SIMILARWEB LTD. — Call Transcript 2026

Good evening, and welcome to the Similarweb first quarter fiscal year 2026 earnings call. It is now my pleasure to introduce Rami Myerson, Vice President, Investor Relations. Please go ahead. Thank you, operator. Welcome everyone to our first quarter 2026 earnings conference call. Joining me today are our CEO and co-founder, Or Offer, our Chief Financial Officer, Ran Vered, and Maoz Lakovski, our Chief Business Officer. This morning we released our results for the first quarter and published an investor presentation with a strategic overview of the business as well as a summary presentation of first quarter results on our investor relations website at ir.similarweb.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 Form 20-F 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 Or and Ran's highlights of the quarter, and 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. Just before I start reviewing Q1 results, I want to address the announcement we made this morning. Today is a symbolic date for me. Today is exactly five years since our IPO and running Similarweb as a public CEO. This is also my 19th year of service since start working on Similarweb in June 2007. My promise to myself and to my wife was always that when I reach 20 years of service, I will realign my priorities and spend more time with my family. This moment is about to be reached as I enter my 20th year leading Similarweb next month. Similarweb has been my life work. I founded this company nearly 20 years ago, and as I approach that milestone, I believe this is the right moment to begin identifying the leader who will take the company forward. The board and I are fully aligned on the timing and the process, and we have initiated a search with the leading executive search firm. I will continue to serve as the CEO through the conclusion of the search and the transition period with my successor, with the leadership transition expected to be completed by mid-2027. I remain fully focused on the execution of our strategy for our shareholders, our customers, and our employees. We came out with a great Q1 result, and I have a very strong confidence for this year's performance. There is no change in our strategy, our operation or our financial outlook. I'm proud of the business we have built and confident in what lies ahead. With that, let me turn to our first quarter 2026 results. I'm super proud of the performance of the whole Similarweb team during an eventful first quarter that included month of conflict in the Middle East. Revenue and operating profits came in the top end of the guidance range. We delivered 10th quarters of positive normalized free cash flow. Our NRR has stabilized, and we expected these metrics to improve in 2026, driven by execution of our customer expansion playbook. Growth retention trends in the quarter were excellent. The pipeline of the commercial opportunities is very strong, growing and providing confidence for the remaining of the year and beyond. AI related revenues continue to expand and adoption of our AI solution is growing. First quarter performance provides a solid base for 2026, and we have decided to raise the lower end of our guidance for 2026 to reflect increased confidence. Turning to our results, revenue grew 10% year-over-year to $73.9 million at the top end of our guidance range. We are starting to see tangible returns on the investments we made in the sales force and product portfolio in 2025. Sales productivity increased for the third quarter in a row, and this has contributed to the best Q1 increase in ARR since 2022. We reported non-GAAP operating profit at the top end of our guidance range. We generated $6.6 million in normalized free cash flow in the first quarter, reinforcing our commitment to profitable and durable growth. Net revenue retention for all customers was 98% and 103% for customers above $100,000. We are very encouraged that those metrics have stabilized in the first quarter and that gross retention continues to improve. We are focused on driving an improvement in NRR, specifically in the upsell motion in 2026 by executing our customer expansion playbook and leveraging our diverse product portfolio. Demand for our GenAI data and solution is truly amazing. Our AI revenues continue to expand, and we are engaging with more AI native companies as well as companies of all sizes that have realized that they need to understand what happening in the new digital world. During the quarter, we signed one of the large LLM contracts that were pushed back from the fourth quarter of 2025. We continue to progress on the second and third deal as well as on multiple deals for our unique digital data and view of the digital world. We believe we are well-positioned to be an AI winner with multiple commercial opportunities across data, product, and distribution partners, and we are excited about the potential. Let me run through our AI data and product strategy, how we power the ecosystem, build our AI-first solution, and expand distribution at scale. First, we are powering LLM and AI agents. We are seeing strong traction in licensing our data directly to leading LLM companies for both pre and post-training use case. At the same time, autonomous agents require trusted, structured digital intelligence to operate efficiently. That's exactly what we provide. Our data is built for both humans and agents, and we see accelerating demand for both. Second, we are building our own AI native solution. With GenAI Intelligence, we are helping brands to improve their GenAI visibility and sentiment. We are seeing strong market validation on this front, including recognition of our leadership by G2. We believe our data provides an important competitive advantage in this new market, and we are on a journey to become a market leader in this category as well. Last quarter, we launched Similarweb AI Studio, and the response from the customers has been truly amazing. AI Studio is an AI-powered interface that allows users to ask business questions in plain language and multiple languages and instantly receive actionable insights. What used to take time and specialized skills can now happen quickly and easily across all of our datasets. AI Studio expands the number of users who can leverage Similarweb, increases engagement, enable faster and smoother insight generation, and unlock a new consumption-based monetization model. We are seeing strong adoption and utilization across our customer base. AI Studio represent a huge shift in how user interact with Similarweb data. Third, we are expanding distribution at scale. Through partnership with leading LLM and agent platforms such as Manus and through MCP integration, we are embedding Similarweb directly into AI ecosystem. We want to meet our users where they are, and increasingly, research and decision-making is happening inside the new AI platform. Last quarter, we shared that our MCP was available in Claude, and today I'm super proud to share that we have launched MCP integration with ChatGPT. This integration is the same as our MCP Claude connector, providing seamless access to our data and tools. Claude and ChatGPT are two of the largest AI platform in the market, and today hundreds of our customers can plug in Similarweb data directly into them, building automation, powering agent, and asking complex question on the fly and receive insight, recommendation, and action wherever they choose to work. Yesterday, we announced an expansion of our partnership with Manus, which we told you about last quarter. This partnership has been a big success, and we are glad to expand the data Manus user can access and also enable our customer to connect to Manus via an MCP to generate even more valuable seamlessly, combining our data and Manus tools and capabilities. This ecosystem partnership unlock a new customers, expand our TAM, and position our digital data as critical ingredients for AI-driven research and decision-making. Our AI pipeline is expanding rapidly with a healthy combination of large deals and continued expansion across our enterprise customers. We're excited about the potential this rich pipeline of opportunities provide. Our mission is to help companies win in the digital world, and we gain more market share. As part of this mission, we continue to develop and launch innovative products that empower our customers with the tools and capabilities to win in their markets. In March, we launched Similarweb Retail Intelligence, a new product that combine Amazon data and cross-retail coverage of more than 650 online stores and marketplaces. Retail Intelligence gives brand, sellers, and retailer a unified view of shopper behavior, digital shelf performance, product mix, availability, and pricing across fragment e-commerce channels. It also adds keyword optimization, competitive benchmarking, and digital shelf automation. As AI reshapes product discovery and retailers expand marketplace and retail media networks, Retail Intelligence help customers understand where demand is forming, how brands are winning, and which actions can improve sales performance so that they can win in a highly competitive e-commerce market. During March, we also launched Delivered, a unified view of paid media across search, social, and display, and soon LLM ads, revealing The solution addresses the most severe pain points advertisers face today. Knowing what competitors are spending and where, if ad spending is generating the decent return, and helping advertisers identify where they are overspending, underspending, or missing opportunities across channels. Until now, advertisers had to rely on fragment data that leads to inefficient ad spend and wasted budget. With this product, we empower brands, agencies, and publishers to work smarter, helping them to spot growth opportunities, benchmark performance, and optimize spend across every channel and market. To summarize, during the first quarter, we have taken action to improve our performance. We are sharpening our go-to-market strategy, refining processes, and building scalable playbook to drive cross-sell and expansion. We are seeing encouraging signs of improvement across the business, and this has increased our conviction in 2026. We believe that we are well-positioned to capture long-term AI-driven opportunities. Our AI-first portfolio is scaling, ecosystem partnership are expanding, and we are targeting high growth segment like LLM companies, large big tech players, and OEM with our own dedicated go-to-market. Thanks, all. I'll provide highlights of our financial performance and guidance for the second quarter and full year of 2026. Turning to our quarterly results. We generated $73.9 million of revenue in Q1, a 10% increase relative to Q1 2025 at the top end of our guidance range. Revenue growth was driven by good performance across the book of business, including new sales and upsells, as well as growth in AI-related revenues. Non-GAAP operating profit for the quarter was $2.4 million, reflecting a 3% margin compared to loss of $1.3 million in the first quarter of 2025. Non-GAAP operating profit was also at the top end of our guidance range, thanks to top-line growth and disciplined cost control. Non-GAAP interest expense was $3,000, and the non-GAAP tax expense was $1.3 million in the quarter, compared to $0.1 million and $1.2 million respectively in the first quarter of 2025. To help with your modeling, we expect these items to remain at approximately these levels on a quarterly in Q1 2025. We are proud that 64% of our ARR is contracted under multi-year contracts, up from 52% last year. We believe that this metric, coupled with strong ARR, demonstrates the durability of our revenues. It also provide us with confidence in the value we provide to our customers. Good cash generation and a strong balance sheet are critical for business at any stage of life cycle. We generated $6.6 million of normalized free cash flow, reflecting seasonal strength. We believe we generate positive normalized free cash flow on a quarterly basis going forward, although we are aware of seasonal fluctuations. We ended the quarter with approximately $65 million of cash and cash equivalents and no debt. We also have an available line of credit of $75 million. After 10 consecutive quarters of normalized positive free cash flow, the business has a solid core and the financial flexibility to weather market headwinds while staying focused on our long-term goals to maximize shareholder value. Our remaining performance obligation totaled $298 million at the end of Q1, up 18% year-over-year. We expect to recognize approximately 70% of total RPO as revenue over the next 12 months. The growth in RPO provides us with confidence for customers with over $100,000 of ARR. We are encouraged by the stabilization in NRR in the quarter, which reflects an improvement in GRR and quarterly NRR. We expect an improvement in NRR over 2026. The trend in GRR continued to improve. In the first quarter, we reached a new two-year peak. Customer count increased by 5% year-over-year to 6,038, declined sequentially by 1% from 6,128 in the fourth quarter. The decline was mainly due to self-service customers that have not renewed their annual subscriptions or have moved to monthly subscriptions. We have reviewed this KPI and compared it to the sales rep customer count that are above $25,000 ARR. This accounts for 86% of our ARR. At the end of Q1, customer count of this cohort was 1,840, increasing by 2% year-over-year. Average account value for this cohort was $132,000, up 9% compared to 2025. We believe that the number of accounts generating more than $25,000 and $100,000 of ARR demonstrate that Similarweb is an enterprise-focused company and provide a more meaningful representation of the underlying trends of the business. Accordingly, we plan to disclose these cohorts going forward and will no longer disclose total logo count. Moving to guidance. For the full year of 2026, we are raising the lower end of our revenue guidance and expect total revenue in the range of $307 million-$350 million, representing 10% year-over-year growth at the midpoint of the range. In Q2 2026, we expect total revenue in the range of $74.5 million-$76.5 million, representing 6% year-over-year growth at the midpoint. I would like to remind you that strong revenue growth in the second quarter of 2025 benefited from a pull forward one-time revenue from the third quarter of 2025 and provides a tough comparison for this quarter. As Or mentioned, the solid pipeline provides us with confidence in the revenue growth acceleration during the second half of the year. For the full year, we are raising our guidance for non-GAAP operating profits to be between $17 million and $19 million. Non-GAAP operating profit for the second quarter of 2026 is expected to be in the range of $3 million-$5 million. We continue our efforts to offset the headwinds to profit presented by the strengthening of the Israeli shekel versus the U.S. dollar. Approximately half of our employees are based in Israel. The expansion of our R&D center in Prague, which provides an. Q&A. Or will share some closing remarks. Operator, please open the line for questions. Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation time will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please, while we pull for questions. Thank you. Our first question is from Arjun Bhatia with William Blair. Yep. Perfect. Thank you so much. Or, congrats on the IPO milestone and the run as CEO. I know it's not, you're not leaving yet, but has been great working together. Maybe one question on just the guidance and the LLM contract that you closed. I assume that's in the numbers yet, but as I'm looking at sort of the back half ramp in implied in revenue, it still seems quite steep. I would love to hear just your confidence in the ramp in the second half of the year, how much of that is still dependent on the second LLM contract closing and just maybe where we are in sort of, you know, that process at this point. Thank you. Of course, thank you, Arjun, for the kind words. Yes, we're seeing a very strong pipeline over this quarter, this Q2. We are already in the middle of the quarter, we have very strong confidence with the second part of the year. The team did an excellent job in the past few months, not only closing the one deal that's left, also continue to have in the pipeline the second deal and open the pipeline with many other opportunities, and they really executing very well. We have very strong confidence for the year and for the second part of the year. Okay. Perfect. Then you sounded quite bullish just on NRR trajectory going forward. How much can that increase? You know, when you're looking at the upsell, what are the main sort of changes that you're seeing that are giving you confidence that, you know, you can drive more upsell and cross-sell with your existing customer base? Because, you know, I think generally that, that metric has been sort of flattened down over the last several quarters. Curious on the inflection there. Yes, of course. I think it's an excellent question. The NRR we're reporting to the street is the average last four quarter of NRR. We're already seeing an improvement with our NRR and GRR in the past two quarters that is not fully seen yet in the average. We already know that the NRR is going to be better going forward. We also see the great pipeline being built on the current customer want to buy more more of our data. Let me just, yeah, just to complement on that, Arjun. The GRR that we saw in the Q1 was the strongest in the last two years. We also didn't, of course, share the Q2 yet. We also seeing the strength of the GRR continuing to be very strong in Q2. We're quite confident that along the year, the NRR metrics is going to improve. Very helpful. Thank you so much. Our next question is from Scott Berg with Needham & Company. Good morning, Lucas on for Scott here. Thanks for taking the questions. Maybe to start, could you just talk about the sales productivity during the quarter? There's obviously been a lot of GTM changes over the last year plus. Just curious if productivity is beginning to normalize kind of where you guys would like to see it at. Yeah. We track this metric closely and overall in the past three quarters, we're seeing a nice increase. Every quarter it's getting better. We're very happy. There's two commercial teams, one driving new sales and the other one driving expansion. We're very happy with the expansion progress in the past quarter and also the new sales. Expansion was remarkably well and hopefully continue to get better productivity going forward. Got it. Thank you. Just as a quick follow-up, as you guys are kinda thinking about capital allocation from here, any thoughts on a potential share buyback just given kind of where the current stock is trading at? I think it's a good question. We did discuss about it. We don't have a specific decision yet. It's a good start to think about going and seeing how the year is progress, but it's definitely something that can be on the table. Understood. Thank you. Just to complete on that, I think we're very focused on the operational areas of our business, and generating a normalized free cash flow is one of the top priorities. We focus on that. Once we see also this trend picking up, as Or said, we'll consider all available options for the capital allocation. All right. Thank you. In the question, I guess, Or to start, on the AI front and MCP front in particular, I'm wondering if that is playing a role at all in your new customer conversations and AI expansions of renewal, thinking lowering the barrier to agents. Does that actually improve your win rates, bring more RFPs to the table? I'm just curious how that's sort of played out in your customer conversations so far. It's a good question. I think it's mostly improving our GRR and retention. You know, we're going to our existing customers and present them the opportunity to their data for MCP connection if it's through cloud integration or OpenAI, and then suddenly they're getting much more ROI from our data and much more users in the organization can leverage ROI from our data. Right now I would say it's driving more retention and usage-based consumption that's driving upsell. From the new sell, I think our new solution for GenAI visibility that help them understand their and measure their visibility on chatbots, this is driving the win rates more, this specific solution. Okay, great. That's really helpful. As we think about customer growth, Ran, I fully understand the sort of $100,000 customer cohort seems to be continuing quite strongly. Just anything to call out on Q1 and marrying the high gross retention comments with sort of that lower end sub $25,000 ARR customer cohort and some of the turn we saw there. Yes, first of all, we are introducing a new metric that we are going to share is about the customers that are above $25,000, which means that this cohort is a cohort that only our go-to-market can sell. Below $25,000, we have a motion of the no touch or the self-serve. We decided this is not really resonate with our focus of enterprise. In terms of the GRR, we see very good traction, and you can see it also on the average account value that we shared on our presentation in terms of the $100,000. You see that those customers, the $100,000+ or $25,000+ are generating better average account value, and this is why the GRR in terms of the dollar value is much better. Okay, great. Thank you both. Thanks. Our next question is from Austin Cole with Citizens. Great. Thanks for taking the question, and Or my congratulations to you on announcing your next chapter here. It's been great to work with you. I did wanna ask you a more high-level question around pricing, because it seems that Similarweb is changing a lot, just with the LLM deals and MCP connectors, new partnerships, and even your own tools like AI Studio that are based in natural language. Actually one of your competitors earlier this week announced that they're shifting to more of a platform fee plus consumption structure. I'm just wondering what your thoughts are on all this and whether a seat-based model or shifting more towards consumption over time is gonna be the better way to leverage your data assets. Yeah, I would answer quickly and also I think Maoz here can follow after me and give more context. This is the overall trend in the industry as AI taking more place and more agent to agent. I think it makes sense to move to more consumption-based. You can really charge per outcome. We're selling data bottom line, and the more data we give and more usage they have, they get more ROI. For us, it's much better to price like that. It's overall trend, and we follow with that and we see good success. I think that over the next few quarters, this will become bigger and bigger. Maybe, Maoz, if you want anything to add on top of that. Yes. Maybe just to add, I mean, we don't price by seats even today, so we made this transformation actually a while ago. The way we monetize is by data access, so you can buy different data that you want to use and then consumption on top of it. Some of our products are more data-oriented, less platform-oriented, and they are definitely leveraging this already. I think we're also seeing kind of big potential with the distribution channels, with the AI chatbots and how users can use us within this kind of environment. It's definitely a consumption play. It's very evident also from our NRR improvements. We have the right infrastructure from a data access and consumption, and we are definitely doubling down on this vision. This is our monetization strategy. Great. Then just as a quick follow-up, as you think about the data asset today, where are maybe some of those gaps, if they exist, and where do you see the most opportunity to kind of widen that moat in 2026? What maybe opportunities are you evaluating in the market? I think all of the new solution have great coverage. As long as we continue to increase our data coverage, we can able to monetize more if it is on our App Intelligence and to add more countries. The two new products I discussed, the Retail Intelligence, we are covering 650 different retail. The more we add, the more retails in different countries, we can sell to more customers. Same for Media Intelligence that we just launched. It's very exciting, it's mostly web advertisement, and now we're adding the new LLM advertisement. You know, ChatGPT announced that they're gonna include ads in their free products, and they are scaling it. I think we are the first company in the world now to bring this data into the market. This quarter we're gonna start selling and bring it in front of customers. It's very exciting. Great. That's helpful. Thank you, guys. Our next question is from Luke Horton with Northland Securities. Hey, guys. Thanks for taking the questions. It looks like total customer count, that growth decelerated quite a bit in the quarter. I guess, would you say that's more of a function of focusing more on growing with the existing accounts that you have? Would there be any anything to call out with pain points with adding net new customers? No, not exactly. The number we provide to the street is combination of touch customer and self-serve. The customer that coming to the website and buy with credit card. If they decide to pay yearly, so they've been counted in this 6,000+ number. Because this number that we're reporting from 2021 is it's yearly paying customer. Over the years, we started adding yearly self-serve customers, so it start increasing this number. As we go and marketing is start to do a lot of A/B testing to see if they want to charge the self-serve on monthly or yearly, you know, you can offer the customer what is the default. Then it's changing those numbers, and every time they do a test, they do tests around that, it changed those numbers. Realize it's not a good indication, and it's not gonna help you understand the performance of the business. It's just better for us to focus on the enterprise, the sales motion customers. We're gonna start reporting the $25,000 customers and above to remove this noise. Okay, got it. Then, also just wanted to ask on the search process for a new CEO. Congrats by the way, Or, for almost 20 years here and getting Similarweb to where it is. I guess specifically, are you guys looking internally for a potential new CEO, or would this be an external hire? I guess just any more details around the process that you could give. Yeah. It will be external search. Now that we announced to the street, we can probably start the search. We already have a top executive search firm start working today, and we will report to the street as it will get progress. Okay, great. Well, thanks for taking the questions, and congrats on the quarter. Thanks. Our next question is from Tyler Radke with Citi. Hey, thanks for taking the question. This is Andrew Girard on for Tyler Radke. Just a couple quick ones. On the customers above $100,000, saw the net adds kind of stabilize here from Q4. Just kind of wanted your puts and takes on kind of what it will take and, you know, what sort of products will help kind of re-accelerate this net add number going through the rest of the year. Just a really quick follow-up on MCP and kind of your consumption-based revenue, just understanding that it's early, any kind of details on the margin structure there for those revenue streams compared to kind of some of your core seats would be great. Thanks so much. I would start with the second question about the margin. I think the margin are the same or even better in this consumption model because there's no UI. Every time historically when customer used to buy our data from us, our API, first they become more sticky and retention was better. Also they're much more profitable because it's more integrated into the workflow, so you need less customer success people to support those customers, and they're more sticky, and there's no UI on top of that. I think margin will be better. Regarding the $100,000 accounts, this year we have good momentum there. I think the team is focusing to get the bigger account get bigger. Like, our top account to get bigger because in those giant customers we are barely penetrated as we should be. We focus on increasing those. I think it will continue to grow nicely over the year. We start seeing more and more new lens at six figures with a very strong quarter of lending, a lot of six figures at lend, which it didn't happen historically. We had good quarter on that front also. Thank you. There are no further questions at this time. I would like to pass the floor back over to management for any closing remarks. Before we conclude, I would like to highlight four key takeaways. The first quarter was solid start to the year and came in better than expected, we are raising the low end of our guidance for both revenue and non-GAAP operating profits for the full year to reflect the improving and the fundamentals. Second, we are witnessing improving fundamentals and growth drivers. NRR has stabilized, growth retention is strong, and sales productivity continue to improve. Multi-year ARR increased, we extended our track record of profitability and free cash flow. Third, our leadership in digital data has become even more valuable as AI adoption accelerates. Fourth, we're remaining focused on disciplined execution and scaling what we have built. AI is magnificent tailwind for data companies like us. Thank you everyone on the call for your continued support. We look forward to speaking to you again over the coming weeks. Thank you. Thank you. Thank you. This does conclude today's conference. A recording of the webcast will be available on the IR website following the call. We thank you again for your participation. You may disconnect your lines at this time.

