TEL AVIV - Similarweb Ltd. (NYSE: NYSE:SMWB), a leading digital market intelligence company, announced today that a selling shareholder has initiated an underwritten public offering of 3.5 million ordinary shares. The company itself will not receive any proceeds from the sale of these shares.
The offering includes an option for underwriters to purchase up to an additional 525,000 shares from the selling shareholder within a 30-day period. Goldman Sachs (NYSE:GS) & Co. LLC and Barclays (LON:BARC) are serving as the book-running managers for the offering. Co-managers include Citizens JMP, William Blair, and Needham & Company.
The offering is being conducted in accordance with a registration statement that was filed with the United States Securities and Exchange Commission on May 10, 2024, and became effective on May 31, 2024. Documents relating to the offering, including a preliminary prospectus supplement and an accompanying prospectus, have been filed with the SEC and are publicly accessible on their website.
Similarweb is known for providing web and app data, analytics, and insights to businesses, helping them to identify market opportunities, competitive threats, and strategies for customer acquisition and monetization. The company's products are designed to integrate into users' workflows, utilizing advanced technology and comprehensive digital data.
This press release contains forward-looking statements that involve risks and uncertainties. These statements reflect management's current expectations about Similarweb's future product development, business performance, and strategic plans. However, actual outcomes may differ materially due to various factors, as detailed under the "Risk Factors" section of the registration statement.
The information provided in this press release is based on a press release statement and is intended for informational purposes only. It does not constitute an offer to buy or sell securities or a commitment from Similarweb or the selling shareholder. All securities transactions will be conducted in compliance with applicable laws.
In other recent news, digital intelligence firm Similarweb has seen significant growth across its customer segments. The company's recent earnings call revealed an increase in both small customer retention and strategic account growth, including the acquisition of a substantial eight-digit customer. Despite the anticipated lower average annual recurring revenue (ARR) due to the new product, Similarweb 3.0, the company envisions customer expansion and retention as key drivers for ARR growth.
Furthermore, Similarweb's acquisition of 42matters aims to enhance its digital asset analytics offering. The firm reported robust demand for their Data-as-a-Service (DaaS) and stock intelligence products, with recent acquisitions contributing minimally to total revenue. JMP Securities maintains a positive outlook on Similarweb, citing the company's diverse digital data products and significant total addressable market, estimated at $52 billion.
In addition, the company recorded its third consecutive quarter of positive free cash flow and its fourth successive quarter of operating profit. The acquisition of 42matters, along with these financial achievements, bolster confidence in Similarweb's market position. These are recent developments that highlight the company's focus on organic growth, improved sales, and self-service operations amid challenging economic conditions.
InvestingPro Insights
As Similarweb Ltd. (NYSE: SMWB) navigates through its latest public offering, investors are closely monitoring the company's financials and market performance. According to InvestingPro data, Similarweb has a market capitalization of approximately $774.46 million and is trading near its 52-week high, with a price percentage of the high at 98.36%. This indicates a strong market confidence in the company's stock, as it approaches its one-year peak value.
The company's gross profit margin stands impressively at 79.26%, highlighting its ability to retain a significant portion of revenue after accounting for the cost of goods sold. However, it is important to note that Similarweb is not currently profitable, with a negative operating income margin of -4.1% over the last twelve months as of Q2 2024. This could be a point of concern for potential investors looking for immediate profitability.
InvestingPro Tips suggest that analysts are optimistic about Similarweb's future, with five analysts having revised their earnings upwards for the upcoming period and predictions that the company will turn profitable this year. This could signal a positive trajectory for the company's financial health and an opportunity for investors to get in on the ground floor before the company potentially hits a growth spurt.
Prospective and current investors can find additional insights and tips on Similarweb by visiting InvestingPro for a comprehensive analysis. Currently, there are 11 additional InvestingPro Tips available, which could provide a deeper understanding of the company's financial position and market potential.
Investors may also consider the company's liquidity position, as InvestingPro Tips indicate that Similarweb's short-term obligations exceed its liquid assets, which could pose a risk in meeting immediate financial liabilities. However, the company operates with a moderate level of debt, which may provide some balance to its financial stability.
For a detailed analysis of Similarweb's financial metrics and professional guidance on the stock's potential, interested parties are encouraged to explore the resources available at https://www.investing.com/pro/SMWB.
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