Similarweb Ltd.

here today for our Q4 2021 earning call. It's great to be here with all of us this morning. We finish off a very strong 2021 with excellent performance in Q4. GAAP revenue grew 51% year over year to $40.2 million, exceeding our guidance for the quarter I am very proud of our team for continuing to execute well and accelerating our growth. During today's call, our CFO Jason and I will provide more details around our Q4 and 2021 results and provide Q1 and full year guidance for 2022. So, let's discuss the results. In many ways, 2021 was a game-changing year for us. Most importantly, our growth trajectory has changed. In 2021, our total revenue grew by 47% to $137.7 million. That represents an increase of 15% point of growth over last year that was 32%. We ended this year with $165 million in ARR, concluding our third straight year of accelerating ARR growth. As we move into 2020, we are seeing very strong tailwind for the business and increasing time and rapidly expanding demand for our solution. In light of those favorable conditions, we will continue to invest across the business in order to further nourish and grow our customer base as well as strengthening our product portfolio and data assets. The strength of our customer base has also improved. In 2021, our most significant growth comes from our largest and most strategic customer segment, those companies that generate more than $100,000 in ARR. We grew the total number of those customers by 45%, and together they now represent more than 51% of our total ARR. Overall, we more than double our rate of new customer acquisition versus 2020. We continue to see our customer growth being driven from a diverse set of industries. In 2021, the new logos we added, including amazing global brands like Fiat Chrysler, Intel, 3M, Mondelez, DoorDash, Tesco, CVS Health, and many more. Our customers are more engaged with our solution and more committed to them than ever before. 33% of our ARR is generated from our customer signed to multi-year contract. This is an 8% point increase from the 25% of ARR last year. And even more significantly, we have increased our customer total lifetime value with NRR hitting an all-time high. We closed Q4 with overall NRR at 113%. and at 125% for the critical $100,000 ARR customer segment, both a 12% point improvement over our Q4 2020 numbers. I want to pause here for a second to reflect on what I see as the most important market driver for our business growth. We believe that today the number one mission for every CEO and business leader is to drive growth. And the biggest growth opportunities come from the digital world, a place without borders where it's possible to almost instantly reach and sell to audience at a global scale. In this world where growth potential is almost unlimited, data is king. To see and capture the growth opportunities, every company is looking for better market data. They need a complete picture of what's happening in their markets to answer the most strategic growth questions like, how do I grow my demand? How do I grow my product portfolio? How do I grow my market share? How do I grow my audience? And how do I grow my sales? This is what SimilarWeb does. We give companies visibility they don't have and insights that guide them to what to do next in order to grow. We believe our proprietary data and growth insights give our customers an advantage in their markets. So we believe the value we deliver is outstanding and that every company that wants to compete and win in the digital world needs us. And this is why we see a huge gap and potential for high growth for many years to come. In 2021, to accelerate our own growth rate, we expanded and improved our product portfolio. In Q2, we launched our Shopper Intelligence solution, and by Q3, we already signed our first seven-figure deal to this product. Shopper Intelligence is a highly differentiated solution that gives our customers an amazing insight into consumer behavior within online marketplaces. In Q4, we expanded this offering significantly, improving our marketplace insight coverage by adding Walmart, Target, Best Buy, and Chewy on top of our existing support for Amazon Insights. Our goal is to become the market standard in this emerging space and to be an essential growth enabler for every CPG or retail company looking to do business in the online marketplaces. Within our customer base alone, we identified over 700 companies that meet our target profile, so the opportunity for this product is huge. We'll continue to add major enhancements to our other offering as well. In Q4, we enhanced our sales intelligence solution by partnering with a leading data provider to add a