Similarweb Ltd.

Ladies and gentlemen, thank you for your patience. Your conference will begin momentarily. Again, we appreciate your patience. Your conference will begin momentarily. Thank you. Thank you. Good day, ladies and gentlemen, and welcome to SimilarWeb Quarter 1 Fiscal 2024 Earnings Call. All lines have been placed on the 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, Rami Meyerson. Sir, the floor is yours. Thank you, Operator.

Welcome, everyone, to our first quarter 2024 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 rising interest rates, rising global inflation, and current macroeconomic and geopolitical conditions, including the current war in Israel. challenges in our business and in the markets in which we operate, 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. Further, reported results should not be considered as an indication of future performance. Please review the forward-looking statements discussion in our shareholder letter, along with our Form 20F filed with the SEC on February 28, 2024, and in particular, sections entitled Cautionary Statement Regarding Forward-Looking Statements and 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 any forward-looking statements made on this call are based on information available as of today's date, May 8, 2024. 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 profit or loss, which represents GAAP operating profit or 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 information purposes only. They should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Our consideration 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 author and CFO, Jason Schwartz. Then, we will open up the call to questions from self-taught analysts in attendance. Please note that we published a detailed discussion of our first quarter 2020 for results in a letter to shareholders for investments reference, as well as an updated investor presentation of the 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 Ofer, CEO of SimilarWeb. Orr, please go ahead.

Thank you, Rami, and welcome to the team and your first conference call with us. And good morning and welcome everyone joining the call today. We kick off 2024 with continued momentum in both top-line and bottom-line performance and delivered very strong first quarter 2024 results. We grew our revenue by 12% over Q1 last year to $59 million, and we generated nearly $10 million of free cash flow, an amazing achievement we are proud of. Our global customer base grew 16% year-over-year to over 4,800 customers, and the demand for our solution at the top of the funnel remains strong. Our customer and prospect appreciate and value the importance of our digital market data for their business. As a result, our pipeline remains robust, and we are adding new customers and expanding our penetration into our market. We continue to invest to expand and enrich our similar web digital market data. In March, we acquired Admetrics, a digital ad intelligent leader. I would like to take this opportunity to welcome the Admetrics team to the similar web. Ad intelligent is an important tool for corporates and marketing agencies. Online display advertising is estimated to attract more than $174 billion in spending in 2024, according to Statista. For certain global brands, it's already compressive of 60% of their global advertising budget. We plan to leverage our digital ad data along with the Admetrics team's expertise to enhance our digital ad intelligence offering and launch what we believe will be the best and most comprehensive digital advertising intelligence data in the market. This will supercharge our competitive intelligence offering. We plan to integrate and monetize this ad intelligence data through all of our solutions as well. For our shopper intelligence solution, we will add visibility into retail media online spend. For our stock intelligence offering, we will add for public company ad spend and ad revenue. And for our sales intelligence, we will improve our ability to help ad sales team with better data to find and qualify digital advertisers and publishers. And this is why I'm very excited about this opportunity. Last year, we introduced and successfully launched SimilarEsc, our AI-driven digital intelligent assistant. Today, I am excited to tell you about SEM. SEM is our AI-powered sales assistant module. SEM is designed to enhance sales efficiency and effectiveness by automatically delivering precise data-driven insight about prospects directly into our customers' sales workflow. As we all know, Our emails are bombarded with cold outreach emails from salespeople that we all mark as spam, making it very hard for sales teams to engage with our prospects. With SAM, salespeople can use AI text generation to suggest sales pitch that are much more likely to resonate with a potential customer. SAM utilized our market insight data and prepared relevant database insight emails that explained to the prospect why they need to engage with the sales team. And we are already receiving fantastic feedback from early adopters of SAM who have reported a significant increase in outreach response rates. For one of our customers, SAM increased response rates by 20x compared to their previous response rate. The same beta is now open, and we are looking forward to seeing its adapting by our customers and its impact over time. I'm very proud of the continued profitability and free cash flow momentum. We delivered our third consecutive quarter of non-GAAP operating profit and a very strong free cash flow in the quarter. This is a great achievement for us and a solid result of the smart work and discipline of the whole similar team. I'm also really happy to welcome Susan Dunn, our new Chief Revenue Officer. Having spent 32 years at MiltonIQ, including as its Revenue Officer, Susan knows the market research world inside and out. She has a deep expertise in delivering the business value and operating impact of the market intelligence to many of the largest consumer brands in the world. Welcome, Susan. I'm confident that you are the ideal sales leader to drive our next phase of growth and expansion. Finally, I want to thank our team for another quarter of outstanding results and great execution. Remember, we are just getting started. Thank you, everyone, for your continuous support. With that, Jason, I will turn the call over to you.