In This Article:
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Q4 Revenue: $65.6 million, a 16% increase year over year.
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Full Year 2024 Revenue: $249.9 million, representing 15% growth over 2023.
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Non-GAAP Operating Margin Q4: 4%.
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Full Year 2024 Non-GAAP Operating Margin: 6%, an 800 basis point improvement over 2023.
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Normalized Free Cash Flow Q4: $2.7 million.
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Full Year 2024 Free Cash Flow: $27.7 million, reflecting an 11% margin.
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Net Revenue Retention (NRR): Overall NRR at 101%; NRR for $100k ARR customers at 112%.
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Customer Base Growth: 17% year over year, ending with over 5,500 ARR customers.
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$100,000 ARR Customers: 405 customers, an 11% increase year over year.
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Average ARR per Customer: Increased 7% year over year to approximately $376,000.
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Multi-Year Contracts: 49% of ARR contracted under multi-year agreements, up from 42% last year.
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Remaining Performance Obligations (RPO): $246 million, up 26% year over year.
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2025 Revenue Guidance: $285 million to $288 million, representing 15% growth at the midpoint.
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Q1 2025 Revenue Guidance: $66 million to $66.5 million.
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2025 Operating Profit Guidance: $1 million to $4 million.
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Q1 2025 Non-GAAP Operating Loss Guidance: $1 million to $1.5 million.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Similarweb Ltd (NYSE:SMWB) reported a 15% year-over-year revenue growth for 2024, reaching nearly $250 million.
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The company achieved a non-GAAP operating profit for the first full financial year, demonstrating disciplined execution.
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Similarweb Ltd (NYSE:SMWB) signed significant multi-year agreements with S&P Global and Bloomberg, highlighting the strength of their data assets.
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The customer base grew by 17% year-over-year, with more than 5,500 ARL customers and 15 new seven-figure contracts signed in Q4.
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The company is capitalizing on AI opportunities by embedding AI solutions into their platform and expanding R&D and go-to-market teams.
Negative Points
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The increased investment in R&D and go-to-market teams is expected to reduce operating profit in the short term.
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There was some softness in Q4 execution due to managerial changes and low performance, impacting sales.
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FX headwinds affected revenue growth, with a 1% to 2% impact on a run rate basis.
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Gross margin decreased sequentially due to investments in new data capturing for Gen AI and integration of new data sets.
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The guidance for 2025 reflects increased operating expenses, with a non-GAAP operating loss expected in Q1.
Q & A Highlights
Q: Can you provide more details on the incremental $20 million spend? How is it divided between go-to-market strategy and R&D, and what is the hiring cadence for the year? A: The majority of the spend is for accelerating our go-to-market efforts, with a significant portion also allocated to R&D. The hiring cadence will be focused on ramping up these areas to capture growth opportunities while maintaining profitability. - Or Offer, CEO