Similarweb Ltd.

Greetings and welcome to SimilarWeb Q2 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 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, Mr. RJ Jones, Vice President, Investor Relations. Please go ahead, sir.

Thank you, operator. Welcome everyone to our second 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 impact 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 the 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 20-F 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 available information as of today's date, August 10, 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 presentation 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 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 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 second quarter 2022 results and 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 thank you to everyone joining the call today. We post an excellent result in our second quarter as we focused on more efficient growth for our company. Revenue grew 46% over Q2 last year to $47.6 million in the second quarter. The expansion of our global customer base consisting of SMB, enterprise, and strategic accounts remaining strong. Our customer base grew 25% year-over-year to over 3,800, and our average account spent about $51,000 with us annually. up 16% in just a year since our IPO. Furthermore, over 53% of our annual recurring revenue comes from customers who spend more than $100,000 per year with us. Today, 36% of our relationships consist of multi-year contracts, a metric that has continued to expand year-over-year since 2020. As the global microeconomic environment has become more uncertain, similar web offering and solution have become even more important to our customers. The visibility into the digital ecosystem and how it behaves and change is critical information in those times that help our customer make the right strategic decision to navigate through economic stormy weather and be successful. As a reminder, We collect extensive online data, then we refine it and package it into a solution of actionable insight for our customer, which enables them to make better decisions in their competitive market. The solution we build on top of our data impacts the revenue-driven teams of our customers, including sales, marketing, analytics, and e-commerce. and are designed to help a wide range of users from the C-suite to the operational teams. Every quarter, we seek to innovate and improve upon our solution and add to our underlying data. Our customers look forward to our regular feature additions. This quarter, we took a major step forward that enabled us to provide more value to our customers. First, we acquired Rank Ranger. which immediately enhance our SEO capabilities with the complementary technology and data. This acquisition represents a great example of our M&As as a strategy, which we aspire to continue. Second, we launched our AppIntelligent product that incorporates data from our data AI, formerly AppAny, partnership, which gives our customers an expanded view of activity across the digital world. The initial customer responses are positive and we plan to add more features over time. Lastly, we are in the middle of an exciting build cycle for our investor intelligence solution, which will deliver timely insights for a new experience to our investor customers. We anticipate we will bring the new experience to market in the back half of the year. Again, our customers greatly appreciate the value we deliver, especially in times of uncertainty. We are adopting to the microeconomics environment with our customers. As we continue to innovate and grow, we are also focusing more on operational efficiency that will lead us to becoming profitable. 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.