Similarweb Reports Strong Q4 and FY 2023 Results

Similarweb Ltd. (NYSE: SMWB), a leading digital data and analytics company, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2023.

The company surpassed expectations, achieving positive free cash flow for the first time since its IPO and delivering a second consecutive quarter of non-GAAP operating profit.

Key Highlights:

• Revenue: $56.8 million in Q4, up 11% YoY; $218.0 million in FY23, up 13% YoY
• Non-GAAP Operating Profit: $4.7 million in Q4 (8% of revenue); $(4.8) million in FY23 (2% of revenue)
• Free Cash Flow: $3.5 million in Q4; $3.5 million in FY23
• Customer Growth: 16% YoY increase to 4,712
• Dollar-Based Net Retention Rate: 98% in Q4, 107% for customers with ARR > $100k

Positive Free Cash Flow Milestone:

"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.

Focus on Profitable Growth:

Similarweb is now focused on driving further operating efficiency to achieve profitable growth and sustain positive free cash flow throughout 2024.

Financial Outlook:

• Q1 2024 Revenue: $58.5 million - $59.0 million (11% YoY growth)
• Q1 2024 Non-GAAP Operating Profit: $1.0 million - $1.5 million
• FY 2024 Revenue: $242.0 million - $246.0 million (12% YoY growth)
• FY 2024 Non-GAAP Operating Profit: $6.0 million - $8.0 million

Similarweb

Similarweb is a leading digital data and analytics company that provides insights into various aspects of the online world. They offer a range of services that can be broadly categorized into two main areas:

1. Website and App Analytics:

• Website traffic analysis: Get insights into website traffic sources, visitor demographics, engagement metrics (bounce rate, time on site), and competitor analysis.
• App usage analysis: Understand app downloads, engagement within the app, user demographics, and competitor app analysis.
• Market research & insights: Gain insights into specific industries, market trends, and competitor performance across the digital landscape.

2. Digital Marketing Intelligence:

• Keyword research & PPC insights: Identify high-performing keywords, analyze competitor's PPC campaigns, and optimize advertising strategies.
• Affiliate marketing research: Find potential affiliate partners, evaluate their performance, and track campaign effectiveness.
• Social media analytics: Measure social media audience growth, engagement, and competitor's performance across platforms.
• Ecommerce intelligence: Analyze online shopping trends, competitor pricing strategies, and identify emerging brands.

In simpler terms, Similarweb helps businesses understand their online audience, track their competitors, and make data-driven decisions to improve their online presence and achieve their digital marketing goals.