contact database to our offering. That solution now brings together 400 million plus contacts with digital traffic and engagement insights and technographic data we believe this combination of data and insight is ideal for self-organization while targeting digital first businesses such as e-commerce publishing payment and digital advertising now with just one similar web solution self-represented can identify qualified accounts, connect with the right decision makers and influencers, and engage those prospects with a compelling pitch that leverage our proprietary digital insights. Finally, as you may have seen, I'm very excited about today's announcement of a new data licensing agreement with AppAmy, a market leader in mobile app insights. The agreement gives us access to an important set of AppAny mobile application data, which we will incorporate into our platform. We plan to launch a new offering based on the AppAny data and insight in Q2. By bringing together our respective best-in-class data, we believe SimilarWeb will be able to deliver an even more accurate, more comprehensive view of the digital world a powerful offering that will improve the insight and competitive advantage we create for our customers. And of course, this means that companies will be able to purchase industry-leading web and mobile app data and insights from a single source. We believe this will be a very compelling proposition in our markets and a game changer for companies looking to take unified approach to optimizing their digital strategy across platforms. In 2021, we also enhance and expand our product offering by completing two acquisitions, Similar Tech and MB Mobile. Both transactions demonstrate our ability to execute on smart acquisition opportunities and improve our customer value. Similar tech technographic data is now used across the board in almost every similar web product, from our free offering to solutions like sales intelligence and investor intelligence to our API and data feeds. MB Mobile, which was completed in Q4, has already been used to enhance our offering as well. For example, in Q4, we added a new feature to our shopper intelligence solution called shopper demographics, This feature enables e-commerce companies to get to know their audience on a deeper level so they can inform new product development and optimize buyer campaigns. Going beyond basic identifiers like age and gender, this new analysis segment, every category and brand on Amazon according to education level, household size, and income, and employment status. We believe it is a highly different feature in the market, and it would not have been possible without data from MB Mobile acquisition. Finally, in 2021, we continue to invest in our people, aggressively scaling our organization to support our growth. We expanded geographically and adding new offices in Munich and Northern Virginia, and we're working hard to build out our new similar web headquarters which will be located in the center of Tel Aviv metropolitan area. When it's completed, we believe it will be a significant attraction that will help us to continue to recruit top talent here in Israel. To summarize, we believe that 2021 was a pivotal year and we are entering into 2022 with a great momentum, including a track record of accelerating growth and growing market opportunities ahead of us. Back in May, we successfully completed our IPO on the New York Stock Exchange. Since then, we have delivered three consistent quarters of strong revenue growth, all known for 45% year-over-year growth, concluding this quarter with more than 50% year-over-year growth. Our story has improved materially since our IPO across all of our business. We continue to add and to improve our product portfolio and offering. both organically and inorganically, expanding our time where we are rapidly increasing our product value and stickiness resulting in double-digit growth in our net revenue retention. We believe our combination of consistently strong growth and solid gross margin positions us as a small group of best-in-class SaaS businesses. And most importantly, we are a leader in large and high value market with a unique opportunity to become a critical growth driver for every company that wants to compete and win in the digital world. I'm excited about the progress and opportunity we have going forward. We delivered a strong Q4, capping off a year of tremendous acceleration in our business. We are confident about our growth strategy and our ability to unlimitedly capture a large share of a very valuable market. I will now turn the call over to our CFO, Jason, to discuss more about our financial result and 2022 financial guidance. Jason?

