Similarweb Ltd.

Greetings and welcome to the SimilarWeb Q1 Fiscal 2025 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Romney Myerson, Vice President, Investor Relations. Thank you. You may begin.

Thank you, Operator. Welcome, everyone, to our first quarter 2025 earnings conference call. Joining me today are our CEO and co-founder, our author, and our CFO, Jason Schwartz. Yesterday, after market close, we released our results for the first 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 20-F, 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 in the call today. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation. We will begin with Or and Jason's highlight 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 Or. Or, please go ahead.

Thank you, Rami, and welcome, everyone, joining the call today. I'm extremely proud of the first quarter of financial results that we reported yesterday. Revenue increased by 14% to $67 million, ahead of our expectation. Our customer base grew 90% year over year to more than 5,700 ARR customers at quarter end. We reported six quarters of positive free cash flow while we continue our investment to realize the long-term potential of our business. The investments we begin in the fourth quarter in sales in R&D are starting to generate positive returns. We doubled the number of inside sales reps selling in this quarter as compared to Q1 last year. And our progress on releasing new features like GenAI traffic intelligence and free AI agents are stuff to be proud of. We completed an accelerated recruitment of new salespeople at the end of the first quarter and we are encouraged by the indication of improved productivity as they ramped. More than 80% of the new hires should be fully ramped by Q3 and we expect this team to deliver in the second half of the year as planned. I'm excited by our customer reaction to the launch of the new product since the beginning of the year. Those products provide tools that empower our customer to maximize ROI they get from our data and reduce time to value. We launched App Intelligence, expanding our app data and incorporating the acquisition of 42 methods last year. I'm super happy that SimilarWeb can now provide digital data on more than 4 million iOS and Android mobile apps in 58 countries. App Intelligence give our customer visibility on app data, including download, usage, patterns, engagement, retention, and audience demographics. We are seeing strong demand, and 484 of our customers have already signed up for the App Intelligence. We're excited to be the leading company providing full digital visibility to brands, combining web, mobile web, and app data, and providing our customer with a realistic real-time view of the entire digital world on one platform. This comprehensive coverage is really turning SimilarWeb into a mission-critical resource for anyone that needs to understand digital behavior and market dynamics around the world. We continue to develop products and capabilities to capitalize on the AI revolution. In MERT, we launched our AI chatbot traffic intelligence into our platform, and I'm really excited that our customers can now see data on the prompts and chatbots products that are sending traffic to websites as part of our web intelligence offering. As more customers move from traditional search to chatbots, this information is becoming critical to companies to drive impact in this new digital channel. I believe that we are the leading company in the world providing this critical information to our customers that want to succeed in the digital ecosystem. And I'm very proud of that. The response from our customers is truly amazing, and the commercial pipeline for this data is growing fast. On top of that, we are also running out a series of AI agents to help our customer maximize the commercial opportunities provided by our data. Our first three AI agents are now already live in our platform. The first one is the SEO Strategy AI Agent, which shows digital marketing professionals what they should do to promote their content strategy and how best to do it in order to win. The second agent is our traffic trend analyzer AI agent, which automatically detect unusual spikes in sales demand and identified their cause, thereby helping companies act before the competition. Until now, analyzing and formulating an understanding of the reason, the why for those changes was very hard and time consuming. And this now can help them save time and get to the insight faster. The third agent we release is our meeting prep AI agent for sales team. This agent builds a strategic one-pager meeting brief using our digital signals and our market data to reduce time of the salesperson spending time on research the prospect and help him improve his win rate. The new product launches in the quarter are the first encouraging indication that the investments that we begin will grow faster and we will produce higher margin going forward as part of this journey as an AI-first company. 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.