Q2 2021 SimilarWeb Ltd Earnings Call
[music].
Greetings and welcome to similar web second quarter of fiscal 'twenty, 'twenty, one and earnings conference call.
At this time all participants are in a listen only mode.
Question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero from your telephone keypad.
Please note that today's conference is being recorded.
With us today are or Ofer, co founder and CEO and Jason Schwartz CFO.
At this time I'll turn the conference over to Andy Rosenberg with Investor Relations and you may now begin.
Thank you operator during this call we will make forward looking statements related to our business, including statements related to the expected performance of our business future financial results strategy the potential impact of the COVID-19, pandemic and associated global economic uncertainty and long term growth and overall future prospects.
Okay.
These statements are subject to known and unknown risks uncertainties and assumptions that could cause actual results to differ materially from those projected or implied during the call.
Actual results and the timing on certain events may differ materially from the results or timing predicted or implied by such forward looking statements and.
And reported results should not be considered as an indication of future performance.
Please review our filings with the SEC, including our final perspective, and the section entitled Risk factors, There and filed with the SEC on May 12.2021 for.
And for a discussion of the factors that could cause our results to differ on.
Also note that the forward looking statements on this call are based on information available as of today's date, we disclaim any obligation to update any forward looking statements, except as required by law.
As a reminder, certain financial measures, we use and its presentation and on our call today are expressed on a non-GAAP basis.
And we use these non-GAAP financial measures internally to facilitate and analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures when taken collectively may be helpful to investors, because they provide consistency and comparability with past financial performance by.
Excluding certain items that may not be indicative of our business results of operations or outlook.
However, non-GAAP financial measures have limitations as analytical tool and are presented for supplemental informational purposes only.
Not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.
A reconciliation between these GAAP and non-GAAP financial measures is included at the conclusion of our earnings press release, which can be found on our Investor Relations website at IR Dot similar web dotcom.
With that I will turn the call over to R. O fair CEO of similar web.
Thank you Amy and thank you all for joining us here today and for our Q2 only pool, which is also on first as a public company.
And really privileged to be here with all of you on the call today or is simple.
Appeal was exciting and milestone for all of employees.
Customer and vessels and false news and I want to thank them for their confidence and us a little bit you.
And also like to welcome our new inverse book similar to what Assembly.
During today call, Jason and our CFO and I will provide details on our Q2 as old as well and provide Q3 and full year guidance for 2020 warm.
I will start to day by covering highlights for full financial performance Q2, 2021 was a record quarter for us and I'm pleased to report that all 11.
And you increased.
49% fueled on a U 232, and a half million dollar.
We are also very happy that we were able to accelerate our growth versus Q2, 2020, continuing our trend of accelerating growth.
We also took advantage of strong demand flow solution as companies across the globe focused on digital transformation.
And Q2, we also improved on gross margins by more than 250 basis points year over year to 78, four and 5% highlighting the scalability of our platform.
On a free cash flow was negative $3.3 million on reflecting the strong from the fundamentals of our business have you been and as we expended all of operations.
I wanted to expense a photo on those the zone and also touch on a few key trends that we see.
Existing flow business, but first since many of you on the new to sit on the web.
Wanted to spend a few minutes talking or bolt on business and market opportunity and how we believe our offering of disrupting traditional markets and helping businesses compete and win in the digital world.
Similar web was born from of out of my own personal opinion and I was trying to do some market research from my offline business many years ago.
But no matter what they so its full and I couldnt find anyone with the insights and use it I saw on market opportunity and faulting deals later on similar web user.
And neither in the market intelligence for the digital world today on customer or some of the largest and best brands Liberals like Walmart, Google and probably six milk very true and C N M and many more.
What has changed since we rolled the first lines of code digital has become.
And I felt the way to communicate from Zacks and deliver products and services. It is an important growth driver and strategic focus for most businesses today at the same time. It's made every market is much much more competitive.
And this environment businesses have no visibility into the online activity of the customer prospect, both mills and competition and reality they on flying blind similar web cuts through the local visibility delivering a comprehensive view of the digital world 12 customers, providing them with market data and <unk>.
Sites to help them win and the digital world the data and more importantly, the actionable insights that we provide and pose a customer to be more competitive and the markets. We call. These deals done and intelligence.
There is not even go to Jim is embedded and critical business and sponsors.