Speaker 6: Good evening, and welcome to the Similarweb first quarter fiscal year 2026 earnings call. It is now my pleasure to introduce Rami Myerson, Vice President, Investor Relations. Please go ahead. Good evening, and welcome to the Similarweb first quarter fiscal year 2026 earnings call. good evening and welcome to the similarweb first quarter fiscal year 2026 earnings call It is now my pleasure to introduce Rami Myerson, Vice President, Investor Relations. it is now my pleasure to introduce rami myerson vice president investor relations Please go ahead. please go ahead

Speaker 8: Thank you, operator. Welcome everyone to our first quarter 2026 earnings conference call. Joining me today are our CEO and co-founder, Or Offer, our Chief Financial Officer, Ran Vered, and Maoz Lakovski, our Chief Business Officer. This morning we released our results for the first quarter and published an investor presentation with a strategic overview of the business as well as a summary presentation of first quarter results on our investor relations website at ir.similarweb.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 Form 20-F for more information on the risk factors that could cause actual results to differ from our forward-looking statements. Thank you, operator. thank you operator Welcome everyone to our first quarter 2026 earnings conference call. welcome everyone to our first quarter 2026 earnings conference call Joining me today are our CEO and co-founder, Or Offer, our Chief Financial Officer, Ran Vered, and Maoz Lakovski, our Chief Business Officer. joining me today are our ceo and co-founder or offer our chief financial officer ran vered and maoz lakovski our chief business officer This morning we released our results for the first quarter and published an investor presentation with a strategic overview of the business as well as a summary presentation of first quarter results on our investor relations website at ir.similarweb.com. this morning we released our results for the first quarter and published an investor presentation with a strategic overview of the business as well as a summary presentation of first quarter results on our investor relations website at ir.similarweb.com Certain statements made on the call today constitute forward-looking statements which reflect management's best judgment based on the currently available information. 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. 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 Form 20-F for more information on the risk factors that could cause actual results to differ from our forward-looking statements. please refer to our earnings release and our most recent annual report filed on form 20-f 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 Or and Ran's highlights of the quarter, and 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. Additionally, certain non-GAAP financial measures will be discussed on the call today. 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. reconciliations to the most directly comparable gaap financial measures are available in the earnings release and the earnings presentation We will begin with Or and Ran's highlights of the quarter, and then we will open up the call to questions from sell-side analysts. we will begin with or and ran's highlights of the quarter and then we will open up the call to questions from sell-side analysts With that, I'll turn the call over to Or. with that i'll turn the call over to or Or, please go ahead. or please go ahead

