Similarweb Ltd. (NYSE:SMWB) Q3 2024 Earnings Conference Call November 13, 2024 8:03 AM ET

Company Participants

Rami Myerson - Vice President, Investor Relations
Or Offer - CEO and Co-Founder
Jason Schwartz - CFO

Conference Call Participants

Ryan MacWilliams - Barclays
Jason Helfstein - Oppenheimer & Co.
Arjun Bhatia - William Blair
Scott Berg - Needham & Company
Surinder Thind - Jefferies
Patrick Walravens - Citizens JMP
Tyler Radke – Citi

Operator

Greetings, and welcome to the Similarweb Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Rami Myerson, Vice President, Investor Relations for Similarweb. Thank you. You may begin.

Rami Myerson

Thank you, operator. Welcome, everyone, to our third quarter 2024 earnings conference call. Joining me today are our CEO and Co-Founder, Or Offer; and our CFO, Jason Schwartz.

Yesterday, after market close, we released our results for the third quarter and published a discussion of our results in a letter to shareholders as well as an investor presentation with a strategic overview of the business 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 report and the earnings presentation.

We will begin with Or and Jason's highlights in 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.

Or Offer

Thank you, Rami, and welcome, everyone, joining the call today. I'm extremely proud of the third quarter financial results we report yesterday. Revenue growth accelerated again to 18% year-over-year growth in Q3, driven by increase in annual customer and improving retention. Our total customer count grew 21% year-over-year, and the net retention, or NRR increased by 2 percentage points. This is the fourth quarter in a row that we reported accelerating revenue growth and the second quarter of accelerating customer growth.