Similarweb Ltd.

Greetings. Welcome to SimilarWeb's second quarter fiscal 2025 earnings call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation today. If anyone should require operator assistance, please press star zero from your telephone keypad. Please note the conference is being recorded. I'll now turn the conference over to Rami Meyerson, Vice President, Investor Relations. Thank you. You may now begin.

Thank you, operator. Welcome, everyone, to our second 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 second 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.sonoweb.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, Father and Father 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. Reconciliations for the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentations. We will begin with all adjacent 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 Or. Or, please go ahead.

Thank you, Rami, and welcome everyone joining the call today. I'm extremely proud of the second quarter financial results that were reported yesterday. Revenue increased by 17% year over year, to $71 million ahead of our expectation. Our customer base grew 18% year-over-year to almost 6,000 ARR customers at quarter end. We reported a seventh quarter of positive free cash flow and return to positive operation profit in the quarter. We are also reiterating guidance for 2025 revenues and raising our profit guidance for the year. Customer interest in our GenAI data and solution is amazing, and the revenues from our GenAI data and new solution were approximately 8% of second quarter revenues and are growing. We are focused on three high-impact opportunities where SimilarWeb is uniquely positioned to lead. The first one is our SimilarWeb GenAI intelligence, In April, we launched AI traffic to show how much website traffic comes from GenAI sources, as well as the prompts and landing page driving traffic. In June, we expanded our product line with the AI brand visibility, giving companies daily insight into how often they are seated in AI chatbot platforms across key topics. The second one is our AI agent. We are rolling out AI agents to help our customer maximize the value they can extract from our data in the shortest time. We're receiving great feedback from our customers and usage is growing by 60% month over month since launched. And the third one is our generative AI and LLM data. We are supplying our unique and fresh digital data to companies that are building their own LLM and gelative AI applications. Last year in Q2, we signed a seven-figure ARR contract with one of our big tech customers to use our data to train and improve its LLM. This customer was already using four of our solution across multiple business units and countries. After signing this contract, they become similar web first eight-figure ARR customer In June this year, this customer renewed and expanded the contract for GenAI application and LLM data with a multi-million dollar ARR and a multi-year upsell. Contracts like this one demonstrate the durability of those AI transactions as recurring revenue stream and provide me with the confidence in our ability to convert additional customers and expand our AI revenue streams. We continue to invest in our technology and expand and enhance our data to deliver the most comprehensive view of the digital world. In Q2, we expanded our product offering to empower customers with deeper insights across the digital landscape. We launched similar web ad intelligence, giving businesses a clearer and more complete view of the digital ad spend and paid marketing universe. leveraging the capabilities of ad metrics that we acquire in 2024. We also introduced additional modules to our mobile app intelligence and shopper intelligence, providing our customers with more tools and data to succeed and win their markets online. The investment in go-to-market that we started in the fourth quarter of 2024 is ramping as planned, and we are starting to see initial results. One of the KPI we track for Salesforce productivity is the number of salespeople booking deals. And I'm super happy that the number of salespeople booking deals increased by 50% year over year in the second quarter. I'm also super proud we continue to operate efficiently and return to profitability in the second quarter, as well as reporting our seven quarter of positive free cash flow. And as I like to say, We are just getting started. Thank you to everyone on the call for continued support. And with that, I will turn the call over to Jason.