Thank you, Or, and good morning, everyone. I will now walk you through our fourth quarter financial results before introducing our guidance for the first quarter and full year 2022. Total revenue for the fourth quarter of 2021 was $40.2 million, reflecting record 51% year-over-year growth. This increase was driven both by an increase in our total number of customers, which rose by 28% in Q4 to 3,487, also a record high for us, as well as an increase of 18% in our average revenue per customer to nearly $48,000 in Q4. For the full year 2021, total revenue was $137.7 million, reflecting 47% year-over-year growth. Dollar-based net retention rate, or NRR, was 113% overall and was 125% for our greater than $100,000 ARR customer segment, an increase of 12 percentage points for each of those metrics compared to last year. As you know, substantially all of our revenue is annual recurring revenue, or ARR, with a minimum subscription term of one year, but we continue to increase the number of our customers who commit to multi-year subscriptions. As of the end of Q4, 33% of our ARR is generated from customers with multi-year subscriptions compared to 25% last year. This trend towards increasing contractual commitment along with our high NRR reaffirms the value our customers see in SimilarWeb and speaks to the increasing health and durability of our ARR. Please note that unless otherwise stated, all references to our expenses and operating results are on a non-GAAP basis and are reconciled to the GAAP results in the earnings press release that was issued earlier today. Our gross profit totaled $30.2 million in the quarter, representing a gross margin of 75.1% versus 78.9% in Q4 2020. The decrease is primarily the result of the acquisition of Envy Mobile, which closed in Q4, whose fixed costs contributed to an increase in cost of revenue. Operating expenses grew to $48.5 million in Q4, up from $25.7 million in Q4 2020, largely reflecting the investment in personnel across the business to support our growth. The specific components of our operating expenses were research and development, $12.8 million versus $6.2 million in Q4 2020. This increase was driven primarily by growth in employee headcount, particularly among employees focused on our newer solutions, such as shopper intelligence, sales intelligence, and investor intelligence. As I discussed in Q3, we are already realizing revenue growth from these new solutions and believe that these investments will prove to be meaningful growth drivers in the future. Sales and marketing was $26.6 million versus $15.4 million in Q4 2020, driven principally by increased investment in sales and account management headcount and marketing activities, as we scale to build pipeline and support our plans for growth in 2022. General and administrative $9.1 million versus $4.2 million in Q4 2020, which includes $1.4 million of additional costs for the quarter that we now incur as a publicly traded company, as well as additional employee headcount required to support our growing operations globally. As a result, our non-GAAP operating loss for the quarter totaled $18.4 million better than our guidance compared to $4.7 million in Q4 2020. For the full year, our non-GAAP operating loss totaled $51.7 million better than our guidance compared to $14.9 million in 2020. Free cash flow for the quarter was negative $11.5 million compared to negative $1.4 million in Q4 2020, primarily as the result of the investment in employee hiring to drive our growth. These investments continue to show their value in the acceleration of ARR, customer growth, and higher NRR. Turning to the balance sheet, we ended Q4 2021 with $128.9 million in cash and cash equivalents and no debt. We believe that our cash balance and our $75 million credit facility, totaling $204 million of available funds, provides us with more than enough liquidity to execute on our growth plans and to take us to positive cash flow, which we plan to reach in 2024. Our deferred revenue increased 46% year over year to $78.8 million compared to $53.9 million at the end of Q4 2020. Our remaining performance obligations or RPO increased 60% year over year to $137.5 million compared to $85.7 million at the end of Q4 2020. We expect to recognize approximately 88% of total RPO as revenue over the next 12 months, and we believe these metrics are a good indicator of the health of our business and our revenue streams. As a result of our strong performance over the last three quarters since completing our IPO, as well as the product innovation that we continue to deliver and the market opportunity that we see ahead of us, we are issuing strong guidance for Q1 and for the 2022 fiscal year. For the first quarter of 2022, we expect total revenue in the range of $41.1 million to $41.5 million, representing 40% growth year over year at the midpoint. For the full year, we expect total revenue in the range of $193 million to $194 million, representing 41% growth year over year at the midpoint. Non-GAAP operating loss for the first quarter is expected to be in the range of $20.5 million to $20.9 million, and for the full year, between $83 million and $84 million. This is driven by the investments we are making to continue our strong growth, as well as the investment we are making to further expand our data moats through strategic moves such as the acquisitions of SimilarTech and MB Mobile, as well as the data licensing agreement with App Annie. This also includes negative impact due to foreign exchange movements, which we estimate at approximately $10 million of additional costs. In light of our strong unit economics and efficient land and expand model, which are reflected in our strong NRR, And in order to capitalize on our strong momentum and market opportunity, we expect to continue to make significant investments in the business through 2022 and 2023 as we execute on our plans to become cash flow positive on an ARR of between $450 to $500 million in 2024. As I mentioned, we are in a strong cash position and believe that our available funds provide us with more than enough liquidity to execute on our growth plan until we reach positive cash flow. To conclude, we've executed well since our IPO last year. Our business is performing extremely well across all of our major initiatives and our financial results and guidance indicate that we're heading into 2022 with strong momentum. And with that, Oren and I are happy to take your questions. Operator?

