Good morning, ladies and gentlemen, and welcome to the Similarweb Q3 Fiscal 2025 earnings call. All participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please key in star and then zero on your telephone keypad. Please note that this event is being recorded. I will now hand you over to Rami Myerson. Please go ahead. Thank you, Operator. Welcome, everyone, to our third quarter 2025 earnings conference call. Joining me today are our CEO and co-founder, Or Offer, and our Chief Business Officer, Maoz Lakovski. 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, F-20 420F, 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's highlights of the quarter, and then I will provide an overview of the financials. Then we will open up the call to questions from self-help 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. I'm super proud of the third quarter financial results that we reported yesterday. Revenue increased by 11% year over year to $72 million, in line with our expectation. Our customer base grew 15% year over year to more than 6,000 ARR customers at quarter end. We reported an eight-quarter of positive free cash flow, and we are reiterating guidance for 2025 revenues and raising our profit guidance for the year. Customer interest in our GenAI data and solution is amazing, and revenues from our GenAI data and new solution continue to expand and are one of our fastest growing revenue streams. We remain focused on three high-impact opportunities where Similarweb is highly positioned to lead. The first one is the GenAI Intelligence. Our GenAI Intelligence Suite has been well received by our customers. In October, we launched Web Intelligence 4.0 that integrates our GenAI capabilities into our web intelligence solution, providing an even more comprehensive view of the digital world. ARR from GenAI Intelligence products is growing rapidly to more than $1 million since the launch in April, a great milestone for this product. The second one is our data selling for LLM. We are supplying our unique and fresh digital data to companies that are building their own LLM and generative AI applications. The third one is our AI agent. We continue to roll out AI agents to help our customers maximize the value and automate the workflow, enabling them to extract insight from our data in the shortest time possible. Utilization of our AI agents continues to grow. For example, 27% of our sales intelligence customers use our AI Meeting Prep and our new AI Outreach Agent. With adoption and utilization, it is growing quarter over quarter. In September, we launched our new Similarweb MCP Server that can deliver trusted digital market intelligence data directly into AI agents and workflows. These new products empower our customers with the tools to integrate our digital data insights at scale via LLMs and automation tools, including Claude, Copilot, OpenAI Agent Builder, and more. The MCP is an exciting milestone in our deployment of data-driven AI products and services. I'm super proud of the strong adoption of the Similarweb App Intelligence that we launched in March. At the end of Q3, more than 580 of our customers were using our App Intelligence, and ARR has increased rapidly to above $10 million. Similarweb digital app data today covers over 4 million iOS and Android apps across 58 countries, providing our clients with comprehensive coverage of data that includes ranking, download usage, engagement, retention, and audience demographics. The investment in go-to-market that we started in the fourth quarter of 2024 is ramping as planned, and we are starting to see good results. At the end of Q3, we had 30% more sellers than in the third quarter last year, and we are seeing encouraging improvements in yield. I'm super proud that we continue to operate efficiently and reported our eighth quarter of positive free cash flow in Q3, generating $43 million of free cash flow in the past eight quarters. We remain focused on delivering profitable growth over time as well as achieving our long-term profit and free cash flow targets. I'm super excited that Ran Vered, our new CFO, will join in December. Ran has over 20 years of finance experience and a proven track record of driving growth, efficiency, and strategic transformation. He has worked as a CFO at three companies, two U.S.-traded public companies, and recently in a SaaS enterprise data company. I would like to thank Jason Schwartz for 10 years of service at Similarweb and wish him good luck and success. As I like to say, we are just getting started. Thank you, everyone, for the call and for the continued support. With that, I will turn the call back to Rami. Thanks, Or. I'll provide highlights of our financial performance, and then we'll open the call up to questions. We generated $71.8 million of revenue in Q3, an 11% increase relative to Q3 2024. Revenue growth was driven by the 15% growth in overall customers, as well as increased revenues from some of the new products we launched in 2024, including App Intelligence and GenAI Intelligence. The quarterly growth rate reflects a strong Q3 2024 comparison and the early recognition of LLM evaluation revenues in Q2, which we had originally expected in Q3, as we discussed with you last quarter. We are proud that 58% of our ARR is contracted under multi-year contract, up from 45% last year. We believe this demonstrates the durability of our revenues and the importance of