Similarweb Announces Fourth Quarter and Fiscal Year 2023 Results

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Insights

The announcement by Similarweb Ltd. of a positive free cash flow for the first time since its IPO is a significant financial milestone. Achieving positive free cash flow indicates that the company's core operations are generating sufficient cash to sustain the business without relying on external financing. This shift towards financial self-sufficiency is a critical factor for investors, as it suggests improved operational efficiency and a potential reduction in financial risk.

Furthermore, the reported 13% annual revenue growth and a second consecutive quarter of non-GAAP operating profit reflect a positive trajectory in the company's financial performance. The growth in revenue, coupled with a reduction in GAAP operating loss from 45% to 13% of revenue year-over-year, demonstrates the company's ability to increase sales while managing costs more effectively. The financial outlook for Q1 and FY 2024, projecting continued revenue growth and non-GAAP operating profit, provides a forward-looking perspective that may influence investor sentiment and stock valuation.

Similarweb's growth in strategic accounts and the increased demand for its digital data analytics in the context of generative AI represents an important shift in the company's market position. The digital analytics industry is becoming increasingly intertwined with advancements in AI and Similarweb's ability to capitalize on this trend is indicative of its strategic agility. The company's focus on larger customers, as evidenced by the growth of customers with an annual recurring revenue (ARR) of $100,000 or more, suggests a deliberate move towards more lucrative, enterprise-level contracts.

However, a slight decline in the annual revenue per customer and a decrease in the dollar-based net retention rate for high-value customers could signal challenges in customer expansion or retention. These metrics will be important to monitor in subsequent quarters as they can significantly impact the company's future revenue streams and market share.

The company's financial results must be contextualized within the broader economic environment. The ability of Similarweb to achieve positive free cash flow and non-GAAP operating profit during a period of economic uncertainty is noteworthy. It reflects not only the company's operational resilience but also the robust demand for digital analytics tools that enable businesses to make data-driven decisions in a volatile market.

Additionally, the increase in multi-year subscriptions to 42% of overall ARR suggests a stable future revenue base, which can be advantageous during economic downturns. The commitment to driving operating efficiency and achieving sustainable positive free cash flow in 2024 is indicative of a cautious yet optimistic approach in the face of potential economic headwinds.

02/13/2024 - 04:30 PM

Delivers positive free cash for the first time since IPO

Non-GAAP operating profit margin of 8%

TEL AVIV, Israel--(BUSINESS WIRE)-- Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its fourth quarter ended December 31, 2023. The Company published a letter to shareholders from management discussing these results, which can be accessed at the link: https://ir.similarweb.com/financials/quarterly-results, located on the Company's investor relations website.

“We finished the year with 13% annual revenue growth, successfully navigated through a challenging demand environment, and in the fourth quarter we achieved positive free cash flow for the first time as a public company, which is a tremendous accomplishment for us as a team,” said Or Offer, Co-Founder and CEO of Similarweb. “During the quarter, we experienced significant new demand from our largest strategic accounts who are coming to us for unique digital data that they can leverage in their work with generative AI." Offer added, "This is an important development for us as we enter 2024 seeking profitable growth."

Fourth Quarter 2023 Financial Highlights

Total revenue was $56.8 million, an increase of 11% compared to $51.3 million for the fourth quarter of 2022.

GAAP operating loss was $(1.1) million or (2)% of revenue, compared to $(14.6) million or (28)% of revenue for the fourth quarter of 2022.

GAAP net loss per share was $(0.04), compared to $(0.20) for the fourth quarter of 2022.

Non-GAAP operating profit (loss) was $4.7 million or 8% of revenue, compared to $(10.9) million or (21)% of revenue for the fourth quarter of 2022.

Non-GAAP operating earnings (loss) per share was $0.06, compared to $(0.14) for the fourth quarter of 2022.

Cash and cash equivalents totalled $71.7 million as of December 31, 2023, compared to $77.8 million as of December 31, 2022.