Speaker 7: Thank you, Rami, and welcome everyone joining the call today. Just before I start reviewing Q1 results, I want to address the announcement we made this morning. Today is a symbolic date for me. Today is exactly five years since our IPO and running Similarweb as a public CEO. This is also my 19th year of service since start working on Similarweb in June 2007. My promise to myself and to my wife was always that when I reach 20 years of service, I will realign my priorities and spend more time with my family. This moment is about to be reached as I enter my 20th year leading Similarweb next month. Similarweb has been my life work. Thank you, Rami, and welcome everyone joining the call today. thank you rami and welcome everyone joining the call today Just before I start reviewing Q1 results, I want to address the announcement we made this morning. just before i start reviewing q1 results i want to address the announcement we made this morning Today is a symbolic date for me. today is a symbolic date for me Today is exactly five years since our IPO and running Similarweb as a public CEO. today is exactly five years since our ipo and running similarweb as a public ceo This is also my 19th year of service since start working on Similarweb in June 2007. this is also my 19th year of service since start working on similarweb in june 2007 My promise to myself and to my wife was always that when I reach 20 years of service, I will realign my priorities and spend more time with my family. my promise to myself and to my wife was always that when i reach 20 years of service i will realign my priorities and spend more time with my family This moment is about to be reached as I enter my 20th year leading Similarweb next month. this moment is about to be reached as i enter my 20th year leading similarweb next month Similarweb has been my life work. similarweb has been my life work I founded this company nearly 20 years ago, and as I approach that milestone, I believe this is the right moment to begin identifying the leader who will take the company forward. The board and I are fully aligned on the timing and the process, and we have initiated a search with the leading executive search firm. I will continue to serve as the CEO through the conclusion of the search and the transition period with my successor, with the leadership transition expected to be completed by mid-2027. I remain fully focused on the execution of our strategy for our shareholders, our customers, and our employees. We came out with a great Q1 result, and I have a very strong confidence for this year's performance. There is no change in our strategy, our operation or our financial outlook. I founded this company nearly 20 years ago, and as I approach that milestone, I believe this is the right moment to begin identifying the leader who will take the company forward. i founded this company nearly 20 years ago and as i approach that milestone i believe this is the right moment to begin identifying the leader who will take the company forward The board and I are fully aligned on the timing and the process, and we have initiated a search with the leading executive search firm. the board and i are fully aligned on the timing and the process and we have initiated a search with the leading executive search firm I will continue to serve as the CEO through the conclusion of the search and the transition period with my successor, with the leadership transition expected to be completed by mid-2027. i will continue to serve as the ceo through the conclusion of the search and the transition period with my successor with the leadership transition expected to be completed by mid-2027 I remain fully focused on the execution of our strategy for our shareholders, our customers, and our employees. i remain fully focused on the execution of our strategy for our shareholders our customers and our employees We came out with a great Q1 result, and I have a very strong confidence for this year's performance. we came out with a great q1 result and i have a very strong confidence for this year's performance There is no change in our strategy, our operation or our financial outlook. there is no change in our strategy our operation or our financial outlook I'm proud of the business we have built and confident in what lies ahead. With that, let me turn to our first quarter 2026 results. I'm super proud of the performance of the whole Similarweb team during an eventful first quarter that included month of conflict in the Middle East. Revenue and operating profits came in the top end of the guidance range. We delivered 10th quarters of positive normalized free cash flow. Our NRR has stabilized, and we expected these metrics to improve in 2026, driven by execution of our customer expansion playbook. Growth retention trends in the quarter were excellent. The pipeline of the commercial opportunities is very strong, growing and providing confidence for the remaining of the year and beyond. AI related revenues continue to expand and adoption of our AI solution is growing. I'm proud of the business we have built and confident in what lies ahead. i'm proud of the business we have built and confident in what lies ahead With that, let me turn to our first quarter 2026 results. with that let me turn to our first quarter 2026 results I'm super proud of the performance of the whole Similarweb team during an eventful first quarter that included month of conflict in the Middle East. i'm super proud of the performance of the whole similarweb team during an eventful first quarter that included month of conflict in the middle east Revenue and operating profits came in the top end of the guidance range. revenue and operating profits came in the top end of the guidance range We delivered 10th quarters of positive normalized free cash flow. we delivered 10th quarters of positive normalized free cash flow Our NRR has stabilized, and we expected these metrics to improve in 2026, driven by execution of our customer expansion playbook. our nrr has stabilized and we expected these metrics to improve in 2026 driven by execution of our customer expansion playbook Growth retention trends in the quarter were excellent. growth retention trends in the quarter were excellent The pipeline of the commercial opportunities is very strong, growing and providing confidence for the remaining of the year and beyond. the pipeline of the commercial opportunities is very strong growing and providing confidence for the remaining of the year and beyond AI related revenues continue to expand and adoption of our AI solution is growing. ai related revenues continue to expand and adoption of our ai solution is growing First quarter performance provides a solid base for 2026, and we have decided to raise the lower end of our guidance for 2026 to reflect increased confidence. Turning to our results, revenue grew 10% year-over-year to $73.9 million at the top end of our guidance range. We are starting to see tangible returns on the investments we made in the sales force and product portfolio in 2025. Sales productivity increased for the third quarter in a row, and this has contributed to the best Q1 increase in ARR since 2022. We reported non-GAAP operating profit at the top end of our guidance range. We generated $6.6 million in normalized free cash flow in the first quarter, reinforcing our commitment to profitable and durable growth. First quarter performance provides a solid base for 2026, and we have decided to raise the lower end of our guidance for 2026 to reflect increased confidence. first quarter performance provides a solid base for 2026 and we have decided to raise the lower end of our guidance for 2026 to reflect increased confidence Turning to our results, revenue grew 10% year-over-year to $73.9 million at the top end of our guidance range. turning to our results revenue grew 10% year-over-year to $73.9 million at the top end of our guidance range We are starting to see tangible returns on the investments we made in the sales force and product portfolio in 2025. we are starting to see tangible returns on the investments we made in the sales force and product portfolio in 2025 Sales productivity increased for the third quarter in a row, and this has contributed to the best Q1 increase in ARR since 2022. sales productivity increased for the third quarter in a row and this has contributed to the best q1 increase in arr since 2022 We reported non-GAAP operating profit at the top end of our guidance range. we reported non-gaap operating profit at the top end of our guidance range We generated $6.6 million in normalized free cash flow in the first quarter, reinforcing our commitment to profitable and durable growth. we generated $6.6 million in normalized free cash flow in the first quarter reinforcing our commitment to profitable and durable growth Net revenue retention for all customers was 98% and 103% for customers above $100,000. We are very encouraged that those metrics have stabilized in the first quarter and that gross retention continues to improve. We are focused on driving an improvement in NRR, specifically in the upsell motion in 2026 by executing our customer expansion playbook and leveraging our diverse product portfolio. Demand for our GenAI data and solution is truly amazing. Our AI revenues continue to expand, and we are engaging with more AI native companies as well as companies of all sizes that have realized that they need to understand what happening in the new digital world. During the quarter, we signed one of the large LLM contracts that were pushed back from the fourth quarter of 2025. Net revenue retention for all customers was 98% and 103% for customers above $100,000. net revenue retention for all customers was 98% and 103% for customers above $100,000 We are very encouraged that those metrics have stabilized in the first quarter and that gross retention continues to improve. we are very encouraged that those metrics have stabilized in the first quarter and that gross retention continues to improve We are focused on driving an improvement in NRR, specifically in the upsell motion in 2026 by executing our customer expansion playbook and leveraging our diverse product portfolio. we are focused on driving an improvement in nrr specifically in the upsell motion in 2026 by executing our customer expansion playbook and leveraging our diverse product portfolio Demand for our GenAI data and solution is truly amazing. demand for our genai data and solution is truly amazing Our AI revenues continue to expand, and we are engaging with more AI native companies as well as companies of all sizes that have realized that they need to understand what happening in the new digital world. During the quarter, we signed one of the large LLM contracts that were pushed back from the fourth quarter of 2025. our ai revenues continue to expand and we are engaging with more ai native companies as well as companies of all sizes that have realized that they need to understand what happening in the new digital world. during the quarter we signed one of the large llm contracts that were pushed back from the fourth quarter of 2025 We continue to progress on the second and third deal as well as on multiple deals for our unique digital data and view of the digital world. We believe we are well-positioned to be an AI winner with multiple commercial opportunities across data, product, and distribution partners, and we are excited about the potential. Let me run through our AI data and product strategy, how we power the ecosystem, build our AI-first solution, and expand distribution at scale. First, we are powering LLM and AI agents. We are seeing strong traction in licensing our data directly to leading LLM companies for both pre and post-training use case. At the same time, autonomous agents require trusted, structured digital intelligence to operate efficiently. That's exactly what we provide. Our data is built for both humans and agents, and we see accelerating demand for both. We continue to progress on the second and third deal as well as on multiple deals for our unique digital data and view of the digital world. we continue to progress on the second and third deal as well as on multiple deals for our unique digital data and view of the digital world We believe we are well-positioned to be an AI winner with multiple commercial opportunities across data, product, and distribution partners, and we are excited about the potential. we believe we are well-positioned to be an ai winner with multiple commercial opportunities across data product and distribution partners and we are excited about the potential Let me run through our AI data and product strategy, how we power the ecosystem, build our AI-first solution, and expand distribution at scale. let me run through our ai data and product strategy how we power the ecosystem build our ai-first solution and expand distribution at scale First, we are powering LLM and AI agents. first we are powering llm and ai agents We are seeing strong traction in licensing our data directly to leading LLM companies for both pre and post-training use case. we are seeing strong traction in licensing our data directly to leading llm companies for both pre and post-training use case At the same time, autonomous agents require trusted, structured digital intelligence to operate efficiently. at the same time autonomous agents require trusted structured digital intelligence to operate efficiently That's exactly what we provide. that's exactly what we provide Our data is built for both humans and agents, and we see accelerating demand for both. our data is built for both humans and agents and we see accelerating demand for both Second, we are building our own AI native solution. With GenAI Intelligence, we are helping brands to improve their GenAI visibility and sentiment. We are seeing strong market validation on this front, including recognition of our leadership by G2. We believe our data provides an important competitive advantage in this new market, and we are on a journey to become a market leader in this category as well. Last quarter, we launched Similarweb AI Studio, and the response from the customers has been truly amazing. AI Studio is an AI-powered interface that allows users to ask business questions in plain language and multiple languages and instantly receive actionable insights. What used to take time and specialized skills can now happen quickly and easily across all of our datasets. Second, we are building our own AI native solution. second we are building our own ai native solution With GenAI Intelligence, we are helping brands to improve their GenAI visibility and sentiment. with genai intelligence we are helping brands to improve their genai visibility and sentiment We are seeing strong market validation on this front, including recognition of our leadership by G2. we are seeing strong market validation on this front including recognition of our leadership by g2 We believe our data provides an important competitive advantage in this new market, and we are on a journey to become a market leader in this category as well. we believe our data provides an important competitive advantage in this new market and we are on a journey to become a market leader in this category as well Last quarter, we launched Similarweb AI Studio, and the response from the customers has been truly amazing. last quarter we launched similarweb ai studio and the response from the customers has been truly amazing AI Studio is an AI-powered interface that allows users to ask business questions in plain language and multiple languages and instantly receive actionable insights. ai studio is an ai-powered interface that allows users to ask business questions in plain language and multiple languages and instantly receive actionable insights What used to take time and specialized skills can now happen quickly and easily across all of our datasets. what used to take time and specialized skills can now happen quickly and easily across all of our datasets AI Studio expands the number of users who can leverage Similarweb, increases engagement, enable faster and smoother insight generation, and unlock a new consumption-based monetization model. We are seeing strong adoption and utilization across our customer base. AI Studio represent a huge shift in how user interact with Similarweb data. Third, we are expanding distribution at scale. Through partnership with leading LLM and agent platforms such as Manus and through MCP integration, we are embedding Similarweb directly into AI ecosystem. We want to meet our users where they are, and increasingly, research and decision-making is happening inside the new AI platform. Last quarter, we shared that our MCP was available in Claude, and today I'm super proud to share that we have launched MCP integration with ChatGPT. This integration is the same as our MCP Claude connector, providing seamless access to our data and tools. AI Studio expands the number of users who can leverage Similarweb, increases engagement, enable faster and smoother insight generation, and unlock a new consumption-based monetization model. ai studio expands the number of users who can leverage similarweb increases engagement enable faster and smoother insight generation and unlock a new consumption-based monetization model We are seeing strong adoption and utilization across our customer base. we are seeing strong adoption and utilization across our customer base AI Studio represent a huge shift in how user interact with Similarweb data. ai studio represent a huge shift in how user interact with similarweb data Third, we are expanding distribution at scale. third we are expanding distribution at scale Through partnership with leading LLM and agent platforms such as Manus and through MCP integration, we are embedding Similarweb directly into AI ecosystem. through partnership with leading llm and agent platforms such as manus and through mcp integration we are embedding similarweb directly into ai ecosystem We want to meet our users where they are, and increasingly, research and decision-making is happening inside the new AI platform. we want to meet our users where they are and increasingly research and decision-making is happening inside the new ai platform Last quarter, we shared that our MCP was available in Claude, and today I'm super proud to share that we have launched MCP integration with ChatGPT. last quarter we shared that our mcp was available in claude and today i'm super proud to share that we have launched mcp integration with chatgpt This integration is the same as our MCP Claude connector, providing seamless access to our data and tools. this integration is the same as our mcp claude connector providing seamless access to our data and tools Claude and ChatGPT are two of the largest AI platform in the market, and today hundreds of our customers can plug in Similarweb data directly into them, building automation, powering agent, and asking complex question on the fly and receive insight, recommendation, and action wherever they choose to work. Yesterday, we announced an expansion of our partnership with Manus, which we told you about last quarter. This partnership has been a big success, and we are glad to expand the data Manus user can access and also enable our customer to connect to Manus via an MCP to generate even more valuable seamlessly, combining our data and Manus tools and capabilities. This ecosystem partnership unlock a new customers, expand our TAM, and position our digital data as critical ingredients for AI-driven research and decision-making. Claude and ChatGPT are two of the largest AI platform in the market, and today hundreds of our customers can plug in Similarweb data directly into them, building automation, powering agent, and asking complex question on the fly and receive insight, recommendation, and action wherever they choose to work. claude and chatgpt are two of the largest ai platform in the market and today hundreds of our customers can plug in similarweb data directly into them building automation powering agent and asking complex question on the fly and receive insight recommendation and action wherever they choose to work Yesterday, we announced an expansion of our partnership with Manus, which we told you about last quarter. yesterday we announced an expansion of our partnership with manus which we told you about last quarter This partnership has been a big success, and we are glad to expand the data Manus user can access and also enable our customer to connect to Manus via an MCP to generate even more valuable seamlessly, combining our data and Manus tools and capabilities. this partnership has been a big success and we are glad to expand the data manus user can access and also enable our customer to connect to manus via an mcp to generate even more valuable seamlessly combining our data and manus tools and capabilities This ecosystem partnership unlock a new customers, expand our TAM, and position our digital data as critical ingredients for AI-driven research and decision-making. this ecosystem partnership unlock a new customers expand our tam and position our digital data as critical ingredients for ai-driven research and decision-making Our AI pipeline is expanding rapidly with a healthy combination of large deals and continued expansion across our enterprise customers. We're excited about the potential this rich pipeline of opportunities provide. Our mission is to help companies win in the digital world, and we gain more market share. As part of this mission, we continue to develop and launch innovative products that empower our customers with the tools and capabilities to win in their markets. In March, we launched Similarweb Retail Intelligence, a new product that combine Amazon data and cross-retail coverage of more than 650 online stores and marketplaces. Retail Intelligence gives brand, sellers, and retailer a unified view of shopper behavior, digital shelf performance, product mix, availability, and pricing across fragment e-commerce channels. It also adds keyword optimization, competitive benchmarking, and digital shelf automation. Our AI pipeline is expanding rapidly with a healthy combination of large deals and continued expansion across our enterprise customers. our ai pipeline is expanding rapidly with a healthy combination of large deals and continued expansion across our enterprise customers We're excited about the potential this rich pipeline of opportunities provide. we're excited about the potential this rich pipeline of opportunities provide Our mission is to help companies win in the digital world, and we gain more market share. our mission is to help companies win in the digital world and we gain more market share As part of this mission, we continue to develop and launch innovative products that empower our customers with the tools and capabilities to win in their markets. as part of this mission we continue to develop and launch innovative products that empower our customers with the tools and capabilities to win in their markets In March, we launched Similarweb Retail Intelligence, a new product that combine Amazon data and cross-retail coverage of more than 650 online stores and marketplaces. in march we launched similarweb retail intelligence a new product that combine amazon data and cross-retail coverage of more than 650 online stores and marketplaces Retail Intelligence gives brand, sellers, and retailer a unified view of shopper behavior, digital shelf performance, product mix, availability, and pricing across fragment e-commerce channels. retail intelligence gives brand sellers and retailer a unified view of shopper behavior digital shelf performance product mix availability and pricing across fragment e-commerce channels It also adds keyword optimization, competitive benchmarking, and digital shelf automation. it also adds keyword optimization competitive benchmarking and digital shelf automation As AI reshapes product discovery and retailers expand marketplace and retail media networks, Retail Intelligence help customers understand where demand is forming, how brands are winning, and which actions can improve sales performance so that they can win in a highly competitive e-commerce market. During March, we also launched Delivered, a unified view of paid media across search, social, and display, and soon LLM ads, revealing The solution addresses the most severe pain points advertisers face today. Knowing what competitors are spending and where, if ad spending is generating the decent return, and helping advertisers identify where they are overspending, underspending, or missing opportunities across channels. As AI reshapes product discovery and retailers expand marketplace and retail media networks, Retail Intelligence help customers understand where demand is forming, how brands are winning, and which actions can improve sales performance so that they can win in a highly competitive e-commerce market. as ai reshapes product discovery and retailers expand marketplace and retail media networks retail intelligence help customers understand where demand is forming how brands are winning and which actions can improve sales performance so that they can win in a highly competitive e-commerce market During March, we also launched Delivered, a unified view of paid media across search, social, and display, and soon LLM ads, revealing The solution addresses the most severe pain points advertisers face today. during march we also launched delivered a unified view of paid media across search social and display and soon llm ads revealing the solution addresses the most severe pain points advertisers face today Knowing what competitors are spending and where, if ad spending is generating the decent return, and helping advertisers identify where they are overspending, underspending, or missing opportunities across channels. knowing what competitors are spending and where if ad spending is generating the decent return and helping advertisers identify where they are overspending underspending or missing opportunities across channels Until now, advertisers had to rely on fragment data that leads to inefficient ad spend and wasted budget. With this product, we empower brands, agencies, and publishers to work smarter, helping them to spot growth opportunities, benchmark performance, and optimize spend across every channel and market. To summarize, during the first quarter, we have taken action to improve our performance. We are sharpening our go-to-market strategy, refining processes, and building scalable playbook to drive cross-sell and expansion. We are seeing encouraging signs of improvement across the business, and this has increased our conviction in 2026. We believe that we are well-positioned to capture long-term AI-driven opportunities. Our AI-first portfolio is scaling, ecosystem partnership are expanding, and we are targeting high growth segment like LLM companies, large big tech players, and OEM with our own dedicated go-to-market. Until now, advertisers had to rely on fragment data that leads to inefficient ad spend and wasted budget. until now advertisers had to rely on fragment data that leads to inefficient ad spend and wasted budget With this product, we empower brands, agencies, and publishers to work smarter, helping them to spot growth opportunities, benchmark performance, and optimize spend across every channel and market. with this product we empower brands agencies and publishers to work smarter helping them to spot growth opportunities benchmark performance and optimize spend across every channel and market To summarize, during the first quarter, we have taken action to improve our performance. to summarize during the first quarter we have taken action to improve our performance We are sharpening our go-to-market strategy, refining processes, and building scalable playbook to drive cross-sell and expansion. we are sharpening our go-to-market strategy refining processes and building scalable playbook to drive cross-sell and expansion We are seeing encouraging signs of improvement across the business, and this has increased our conviction in 2026. we are seeing encouraging signs of improvement across the business and this has increased our conviction in 2026 We believe that we are well-positioned to capture long-term AI-driven opportunities. we believe that we are well-positioned to capture long-term ai-driven opportunities Our AI-first portfolio is scaling, ecosystem partnership are expanding, and we are targeting high growth segment like LLM companies, large big tech players, and OEM with our own dedicated go-to-market. our ai-first portfolio is scaling ecosystem partnership are expanding and we are targeting high growth segment like llm companies large big tech players and oem with our own dedicated go-to-market