our data to our customers. We generated $3 million of normalized free cash flow in the quarter, a 4% free cash flow margin, and an eighth consecutive quarter of positive free cash flow. We plan to continue to generate positive free cash flow on a quarterly basis going forward. Our remaining performance obligations, or RPO, totaled $268 million at the end of Q3, up 26% year over year. We expect to recognize 68% of total RPO as revenue over the next 12 months. In Q3, overall NRR was 98% across all customers and 105% for customers with over $100,000 of ARR. The decline in NRR reflects a strong expansion activity in 2024, particularly from large contracts booked during the second and third quarter of last year. We are very encouraged by the improving trends in GRR that increased sequentially in Q3 and was our highest in two years. Moving to guidance for the year, we are reiterating our revenue guidance for the full year of 2025 and expect total revenue in the range of $285 million-$288 million, representing 15% year-over-year growth at the midpoint of the range. We are raising our non-GAAP operating profit guidance to between $8.5 million and $9.5 million, an increase from our previous expectation and significantly higher than the guidance we provided at the beginning of the year. This is due to our focus on disciplined execution. With that, Or, Maoz and myself are ready to answer your questions. Thank you, sir. Ladies and gentlemen, we will now be conducting the question-and-answer session. Please note that for participants making use of speaker equipment, it may be necessary to pick up your handset before pressing the star keys. If you'd like to ask a question, please key in star and then one on your telephone keypad. A confirmation tone will indicate that a line is in the question queue. You may key in star and then two to leave the question queue. We'll pause a moment while we wait for the question queue to build. Thank you. Our first question comes from Surinder Thind of Jefferies. Please go ahead. Thank you. Or, could you maybe just talk about your gross revenue retention? Looks like things are trending in the right direction, but NRR would suggest, even given the tough comps, that maybe the upsell process has been a little bit more challenging. Any color there would be appreciated. Yeah, of course. Thank you for the question. I'm talking about the NRR trend. The NRR we report is the average of the four last quarters of the past 12 months. In this past 12 months, a lot of the expansion we were doing is mostly a big part of the big expansion were those engagements on the data for LLMs. The way this works is usually started as a one-time task that is significant. Then down the road, it's converting into ARR deals. Because a lot of the expansion comes from those in the past 12 months, you don't see it in the NRR because the NRR only reflects in ARR deals. I hope that there's a lot of those pipelines of big deals we have for selling data for LLMs will convert into ARR deals going forward. This trend will change and go up down the road. That's helpful. Maybe, I guess, since you mentioned kind of the LLMs and the training data partnerships in the pipeline, can you maybe talk about how that's evolving at this point? In the past, you've announced a number of kind of these upfront data purchases that aren't in your ARR. Should we be expecting conversion? Is this something where the clients maybe take six months to evaluate whether they want to enter into a longer-term relationship, or how should we think about what's coming down the pipeline here? Yeah, it's an excellent question. Thank you. So indeed, the answer is yes. It's a long process of sell when you usually provide a big chunk of historical data that those companies are trying to use and analyze and prove that it will improve their accuracy of the models. Those processes usually take a long time, and there's many different data sets. Similarweb is the leading digital company of the world. We have so many different data sets that there are so many assumptions and so many things we see how it's improving. There's many tests going, and there's different companies. Yeah, I feel very confident that the majority of those engagements will convert to ARR deals going forward because we already have a few of them that are already in ARR with long-term commitments. We see the impact it's driving on other players. We're very confident that we can drive this impact on all the other players. Thank you. Our next question, Raimo Lenschow of Barclays. Please go ahead. Perfect. Thank you. I had two questions as well. First of all, great to see the App Intelligence customer account grow, and ARR reaching almost $10 million there. Can you help us understand where these customers are coming from? Are they cross-sell or net new? Can you speak to that, please? I had one follow-up. Yeah, of course. We're very excited about the new product that we launched into the market. Not only the App Intelligence that is super successful, but also a GenAI offering that just passed $1 million in super fast time. Regarding the customer, I think the majority of the customer is cross-sell. We think that we have more than 6,000 customers that we engage in buying our digital data to increase their market share all across the digital world. The App Intelligence is spot on for them. They all usually have websites and apps, so it's an easy sale. They