our largest and most strategic customer segment, those companies who generate more than $100,000 in ARR. In Q3, we set a new record, adding 25 additional $100,000 customers, an increase of 48% year-over-year. This critical segment now represents over 50% of our total ARR for the first time. We're seeing strong momentum as our expanding product portfolio is contributing to greater velocity in our land and expand direct sales motion. In Q3, we set a new record for NRR, improving from the previous high of 106% at the end of Q2 to 110% in Q3. In that critical customer segment of account with over 100K in ARR, we improved the NRR to 122%. up from 118% in Q2, also a new record high. Those improvements are driven by expanding usage of our products as well as by our customers who purchase more than one of our digital intelligence solutions. As you know, we offer a complete suite of digital intelligence solutions supporting a wide variety of use cases for digital marketing, sales, market research, e-commerce strategy, and alternative data for investors. Today, more than two-thirds of all of our customers are purchasing more than one solution. As an example of how our portfolio strategy is helping to drive deeper customer penetration, in Q3, we completed one of the largest dibs in SimilarWeb history, a combination of upsell and cross-sell with a major multinational internet technology company. This was a seven-figure addition to our existing relationship making this the second consecutive quarter we have been able to announce an ARR contract of this size. This customer will be using four of our five digital intelligence solutions, representing a total of $6.5 million ARR contract. I want to focus for one minute on one of our five solutions, our new shopper intelligence offering. It is exciting and this creation solution, and we are seeing some amazing early success with it. Shopper intelligence delivers powerful insight into e-commerce activity online. Marketplaces enabling our customers to optimize their performance by revealing browsing and buying behaviors across online marketplaces. Our insights help them to shape their online sales strategies by optimizing product portfolios, benchmarking the competition, and improving search and advertising performance. When we launched our digital marketing and digital research solution, it took us four years to get to our first seven figures deal. With Shopper Intelligence, it took us just three months. And in Q3, we signed our first seven figures ARR deal for the Shopper Intelligence. And here are a few examples of how our customer use Shopper Intelligence. A large North American retailer reported that Shopper Intelligence helped them rename a product to better align with search behavior, resulting in a 20% increase in sales. In Q3, we completed a two-year deal of $600,000 with this customer. Also in Q3, Shopper Intelligence helped us win with a consultative specialized in CPG. The deal expanded our business with this customer by 6x to $360,000 a year. This customer used SimilarWeb in a sales process to target and pitch new customers, as well as in advising its CPG's customer to optimize their partnership with big box retailers. The customer has also agreed to be a referral partner for us and is now recommending SimilarWeb to his own direct customers. One more solution that is going nicely is our Sales Intelligence solution that helps B2B companies that sell to digital players like e-commerce, digital publisher, and digital advertiser. And for example, Postscript is a leading SMS platform that enables e-commerce to communicate and engage with customers through text messages marketing. Postscript needed to improve and automate its account targeting and lead generation, which was labor and time intensive. By implementing SimilarWeb's Sales Intelligence solution, the company now has access to SimilarWeb e-commerce database in every region, and automatically can segment and prioritize e-commerce lead and integrate them directly into Salesforce. The result was increase in target account pipeline of 27% within just the first month. In Q3, we continue to make smart product investment to enhance our solution portfolio and make it stick here. Year over year, we doubled the size of our engineering team, and in Q3, we deliver hundreds of improvements across our portfolio of digital intelligence solutions that include major functional advancements in our competitive insight, key role strategy, and advertising intelligence features, and to name a few. These improvements are driving more customer value and increasing our product stickiness, which is reflecting in our consistently improving NRR numbers. It also reflects in the way our customers use our solutions incorporating them directly into their business workflows. Indirect channels, referrals, partners, affiliates, resellers, and OEMs are a new area of expansion for our business. For example, in September, we announced that we had been selected by Google to power its new Market Finder service. Market Finders helps small and medium-sized businesses target and grow into new global markets. The service leveraged similar web data to analyze the company