TEL AVIV – Similarweb Ltd. (NYSE:SMWB), a prominent player in digital market intelligence, has announced the completion of an underwritten public share offering by one of its selling shareholders. The underwriters exercised their option to purchase an additional 525,000 ordinary shares at the price of $7.85 per share, culminating in gross proceeds of approximately $4.12 million for the selling shareholder.
It is important to note that Similarweb did not receive any proceeds from this transaction. The offering was managed by a cohort of financial institutions, with Goldman Sachs (NYSE:GS) & Co. LLC and Barclays (LON:BARC) serving as the book-running managers. Citizens JMP, William Blair, and Needham & Company played roles as co-managers for the offering.
The sale was conducted in accordance with a registration statement on Form F-3, as amended (File No. 333-279295), which was filed with the United States Securities and Exchange Commission (SEC) on May 10, 2024, and subsequently declared effective on May 31, 2024. The offering was made pursuant to this registration statement. Detailed information regarding the offering, including the final prospectus supplement and accompanying prospectus, has been filed with the SEC and is accessible on their website.
Similarweb offers a suite of services that includes web and app data, analytics, and insights to help businesses identify opportunities, understand competitive landscapes, and refine market strategies. Their products, which are designed to be integrated into the user's workflow, are backed by advanced technology and a vast repository of digital data.
This news is based on a press release statement and provides an overview of the financial event without speculating on its potential implications for Similarweb or the broader market.
In other recent news, Similarweb Ltd., a global digital market intelligence company, announced a public offering of 3,500,000 ordinary shares at $7.85 each by a selling shareholder. The offering, managed by Goldman Sachs & Co. LLC and Barclays, along with co-managers Citizens JMP, William Blair, and Needham & Company, is expected to generate approximately $27.5 million before expenses. Despite this, Similarweb will not directly benefit financially from the sale of these shares.
In addition to the public offering, Similarweb's recent earnings call revealed an increase in customer retention and strategic account growth, including the acquisition of a substantial eight-digit customer. The company also reported its third consecutive quarter of positive free cash flow and its fourth successive quarter of operating profit. Similarweb's acquisition of 42matters is intended to enhance its digital asset analytics offering.
Analysts at JMP Securities maintained a Market Outperform rating for Similarweb, citing the company's diverse digital data products and significant total addressable market, estimated at $52 billion. The firm also noted Similarweb's positive financial performance and strategic acquisitions as factors reinforcing their confidence in the company's market position. These are among the recent developments for Similarweb.
InvestingPro Insights
In light of Similarweb Ltd.'s (NYSE:SMWB) recent public share offering, insights from InvestingPro reveal a nuanced picture of the company's financial health and market performance. With a market capitalization of approximately $680.58 million, Similarweb is navigating the competitive digital market intelligence landscape with an impressive gross profit margin of 79.26% over the last twelve months as of Q2 2024. This figure underscores the company's ability to efficiently manage its cost of goods sold and maintain profitability on its core services.
Despite not being profitable over the last twelve months, analysts are optimistic about Similarweb's prospects, predicting the company will turn profitable this year. This forecast is supported by a revenue growth of 11.26% over the same period, indicating an expanding customer base and increasing market demand for their products. The InvestingPro Tips also highlight that five analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's strategic direction and future performance.
However, the stock has experienced volatility, taking a significant hit over the last week with a price total return of -11.57%. Yet, over a longer-term horizon, Similarweb has delivered a high return over the last year, with a year-to-date price total return of 57.79%. This demonstrates resilience and a strong market position despite short-term fluctuations. For investors seeking more in-depth analysis, InvestingPro offers additional tips on Similarweb, which can be found at InvestingPro's Similarweb page.
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