love us. They trust us. We see a very big success. The more we're increasing the coverage of countries we provide and the metrics, it's going to be very successful. We're very happy. We've seen good success that the product that we innovate and build and launch are adopted by our customers. Yeah. Okay. Perfect. If you look at the two last questions, you talked a little bit about the eighth and the quarter as well. If you look at the sequential ad this quarter, it was kind of more on the lower side of what we've seen historically. Can you speak a little bit to whether there are other factors, or was it just what you mentioned to the first question? Thank you. Yeah. I think that we think that the execution was good. I know it's very hard to land exactly where you plan, but we felt that the execution was good. We feel good for the year. Some of the deals are big, so it's very hard to forecast them. Overall, I think that we're really able to land spot on on what we maybe, Rami, if you have anything to think about that. Yeah. Hi, Raimo. Yes, just to add to that, as you remember, we had some contracts that came in earlier than expected, some of those evaluation contracts in Q2. The phasing is not linear. We booked revenues in Q2 earlier than Q3. If we would have booked those revenues in Q3, then the sequential improvement would have been more gradual. Yeah. Okay. Okay. That makes sense. Perfect. Thank you. The next question comes from Ken Wong of Oppenheimer & Co. Please go ahead. Great. Thank you for taking my question. This one might build on the response you just gave, Rami. Just wanted to get thoughts on kind of why the RPU declined slightly, even with the focus on up-market customers. How are we thinking about the trend on RPU going forward? I think that RPU is impacted by the number of customers that we added. Particularly for the larger customers, on the ARR, we added some mainly the large end, some one-time customers. We did not add, but we saw an increase in revenues, whereas a lot of the customers that are crossing the trend are coming through below average. We expect this to fluctuate over time. What most matters to us is the increase in customer count because that ultimately means that we have a big range of customers that we can then sell and upsell to and move them from single product into multi-year products. We can move them from single geographies to multi-year geographies. As we mentioned in the shareholder letter, we have customers that have increased 6x over time or 10x over time. Once they're in the pipeline, then we can work on them and land and expand and implement the playbook. Quarterly fluctuation or decline or increase is very, very small and doesn't really have a big impact on the way we think about the business. Okay. Okay. Perfect. Then a broader theme we just wanted to kind of pick your brain on. With SEO traffic coming down, I know you guys have some AI tools that are helping customers kind of focus on other channels. Any impact you're seeing in terms of demand for web intelligence and some of your core products with some customers maybe de-emphasizing web traffic? Hey. I think we see a little bit the opposite. I think that a lot of those digital companies that have websites are now getting less traffic from SEO. Now they need to close those gaps from other channels. They come to us. We are the leading digital company. Give visibility to the market. They want to understand how they position, if the decrease they see is worse or better than the competition, and what action they need to do to drive more traffic. For us, those market changes and dynamic only increasing the need and demand for the solution we provide. Maoz maybe you have something to say about that? Very helpful. Thank you. Very helpful. Thank you. Yeah. I think I would just add that first, we are following and seeing where the users are, and we are making sure that we are able to track and have a compelling offer. We are investing a lot in the GEO, AEO offer. It is also important to mention that we launched Web Intelligence 4.0, a new pricing schema about a month or a month and a half ago. We are seeing initial good signs of monetization of our core products. We are optimistic about it and think that our monetization strategy will make sure that we keep growing our core offerings. Ken, does that conclude your questions? Yes, it does. Thank you very much. Thank you. Our next question comes from Arjun Bhatia of William Blair & Company. Please go ahead. Hi, team. I'm Willow Miller in for Arjun Bhatia. Thanks for taking our question. So curious to hear more about the sales rep ramp that was added a few quarters ago now that we're through the third quarter and into the fourth quarter. In the past, you mentioned you were looking forward to the newer sales resources closing more deals in the back half of the year. Is that playing out? Yeah. We are seeing an improvement in the go-to-market quarter over quarter. I think last quarter, we said that we have a record high of salespeople closing deals. I think even this quarter, we saw even higher numbers of salespeople that are participating in generating revenues. Of course, as a CEO, you always want better and bigger. You are always optimizing that the go-to-market will be much stronger and better. Understood. Thank you. Our next question comes from Tyler Radke of Citi. Please go ahead. Yeah. Good morning. Thank you for taking