export potential, delivering an automated score along with personalized and actionable recommendations to kickstart an international expansion plan. Google has told us that it was the unique accuracy of our digital data and insights in our data edge that sealed their decision to integrate with us. The win with Google reflects our growing relationship and also representative of the increased potential we see to build the OEM relationship, where partners include our data and insight in their own product offering. We also saw channel growth outside of OEM. In fact, Q3 was the first quarter in which our reseller outside of Japan contributed more than $1 million in new business. Overall, we have a strong opportunity for our indirect business, and we plan to increase our investment in this area. Our data and insights are recognized by our customers, companies like Google and PostScript, who I referred to today, as well as by the industry more broadly. In fact, last month, we were recognized by the Hedge Week as the best alternative data provider in the 2021 Americas Award. For over 10 years, we have been working on solving the incredibly challenging problem of measuring digital behavior. We invest significant resources in our data assets and acquisitions and we build an amazing R&D team of top-notch data scientists and engineers, those investments in technology are very difficult to replicate. We are proud of and confident in our data edge, and we appreciate ourselves on the reliability and comprehensive of our data, but we are always looking to innovate and improve on our measurement and insight creation. That's why today, as you may have seen, we announced the acquisition of MB Mobile, a San Francisco-based mobile insight provider and market leader in mobile audience analytics, consumer panels, and mobile sampling. We've been partners of MB for over a year, so we know them very well, and we've been very impressed with the quality and depth of their data. MB measurement approach is backed by a large-scale metered panel of highly engaged opt-in users. This approach complements our existing measurement strategies and will enable us to enhance our mobile intelligence offering with more granular data and more powerful use case. Beyond this, we believe that Envy will position us to introduce exciting new market research capabilities in the future. We welcome the NV team to the SimilarWeb family, and we are looking forward to working together with them to advance the stage of the art in the digital measurement. In general, we continue to benefit from the strong secular trend for digitization in our markets. Digital has become a preferred way to interact, transact, and deliver products and services. It is an important growth driver and strategic focus for most businesses today. Digital markets are highly competitive and almost every player is looking for advantage. A digital intelligence solution gives our customers an edge, data and insight that enables them to understand their markets better than their competitors, take action faster and win. The more the companies shift their business and become dependent on digital, the more mission critical our offerings become. Those trends are driving our strong growth and reinforcing our confidence in our opportunity, our strategy, and the investment we are making in our future. We have massive market opportunity, which we believe today is approximately $34 billion. Our solution targets the most essential revenue-driven operation of our customers, sales, marketing, e-commerce, and C-suites. And we... sell across a wide variety of industries, ranging from financial services to retail, travel, CPGs, to media, and many more. To summarize, we continue to execute successfully on our strategy. Since our IPO, we reached the $150 million ARR milestone nearly three months ahead of our plan, and we have delivered two consistent quarters of strong revenue growth, both north of 45%. We've grown our indirect channels and we expand our data edge both organically and through acquisition in Q2 and Q3. We introduced new products and features that expand our time and proven our ability to monetize those with significant new and upsell deals. Our combination of strong revenue growth and outstanding growth margin put us among a small group of best-in-class SaaS companies in the world, and we are very proud of this achievement. Finally, our execution and growth would not be possible without every member of our global team, each of whom works hard to achieve those results. We build a top-class recruiting machine and drive and support our growth. We are currently signing new hires at the rate of 50 new employees per month. I'm very happy that earlier this week, BNB recognized us as one of the top 30 tech companies to work in the U.S. Overall, I'm pleased with the way our team continues to execute and our focus on helping our customers succeed and win in the digital world. We are heading into Q4 with a tremendous amount of energy and momentum, as you can see by our raising of guidance. And as I like to say, we are just getting started. With that, I will turn it over to Jason, our CFO, to review the financial. Jason?