Similarweb Ltd.

Greetings and welcome to the SimilarWeb third quarter 2024 earnings call. At this time, all participants are in 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, Rami Meyerson, Vice President, Investor Relations for SimilarWeb. Thank you. You may begin.

Thank you, Operator. Welcome, everyone, to our third quarter 2024 earnings conference call. Joining me today are our CEO and co-founder, Oral Offer, and our CFO, Jason Schwartz. Yesterday, after market close, we released our results for the third quarter and published a discussion of our results in a letter to shareholders, as well as an investor presentation with a strategic overview of the business on our investor relations website at ir.similarweb.com. Certain statements made on the call today constitute forward-looking statements which reflect management's best judgment based on the currently available information. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our earnings release and our most recent annual report filed on Form 20F for more information on the risk factors that could cause actual results to differ from our forward-looking statements. Additionally, certain non-GAAP financial measures will be discussed on the call today. Reconciliation is the most directly comparable GAAP financial measures are available in the earnings brief and the earnings presentation. We will begin with Orr and Jason's highlights of the quarter, and then we will open up the call to questions from sell-side analysts. With that, I'll turn the call over to Orr. Orr, please go ahead.

Thank you, Rami, and welcome, everyone, joining the call today. I'm extremely proud of the third quarter financial result we reported yesterday. revenue growth accelerated again to 18% year-over-year growth in Q3, living by increase in annual customer and improving retention. Our total customer count grew 21% year-over-year, and the net retention, or NRR, increased by 2 percentage points. This is the fourth quarter in a row that we reported accelerating revenue growth and the second quarter of accelerating customer growth. SimilarWeb is one of the only small group of public software companies that have reported accelerating growth over the last year. This growth acceleration and the improvement in our NRL results from a number of initiatives we implemented over the past year. We have improved our marketing capabilities, driving more meetings for our sales team and increasing brand awareness. We built a strong customer success organization that helped turn around our NRL trend over the last three quarters and is now back above 100% again. Susan Dunn, our new CRO, is driving a series of improvements in our go-to-market motion, and I'm happy with the progress she's making. It is great to see the success these initiatives are starting to deliver. SimilarWeb's mission is to help companies to be successful in the digital world by providing them with the most accurate, comprehensive, and actionable digital data so every business can win their market. For more than a decade, we have invested and continue to invest in a series of properties, capabilities that empower us to create our unique digital data. The continued customer growth and improved retention trends our indication of the confidence our customers place in our quality of our data, and our ability to generate value from the data and the solution we provide. The significant investment we have made over the years to build SimilarWeb's unique digital data means that we are in a great position to benefit from the AI revolution. Right now, I see four distinct options for us to capitalize and monetize the generative AI opportunity. The first one is that digital data is a critical and fundamental component of every AI and LLM tech stack, and that is why many of the largest global tech companies are engaging with us to access our digital data to train their LLM and ensure their models are accurate and relevant. Last quarter, we announced our first eight-digit customer, and today I'm pleased to share that during October, we successfully cured our second eight-digit customer. This is also a big tech customer who has been with us nearly 10 years and also used our web intelligence, self-intelligence, shopper intelligence through the platform and API integration across many divisions and geographics. It is now also using similar web digital data to train its LLM and we continue to engage with several other companies on similar opportunities. The second motion, with the opportunity for us in the Jantev AI, is that we believe that the changes that LLMs are already having on the online customer behavior and the evolution of the journey from search to chatbots are more material and present a much more significant opportunity for similar web. We are engaging with several brands that are keen to understand how the transition from traditional search engine to chatbots for the consumer to find information that leads to transaction will impact their business. The evolution of the customer journey and the risk of omission from the output of the LLM is a growing concern for every brand around the world. Similar web digital data can provide a range of insights that can assist brands in understanding the impact and navigating this new version of the way consumers gather information. I believe that this is a great opportunity that we are uniquely positioned to capitalize as the AI revolution evolves. The third way we enjoy the AI revolution is, of course, integrating AI into our own products and solutions. Help them increase the uses and speed to insights to our customers. Last year, we introduced a similar ask. And earlier this year, we introduced SAM, our sales assistant agent in our sales intelligence solution. We're deploying and implementing more AI agents per use case across all of our solutions to drive more high customer engagement, accelerating the adoption and use of our solutions. And the fourth area is, of course, is integrating AI into our own internal process and tools, driving more efficiency and reducing cost. Improvement in the development cycle around our engineering and reducing our customer support responses time with those tools and implementation. And there's many more to come to drive more cost saving and improve efficiency all across our organization with AI. I'm very bullish on the opportunity ahead of us. we are staffing up our go-to-market teams to capture the big opportunity that we are seeing on top of our funnel and continue to grow. In Q3, our marketing team generated a record high of more than half a million registrations on our website and created a record high number of meetings this year to our go-to-market teams. On the brand awareness side, I'm super pleased that SimilarWeb has been adopted by leading media outlets and corporate executive as a preferred measure of the digital world. Jeff Bezos and Elon Musk appreciate the critical importance of high-quality data, and they, along with many business leaders, reference similar web when making observations on the digital world. Even this week, when Sam Altman, OpenAI CEO, wanted to show how big the chatgpt.com website is, he referred to similar web data in his tweet. We appreciate the confidence those leaders express in our data. Our goal is to be the number one partner for digital success. I want to thank the whole team for another quarter of excellent results and great execution during a period of macroeconomic uncertainty and geopolitical challenge. We believe that we are still only starting to realize the potential of our data and the addressable market we serve. And as I like to say, we are just getting started. Thank you, everyone, on the call for continued support. With that, I will turn the call over to Jason.