Net cash provided by (used in) operating activities was $3.7 million, compared to $(12.3) million for the fourth quarter of 2022.

Free cash flow was $3.5 million, compared to $(14.6) million for the fourth quarter of 2022.

Normalized free cash flow was $3.5 million, compared to $(13.8) million for the fourth quarter of 2022.

Fiscal Year 2023 Financial Highlights

Total revenue was $218.0 million, an increase of 13% compared to $193.2 million for fiscal year 2022.

GAAP operating loss was $(28.8) million or (13)% of revenue, compared to $(87.9) million or (45)% of revenue for fiscal year 2022.

GAAP net loss per share was $(0.38), compared to $(1.10) for fiscal year 2022.

Non-GAAP operating loss was $(4.8) million or (2)% of revenue, compared to $(63.8) million or (33)% of revenue for fiscal year 2022.

Non-GAAP operating loss per share was $(0.06), compared to $(0.84) for fiscal year 2022.

Recent Business Highlights

Grew number of customers to 4,712 as of December 31, 2023, an increase of 16% compared to December 31, 2022.

Annual revenue per customer was approximately $50,000 in the fourth quarter of 2023, as compared to $51,600 in the fourth quarter of 2022.

Grew number of customers with ARR of $100,000 or more to 365, an increase of 8% compared to December 31, 2022.

Customers with ARR of $100,000 or more contributed 57% of the total ARR as of December 31, 2023, compared to 55% as of December 31, 2022.

Dollar-based net retention rate for customers with ARR of $100,000 or more was 107% in the fourth quarter of 2023 as compared to 120% in the fourth quarter of 2022.

Overall dollar-based net retention rate was 98% in the fourth quarter of 2023 as compared to 109% in the fourth quarter of 2022.

Multi-year subscriptions now comprise 42% of our overall ARR as of December 31, 2023, as compared to 39% as of December 31, 2022.

Remaining performance obligations increased 14% year-over-year, to $195.2 million as of December 31, 2023, as compared to $171.0 million as of December 31, 2022.

Financial Outlook

“We accomplished our goal of generating positive free cash flow in the fourth quarter and delivered a second consecutive quarter of non-GAAP operating profit,” said Jason Schwartz, Chief Financial Officer of Similarweb. “We remain focused on driving operating efficiency in order to achieve profitable growth and sustainable positive free cash flow quarterly in 2024.”

Q1 2024 Guidance

Total revenue estimated between $58.5 million and $59.0 million, representing approximately 11% growth year over year at the mid-point of the range.

Non-GAAP operating profit estimated between $1.0 million and $1.5 million.

FY 2024 Guidance

Total revenue estimated between $242.0 million and $246.0 million, representing approximately 12% growth year over year at the mid-point of the range.

Non-GAAP operating profit estimated between $6.0 million and $8.0 million.

The Company’s first quarter and full year 2024 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss and gross margin, the most directly comparable GAAP measures to non-GAAP operating loss and non-GAAP gross margin, respectively, and similarly cannot provide a reconciliation of these measures to their closest GAAP equivalents without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 8:30 a.m. Eastern Time on Wednesday, February 14, 2024. A live webcast of the call can be accessed from Similarweb’s Investor Relations website at https://ir.similarweb.com. An archived webcast of the conference call will also be made available on the Similarweb website following the call. The live call may also be accessed via telephone at (877) 407-0726 toll-free and at (201) 689-7806 internationally.