Speaker 9: Thanks, all. I'll provide highlights of our financial performance and guidance for the second quarter and full year of 2026. Turning to our quarterly results. We generated $73.9 million of revenue in Q1, a 10% increase relative to Q1 2025 at the top end of our guidance range. Revenue growth was driven by good performance across the book of business, including new sales and upsells, as well as growth in AI-related revenues. Non-GAAP operating profit for the quarter was $2.4 million, reflecting a 3% margin compared to loss of $1.3 million in the first quarter of 2025. Non-GAAP operating profit was also at the top end of our guidance range, thanks to top-line growth and disciplined cost control. Thanks, all. thanks all I'll provide highlights of our financial performance and guidance for the second quarter and full year of 2026. i'll provide highlights of our financial performance and guidance for the second quarter and full year of 2026 Turning to our quarterly results. turning to our quarterly results We generated $73.9 million of revenue in Q1, a 10% increase relative to Q1 2025 at the top end of our guidance range. we generated $73.9 million of revenue in q1 a 10% increase relative to q1 2025 at the top end of our guidance range Revenue growth was driven by good performance across the book of business, including new sales and upsells, as well as growth in AI-related revenues. revenue growth was driven by good performance across the book of business including new sales and upsells as well as growth in ai-related revenues Non-GAAP operating profit for the quarter was $2.4 million, reflecting a 3% margin compared to loss of $1.3 million in the first quarter of 2025. non-gaap operating profit for the quarter was $2.4 million reflecting a 3% margin compared to loss of $1.3 million in the first quarter of 2025 Non-GAAP operating profit was also at the top end of our guidance range, thanks to top-line growth and disciplined cost control. non-gaap operating profit was also at the top end of our guidance range thanks to top-line growth and disciplined cost control Non-GAAP interest expense was $3,000, and the non-GAAP tax expense was $1.3 million in the quarter, compared to $0.1 million and $1.2 million respectively in the first quarter of 2025. To help with your modeling, we expect these items to remain at approximately these levels on a quarterly in Q1 2025. We are proud that 64% of our ARR is contracted under multi-year contracts, up from 52% last year. We believe that this metric, coupled with strong ARR, demonstrates the durability of our revenues. It also provide us with confidence in the value we provide to our customers. Good cash generation and a strong balance sheet are critical for business at any stage of life cycle. We generated $6.6 million of normalized free cash flow, reflecting seasonal strength. Non-GAAP interest expense was $3,000, and the non-GAAP tax expense was $1.3 million in the quarter, compared to $0.1 million and $1.2 million respectively in the first quarter of 2025. non-gaap interest expense was $3,000 and the non-gaap tax expense was $1.3 million in the quarter compared to $0.1 million and $1.2 million respectively in the first quarter of 2025 To help with your modeling, we expect these items to remain at approximately these levels on a quarterly in Q1 2025. to help with your modeling we expect these items to remain at approximately these levels on a quarterly in q1 2025 We are proud that 64% of our ARR is contracted under multi-year contracts, up from 52% last year. we are proud that 64% of our arr is contracted under multi-year contracts up from 52% last year We believe that this metric, coupled with strong ARR, demonstrates the durability of our revenues. we believe that this metric coupled with strong arr demonstrates the durability of our revenues It also provide us with confidence in the value we provide to our customers. it also provide us with confidence in the value we provide to our customers Good cash generation and a strong balance sheet are critical for business at any stage of life cycle. good cash generation and a strong balance sheet are critical for business at any stage of life cycle We generated $6.6 million of normalized free cash flow, reflecting seasonal strength. we generated $6.6 million of normalized free cash flow reflecting seasonal strength We believe we generate positive normalized free cash flow on a quarterly basis going forward, although we are aware of seasonal fluctuations. We ended the quarter with approximately $65 million of cash and cash equivalents and no debt. We also have an available line of credit of $75 million. After 10 consecutive quarters of normalized positive free cash flow, the business has a solid core and the financial flexibility to weather market headwinds while staying focused on our long-term goals to maximize shareholder value. Our remaining performance obligation totaled $298 million at the end of Q1, up 18% year-over-year. We expect to recognize approximately 70% of total RPO as revenue over the next 12 months. The growth in RPO provides us with confidence for customers with over $100,000 of ARR. We believe we generate positive normalized free cash flow on a quarterly basis going forward, although we are aware of seasonal fluctuations. we believe we generate positive normalized free cash flow on a quarterly basis going forward although we are aware of seasonal fluctuations We ended the quarter with approximately $65 million of cash and cash equivalents and no debt. we ended the quarter with approximately $65 million of cash and cash equivalents and no debt We also have an available line of credit of $75 million. we also have an available line of credit of $75 million After 10 consecutive quarters of normalized positive free cash flow, the business has a solid core and the financial flexibility to weather market headwinds while staying focused on our long-term goals to maximize shareholder value. after 10 consecutive quarters of normalized positive free cash flow the business has a solid core and the financial flexibility to weather market headwinds while staying focused on our long-term goals to maximize shareholder value Our remaining performance obligation totaled $298 million at the end of Q1, up 18% year-over-year. our remaining performance obligation totaled $298 million at the end of q1 up 18% year-over-year We expect to recognize approximately 70% of total RPO as revenue over the next 12 months. we expect to recognize approximately 70% of total rpo as revenue over the next 12 months The growth in RPO provides us with confidence for customers with over $100,000 of ARR. the growth in rpo provides us with confidence for customers with over $100,000 of arr We are encouraged by the stabilization in NRR in the quarter, which reflects an improvement in GRR and quarterly NRR. We expect an improvement in NRR over 2026. The trend in GRR continued to improve. In the first quarter, we reached a new two-year peak. Customer count increased by 5% year-over-year to 6,038, declined sequentially by 1% from 6,128 in the fourth quarter. The decline was mainly due to self-service customers that have not renewed their annual subscriptions or have moved to monthly subscriptions. We have reviewed this KPI and compared it to the sales rep customer count that are above $25,000 ARR. This accounts for 86% of our ARR. At the end of Q1, customer count of this cohort was 1,840, increasing by 2% year-over-year. We are encouraged by the stabilization in NRR in the quarter, which reflects an improvement in GRR and quarterly NRR. we are encouraged by the stabilization in nrr in the quarter which reflects an improvement in grr and quarterly nrr We expect an improvement in NRR over 2026. we expect an improvement in nrr over 2026 The trend in GRR continued to improve. the trend in grr continued to improve In the first quarter, we reached a new two-year peak. in the first quarter we reached a new two-year peak Customer count increased by 5% year-over-year to 6,038, declined sequentially by 1% from 6,128 in the fourth quarter. customer count increased by 5% year-over-year to 6,038 declined sequentially by 1% from 6,128 in the fourth quarter The decline was mainly due to self-service customers that have not renewed their annual subscriptions or have moved to monthly subscriptions. the decline was mainly due to self-service customers that have not renewed their annual subscriptions or have moved to monthly subscriptions We have reviewed this KPI and compared it to the sales rep customer count that are above $25,000 ARR. we have reviewed this kpi and compared it to the sales rep customer count that are above $25,000 arr This accounts for 86% of our ARR. this accounts for 86% of our arr At the end of Q1, customer count of this cohort was 1,840, increasing by 2% year-over-year. at the end of q1 customer count of this cohort was 1,840 increasing by 2% year-over-year Average account value for this cohort was $132,000, up 9% compared to 2025. We believe that the number of accounts generating more than $25,000 and $100,000 of ARR demonstrate that Similarweb is an enterprise-focused company and provide a more meaningful representation of the underlying trends of the business. Accordingly, we plan to disclose these cohorts going forward and will no longer disclose total logo count. Moving to guidance. For the full year of 2026, we are raising the lower end of our revenue guidance and expect total revenue in the range of $307 million-$350 million, representing 10% year-over-year growth at the midpoint of the range. Average account value for this cohort was $132,000, up 9% compared to 2025. average account value for this cohort was $132,000 up 9% compared to 2025 We believe that the number of accounts generating more than $25,000 and $100,000 of ARR demonstrate that Similarweb is an enterprise-focused company and provide a more meaningful representation of the underlying trends of the business. we believe that the number of accounts generating more than $25,000 and $100,000 of arr demonstrate that similarweb is an enterprise-focused company and provide a more meaningful representation of the underlying trends of the business Accordingly, we plan to disclose these cohorts going forward and will no longer disclose total logo count. accordingly we plan to disclose these cohorts going forward and will no longer disclose total logo count Moving to guidance. moving to guidance For the full year of 2026, we are raising the lower end of our revenue guidance and expect total revenue in the range of $307 million-$350 million, representing 10% year-over-year growth at the midpoint of the range. for the full year of 2026 we are raising the lower end of our revenue guidance and expect total revenue in the range of $307 million-$350 million representing 10% year-over-year growth at the midpoint of the range In Q2 2026, we expect total revenue in the range of $74.5 million-$76.5 million, representing 6% year-over-year growth at the midpoint. I would like to remind you that strong revenue growth in the second quarter of 2025 benefited from a pull forward one-time revenue from the third quarter of 2025 and provides a tough comparison for this quarter. As Or mentioned, the solid pipeline provides us with confidence in the revenue growth acceleration during the second half of the year. For the full year, we are raising our guidance for non-GAAP operating profits to be between $17 million and $19 million. Non-GAAP operating profit for the second quarter of 2026 is expected to be in the range of $3 million-$5 million. In Q2 2026, we expect total revenue in the range of $74.5 million-$76.5 million, representing 6% year-over-year growth at the midpoint. in q2 2026 we expect total revenue in the range of $74.5 million-$76.5 million representing 6% year-over-year growth at the midpoint I would like to remind you that strong revenue growth in the second quarter of 2025 benefited from a pull forward one-time revenue from the third quarter of 2025 and provides a tough comparison for this quarter. i would like to remind you that strong revenue growth in the second quarter of 2025 benefited from a pull forward one-time revenue from the third quarter of 2025 and provides a tough comparison for this quarter As Or mentioned, the solid pipeline provides us with confidence in the revenue growth acceleration during the second half of the year. as or mentioned the solid pipeline provides us with confidence in the revenue growth acceleration during the second half of the year For the full year, we are raising our guidance for non-GAAP operating profits to be between $17 million and $19 million. for the full year we are raising our guidance for non-gaap operating profits to be between $17 million and $19 million Non-GAAP operating profit for the second quarter of 2026 is expected to be in the range of $3 million-$5 million. non-gaap operating profit for the second quarter of 2026 is expected to be in the range of $3 million-$5 million We continue our efforts to offset the headwinds to profit presented by the strengthening of the Israeli shekel versus the U.S. dollar. Approximately half of our employees are based in Israel. The expansion of our R&D center in Prague, which provides an. Q&A. Or will share some closing remarks. Operator, please open the line for questions. We continue our efforts to offset the headwinds to profit presented by the strengthening of the Israeli shekel versus the U.S. dollar. we continue our efforts to offset the headwinds to profit presented by the strengthening of the israeli shekel versus the u.s dollar Approximately half of our employees are based in Israel. approximately half of our employees are based in israel The expansion of our R&D center in Prague, which provides an. the expansion of our r&d center in prague which provides an Q&A. q&a Or will share some closing remarks. or will share some closing remarks Operator, please open the line for questions. operator please open the line for questions