And gave organizations the means to understand and gain insights from all relevant they get on activity.
It's a powerful competitive advantage, it's empower companies to make a bet on businesses decisions increases our confidence and help them window market, sometimes it can be the difference between business success and failure.
To paint a picture of our digital intelligence could make this kind of impact I want to share a conversation recently had with one of those customer.
The head of digital and marketing at station one of the top 12 and insurance company and the U K.
And when Covid hit the entire business was at risk of failure.
Similar web and help them to adapt to the new reality with similar web they were able to quickly identify and which markets recover the fastest forming and shuttle locked down and focus on those opportunities. They also youll similar web and from then to find new market segment. For example, younger brother and I was looking to insure against Covid.
And the risk they were able to create new products designed for these emerging segments and Youll similar web insights to build a strategy to reach the New Orleans and according to the company and I quote similar web kept us and business.
And one time on the challenging it's all about understanding what the competition is doing well with it and the market and what's going on in the market overall and it.
Notable debt in Q2, we completed and upsell deal with stay show increasing the value of the contract by over 30%.
This example isn't unique.
No more than ever companies need visibility into what's happening and the digital ecosystem, if they want to survive and when.
Digital transformation is accelerating but all debt investment cannot be optimize without comprehensive accurate and timely market darko that integrate into the corporate workflows there.
Just to make digital intelligence and mission critical.
We believe this massive opportunity and.
And we estimate that our total addressable market today is over 34 billion both of them.
Delivering these kind of bucked for digital and intelligent event and easy task to do it is extremely difficult to get a massive quantities of digital stigma and of course the internet.
And its signal, providing only small perspective, what's going on on the digital world and it's even a holiday and so you don't speak and that is to build a model. That's all designed to measure and predict how did you get on it will behave.
This is what we do.
And just think every day, we need to estimate topic for tens of millions of websites and apps.
190 countries and and although 200 industries and we need to do it really well because we know that's leading companies and investors around the world when it make critical business decisions based on the insights we provide and.
And our platform.
We have been working on solving this problem and creating this technology from over 10 years.
Although time, we invest significant resources and from now on the Doctor and acquisition and building a very strong competitive moats around our technology.
We achieved that we've built and you mix all in the organization that operates and innovated first based culture.
Every month this team delivered on hundreds of innovative data and feature enhancements that improve our customer retention and increased average customer spend.
We have continued to expand this team, which now includes nearly 250 top notch developer Phd data scientist and Big Bertha engineer and we're very proud on the work.
We also built a very efficient sales and marketing organization to approach and effect is very large market opportunity.
This call by attracting and engaging prospects with a widely used free tools on our website and flow of popular Boswell extension, we provide free access.
To a broad range of basic capabilities as well as the opportunity to explore paid.
Paid offering.
The cost effective leads from this freemium inbound motion on efficiently converted to pipeline opportunities for our sales team to pursue.
We complement this with an outbound sales motion and focused on developing new opportunities with larger.
And I'll get to come.
After a successful and lens and new customer. We also have a team of client success on the lease will have on our customer realize more value from our platform, resulting and most strategic relationship and expanding revenue. This land and expand motion is working very successfully for us.
And I want to turn now and discuss our Q2 performance.
I would like to mention a couple of highlights and how they illustrate several of our businesses strategies.
Quickly around the land and expand and self promotion.
<unk> of new channels of indirect growth and the introduction of new products and deficit.
Let's start with our land and expand.
Over the last 12 months, we accelerated new logo acquisition and lending, although 600, new customer and crossing the 3000 customers logo threshold and Q2.
We are building on these strong new logo acquisition by refining our motion and on customer retention and growth and as an example of this and Q2, we completed one of our largest deals and similar to history with a major E. Commerce company discussed them at the beginning of January 2016, and starting.
And with one use case and around <unk>.
50, K and N O L L M.
Day, they use similar where because 25 teams globally with around 1500 users.
<unk>, all those three and a half million dollar and nail on them.
Our Q2 upsell it wasn't seven figures they are upset with the multi year commitments included the addition of hundreds of new Yugo.
As well as an upsell of premium product feature and extend and Douglas fir.
It's also highlighting our London expand motion and operation.
And we started small and all the time, we were able to expand to additional use the use case and department and geographies within the customer.
This land and expand motion is driving significant growth among our largest and most strategic customer segment.