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in a question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. The first question comes from the line of Brent Thiel with Jefferies. Please go ahead.

Hi, this is John for Brent. Thanks for the question. Just two questions. First, on the aggressive investment plan for 2022 to continue, if you could go a little bit more detail as to where those things will be focused or prioritized, you know, across APEX and other investment needs. And then in terms of the ARR for 2024, I mean, that looks like a pretty big growth and just wondering how you're thinking about the bridge from, you know, last year's 165 to that number 24. Thank you.

Thanks so much. As we mentioned in the first part of the call, we're seeing a great opportunity ahead of us, and the momentum that we're seeing in the business in terms of both unit economics and the revenue growth is pretty big. We see the demand coming in, and you're seeing, I think, the guidance that we're giving for the upcoming year, and we see that the opportunity that is ahead of us in the big TAM and our market position is not going away.

Great. Thank you.

Thank you. The next question comes from the line of Bhavansuri with William Blair. Please go ahead.

Hey, Jason. This is actually Arjun Bhatia for Bhavan. Great quarter, guys. If I can ask on the App Annie partnership, can you just give us a sense for how the data assets that you're getting through App Annie differ from and be mobile, are these gonna be complimentary in the new offering that you're planning to introduce in Q2 here? Or do they both end up feeding into that offering? Just help us understand the difference, how the data differs between the two assets there.

Hi, of course, it's all one here. So it's a great question. And first of all, there is different between, Major difference between MB mobile data to up any data. MB data is based more on metered panel. When you have a small sample of a panel, but a lot of deep data about demographic, et cetera. And one example that we discuss here in the earnings, how we're using this data to enrich our shopper solution about what people are, are basically the demographic of people of buyers online. And also MB data is more deep that you can see in app activity that's a little bit different than the data that app any is presenting. So there is a major different and different use case for those assets.

Perfect. Very helpful. And then I wanted to touch on large customer activity. It seems like The deal sizes are getting larger overall, and even amongst your largest customers, deal sizes are getting larger. Can you maybe just give us a sense for where digital data and intelligence is on the investment priority list for enterprises today? And then I would love to understand, you know, this 2024 target that you've put out, where enterprise activity and large businesses deals actually flow into, how those flow into that, I think it's like a 40 to 45% CAGR that you've implied in that 2024 target. Thank you.

Yeah, I think that as our offering is growing and we're improving our product, not only the access to the data, the insights we're pulling and our ability to you know, train and teach our customer how to drive more ROI from the market data we provide, they see more ROI and then their willingness to pay is go up. You know, if you think about similar web, for example, research solution five years ago compared to what we're giving them today, you know, the ROI is dramatically bigger. So, you know, you're presenting more deep and more advanced software to give more ROI to the customer. He has the ability to pay and the willingness is is go up. This is one element. Second is our transition as a company to a multi-offering solution. Historically, we used to lend only with our research solution. Now we come into the enterprise and we have this full suite of offering to them. We lend with the research and then we have a nice solution for the marketing organization, to have some drive and more growth and ROI. And then we have another offering for the sales organization that we go and help them drive more growth, et cetera. So I think all those combination together is what you see in the increase in value per and the increase in ACV that you see that growing very nicely over the past few years.

OK. Thank you very much, and congrats again on a great Q4.

Thank you.

Thank you. The next question comes from the line of Sterling Otte with J.B. Morgan. Please go ahead.

