Similarweb (SMWB) Q4 2024 earnings summary

Executive summary

• Achieved $249.9 million in 2024 revenue, up 15% year-over-year, with Q4 revenue of $65.6 million, up 16% year-over-year.

• Customer base grew 17% year-over-year to 5,534, with 405 customers having $100K+ ARR, up 11% year-over-year and now representing 61% of total ARR.

• Delivered first full year of non-GAAP operating profit ($15.0 million) and free cash flow ($27.7 million), with a Rule of 26 performance for 2024.

• Signed 15 seven-figure customer contracts in Q4, mostly expansions, and secured major multi-year deals with S&P Global and Bloomberg.

• AI-driven demand for digital data is driving new business opportunities and increased R&D and sales investment planned for 2025.

Financial highlights

• Q4 non-GAAP operating margin was 4%; full-year non-GAAP operating margin was 6%, an 800 basis point improvement over 2023.

• Q4 2024 non-GAAP gross margin was 78%; FY 2024 non-GAAP gross margin was 80%.

• Generated $2.7 million normalized free cash flow in Q4 and $27.7 million for 2024, reflecting an 11% free cash flow margin.

• Remaining performance obligations (RPO) totaled $246 million at year-end, up 26% year-over-year.

• Cash and cash equivalents at year-end were $63.9 million, down from $71.7 million a year earlier.

Outlook and guidance

• 2025 revenue guidance is $285–$288 million, representing 15% year-over-year growth at the midpoint.

• Q1 2025 revenue expected at $66–$66.5 million; non-GAAP operating loss for Q1 expected at $1–$1.5 million.

• Full-year 2025 operating profit expected between $1–$4 million, reflecting increased investment in R&D and go-to-market.

• Acceleration in growth expected in the second half of 2025, with higher exit rates into 2026.

• Guidance is subject to risks and assumptions, including macroeconomic and geopolitical factors.