Those companies, where we are generating more than 100, K and a alone.
We grew the number of those accounts by 52% yield on you and nearly 60% of this growth came from existing customer and it's all day.
And expanded to more than 100 K.
Overall, our ability to attain customer on and expand their harleys is reflected and the highest level of fame and all this we have ever recorded.
And I know how strongly improved from 101% and at the end of 2020 to 106 at the end of Q2.
And that's critical customer segment of accounts with over 100, K and they have a we improved and are all.
Two 118% up from 113% at the close of 2020.
Beyond our direct sales motion and we continue to develop indirect sources of demand first we recently announced the availability of similar with digital insight on the AWS data exchange.
With the AWS.
S exchange companies ranging from CPG, two hedge funds and reach the big data analysis digital marketing jumped and putting website traffic keywords and retail transaction.
While these and did.
Did not have a material contribution to Q2 results I believe that this partnership will broaden our customer reach and further help customers integrate similar web into their workflows and in Q2, We also introduced and affiliate marketing program and the power and other federal program launching two new indirect channel was so late.
And opportunity creation.
Also in Q2, and relaunch and use solution, our shopper and intelligence, which is targeted at the rapidly growing e-commerce segments.
And intelligence analyze consumer shopping behavior and across desktop and mobile and provide a comprehensive solution for understanding the digital customer journey and what consumers are buying online and our.
Is the chop and intelligence would analyze and deliver insights about digital consumer behavior and it goes both E Commerce marketplaces, and first Bobby shopping website.
We are off to a strong start with this new solution, we have already closed new businesses and.
The diverse set of industries, not just in time and they CPG the audience, but also on retail.
From a technology and private equity.
I'm looking forward to giving you more details on those wins and the future.
We believe the chop and intelligence is innovative product with features that are unique in the market and I'm Super excited about it and I think we have a huge opportunity in front of us with this new offering.
And Q2, we also made significant addition to the scope of data and insights available for similar web platform. We completed the acquisition of the assets of similar Tech, which we believe is one of the best provide they'll spend and the graphic dot com in the market.
The acquisition and enable us to more completely integrate similar take the data and 12 solution and the opportunity to leverage the other delta to build some exciting new features.
Separately, we recently announced a significant advancement in our capabilities and our Q O generator, which enabled sales professional to find and explore keywords relevant to expanding their business.
The Q on generator now includes support for Youtube, the world's second and I'll, just sell change and as well as Amazon or 60 per cent of the products. So just currently originates.
Those enhancements expand on coverage by over 800 million kilos and extended on a breadth of coverage and keyword volume accuracy.
Beyond these efforts, we continue to invest and our organizational growth and development. We continued to scale our organization to support our strong growth and employee head count in Q2 grow and nearly 60% year over year, we continue our international expansion.
Turning up and new direct sales presence and office and Germany.
Currently we also announced and you also seem Augusta, and Virginia, where we will focus on hiring sales and marketing roles.
And where we expect we will be able to tap into strong local talent.
Our areas of digital measurement and market research.
Finally, I am very excited to announce that last week, we closed on our new headquarters facility and Tel Aviv area.
This new building will accommodate our rapid growth and we will be able to fully designed this space to meet all the needs for our growing team on.
On a new similar web headquarter and located in the central television the propylene and expanded when completed it will be significant attraction.
Enable us to continue to recruit top talent here and he is.
Right.
Finally, as we said during the IPO, we would leverage our momentum and continue to pursue both organic and inorganic growth strategies, we will invest and ourselves and marketing efforts to accelerate customer acquisition because of their high on Hawaii, we get on those investments.
And the big market opportunity, we see.
We will take advantage of our strong financial.
And two opportunistically target and acquire companies and although to improve and expand on without the use case and addressable market.
We are operating in a fragmented market and we believe we have the opportunity to be the consolidated zone.
Wrapping up and I'm very proud of the company. We have built we have followed our 2020 performance with a strong and accelerating growth and the first half of 2021, we.
We have outstanding leadership and our team is small volume staff talented and experience we have a strong balance sheet, our solution on the market, leading and providing timely and comprehensive data and insight that we believe our customer cannot get anywhere ex ever.
Every day thousands of businesses rely on similar web solution to make and mission critical decision. We believe we are recognized as the standard of the merger of the digital World our insight on frequently that's still and they publicly by CEO and.