Hi, this is Maya on for Sterling. So looking at the 75% gross margin during the quarter, is most of that coming from the App Annie licensing deal? And how are you thinking about gross margin moving forward?

Yeah, so I will answer part, and if Jason would want, he can also join. But the app AnyDeal will only go into now for in this Q1. So the gross margin you're seeing is for Q4, and it's mostly come from the acquisition of MB we did that we need to integrate their data operation about managing emitted panel and the headcount involved. This acquisition was to strengthen our mode around our data modes. And we are very bullish around that. And we think all those move that we're doing to increase our data acquisition and building more modes about our uniqueness of our data is very, very strong smart strategic move. And as the company grow, on the road, the long term model will bring the company to the 80% gross margin that we're targeting. But this is my thoughts around it. Jason, you want to add anything from your side?

Yeah, I think, like you said, Ork, the App Annie licensing agreement will only go into effect in 2022. And just as a reminder, most of the costs that we have in our cost of revenue is our fixed costs. And therefore, as we integrate and be mobile and then see the revenue that comes in, we get a lot of leverage out of those fixed costs. both on the data side as well as on the personnel.

Okay, great. And then just if I can add a follow-up. So between now and those fiscal 24 targets, do you see that 125% retention rate for the top bucket of customers as kind of a target retention rate between now and then?

Of course not. We are only getting started, as I like to say.

I think we're excited about the performance that we've had this year and the transformation that you've been seeing from 2020 into 2021. And we like the momentum. And like Orr said, there's a lot of business to be done over the next couple of years.

Great. Thank you.

Thank you. The next question comes from the line of Jason Hefstein with Oppenheimer. Please go ahead.

Hey, guys. Thanks. So just on MB, because I think I'm not sure how much we've all had that factored into our gross margin for the quarter. I guess how fast would you expect the gross margin to recover as you scale those costs? I mean, again, by the end of this year, would the gross margins be kind of back to historical levels? And then, I guess, on top of that, and maybe the answer is no, how are you thinking about the impact of App Annie this year on revenue gross margins and EBITDA? And then, I guess, I don't think you did, but maybe opine on the deal, the deal length, the terms... Why not buy them? Anything you kind of want to share? Thanks.

Sure. So let me, maybe I'll start with the financial questions that you had. I think they're exactly right. We're expecting to see gross margins start going back towards the end of the year, back to the same historical levels that you've seen. And I think this is consistent with what we've done in the past. When you look back, you know, let's go back to 2018, 2019, and 2020. You saw gross margin go from 54% to 71% to 77% to 78% this year as we added additional data sets and increased our data moat and then leveraged that as we grew and accelerated our revenue. I think that's the same thing you'll see here. In terms of the impact of the App Annie deal, All of that is baked into the guidance that we have given earlier today.

I guess I'm asking, like, if we wanted to think about how much of the guidance is at BANI versus not at BANI. And then Orr can answer the other question. Thanks.

Yeah, we're feeling very comfortable with the guidance that we've given. and are looking forward to a strongie.

Okay, and then just any more color on like the length of the deal, the terms, do the terms get more favorable over time if you sell more of it? And then why partner and not acquire?

So I would try here to talk carefully because we have an agreement here with APENI that I'm not 100% sure what we can disclose or not disclose, but the term is that it's a fixed price that we pay, so this is a great motion. And you know, we have a really great relationship with Appendee Management and I highly respect and we're very excited that we're able to put in place this partnership together, strengthen the relationship and you know, start working together. And you know, time will tell.

Okay, thanks. I had to try.

Thank you. The next question comes from the line of Pat Walt Ravens with JMP Securities. Please go ahead.

Oh, great. Thank you, and congrats on the 51% growth, you guys. So first of all, and Jason, I emailed you about this during the quarter, but when I was using the product, which we do, in January, you know, there was a message that popped up that said we're having issues with the app analysis section. It began in January, and we expect to have it resolved sometime in February. Can you talk about what that was and was that related to the App Annie data?