Speaker 6: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation time will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please, while we pull for questions. Thank you. Our first question is from Arjun Bhatia with William Blair. Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation time will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please, while we pull for questions. Thank you. Our first question is from Arjun Bhatia with William Blair. thank you. we'll now be conducting a question and answer session. if you would like to ask a question, please press star one on your telephone keypad. a confirmation time will indicate your line is in the question queue. you may press star two if you'd like to remove your question from the queue. for participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. one moment please, while we pull for questions. thank you. our first question is from arjun bhatia with william blair

Speaker 2: Yep. Perfect. Thank you so much. Or, congrats on the IPO milestone and the run as CEO. I know it's not, you're not leaving yet, but has been great working together. Maybe one question on just the guidance and the LLM contract that you closed. I assume that's in the numbers yet, but as I'm looking at sort of the back half ramp in implied in revenue, it still seems quite steep. I would love to hear just your confidence in the ramp in the second half of the year, how much of that is still dependent on the second LLM contract closing and just maybe where we are in sort of, you know, that process at this point. Thank you. Yep. yep Perfect. perfect Thank you so much. thank you so much Or, congrats on the IPO milestone and the run as CEO. or congrats on the ipo milestone and the run as ceo I know it's not, you're not leaving yet, but has been great working together. i know it's not you're not leaving yet but has been great working together Maybe one question on just the guidance and the LLM contract that you closed. maybe one question on just the guidance and the llm contract that you closed I assume that's in the numbers yet, but as I'm looking at sort of the back half ramp in implied in revenue, it still seems quite steep. i assume that's in the numbers yet but as i'm looking at sort of the back half ramp in implied in revenue it still seems quite steep I would love to hear just your confidence in the ramp in the second half of the year, how much of that is still dependent on the second LLM contract closing and just maybe where we are in sort of, you know, that process at this point. i would love to hear just your confidence in the ramp in the second half of the year how much of that is still dependent on the second llm contract closing and just maybe where we are in sort of you know that process at this point Thank you. thank you

Speaker 7: Of course, thank you, Arjun, for the kind words. Yes, we're seeing a very strong pipeline over this quarter, this Q2. We are already in the middle of the quarter, we have very strong confidence with the second part of the year. The team did an excellent job in the past few months, not only closing the one deal that's left, also continue to have in the pipeline the second deal and open the pipeline with many other opportunities, and they really executing very well. We have very strong confidence for the year and for the second part of the year. Of course, thank you, Arjun, for the kind words. of course thank you arjun for the kind words Yes, we're seeing a very strong pipeline over this quarter, this Q2. yes we're seeing a very strong pipeline over this quarter this q2 We are already in the middle of the quarter, we have very strong confidence with the second part of the year. we are already in the middle of the quarter we have very strong confidence with the second part of the year The team did an excellent job in the past few months, not only closing the one deal that's left, also continue to have in the pipeline the second deal and open the pipeline with many other opportunities, and they really executing very well. the team did an excellent job in the past few months not only closing the one deal that's left also continue to have in the pipeline the second deal and open the pipeline with many other opportunities and they really executing very well We have very strong confidence for the year and for the second part of the year. we have very strong confidence for the year and for the second part of the year

Speaker 2: Okay. Perfect. Then you sounded quite bullish just on NRR trajectory going forward. How much can that increase? You know, when you're looking at the upsell, what are the main sort of changes that you're seeing that are giving you confidence that, you know, you can drive more upsell and cross-sell with your existing customer base? Because, you know, I think generally that, that metric has been sort of flattened down over the last several quarters. Curious on the inflection there. Okay. okay Perfect. perfect Then you sounded quite bullish just on NRR trajectory going forward. then you sounded quite bullish just on nrr trajectory going forward How much can that increase? how much can that increase You know, when you're looking at the upsell, what are the main sort of changes that you're seeing that are giving you confidence that, you know, you can drive more upsell and cross-sell with your existing customer base? you know when you're looking at the upsell what are the main sort of changes that you're seeing that are giving you confidence that you know you can drive more upsell and cross-sell with your existing customer base Because, you know, I think generally that, that metric has been sort of flattened down over the last several quarters. because you know i think generally that that metric has been sort of flattened down over the last several quarters Curious on the inflection there. curious on the inflection there

Speaker 7: Yes, of course. I think it's an excellent question. The NRR we're reporting to the street is the average last four quarter of NRR. We're already seeing an improvement with our NRR and GRR in the past two quarters that is not fully seen yet in the average. We already know that the NRR is going to be better going forward. We also see the great pipeline being built on the current customer want to buy more more of our data. Yes, of course. yes of course I think it's an excellent question. i think it's an excellent question The NRR we're reporting to the street is the average last four quarter of NRR. the nrr we're reporting to the street is the average last four quarter of nrr We're already seeing an improvement with our NRR and GRR in the past two quarters that is not fully seen yet in the average. we're already seeing an improvement with our nrr and grr in the past two quarters that is not fully seen yet in the average We already know that the NRR is going to be better going forward. we already know that the nrr is going to be better going forward We also see the great pipeline being built on the current customer want to buy more more of our data. we also see the great pipeline being built on the current customer want to buy more more of our data

Speaker 9: Let me just, yeah, just to complement on that, Arjun. The GRR that we saw in the Q1 was the strongest in the last two years. We also didn't, of course, share the Q2 yet. We also seeing the strength of the GRR continuing to be very strong in Q2. We're quite confident that along the year, the NRR metrics is going to improve. Let me just, yeah, just to complement on that, Arjun. let me just yeah just to complement on that arjun The GRR that we saw in the Q1 was the strongest in the last two years. the grr that we saw in the q1 was the strongest in the last two years We also didn't, of course, share the Q2 yet. we also didn't of course share the q2 yet We also seeing the strength of the GRR continuing to be very strong in Q2. we also seeing the strength of the grr continuing to be very strong in q2 We're quite confident that along the year, the NRR metrics is going to improve. we're quite confident that along the year the nrr metrics is going to improve

Speaker 2: Very helpful. Thank you so much. Very helpful. very helpful Thank you so much. thank you so much

Speaker 6: Our next question is from Scott Berg with Needham & Company. Our next question is from Scott Berg with Needham & Company. our next question is from scott berg with needham & company

Speaker 10: Good morning, Lucas on for Scott here. Thanks for taking the questions. Maybe to start, could you just talk about the sales productivity during the quarter? There's obviously been a lot of GTM changes over the last year plus. Just curious if productivity is beginning to normalize kind of where you guys would like to see it at. Good morning, Lucas on for Scott here. good morning lucas on for scott here Thanks for taking the questions. thanks for taking the questions Maybe to start, could you just talk about the sales productivity during the quarter? maybe to start could you just talk about the sales productivity during the quarter There's obviously been a lot of GTM changes over the last year plus. there's obviously been a lot of gtm changes over the last year plus Just curious if productivity is beginning to normalize kind of where you guys would like to see it at. just curious if productivity is beginning to normalize kind of where you guys would like to see it at

Speaker 7: Yeah. We track this metric closely and overall in the past three quarters, we're seeing a nice increase. Every quarter it's getting better. We're very happy. There's two commercial teams, one driving new sales and the other one driving expansion. We're very happy with the expansion progress in the past quarter and also the new sales. Expansion was remarkably well and hopefully continue to get better productivity going forward. Yeah. yeah We track this metric closely and overall in the past three quarters, we're seeing a nice increase. we track this metric closely and overall in the past three quarters we're seeing a nice increase Every quarter it's getting better. every quarter it's getting better We're very happy. we're very happy There's two commercial teams, one driving new sales and the other one driving expansion. there's two commercial teams one driving new sales and the other one driving expansion We're very happy with the expansion progress in the past quarter and also the new sales. we're very happy with the expansion progress in the past quarter and also the new sales Expansion was remarkably well and hopefully continue to get better productivity going forward. expansion was remarkably well and hopefully continue to get better productivity going forward

Speaker 10: Got it. Thank you. Just as a quick follow-up, as you guys are kinda thinking about capital allocation from here, any thoughts on a potential share buyback just given kind of where the current stock is trading at? Got it. got it Thank you. thank you Just as a quick follow-up, as you guys are kinda thinking about capital allocation from here, any thoughts on a potential share buyback just given kind of where the current stock is trading at? just as a quick follow-up as you guys are kinda thinking about capital allocation from here any thoughts on a potential share buyback just given kind of where the current stock is trading at

Speaker 7: I think it's a good question. We did discuss about it. We don't have a specific decision yet. It's a good start to think about going and seeing how the year is progress, but it's definitely something that can be on the table. I think it's a good question. i think it's a good question We did discuss about it. we did discuss about it We don't have a specific decision yet. we don't have a specific decision yet It's a good start to think about going and seeing how the year is progress, but it's definitely something that can be on the table. it's a good start to think about going and seeing how the year is progress but it's definitely something that can be on the table

Speaker 10: Understood. Thank you. Understood. understood Thank you. thank you

Speaker 9: Just to complete on that, I think we're very focused on the operational areas of our business, and generating a normalized free cash flow is one of the top priorities. We focus on that. Once we see also this trend picking up, as Or said, we'll consider all available options for the capital allocation. Just to complete on that, I think we're very focused on the operational areas of our business, and generating a normalized free cash flow is one of the top priorities. just to complete on that i think we're very focused on the operational areas of our business and generating a normalized free cash flow is one of the top priorities We focus on that. we focus on that Once we see also this trend picking up, as Or said, we'll consider all available options for the capital allocation. once we see also this trend picking up as or said we'll consider all available options for the capital allocation

Speaker 10: All right. Thank you. In the question, I guess, Or to start, on the AI front and MCP front in particular, I'm wondering if that is playing a role at all in your new customer conversations and AI expansions of renewal, thinking lowering the barrier to agents. Does that actually improve your win rates, bring more RFPs to the table? I'm just curious how that's sort of played out in your customer conversations so far. All right. all right Thank you. thank you In the question, I guess, Or to start, on the AI front and MCP front in particular, I'm wondering if that is playing a role at all in your new customer conversations and AI expansions of renewal, thinking lowering the barrier to agents. in the question i guess or to start on the ai front and mcp front in particular i'm wondering if that is playing a role at all in your new customer conversations and ai expansions of renewal thinking lowering the barrier to agents Does that actually improve your win rates, bring more RFPs to the table? does that actually improve your win rates bring more rfps to the table I'm just curious how that's sort of played out in your customer conversations so far. i'm just curious how that's sort of played out in your customer conversations so far