Major publication and respected research trends on.
And that's almost become a required experience for job opportunities and and notable skill that she was the highlight and Lincoln.
And our confidence and our growth strategy and we have a track record of strong operational execution, it's still early and our journey and we believe we are and a great position to capitalize and kept show an increased share of a very large markets and and and as I like to say we are just getting.
And started.
With that and would like to turn the call over to Jason Schwartz, Our CFO Jason.
Thank you wore.
And I'm going to start with an overview of our financial model and then I will review our financial results for the quarter and wrap up with our guidance for Q3 and full year 2021.
Our financial model is built on the delivery of strong and predictable revenue growth substantially all of which is generated from SaaS subscriptions, we deliver a high net dollar based retention rate or NR and also maintain high gross margins and unit economics that drive cash efficiency.
In Q2, we delivered record revenue was 32 and a half million dollars, reflecting 48.5% year over year growth. We increased our total number of customers to 3068 up 24% from 2000, and 479 and Q2 last year.
This includes <unk> mentioned, a strong increase and our $100000 of more <unk> customers, which grew by 52% from 145 and Q2.2020 to 220 in Q2.2021.
Most of these customers began initially as small customers and have expanded through our successful land and expand motion.
Today these customers comprise 49% of our overall recurring revenue base.
And our revenue and customer base is highly diversified and no single customer amounts to more than five percentage of revenue.
In discussing the remainder of the income statement. Please note that and unless otherwise stated all references to our expenses and operating results are on a non-GAAP basis and are reconciled to the GAAP results and the earnings press release that was issued just before this call.
Our gross profit totaled $25.6 million and the quarter, representing a gross margin of 78, 6% versus 76% in Q2.2020. This margin improvement reflects the significant operating leverage we've been able to realize and our fixed SaaS infrastructure and data costs.
Operating expenses grew to $36.3 million and Q2 up from $19.1 million and Q2, 2020, largely reflecting the investment and personnel across the business from product and R&D sales and marketing and our G&A team to support our business growth, we see a lot.
<unk> Tam and opportunity ahead of us and we'll continue to invest and personnel and initiatives that help us capture more market share the.
And the specific components of our operating expenses were research and development $8.3 million versus $4.7 million and Q2.2020.
This excludes $696000 of retention payments relating to the acquisition of similar tech during the quarter, we anticipate an additional $350000 and Q3.
Sales and marketing $21.4 million versus $11.8 million, and Q2, 2020 general and administrative $6.6 million versus $2.6 million in Q2, 2020. This excludes $1.2 million of nonrecurring expenses.
Related to our initial public offering.
As a result, our non-GAAP operating loss and the quarter totaled $10.8 million, increasing from $2.5 million and Q2, 2020.
Free cash flow for the quarter was negative $3.3 million compared to $1.5 million in Q2.2020.
And May we successfully completed our initial public offering of our ordinary shares raising net proceeds of $157 million after deducting underwriting fees and commissions and related offering costs.
During the quarter, we also repaid all outstanding amounts under our credit facility such that as of the end of the quarter, we have no outstanding debt.
As a result, we have a strong cash position that totaled $177 million of unrestricted cash balances as of June 32021.
We have additional capacity available to us under our $75 million credit facility with Silicon Valley Bank as such we believe that we have sufficient liquidity to successfully execute our business growth plans and.
As <unk> mentioned last week, we signed and office lease agreement for our new Israeli headquarters, we anticipate investing $8 million to $10 million and lease hold improvements over the next four quarters and advance of our anticipated moving date in Q2, 2020 channel, which will be amortized over the 10 year term and beliefs.
We are introducing guidance for both Q3 and the full year 2021.
For Q3, 2021 revenue is expected to be and the range of $32.8 million to $33.2 million non.
Non-GAAP operating loss is expected to be and the range of 14, and a half to $14.9 million.
Full year 2021 revenue is expected to be in the range of $129 million to $130 million non-GAAP operating loss for the full year 2021 is expected to be and the range of $49 million to $50 million.
I'll now hand, the call back over to or for his closing remarks.
Thank you, Jason and I would like to close by thanking my leadership team and all employees around the world for working hard to deliver on a very successful first half of the year on.
And our IPO was a milestone for us as we continue to grow and I am pleased to welcome.
How many new and vessels to the similar web 70, <unk> with that operator, please open the call up for questions. Thank you.