the question. Just going back to the results and the guidance, I mean, I think we're used to Similarweb, probably the vast majority of your quarters as a public company, beating the midpoint, if not the entire guidance range, and raising, at least on revenue. I just wanted to make sure I understood the dynamics. Certainly can appreciate the quarterly dynamics in terms of the revenue that sort of got accelerated last quarter. Just relative to your guide, was it simply deal timing, linearity of the quarter when these deals closed? Are you building in more conservatism just given the CFO transition? Help us understand sort of the lack of a beat and raise on revenue. I think that overall, I think, of course, everything you said is part of that. I think that also when we started the year, we were and even now, we're very focused on optimizing the margin, the EBITDA margin. This is where we felt that we can drive good impact. This is, as you can see, we're doing very nice beat and raise on that, running a very efficient and disciplined execution. I think this is where we put our focus. Okay. On the margin side, you talked about a pretty healthy growth in the number of sales reps that you had this quarter. But sort of what's driving that incremental raise? Where are you taking costs out? Is it more sort of not hiring as many sales and marketing people? Is it more R&D and G&A? Maybe you're seeing some AI efficiencies in the business. Would love to just hear specifically what's driving the lower costs here for the full year. I think it's a combination of we decided to become better at that metrics and become more disciplined around it. Of course, you have the AI tailwind that is helping increase productivity so you can run a very tight engineering without growing the R&D resource. Of course, around the go-to-market, as you go and you optimize, you start at the beginning of the year hiring many people to execute. The ones that were not performing, you let go. Basically, you keep with the best ones, and they are becoming more productive. I think this was the majority of the cost saving we look into now. Okay. Thank you. Our next question comes from Patrick Walravens of Citizens Bank. Please go ahead. Oh, great. This is Kincaid on for Pat. Congratulations on the quarter, guys. I was just curious if you could highlight any customer conversations that you've had around the GenAI products and what's really driving uptake with these? Is seeing a lot of love for? Yeah. I think it's very interesting. It's kind of the GenAI optimization product that we sell. It's a new channel for all of our customers. It's a channel that's up and rising this year. There are many questions about getting visibilities and understanding how to be successful. It's a very interesting dynamic because maybe it's not driving a lot of traffic, but I think a lot of the answers coming on the chatbots are kind of defining the customer perceptions on brands and the purchase decision-making. It is very important to them to understand how many customers are asking about their brand and what are the answers, what is the sentiment. As you work with the customers, and you're basically building and developing the product they need in order to be more successful in this new channel that arises. Thank you so much. Kincaid, this is Rami here. If I can just jump on. We have had some meetings out there. The leadership are coming back from meetings with a range of customers around the U.S. and around the world. I think there is general excitement in the business about the opportunities. C-suites are very, very keen to understand how GenAI is impacting the business on the one hand. On the other hand, all the leading LLMs are very, very keen to understand how the data we provide them can help them improve their modeling. I think that when we combine those two parts of the market, on the one hand, the interest we're getting from all the model generators and creators, and from the corporates that the business is being impacted and disrupted by AI, it really gives us a lot of makes us very excited about the opportunities we have from that part of the market. Thank you, Rami. Appreciate it. The next question comes from Luke Horton of Northland Securities. Please go ahead. Yeah. Hey, guys. Thanks for taking the questions. Just wanted to talk a little bit about the customer side. Are you seeing any mixed shift between enterprise versus mid-market customers, especially with kind of the new use cases and product launches that you guys have made over the past year? Not really. I think the mix between SMB and enterprise stayed the same. We didn't observe any change in that. Okay. Fair enough. And then just kind of piggybacking off of that into the competitive landscape here, just have you seen an uptick in competition here, especially with, I mean, a couple of other companies out there kind of doing similar cadence of new product launches and trying to capture this GenAI demand? Just curious your thoughts on the overall competitive landscape. Yes. I was here. Thank you for the question. There is a lot of interest and a lot of demand for GenAI products, but we are confident that we can be a dominant player in this space. We have a unique dataset that enables us to be the best solution in this field. We have great client relationships, and we get a lot of demand both from new prospects and from existing clients. It's a very