About Similarweb: Similarweb powers the data-driven decisions that help businesses win their market by revealing what is happening online. Similarweb provides businesses with the essential digital data & analytics needed to build strategy, optimize customer acquisition and increase monetization. We enable our users to become the first to discover and capture the best business opportunities and to stay alert and react instantly to emerging threats to their business. Similarweb products are easy to use and integrated into users’ workflow, powered by the most advanced technology, and based on what we believe to be the most comprehensive digital data on the planet.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our guidance for the first quarter and full year of 2024 described under "Financial Outlook". Forward-looking statements include all statements that are not historical facts. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements reflect our current views regarding our intentions, products, services, plans, expectations, strategies and prospects, which are based on information currently available to us and assumptions we have made. Actual results may differ materially from those described in such forward-looking statements and are subject to a number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to achieve or sustain profitability; (v) anticipated trends, growth rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of Israel's war with Hamas and other terrorist organizations on geopolitical and macroeconomic conditions or on our company and business; (vi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (vii) the costs and success of our sales and marketing efforts and our ability to promote our brand; (viii) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (ix) our ability to effectively manage our growth, including continued international expansion; (x) our reliance on certain third party platforms and sources for the collection of data necessary for our solutions; (xi) our ability to protect our intellectual property rights and any costs associated therewith; (xii) our ability to identify and complete acquisitions that complement and expand our reach and platform; (xiii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business, including in Israel, the United States, the European Union, the United Kingdom and other jurisdictions where we elect to do business; (xiv) our ability to compete effectively with existing competitors and new market entrants; and (xv) the growth rates of the markets in which we compete.

These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Form 20-F filed with the Securities and Exchange Commission on March 23, 2023, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.

Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. Except as required by law, we undertake no duty to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release contains certain financial measures that are expressed on a non-GAAP basis. We use these 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 informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software costs. Normalized free cash flow represents free cash flow less capital investments related to the Company's new headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, as applicable and indicated in the above tables.

Other Metrics

Customer acquisition costs (CAC) represent the portion of sales and marketing expenses allocated to acquire new customers. Customer retention costs (CRC) represent the portion of sales and marketing expenses allocated to retain existing customers and to increase existing customers’ subscriptions. Annual recurring revenue (ARR) represents the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. CAC payback period is the estimated time in months to recover CAC in terms of incremental gross profit that newly acquired customers generate. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage.


Similarweb Ltd. Consolidated Balance Sheets U.S. dollars in thousands (except share and per share data)

	December 31,			December 31,
		2022			2023

Assets
Current assets:
Cash and cash equivalents	$	77,810		$	71,732
Restricted deposits		9,814			10,020
Accounts receivable, net		38,141			47,869
Deferred contract costs		9,789			11,165
Prepaid expenses and other current assets		6,628			5,599
Total current assets		142,182			146,385
Property and equipment, net		31,823			28,630
Deferred contract costs, non-current		8,348			9,845
Operating lease right-of-use assets		40,823			36,007
Intangible assets, net		9,561			4,785
Goodwill		12,867			12,867
Other non-current assets		441			494
Total assets	$	246,045		$	239,013
Liabilities and Shareholders' equity
Current liabilities:
Borrowings under Credit Facility	$	25,000		$	25,000
Accounts payable		7,144			8,422
Payroll and benefit related liabilities		18,512			20,437
Deferred revenue		93,195			99,968
Other payables and accrued expenses		27,990			23,263
Operating lease liabilities		9,091			7,095
Total current liabilities		180,932			184,185
Deferred revenue, non-current		974			878
Operating lease liabilities, non-current		40,075			35,329
Other long-term liabilities		2,113			3,074
Total liabilities		224,094			223,466
Shareholders' equity
Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2022 and December 31, 2023, 76,435,940 and 78,653,046 shares issued as of December 31, 2022 and December 31, 2023, 76,433,772 and 78,650,878 outstanding as of December 31, 2022 and December 31, 2023, respectively;		210			216
Additional paid-in capital		345,834			367,558
Accumulated other comprehensive (loss) income		(367	)		872
Accumulated deficit		(323,726	)		(353,099	)
Total shareholders' equity		21,951			15,547
Total liabilities and shareholders' equity	$	246,045			239,013


Similarweb Ltd. Consolidated Statements of Comprehensive Income (Loss) U.S. dollars in thousands (except share and per share data)