At this time, we'll now be conducting a question and answer session. If you'd like to ask a question today. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is and the question queue.
You May press star two if he would like to remove your question from the queue.
And for participants using speaker equipment may be necessary to pick up your handset before pressing on the Sarkies one of them on please poll for questions.
Thank you and our first question is from the line of Sterling Auty with J P. Morgan. Please proceed with your question.
Yeah. Thanks, Hi, guys. So wanted to start with the question around the AWS marketplace partnership and and deal can you help us understand does this just make it easier for customers to access the data and monetize it does they just change where they're getting the data from or does it.
It actually add incremental reach to new customers that perhaps you weren't getting too before.
[laughter] ice Sterling and so until I wouldn't.
Try to answer all these questions. So I think the and the quick answer is yes to all of the above them.
It will increase.
And the way to approach to many more customers and then before that.
The rate on the AWS platform, and Theyre and buying debt down the debt.
Marketplace. So we do expect to get more custom homes. It will give the easy way for them not only to access the data about the another layer of silver to settle down and so they know and need to get the API and API.
It's more easy to get and exercise and also chargeable and and also trying to that though.
Because of that is already there and if they have AWS accounts.
It's much more easy for them to buy us try it and and also challenge because they already it's connected with the Amazon and the invoice system.
And also and Amazon is putting on other incentivize on on there and for those customers and they give them free credits to try and many data sets on the data marketplace and so we also going on and leverage of this and momentum of Amazon themselves and.
And you know pushing delek us enough to try and buy debt.
And so it's them.
Great and then one follow up.
The improvement and the net dollar retention and you talk about the number of different ways that you can expand more users more data more geographies, which one of those really stood out the most and the quarter in terms of driving that net dollar retention.
So.
I don't have the exact and sell off but they tell me what they what they feel on that is driving really great expansion. One is the cross selling of all sitting and I talked a little bit about those shops intelligence.
So we saw great success, Dell and people buying one most solution for us. So I think by most solution is a great, but I will but I also saw a great deal of people buying more users, though other add on integrating API. So I think it's all across but on.
My feeling that what is the is strong now is and this quarter was the.
And most solution, we are able to sell and introduce two on customer.
Great. Thanks, guys and welcome to the public markets.
Thank you Sterling.
Okay.
The next question is from the line of drew Foster with Citigroup. Please proceed with your question.
Hey, guys. Thanks for taking the question Jason for the past six quarters or so your topline has been growing sort of directionally in line with your sales and marketing spend this quarter. It was up another 30 points sequentially relative to Q1. So you are clearly accelerating that.
On to the extent that sales and marketing as a leading indicator for your topline and like at a high level, how should we think about the pace and magnitude of investments within that envelope over the next six quarters and then if you could just remind us of the breakdown of how much of that incremental spend there is marketing and advertising, where you might get a quicker return on those dollars and how much is related to <unk>.
Incremental salespeople and sales infrastructure, where the return on those investments is a bit more protracted.
Hey, Joe Thanks for the question so.
You know.
What we see right now is a.
It's a huge Tam and opportunity ahead of us and as a result of that we're continuing to invest to capture a larger share of that.
Net market that we see and so we have ex.
Celebrated hiring I think you may have seen that and the in the press release and theirs.
Grown over across the business, but our approach is really to invest it in a responsible way balancing that growth and efficiency and so.
So that's what we're going to continue to do and we do think that that's a that's an indication of.
Further growth down the road.
As far as as the split and we don't break down.
On the.
The split between.
Marketing dollars versus head count dollars, but what we do say is about 60% of our.
Marketing and sales spend goes to new customer acquisition and about 40% of it is spent on our customer retention and expansion.
That's really helpful. Thanks, and then you had strong gross margin improvement I think even called it out at the top of your press release. So could you just maybe unpack, what's driving that and where you think you can drive those two over time.
Thanks, guys.
Yes.
Sure a lot of our cost of sales.
And it's comprised of fixed cost fixed cost and the and the infrastructure. The typical kinds of stuff that you have.
Hosting and support we actually hosted on AWS as well as.
And all of the investment that we make both.
Internal costs and external force in our and our data assets.
And so which is really a fixed cost for us because it's the same amount on.
On the data that we need whether we're running a per.