Yeah, I will talk about it. So first, what happened is that it was a bug in our R&D team. One of them deployed a code in a Friday night that will create a bug and then cause a little bit of mess and just took them a time to recover. They discovered after two days that and then until they fix it. So this is what around that is a very stupid mistake here. And this thing, there's nothing to do without any deal. As you can probably think, this conversation relationship without any has been going on for many, many months and this dialogue. So there's nothing, there's no relation between those two.

Okay, great. And then Jason, can you maybe, if you look at the operating income or really operating loss guidance versus the street, it's for 2022, it's a $35 million delta. Can you bucket that for us? You know, a third this, a third that, or half this, half that, just roughly, how does that $35 million break down?

Yeah, the bulk of that is what you will see in both our R&D and our sales and marketing, which is really focused on making the investments in order to, like I said, to really focus on growing the business. The thing that we've seen, we had the conviction when we started 2021 that we had hit an inflection point. that the business was solid. Remember at the end of 2020, we're effectively a cashflow break-even business. We know how to manage a business that's cashflow break-even. But what we saw in front of us was this big TAM and this big opportunity. And what we're seeing today is those strong unit economics and the efficient land and expand model. which you're seeing ultimately in not only revenue growth, but the strong NRR. And that's the proof putting to us that our conviction was right. And therefore, we are continuing to invest in order to grab the TAM that we see ahead of us. And like I would tell you is that we know where we're going. So you'll see the breakdown. We could take offline and go through each line, but it's mostly focused on on headcount and marketing activities to continue to grab that to him. And on the flip side, on the R&D and building out the data modes, it's the kinds of things to strengthen our product set that is the exact factor that drives that higher NRR, having more products and solutions to sell into our existing install base as well.

Okay, and I know you mentioned it, but can you just remind me what the FX, I mean, the shekel is super strong, right? That's the issue. Right.

Yeah, exactly. We said about $10 million of that is in FX.

Wow. So a third, well, almost a third of the funding is just FX. Okay.

Exactly. In the absence of the FX change, in the absence of an FX change, this would be an even stronger guidance, as you pointed out.

Okay, thank you.

Good.

Thank you. The next question comes from the line of Ryan McWilliams with Barclays. Please go ahead.

Thanks for taking the questions. I'm pleased to hear about the opportunity I had for SimilarWeb. Or how can SimilarWeb benefit from Amazon retiring Alexa.com in May? Do you view this primarily as a source of new logo growth, or do you think this could be a meaningful revenue opportunity? Thanks.

I think it's a great thing for a similar web, particularly in two elements. One, from traffic and awareness. Alexa.com, which was a website owned by Amazon, was a big source for ranking digital SFC. and it was attracting, I think this website is attracting till today a few millions of visitors that will need to find a new home to get this ranking statistic and they will come to us as we would be the only place to give this data. So this is one, is a lot of tofu, you know, awareness, traffic that will come to us. Second, I think there is a great amount of book of business that will look for a new home and a new alternative. I don't know to expect how much. I don't have the numbers, but it was a decent business that's run for maybe 20, 25 years. I don't know exactly. So I can assume we have a lot of customers, but I think Simulweb is the right place to come to get an alternative. So I think we're gonna have some benefits. I don't know how much.

Perfect. And then maybe for Jason, Have you quantified what MB Mobile meant for REVS for this quarter and then maybe into the guide for next year? And you mentioned targeted investments to support new products. So what does that investment look like for Shop for Intelligence to capitalize on the early momentum there? Thanks.