horizontal play. Many of our clients, of course, brands, agencies, publishers, they all care about GenAI visibility. We are not too concerned. We are focusing. We are building a great product. We have great datasets on this landscape. We are really allowing brands to understand visibility within the engines. For us, it's more about market growth and market education. It's not really about this competitor or that competitor at this point. Okay. Fair enough. Then just last one here. Apologies if this one's already kind of been asked and answered, but just looking at the implied revenue guidance for Q4, it's sort of a wider band here. Just wondering if that's kind of more so due to uncertainty around the timing of some of these larger deals flowing through, or just kind of the puts and takes on the implied Q4 revenue guide. Yeah. It's basically because we have a very strong pipeline and very big deals. We want to keep it in that range to understand we're very confident we land on the range, and we want to see how it materializes. Got it. Awesome. Thanks for taking the questions. Yes. Thank you. Ladies and gentlemen, just a reminder, if you'd like to ask a question, you're welcome to key in star and then one to place yourself in the question queue. Our next question comes from Adam Hotchkiss of Goldman Sachs. Please go ahead. Great. Thanks so much for taking the question. I just wanted to ask on your RPO metric that was strong for the second consecutive quarter here. Maybe just comment a little bit on contract duration and how we should think about the interplay of revenue growth versus that higher RPO growth rate. Yeah. Thank you, Adam, for the questions. Indeed, we're seeing a good success with the multi-year commitment. We see more and more of our customers loving our product, monetize it, getting great ROI from that, and willing to engage with us for a multi-year. As the report that we now have, 58% of the revenue is closed for multi-years. We're very, very proud with that metrics. It is a very strong indication of the value of the data we give to our customers. With that success, and every quarter, we're getting better and more customers engaged with us, it's also helping to get a better RPO. Great. That's really helpful. Then just on sales and marketing, I appreciate the comments on the ramping of sales employees. I did notice that sales and marketing expense did come in a little light of expectations this quarter and sequentially, which I think was potentially part of the profit outperformance. I know Or, we had talked about you taking a real-time approach to sales rep productivity and trying to understand that relative to margin performance, particularly when you gave the guide earlier this year. Maybe comment on if there are any changes in what you're seeing there, and if anything flowed through the sales and marketing number in Q3 that we should be aware of. Thanks. Yeah. The ramp-up of the salespeople is on track. As you try to scale go-to-market organization, what we did in Q1, we overhire in a lot of those areas to make sure that we can ramp the people, and then we can have the options to double down on the ones that are successful and can show the indication that they can be successful selling our solution. The process, you do a bit overhire. You see who is successful, who can be part of our culture. Then as you go through, you start optimizing and let go of the ones that are less successful. As you're doing that, your S&M is getting better, and you're able to start getting more yield from the salespeople. I think this is what you're seeing in the numbers. Okay. Great. Thank you very much. Our next question comes from Patrick Walravens of Citizens. Please go ahead. Oh, great. Thank you. Can I ask two follow-ups? First of all, Or, what kind of big deals do you have in that pipeline? What the very big deals are, obviously not the companies, but just if you could characterize them. Then secondly, how should we think about next year? Thank you very much. I will try to answer what I heard because I think the line was not super clear. I think the first question was around the big deals that we have that, as we said, over the past few quarters, we're seeing big success on selling data for LLM companies or companies that are trying to create the best LLMs for this new AI world. We're seeing that our digital data is a critical element in building and training those LLMs. Once we're able to engage and show the value of our data after those long processes of evaluation, we get in a very good engagement that is very sticky and very long-term, and we're becoming a critical part of building and developing those LLMs. This is around the big deals. The second question that I heard, I think, is about next year. We're going to give guidance to next year in the next quarter. That's it. Okay. Thank you. Okay. So I want to take. Or, ladies and gentlemen. Thank you, sir. Ladies and gentlemen, with no further questions in the question queue, we have reached the end of the question-and-answer session. I will hand back over to Or Offer for closing comments. I would like to thank you all for joining the call, and especially our shareholder for the support. We look forward to speaking to you again over the coming weeks. Thank you all. Lovely. Thank you very much, sir. Ladies and gentlemen, that concludes this event. Thank you for attending, and you may now disconnect your line.