	Year Ended December 31,						Three Months Ended December 31,
		2022			2023			2022			2023

Revenue	$	193,234		$	218,019		$	51,346		$	56,755
Cost of revenue		53,274			47,090			12,426			11,859
Gross profit		139,960			170,929			38,920			44,896
Operating expenses:
Research and development		59,904			56,158			13,977			13,706
Sales and marketing		122,635			101,198			30,096			21,836
General and administrative		45,277			42,380			9,441			10,439
Total operating expenses		227,816			199,736			53,514			45,981
Loss from operations		(87,856	)		(28,807	)		(14,594	)		(1,085	)
Other income, net		290			—			290			—
Finance income (expenses), net		4,421			941			(375	)		(2,085	)
Loss before income taxes		(83,145	)		(27,866	)		(14,679	)		(3,170	)
Provision (benefit) for income taxes		516			1,507			319			238
Net loss	$	(83,661	)	$	(29,373	)	$	(14,998	)	$	(3,408	)
Net loss per share attributable to ordinary shareholders, basic and diluted	$	(1.10	)	$	(0.38	)	$	(0.20	)	$	(0.04	)
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted		75,718,623			77,752,960			76,197,984			78,443,438

Net loss	$	(83,661	)	$	(29,373	)	$	(14,998	)	$	(3,408	)
Other comprehensive (loss) income, net of tax
Change in unrealized (loss) gain on cashflow hedges		(527	)		1,239			592			1,604
Total other comprehensive (loss) income, net of tax		(527	)		1,239			592			1,604
Total comprehensive loss	$	(84,188	)	$	(28,134	)	$	(14,406	)	$	(1,804	)

Share-based compensation costs included above:

U.S. dollars in thousands

	Year Ended December 31,				Three Months Ended December 31,
		2022		2023		2022		2023
	(In thousands)				(In thousands)
Cost of revenue	$	599	$	635	$	136	$	153
Research and development		5,287		5,782		1,193		1,479
Sales and marketing		5,995		5,196		1,087		1,145
General and administrative		5,106		6,514		1,156		1,665
Total	$	16,987	$	18,127	$	3,572	$	4,442


Similarweb Ltd. Consolidated Statements of Cash Flows U.S. dollars in thousands

	Year Ended December 31,						Three Months Ended December 31,
		2022			2023			2022			2023