Hey, thanks Ryan. The MB standalone contribution to Q4 or 2021 revenue was not meaningful. It was not material. But one of the things that, as Orr mentioned, and we talked about when we announced the acquisition last quarter, was that the data mode that that creates and the enhancements that it enables us to do on our existing on our existing solution set is pretty impactful. And as Orr mentioned in his remarks earlier, for example, we were able to enhance shopper intelligence and give now demographic data that we couldn't do before because now that we were able to leverage that data that we get from Envy Mobile. And so we're pretty excited about what that does to all of our existing products and the net retention that'll drive that you'll see ongoing for the sales into the existing customer base as well as new sales to new customers as well. And the investments on the investment side, like I said, we don't break down for one solution to another solution where the headcount is going, but we look at shopper intelligence as an example as a very early days of their growth, of that product's growth, and we, for sure, you know, we'll see within the guidance that we've given today some nice contribution from that product specifically. Push it together. Thanks, guys. Thanks so much.

Thank you. The next question comes from the line of Tyler Radke with Citi. Please go ahead.

Hey, good morning. Thanks for taking the question. I wanted to ask you just about what you saw in the quarter in terms of seasonality. I think if I look at the net new ARR contribution, last year Q4 was your biggest quarter. This year it looks like Q3 came in ahead of Q4. So anything to call out from a seasonality perspective? And then would you expect with accelerated sales and marketing investments that ARR growth should accelerate next year as well. Thank you.

Yes, Tyler, thanks for the question. So, yes, we're seeing, you know, last year was an outstanding Q3. This year, Q4 was great and really strong performance, a good end. You know, I think it exceeded all of our expectations, both the But what we had guided to, and I think what you guys have expected, so we're pretty proud of the results in Q4. And more importantly, the momentum that we see going into this year, which is part of the guidance that we have updated and issued now for 2022. I think that what we're already starting to see is favorable unit economics from the investments that we've already made. in the sales and marketing teams that hopefully you guys are seeing in terms of both the revenue growth and the net retention numbers. I think the NLR numbers are, again, are really outstanding. And the customer growth and the other metrics that we talked about, when you look all across the board, the customer lifetime value of our customer base is going up. Net retention is going up. Pricing is going up. Number of customers are going up. Number of customers who are expanding to being $100,000 customers or more are going up. That is now representing 51% of our overall revenue. When you look at that, we're feeling that we're seeing, from where we sit, a really strong performance and ROI on those investments that we've made, and we anticipate that we are going to continue to see that. as part of our investment plan.

Thanks. And just to follow up, I guess, as we think about your, you know, long-term guidance here in 2024, 2025, like, as you think about the, you know, investments you need to make on the data acquisition side, I mean, do you feel like with this app and any partnership and MBIE, You've kind of completed the portfolio. You know, I guess what gives you the confidence that you can go out and make these margin kind of multi-year commitments given just kind of the rapidly evolving landscape and obviously some of the investments that you've made recently? Thank you.

First of all, I think it's a good question. I think that... From our side, thinking about data mode, I think with this move with Ambi and App Annie and partnership, we fully cover everything around mobile aspect that I think we'll probably not going to have a lot of more expenses down the road to increase this area. So I think around everything around data expenses, I think we're in a good place right now. So I think looking back into the future, I don't think we increased it anymore. Jason, maybe you have anything to add there?

Yeah, I think, Tyler, one other thing that you were asking was about the, like, where do we get the confidence to go into these multi-year investment agreements? I think that the other thing that was a big standout this quarter were two metrics. One is that today 33% of our ARR is now, you know, contract under multi-year agreement. So it's not only cost to some degree, but also a third of our ARR is already contracted a multi-year agreement. And you see that not only in that, but you see it also in the 60% growth in the RPO. So we have, to some degree, a great visibility into the revenue that we see going forward. And that gave us the confidence that we needed in order to raise the street's expectations as to what we think Q1 as well as the full year of 2022 will look like.

Thank you.

Thank you. Ladies and gentlemen, We have reached the end of question and answer session and I would like to turn the call back to OR Offer co-founder and CEO for closing remarks. Thank you.

So thank you everyone. Really appreciate for you to come and spending the time. As I said before, we are just getting started and we are very excited going into Q1 and 2020 with this great momentum and Have an amazing year. Thank you.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.