Speaker 7: It's a good question. I think it's mostly improving our GRR and retention. You know, we're going to our existing customers and present them the opportunity to their data for MCP connection if it's through cloud integration or OpenAI, and then suddenly they're getting much more ROI from our data and much more users in the organization can leverage ROI from our data. Right now I would say it's driving more retention and usage-based consumption that's driving upsell. From the new sell, I think our new solution for GenAI visibility that help them understand their and measure their visibility on chatbots, this is driving the win rates more, this specific solution. It's a good question. it's a good question I think it's mostly improving our GRR and retention. i think it's mostly improving our grr and retention You know, we're going to our existing customers and present them the opportunity to their data for MCP connection if it's through cloud integration or OpenAI, and then suddenly they're getting much more ROI from our data and much more users in the organization can leverage ROI from our data. you know we're going to our existing customers and present them the opportunity to their data for mcp connection if it's through cloud integration or openai and then suddenly they're getting much more roi from our data and much more users in the organization can leverage roi from our data Right now I would say it's driving more retention and usage-based consumption that's driving upsell. right now i would say it's driving more retention and usage-based consumption that's driving upsell From the new sell, I think our new solution for GenAI visibility that help them understand their and measure their visibility on chatbots, this is driving the win rates more, this specific solution. from the new sell i think our new solution for genai visibility that help them understand their and measure their visibility on chatbots this is driving the win rates more this specific solution

Speaker 10: Okay, great. That's really helpful. As we think about customer growth, Ran, I fully understand the sort of $100,000 customer cohort seems to be continuing quite strongly. Just anything to call out on Q1 and marrying the high gross retention comments with sort of that lower end sub $25,000 ARR customer cohort and some of the turn we saw there. Okay, great. okay great That's really helpful. that's really helpful As we think about customer growth, Ran, I fully understand the sort of $100,000 customer cohort seems to be continuing quite strongly. as we think about customer growth ran i fully understand the sort of $100,000 customer cohort seems to be continuing quite strongly Just anything to call out on Q1 and marrying the high gross retention comments with sort of that lower end sub $25,000 ARR customer cohort and some of the turn we saw there. just anything to call out on q1 and marrying the high gross retention comments with sort of that lower end sub $25,000 arr customer cohort and some of the turn we saw there

Speaker 9: Yes, first of all, we are introducing a new metric that we are going to share is about the customers that are above $25,000, which means that this cohort is a cohort that only our go-to-market can sell. Below $25,000, we have a motion of the no touch or the self-serve. We decided this is not really resonate with our focus of enterprise. In terms of the GRR, we see very good traction, and you can see it also on the average account value that we shared on our presentation in terms of the $100,000. You see that those customers, the $100,000+ or $25,000+ are generating better average account value, and this is why the GRR in terms of the dollar value is much better. Yes, first of all, we are introducing a new metric that we are going to share is about the customers that are above $25,000, which means that this cohort is a cohort that only our go-to-market can sell. yes first of all we are introducing a new metric that we are going to share is about the customers that are above $25,000 which means that this cohort is a cohort that only our go-to-market can sell Below $25,000, we have a motion of the no touch or the self-serve. below $25,000 we have a motion of the no touch or the self-serve We decided this is not really resonate with our focus of enterprise. we decided this is not really resonate with our focus of enterprise In terms of the GRR, we see very good traction, and you can see it also on the average account value that we shared on our presentation in terms of the $100,000. in terms of the grr we see very good traction and you can see it also on the average account value that we shared on our presentation in terms of the $100,000 You see that those customers, the $100,000+ or $25,000+ are generating better average account value, and this is why the GRR in terms of the dollar value is much better. you see that those customers the $100,000+ or $25,000+ are generating better average account value and this is why the grr in terms of the dollar value is much better

Speaker 10: Okay, great. Thank you both. Okay, great. okay great Thank you both. thank you both

Speaker 7: Thanks. Thanks. thanks

Speaker 6: Our next question is from Austin Cole with Citizens. Our next question is from Austin Cole with Citizens. our next question is from austin cole with citizens

Speaker 3: Great. Thanks for taking the question, and Or my congratulations to you on announcing your next chapter here. It's been great to work with you. I did wanna ask you a more high-level question around pricing, because it seems that Similarweb is changing a lot, just with the LLM deals and MCP connectors, new partnerships, and even your own tools like AI Studio that are based in natural language. Actually one of your competitors earlier this week announced that they're shifting to more of a platform fee plus consumption structure. I'm just wondering what your thoughts are on all this and whether a seat-based model or shifting more towards consumption over time is gonna be the better way to leverage your data assets. Great. great Thanks for taking the question, and Or my congratulations to you on announcing your next chapter here. thanks for taking the question and or my congratulations to you on announcing your next chapter here It's been great to work with you. it's been great to work with you I did wanna ask you a more high-level question around pricing, because it seems that Similarweb is changing a lot, just with the LLM deals and MCP connectors, new partnerships, and even your own tools like AI Studio that are based in natural language. i did wanna ask you a more high-level question around pricing because it seems that similarweb is changing a lot just with the llm deals and mcp connectors new partnerships and even your own tools like ai studio that are based in natural language Actually one of your competitors earlier this week announced that they're shifting to more of a platform fee plus consumption structure. actually one of your competitors earlier this week announced that they're shifting to more of a platform fee plus consumption structure I'm just wondering what your thoughts are on all this and whether a seat-based model or shifting more towards consumption over time is gonna be the better way to leverage your data assets. i'm just wondering what your thoughts are on all this and whether a seat-based model or shifting more towards consumption over time is gonna be the better way to leverage your data assets

Speaker 7: Yeah, I would answer quickly and also I think Maoz here can follow after me and give more context. This is the overall trend in the industry as AI taking more place and more agent to agent. I think it makes sense to move to more consumption-based. You can really charge per outcome. We're selling data bottom line, and the more data we give and more usage they have, they get more ROI. For us, it's much better to price like that. It's overall trend, and we follow with that and we see good success. I think that over the next few quarters, this will become bigger and bigger. Maybe, Maoz, if you want anything to add on top of that. Yeah, I would answer quickly and also I think Maoz here can follow after me and give more context. yeah i would answer quickly and also i think maoz here can follow after me and give more context This is the overall trend in the industry as AI taking more place and more agent to agent. this is the overall trend in the industry as ai taking more place and more agent to agent I think it makes sense to move to more consumption-based. i think it makes sense to move to more consumption-based You can really charge per outcome. you can really charge per outcome We're selling data bottom line, and the more data we give and more usage they have, they get more ROI. we're selling data bottom line and the more data we give and more usage they have they get more roi For us, it's much better to price like that. for us it's much better to price like that It's overall trend, and we follow with that and we see good success. it's overall trend and we follow with that and we see good success I think that over the next few quarters, this will become bigger and bigger. i think that over the next few quarters this will become bigger and bigger Maybe, Maoz, if you want anything to add on top of that. maybe maoz if you want anything to add on top of that

Speaker 5: Yes. Maybe just to add, I mean, we don't price by seats even today, so we made this transformation actually a while ago. The way we monetize is by data access, so you can buy different data that you want to use and then consumption on top of it. Some of our products are more data-oriented, less platform-oriented, and they are definitely leveraging this already. I think we're also seeing kind of big potential with the distribution channels, with the AI chatbots and how users can use us within this kind of environment. It's definitely a consumption play. It's very evident also from our NRR improvements. We have the right infrastructure from a data access and consumption, and we are definitely doubling down on this vision. This is our monetization strategy. Yes. yes Maybe just to add, I mean, we don't price by seats even today, so we made this transformation actually a while ago. maybe just to add i mean we don't price by seats even today so we made this transformation actually a while ago The way we monetize is by data access, so you can buy different data that you want to use and then consumption on top of it. the way we monetize is by data access so you can buy different data that you want to use and then consumption on top of it Some of our products are more data-oriented, less platform-oriented, and they are definitely leveraging this already. some of our products are more data-oriented less platform-oriented and they are definitely leveraging this already I think we're also seeing kind of big potential with the distribution channels, with the AI chatbots and how users can use us within this kind of environment. i think we're also seeing kind of big potential with the distribution channels with the ai chatbots and how users can use us within this kind of environment It's definitely a consumption play. it's definitely a consumption play It's very evident also from our NRR improvements. it's very evident also from our nrr improvements We have the right infrastructure from a data access and consumption, and we are definitely doubling down on this vision. we have the right infrastructure from a data access and consumption and we are definitely doubling down on this vision This is our monetization strategy. this is our monetization strategy

Speaker 3: Great. Then just as a quick follow-up, as you think about the data asset today, where are maybe some of those gaps, if they exist, and where do you see the most opportunity to kind of widen that moat in 2026? What maybe opportunities are you evaluating in the market? Great. great Then just as a quick follow-up, as you think about the data asset today, where are maybe some of those gaps, if they exist, and where do you see the most opportunity to kind of widen that moat in 2026? then just as a quick follow-up as you think about the data asset today where are maybe some of those gaps if they exist and where do you see the most opportunity to kind of widen that moat in 2026 What maybe opportunities are you evaluating in the market? what maybe opportunities are you evaluating in the market

Speaker 7: I think all of the new solution have great coverage. As long as we continue to increase our data coverage, we can able to monetize more if it is on our App Intelligence and to add more countries. The two new products I discussed, the Retail Intelligence, we are covering 650 different retail. The more we add, the more retails in different countries, we can sell to more customers. Same for Media Intelligence that we just launched. It's very exciting, it's mostly web advertisement, and now we're adding the new LLM advertisement. You know, ChatGPT announced that they're gonna include ads in their free products, and they are scaling it. I think we are the first company in the world now to bring this data into the market. This quarter we're gonna start selling and bring it in front of customers. It's very exciting. I think all of the new solution have great coverage. i think all of the new solution have great coverage As long as we continue to increase our data coverage, we can able to monetize more if it is on our App Intelligence and to add more countries. as long as we continue to increase our data coverage we can able to monetize more if it is on our app intelligence and to add more countries The two new products I discussed, the Retail Intelligence, we are covering 650 different retail. the two new products i discussed the retail intelligence we are covering 650 different retail The more we add, the more retails in different countries, we can sell to more customers. the more we add the more retails in different countries we can sell to more customers Same for Media Intelligence that we just launched. same for media intelligence that we just launched It's very exciting, it's mostly web advertisement, and now we're adding the new LLM advertisement. it's very exciting it's mostly web advertisement and now we're adding the new llm advertisement You know, ChatGPT announced that they're gonna include ads in their free products, and they are scaling it. you know chatgpt announced that they're gonna include ads in their free products and they are scaling it I think we are the first company in the world now to bring this data into the market. i think we are the first company in the world now to bring this data into the market This quarter we're gonna start selling and bring it in front of customers. this quarter we're gonna start selling and bring it in front of customers It's very exciting. it's very exciting

