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Earnings call: 2024 Similarweb posts growth and optimistic outlook in Q1 2024

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Earnings call: Similarweb posts growth and optimistic outlook in Q1 2024

Similarweb (NYSE: SMWB) has reported a 12% year-over-year increase in its Q1 fiscal 2024 revenue, reaching $59 million, with a substantial growth in its customer base and the introduction of new digital intelligence tools. The company’s recent acquisition of Admetricks and the launch of SAM, an AI-powered sales assistant, mark significant steps in enhancing its digital ad intelligence and sales efficiency.

With a non-GAAP operating profit of $2.8 million and a positive free cash flow of $9.7 million in Q1, Similarweb has set its Q2 revenue expectations between $60 million and $60.5 million, and an operating profit of $1.5 million to $2 million.

For the full fiscal year, the company anticipates revenue to be in the range of $242 million to $246 million with an operating profit between $7 million and $9 million. The earnings call revealed strategic changes and an optimistic outlook despite a challenging macro environment, with a focus on customer retention and the potential of its unique data offerings.

TVR INSTITUTE 

Key Takeaways

  • Similarweb’s Q1 fiscal 2024 revenue grew by 12% YoY to $59 million, with a non-GAAP operating profit of $2.8 million.
  • The company’s customer base expanded by 16% YoY, now exceeding 4,800 customers.
  • Similarweb acquired Admetricks, enhancing its digital ad intelligence offering, and launched SAM, an AI-powered sales assistant model.
  • For Q2 2024, revenue is expected to be between $60 million and $60.5 million, with an operating profit of $1.5 million to $2 million.
  • Full-year revenue projections are set between $242 million and $246 million, with an operating profit of $7 million to $9 million.
  • Strategic changes include a focus on customer success for SMB customers and sector-specific support for strategic accounts.
  • Susan, the new Chief Revenue Officer, is expected to help scale strategic motion and capitalize on Similarweb’s unique data.
  • The company is confident in its ability to adapt and execute in a challenging macro environment, with enterprise budgets expected to remain positive.
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Company Outlook

  • Similarweb is focused on growing its large strategic accounts and attracting new customers to boost future net retention rates.
  • The company is optimistic about its Investor Intelligence product and plans to expand coverage and introduce new data sets.

Bearish Highlights

  • Acknowledges the challenging macro environment and the uncertain future impact of tech customers using Similarweb’s data for training large language models.

Bullish Highlights

  • Expects positive demand for its products, especially in innovation, shopper intelligence, and custom products.
  • Anticipates the recent acquisition of Admetricks to drive monetization across solutions.
  • Sees potential growth in the Investor Intelligence product within the $10 billion alternative data market.

Misses

  • No specific misses were discussed in the provided context of the earnings call summary.

Q&A Highlights

  • The company is satisfied with its customer acquisition and does not see blended ARPU fluctuations as a concern.
  • Plans to add 100-200 customers each quarter, focusing on smaller customers for long-term revenue growth.
  • Expects tech customers’ use of data for training large language models to continue to be a positive trend.

InvestingPro Insights

Similarweb’s (NYSE: SMWB) first quarter of fiscal 2024 showcases a company on the rise, with a reported revenue growth of 11.18% over the last twelve months, indicating a steady upward trajectory in sales. This aligns with the company’s optimistic revenue forecast for the second quarter and the full fiscal year. The growth is further supported by a robust gross profit margin of 78.72%, suggesting that Similarweb is effectively managing its cost of goods sold and maximizing profitability on its products and services.

There aren’t any major earnings calls scheduled for today, Thursday, May 16th, 2024.

However, you can look ahead to next week or explore resources to find upcoming earnings calls:

  • Next Week’s Earnings Calendar: Check out financial news websites like Kiplinger https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks for a sneak peek at companies reporting earnings next week.
  • Earnings Calendars: These websites provide a comprehensive list of upcoming earnings calls, including today and future dates:
    • Nasdaq: https://www.nasdaq.com/market-activity/earnings
    • Seeking Alpha: https://seekingalpha.com/earnings/earnings-calendar
    • Market Insider: https://markets.businessinsider.com/earnings-calendar?p=1

 

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