Similarweb Ltd.

Good morning ladies and gentlemen and welcome to the SimilarWeb Q3 Fiscal 2025 Earnings Call. All participants will be in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please key in star and then zero on your telephone keypad. Please note that this event is being recorded. I will now hand you over to Rami Myerson. Please go ahead.

Thank you, operator. Welcome, everyone, to our third quarter 2025 earnings conference call. Joining me today are our CEO and co-founder, Or Offer, and our chief business officer, Moaz Lakofsky. 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.solarweb.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 420F 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 to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation. We will begin with all the highlights of the quarter, and then I will provide an overview of the financials. 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 super proud of the third quarter financial result that we reported yesterday. Revenue increased by 11% year-over-year to $72 million in line with our expectation. Our customer base grew 15% year-over-year to more than 6,000 ARR customers at quarter end. We reported an eight quarter of positive free cash flow, and we are reiterating guidance for 2025 revenues and raising our profit guidance for the year. Customer interest in our GenAI data and solution is amazing, and revenues from our GenAI data and use solution continue to expand and are one of our fastest growing revenue streams. We remain focused on free AI impact opportunities where SimilarWeb is highly positioned to lead. The first one is the GenAI Intelligence. Our GenAI Intelligence suite has been well received by our customers. In October, we launched a Web Intelligence 4.0 that integrates our GenAI capabilities into our Web Intelligence solution, providing an even more comprehensive view of the digital world. ARR from GenAI Intelligent products is growing rapidly to more than $1 million since the launch in April, a great milestone for this product. The second one is our data selling for LLM. We are supplying our unique and fresh digital data to companies that are building their own LLM and generative AI applications. And the third one is our AI agent. We continue to roll out AI agents to help our customers maximize the value and automate the workflow, enabling them to extract insight from our data in the shortest time possible. Utilization of our AI agent continues to grow. For example, 27% of our sales intelligence customers use our AI meeting prep and our new AI outreach agent. with adoption and utilization is growing quarter over quarter. In September, we launched our new similar web MCP server that can deliver trusted digital market intelligent data directly into AI agent and workflows. This new product empower our customer with the tools to integrate our digital data insight at scale via LLMs and automation tools, including cloud, co-pilot, open AI agent builder, and more. The MCP is an exciting milestone in our deployment of data-driven AI products and services. I'm super proud of the strong adoption of the similar web app intelligence that we launched in Meltz. At the end of Q3, more than 580 of our customers were using our app intelligence, and ARR has increased rapidly to above $10 million. Similar web digital app data today cover over 4 million iOS and Android apps across 58 countries, providing our clients with comprehensive coverage app data that includes ranking, download, usage, engagement, retention, and audience demographics. 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 good results. At the end of Q3, we had 30% more sellers than in the third quarter last year, and we are seeing encouraging improvement in yield. I'm super proud that we continue to operate efficiently and reported our eighth quarter of positive free cash flow in Q3, generating $43 million of free cash flow in the past eight quarters. We remain focused on delivering profitable growth over time as well as achieving our long-term profit and free cash flow targets. I'm super excited that Ran Vered, our new CFO, will join in December. Ran has over 20 years of finance experience and a proven track record of driving growth, efficiency, and strategic transformation. He has worked as a CFO at three companies, two US-traded public companies, and recently in a SaaS enterprise data company. I would like to thank Jason Schwartz for 10 years of service at SimilarWeb and wish him good luck and success. And as I like to say, we are just getting started. Thank you, everyone, for the call and for the continued support. And with that, I will turn the call back to Rami.