Cash flows from operating activities:
Net loss	$	(83,661	)	$	(29,373	)	$	(14,998	)	$	(3,408	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		10,584			10,258			2,472			2,570
Finance expense (income)		1,112			1,646			(307	)		(106	)
Unrealized gain from hedging future transactions		(20	)		(52	)		(493	)		(78	)
Share-based compensation		16,987			18,127			3,572			4,442
Gain (loss) from sale of equipment		(142	)		—			(10	)		1
Changes in operating assets and liabilities:
Change in operating lease right-of-use assets and liabilities, net		5,744			(1,926	)		475			2,012
Increase in accounts receivable, net		(6,882	)		(9,728	)		(13,080	)		(13,149	)
(Increase) decrease in deferred contract costs		(459	)		(2,873	)		1,670			(6,467	)
Decrease in other current assets		1,342			617			456			2,204
Decrease (increase) in other non-current assets		372			(53	)		503			(461	)
(Decrease) increase in accounts payable		(4,284	)		1,255			(1,444	)		(3,054	)
Increase in deferred revenue		15,055			6,677			9,622			10,634
(Decrease) increase in other non-current liabilities		(1,497	)		961			(936	)		1,116
(Decrease) increase in other liabilities and accrued expenses		(316	)		1,426			238			7,477
Net cash (used in) provided by operating activities		(46,065	)		(3,038	)		(12,260	)		3,733
Cash flows from investing activities:
Purchase of property and equipment, net		(28,257	)		(1,559	)		(1,932	)		(182	)
Capitalized internal-use software costs		(2,919	)		(821	)		(424	)		(33	)
Decrease (increase) in restricted deposits		1,660			(206	)		507			(74	)
Payment in relation to business combinations		(3,787	)		—			—			—
Cash received in relation to business combinations		294			—			—			—
Net cash used in investing activities		(33,009	)		(2,586	)		(1,849	)		(289	)
Cash flows from financing activities:
Proceeds from exercise of stock options		2,034			2,296			130			171
Proceeds from employee share purchase plan		2,083			1,259			849			599
Borrowings under Credit Facility		25,000			—			—			—
Payments of contingent consideration, net		—			(2,363	)		—			—
Net cash provided by financing activities		29,117			1,192			979			770
Effect of exchange rates on cash and cash equivalents		(1,112	)		(1,646	)		307			106
Net (decrease) increase in cash and cash equivalents		(51,069	)		(6,078	)		(12,823	)		4,320
Cash and cash equivalents, beginning of period		128,879			77,810			90,633			67,412
Cash and cash equivalents, end of period	$	77,810		$	71,732		$	77,810		$	71,732
Supplemental disclosure of cash flow information:
Interest received, net	$	(18	)	$	(203	)	$	(2	)	$	(114	)
Taxes paid	$	485		$	1,883		$	68		$	26
Supplemental disclosure of non-cash financing activities:
Initial public offering costs incurred during the period included in accounts payable and accrued expenses	$	(120	)	$	—		$	(120	)	$	—
Additions to operating lease right-of-use assets and liabilities	$	9,485		$	2,597		$	50		$	1,549
Deferred proceeds from exercise of share options included in other current assets	$	—		$	11		$	—		$	(43	)
Deferred costs of property and equipment incurred during the period included in accounts payable	$	116		$	139		$	(654	)	$	76
Deferred payments in relation to business combinations held in escrow	$	—		$	1,269		$	—		$	—

Schedule A: Business combinations
Working capital (deficit), net (excluding cash and cash equivalents)	$	(657	)	$	—
Cash refund to be received resulting from adjustment to working capital		193			—
Property, plant and equipment		43			—
Goodwill and other intangible assets		4,361			—
Deferred taxes, net		(153	)		—
	$	3,787		$	—

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures

Reconciliation of GAAP gross profit to non-GAAP gross profit

	Year Ended December 31,						Three Months Ended December 31,
		2022			2023			2022			2023
	(In thousands)						(In thousands)
GAAP gross profit	$	139,960		$	170,929		$	38,920		$	44,896
Add:
Share-based compensation expenses		599			635			136			153
Retention payments related to business combinations		1,785			306			129			—
Amortization of intangible assets related to business combinations		4,487			4,641			1,168			1,137
Non-recurring expenses related to termination of lease agreement and others		35			—			—			—
Non-GAAP gross profit	$	146,866		$	176,511		$	40,353		$	46,186
Non-GAAP gross margin		76	%		81	%		79	%		81	%

Reconciliation of Loss from operations (GAAP) to Non-GAAP operating (loss) income

	Year Ended December 31,						Three Months Ended December 31,
		2022			2023			2022			2023
	(In thousands)						(In thousands)
Loss from operations	$	(87,856	)	$	(28,807	)	$	(14,594	)	$	(1,085	)
Add:
Share-based compensation expenses		16,987			18,127			3,572			4,442
Retention payments related to business combinations		2,342			1,072			351			221
Amortization of intangible assets related to business combinations		4,573			4,776			1,202			1,171
Adjustment of fair value of contingent consideration related to business combinations		(884	)		—			(1,628	)		—
Non-recurring expenses related to termination of lease agreement and others		1,174			17			197			—
Capital gain related to sale of operating equipment		(127	)		—			—			—
Non-GAAP operating (loss) income	$	(63,791	)	$	(4,815	)	$	(10,900	)	$	4,749
Non-GAAP operating margin		(33	)%		(2	)%		(21	)%		8	%

