Similarweb Ltd.

Greetings, and welcome to the Sunborweb Q1 Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Raymond Jones, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Operator. Welcome, everyone, to our first quarter 2022 earnings conference call. During this call, we will make forward-looking statements related to our business. These statements may include the expected performance of our business and our future financial results, our strategy, the potential impacts of the COVID-19 pandemic and its associated global economic uncertainty, our anticipated 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. Again, actual results and the timing of certain events may differ materially from projected results or the timing predicted or implied by such forward-looking statements. Further, reported results should not be considered as an indication of future performance. please review our Form 20F filed with the SEC on March 25, 2022, in particular the section entitled Risk Factors Therein, for a discussion of the factors that could cause our actual results to differ from the forward-looking statements. Also note that the forward-looking statements made on this call are based on information available as of today's date, May 11, 2022. We undertake no obligation to update any forward-looking statements we make today except as required by law. As a reminder, certain financial measures we use in presentations of results and on our call today are expressed on a non-GAAP basis. In particular, we reference non-GAAP operating loss, which represents GAAP operating loss less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets, and certain other non-recurring items. We use this and other 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. Today, we will begin with brief prepared remarks from our CEO or offer and our CFO, Jason Schwartz. Then we will open up the call to questions from sell-side analysts in attendance. Please note that we published a detailed discussion of our first quarter 2022 results in a letter to shareholders for investors to reference, as well as an updated investor presentation with a strategic overview of the business, both of which are available on our investor relations website. With that, I will turn the call over to Orr Offer, CEO of SimilarWeb.

Thank you, RJ, and also to everyone joining the call today. I'm happy to have you all here on our one-year anniversary of being a public company. We started 2022 strong and post excellent results. Revenue grew 51% over Q1 last year and exceeded $44 million in the first quarter. Our customer base grew 27% year-over-year to nearly $3,700, and our average account spent nearly $50,000 with us annually. Furthermore, over 53% of our annual recurring revenue comes from customers who spend more than $100,000 per year with us. Those results excite us as we continue to see momentum building in our business. The one thing that I think we at SimilarWeb do better than anyone else is predict how the Internet behaves. In order to create this prediction of digital behavior or how traffic moves on the digital world, we take vast amounts of digital signals generated from activity in the digital ecosystem and convert it into intelligence and market data. We process the data using advanced proprietary machine learning techniques to produce comprehensive and timely digital signals The solution that we build on top of the data enhance the essential revenue-driven operations team of our customers, which includes sales, marketing, analytics, e-commerce, and are designed to directly benefit a wide range of users from the C-suite to operational teams. The refined data and actionable insight we provide our customers give them a competitive advantage to win their market. We see constantly how to innovate and improve our solution and our underlying data. This quarter, we made major investment and improvement in our mobile web and mobile app data sets, across all marketing channels, which include referrals, keywords, and other traffic metrics. We are also enhancing our solution to leverage app data from data AI, previously known as App Annie, which is the leader in app intelligent data, as well as shipping new feature releases that constantly make our product portfolio more valuable to our customers. Our go-to-market execution continues to be highly efficient globally. 54% of our revenue comes from outside of the United States in the first quarter. The expansion of our global customer base consisting of SMB, enterprise and strategic accounts looking to gain an edge in their markets continue to gain momentum. Today, 35% of our relationship consists of multi-year contracts and metrics that continue to expand year-over-year since 2020. Our customers appreciate the strong value we offer with nearly 80% of our customer base currently purchasing more than one solution from us. Before concluding, we would like to take a moment to recognize the contribution of our 65 team members in Ukraine who continue to work when and where they can for an extraordinary situation. Our hearts are with you, and you are inspiring us all. Again, we are off to a great start in 2022, and we are only just beginning to unlock our potential within a multi-billion dollar market opportunity. Jason, I will turn the call over to you.