Speaker 3: Great. That's helpful. Thank you, guys. Great. great That's helpful. that's helpful Thank you, guys. thank you guys

Speaker 6: Our next question is from Luke Horton with Northland Securities. Our next question is from Luke Horton with Northland Securities. our next question is from luke horton with northland securities

Speaker 4: Hey, guys. Thanks for taking the questions. It looks like total customer count, that growth decelerated quite a bit in the quarter. I guess, would you say that's more of a function of focusing more on growing with the existing accounts that you have? Would there be any anything to call out with pain points with adding net new customers? Hey, guys. hey guys Thanks for taking the questions. thanks for taking the questions It looks like total customer count, that growth decelerated quite a bit in the quarter. it looks like total customer count that growth decelerated quite a bit in the quarter I guess, would you say that's more of a function of focusing more on growing with the existing accounts that you have? i guess would you say that's more of a function of focusing more on growing with the existing accounts that you have Would there be any anything to call out with pain points with adding net new customers? would there be any anything to call out with pain points with adding net new customers

Speaker 7: No, not exactly. The number we provide to the street is combination of touch customer and self-serve. The customer that coming to the website and buy with credit card. If they decide to pay yearly, so they've been counted in this 6,000+ number. Because this number that we're reporting from 2021 is it's yearly paying customer. Over the years, we started adding yearly self-serve customers, so it start increasing this number. No, not exactly. no not exactly The number we provide to the street is combination of touch customer and self-serve. the number we provide to the street is combination of touch customer and self-serve The customer that coming to the website and buy with credit card. the customer that coming to the website and buy with credit card If they decide to pay yearly, so they've been counted in this 6,000+ number. if they decide to pay yearly so they've been counted in this 6,000+ number Because this number that we're reporting from 2021 is it's yearly paying customer. because this number that we're reporting from 2021 is it's yearly paying customer Over the years, we started adding yearly self-serve customers, so it start increasing this number. over the years we started adding yearly self-serve customers so it start increasing this number As we go and marketing is start to do a lot of A/B testing to see if they want to charge the self-serve on monthly or yearly, you know, you can offer the customer what is the default. Then it's changing those numbers, and every time they do a test, they do tests around that, it changed those numbers. Realize it's not a good indication, and it's not gonna help you understand the performance of the business. It's just better for us to focus on the enterprise, the sales motion customers. We're gonna start reporting the $25,000 customers and above to remove this noise. As we go and marketing is start to do a lot of A/B testing to see if they want to charge the self-serve on monthly or yearly, you know, you can offer the customer what is the default. as we go and marketing is start to do a lot of a/b testing to see if they want to charge the self-serve on monthly or yearly you know you can offer the customer what is the default Then it's changing those numbers, and every time they do a test, they do tests around that, it changed those numbers. then it's changing those numbers and every time they do a test they do tests around that it changed those numbers Realize it's not a good indication, and it's not gonna help you understand the performance of the business. realize it's not a good indication and it's not gonna help you understand the performance of the business It's just better for us to focus on the enterprise, the sales motion customers. it's just better for us to focus on the enterprise the sales motion customers We're gonna start reporting the $25,000 customers and above to remove this noise. we're gonna start reporting the $25,000 customers and above to remove this noise

Speaker 4: Okay, got it. Then, also just wanted to ask on the search process for a new CEO. Congrats by the way, Or, for almost 20 years here and getting Similarweb to where it is. I guess specifically, are you guys looking internally for a potential new CEO, or would this be an external hire? I guess just any more details around the process that you could give. Okay, got it. okay got it Then, also just wanted to ask on the search process for a new CEO. then also just wanted to ask on the search process for a new ceo Congrats by the way, Or, for almost 20 years here and getting Similarweb to where it is. congrats by the way or for almost 20 years here and getting similarweb to where it is I guess specifically, are you guys looking internally for a potential new CEO, or would this be an external hire? i guess specifically are you guys looking internally for a potential new ceo or would this be an external hire I guess just any more details around the process that you could give. i guess just any more details around the process that you could give

Speaker 7: Yeah. It will be external search. Now that we announced to the street, we can probably start the search. We already have a top executive search firm start working today, and we will report to the street as it will get progress. Yeah. yeah It will be external search. it will be external search Now that we announced to the street, we can probably start the search. now that we announced to the street we can probably start the search We already have a top executive search firm start working today, and we will report to the street as it will get progress. we already have a top executive search firm start working today and we will report to the street as it will get progress

Speaker 4: Okay, great. Well, thanks for taking the questions, and congrats on the quarter. Okay, great. okay great Well, thanks for taking the questions, and congrats on the quarter. well thanks for taking the questions and congrats on the quarter

Speaker 6: Thanks. Our next question is from Tyler Radke with Citi. Thanks. thanks Our next question is from Tyler Radke with Citi. our next question is from tyler radke with citi

Speaker 1: Hey, thanks for taking the question. This is Andrew Girard on for Tyler Radke. Just a couple quick ones. On the customers above $100,000, saw the net adds kind of stabilize here from Q4. Just kind of wanted your puts and takes on kind of what it will take and, you know, what sort of products will help kind of re-accelerate this net add number going through the rest of the year. Just a really quick follow-up on MCP and kind of your consumption-based revenue, just understanding that it's early, any kind of details on the margin structure there for those revenue streams compared to kind of some of your core seats would be great. Thanks so much. Hey, thanks for taking the question. hey thanks for taking the question This is Andrew Girard on for Tyler Radke. this is andrew girard on for tyler radke Just a couple quick ones. just a couple quick ones On the customers above $100,000, saw the net adds kind of stabilize here from Q4. on the customers above $100,000 saw the net adds kind of stabilize here from q4 Just kind of wanted your puts and takes on kind of what it will take and, you know, what sort of products will help kind of re-accelerate this net add number going through the rest of the year. just kind of wanted your puts and takes on kind of what it will take and you know what sort of products will help kind of re-accelerate this net add number going through the rest of the year Just a really quick follow-up on MCP and kind of your consumption-based revenue, just understanding that it's early, any kind of details on the margin structure there for those revenue streams compared to kind of some of your core seats would be great. just a really quick follow-up on mcp and kind of your consumption-based revenue just understanding that it's early any kind of details on the margin structure there for those revenue streams compared to kind of some of your core seats would be great Thanks so much. thanks so much

Speaker 7: I would start with the second question about the margin. I think the margin are the same or even better in this consumption model because there's no UI. Every time historically when customer used to buy our data from us, our API, first they become more sticky and retention was better. Also they're much more profitable because it's more integrated into the workflow, so you need less customer success people to support those customers, and they're more sticky, and there's no UI on top of that. I think margin will be better. Regarding the $100,000 accounts, this year we have good momentum there. I think the team is focusing to get the bigger account get bigger. I would start with the second question about the margin. i would start with the second question about the margin I think the margin are the same or even better in this consumption model because there's no UI. i think the margin are the same or even better in this consumption model because there's no ui Every time historically when customer used to buy our data from us, our API, first they become more sticky and retention was better. every time historically when customer used to buy our data from us our api first they become more sticky and retention was better Also they're much more profitable because it's more integrated into the workflow, so you need less customer success people to support those customers, and they're more sticky, and there's no UI on top of that. also they're much more profitable because it's more integrated into the workflow so you need less customer success people to support those customers and they're more sticky and there's no ui on top of that I think margin will be better. i think margin will be better Regarding the $100,000 accounts, this year we have good momentum there. regarding the $100,000 accounts this year we have good momentum there I think the team is focusing to get the bigger account get bigger. i think the team is focusing to get the bigger account get bigger Like, our top account to get bigger because in those giant customers we are barely penetrated as we should be. We focus on increasing those. I think it will continue to grow nicely over the year. We start seeing more and more new lens at six figures with a very strong quarter of lending, a lot of six figures at lend, which it didn't happen historically. We had good quarter on that front also. Like, our top account to get bigger because in those giant customers we are barely penetrated as we should be. like our top account to get bigger because in those giant customers we are barely penetrated as we should be We focus on increasing those. we focus on increasing those I think it will continue to grow nicely over the year. i think it will continue to grow nicely over the year We start seeing more and more new lens at six figures with a very strong quarter of lending, a lot of six figures at lend, which it didn't happen historically. we start seeing more and more new lens at six figures with a very strong quarter of lending a lot of six figures at lend which it didn't happen historically We had good quarter on that front also. we had good quarter on that front also

Speaker 6: Thank you. There are no further questions at this time. I would like to pass the floor back over to management for any closing remarks. Thank you. thank you There are no further questions at this time. there are no further questions at this time I would like to pass the floor back over to management for any closing remarks. i would like to pass the floor back over to management for any closing remarks

Speaker 7: Before we conclude, I would like to highlight four key takeaways. The first quarter was solid start to the year and came in better than expected, we are raising the low end of our guidance for both revenue and non-GAAP operating profits for the full year to reflect the improving and the fundamentals. Second, we are witnessing improving fundamentals and growth drivers. NRR has stabilized, growth retention is strong, and sales productivity continue to improve. Multi-year ARR increased, we extended our track record of profitability and free cash flow. Third, our leadership in digital data has become even more valuable as AI adoption accelerates. Fourth, we're remaining focused on disciplined execution and scaling what we have built. AI is magnificent tailwind for data companies like us. Thank you everyone on the call for your continued support. We look forward to speaking to you again over the coming weeks. Thank you. Before we conclude, I would like to highlight four key takeaways. before we conclude i would like to highlight four key takeaways The first quarter was solid start to the year and came in better than expected, we are raising the low end of our guidance for both revenue and non-GAAP operating profits for the full year to reflect the improving and the fundamentals. the first quarter was solid start to the year and came in better than expected we are raising the low end of our guidance for both revenue and non-gaap operating profits for the full year to reflect the improving and the fundamentals Second, we are witnessing improving fundamentals and growth drivers. second we are witnessing improving fundamentals and growth drivers NRR has stabilized, growth retention is strong, and sales productivity continue to improve. nrr has stabilized growth retention is strong and sales productivity continue to improve Multi-year ARR increased, we extended our track record of profitability and free cash flow. multi-year arr increased we extended our track record of profitability and free cash flow Third, our leadership in digital data has become even more valuable as AI adoption accelerates. third our leadership in digital data has become even more valuable as ai adoption accelerates Fourth, we're remaining focused on disciplined execution and scaling what we have built. fourth we're remaining focused on disciplined execution and scaling what we have built AI is magnificent tailwind for data companies like us. ai is magnificent tailwind for data companies like us Thank you everyone on the call for your continued support. thank you everyone on the call for your continued support We look forward to speaking to you again over the coming weeks. we look forward to speaking to you again over the coming weeks Thank you. thank you

Speaker 6: Thank you. Thank you. This does conclude today's conference. A recording of the webcast will be available on the IR website following the call. We thank you again for your participation. You may disconnect your lines at this time. Thank you. thank you Thank you. thank you This does conclude today's conference. this does conclude today's conference A recording of the webcast will be available on the IR website following the call. a recording of the webcast will be available on the ir website following the call We thank you again for your participation. we thank you again for your participation You may disconnect your lines at this time. you may disconnect your lines at this time