Reconciliation of GAAP operating expenses to non-GAAP operating expenses

	Year Ended December 31,						Three Months Ended December 31,
		2022			2023			2022			2023
	(In thousands)						(In thousands)
GAAP research and development	$	59,904		$	56,158		$	13,977		$	13,706
Less:
Share-based compensation expenses		5,287			5,782			1,193			1,479
Non-recurring expenses related to termination of lease agreement and others		87			—			—			—
Non-GAAP research and development	$	54,530		$	50,376		$	12,784		$	12,227
Non-GAAP research and development margin		28	%		23	%		25	%		22	%

GAAP sales and marketing	$	122,635		$	101,198		$	30,096		$	21,836
Less:
Share-based compensation expenses		5,995			5,196			1,087			1,145
Retention payments related to business combinations		557			766			222			221
Amortization of intangible assets related to business combinations		86			135			34			34
Non-recurring expenses related to termination of lease agreement and others		996			17			197			—
Non-GAAP sales and marketing	$	115,001		$	95,084		$	28,556		$	20,436
Non-GAAP sales and marketing margin		60	%		44	%		56	%		36	%

GAAP general and administrative	$	45,277		$	42,380		$	9,441		$	10,439
Less:
Share-based compensation expenses		5,106			6,514			1,156			1,665
Adjustment of fair value of contingent consideration related to business combinations		(884	)		—			(1,628	)		—
Non-recurring expenses related to termination of lease agreement and others		56			—			—			—
Capital gain related to sale of operating equipment		(127	)		—			—			—
Non-GAAP general and administrative	$	41,126		$	35,866		$	9,913		$	8,774
Non-GAAP general and administrative margin		21	%		16	%		19	%		15	%

Reconciliation of Net cash (used in) provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow

	Year Ended December 31,						Three Months Ended December 31,
		2022			2023			2022			2023
	(In thousands)						(In thousands)
Net cash (used in) provided by operating activities	$	(46,065	)	$	(3,038	)	$	(12,260	)	$	3,733
Purchases of property and equipment, net		(28,257	)		(1,559	)		(1,932	)		(182	)
Capitalized internal use software costs		(2,919	)		(821	)		(424	)		(33	)
Free cash flow	$	(77,241	)	$	(5,418	)	$	(14,616	)	$	3,518

Purchases of property and equipment related to the new headquarters		27,221			1,156			1,781			29
Payments received in connection with purchases of property and equipment		(12,124	)		—			(932	)		—
Payments received from escrow in relation to contingent consideration		—			(380	)		—			—
Deferred payments in relation to business combinations		413			260			—			—
Normalized free cash flow	$	(61,731	)	$	(4,382	)	$	(13,767	)	$	3,547

View source version on businesswire.com: https://www.businesswire.com/news/home/20240213903352/en/

Press Contact:

David Carr

Similarweb

press@similarweb.com

Investor Contact:

Raymond "RJ" Jones

Similarweb

raymond.jones@similarweb.com

Source: Similarweb Ltd.

FAQ

What was Similarweb's Non-GAAP operating profit margin in Q4 2023?

Similarweb reported a Non-GAAP operating profit margin of 8% in Q4 2023.

How many customers did Similarweb have as of December 31, 2023?

Similarweb had 4,712 customers as of December 31, 2023.

What was the total revenue for Similarweb in Q4 2023?

Similarweb's total revenue in Q4 2023 was $56.8 million.

What is Similarweb's ticker symbol?

Similarweb's ticker symbol is SMWB.

What is Similarweb's Q1 2024 revenue guidance?

Similarweb provided Q1 2024 revenue guidance of $58.5-59.0 million.

Similarweb Announces Fourth Quarter and Fiscal Year 2023 Results

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What was Similarweb's Non-GAAP operating profit margin in Q4 2023?

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What is Similarweb's Q1 2024 revenue guidance?

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