Providing the service to 5500 or 5000 customers and so there's a natural leverage up and get on those fixed costs and that's the improvement that you've seen not only and that this quarter, but but opened the trend over time over the last two or three years.
Take that.
And I'm comfortable with the guidance that we've given we're staying the same levels of revenue.
Near term.
And then potentially going forward.
As we think about guidance going forward.
And we'll of course update you.
Thanks, a lot.
Thank you.
The next question is from the line of Bhavan Suri with William Blair. Please proceed with your questions.
Hey, guys, congrats and are going through and welcome to day.
And public company.
And nice job I guess I just wanted to touch on quickly first on the new customer strength and love to sort of understand what's driving momentum and obviously increased sales and marketing you've got partners.
But I guess as you look at that are these customers sort of replacing another vendor or is this web intelligence programs on the first time.
Oh.
Good question and I think that the majority of the deals that we are at.
And it's basically it's only us well not replacing its mostly a greenfield opportunity.
Gotcha Gotcha Gotcha and then.
And we launched apart from and 19 and sort of these five can use cases.
And you see any change and how.
Customer and adopting solutions are they changing where they starch and are they building different just sort of data strategies once and implemented a couple of solutions, how should we think about that progress with customers and and so their strategy from one day adoption when they change. Thank you.
And it's a good question and I do see that the more we develop offering and bringing a new solution into the market with kind of unlocked and new strategies.
And for our customers once we get on a kind of introduced a solution better and they saw it oh.
And also in our CPG customers and now that we introduced Choctaw solution to them and they get and this oil and your data and then they understand they can drive you stopped the G and and one example, and there also and on all in.
The vessels will take on when we come with the.
Most shelf offering and then it's kind of giving them and a whole new perspective about how to.
Think and develops strategy around data and insights like market nothing and so going forward.
So I do see debt it will see that the three come and and a lot of the things that we presented and new.
New and innovative even to the customer and they understand the power on the digital intelligence have and how they can use it to drive more strategic decisions across the business.
Gotcha Gotcha, thanks on the color and nice job guys. Thanks, taking my questions.
Thank you much.
Our next question comes from the line of Brent Thill with Jefferies. Please proceed with your questions.
And I think yeah. This is John and Dan from Brent Thill I had two questions one.
And the five major solutions you have.
Any particular strengths to highlight them on a five and maybe just get shed. Some light also on the relative contribution and.
And then second I'm, just pay for Jason and I just wanted to see if there's any comments on on the linearity during the quarter you know the trends by month any particular variations.
To note and <unk>.
Including a quota to day, thanks very much.
So I will start and so and then their solution and then there's something to talk about the the trend. So all of this solution are growing very nicely and we're very happy with the overall growth.
And we saw great success with the new two offsetting fluids vessels on the shop. The CPG is all accelerated nicely.
And that's a I think still the majority of our business is for our core solution that we stopped all leasehold solution and a marketing solution.
And historically a lot of our customers to buy to go though and.
And all of them are growing very nicely and we are putting a lot of vessel stu to develop them and improve and the offering.
And and just suddenly one two and so the brand.
Yes sure.
Within the quarter.
There's some variability from quarter to quarter.
And but in general because we have we run on and the AOR model and we've.
Got good visibility and predictability into the revenue trends as we as we start the quarter.
Great and maybe just a little bit on and debt I mean was there anything that you noticed items and customer activity as opposed to revenue trend.
You know ups and down variation and that'll be it from me. Thank you.
Not material.
And we see a lot of customer activity and a lot of customer demand throughout the quarter and.
And.
And where we're pleased with that.
And that continued motions.
Thanks again.
The next question is from the line of remotely and show it with Barclays. Please proceed.
So is your question.
Hi, This is sheldon on for Raimo, Congrats on the IPO and thanks for taking my questions are interested and the enhancements to the keyword generator tool.
And can you help me understand how differentiated the new capabilities are compared to competitive solutions and existing Google suite of capabilities.
And Additionally on Youtube <unk> it seems like we're still on the earn it early innings. There can you provide any color on the opportunity.
Yeah.
Yeah. So thank you for the question and I will answer that and.
So I think that this new enhancement that we give to our keywords and are they still is our is our.
I'll show that we can bring very unique data assets and I come up.
Other competitor and the market with our unique approach to provide the insights.
And and we know that today's searches involving them you know Youtube is already the second biggest search engine ALDA and Amazon is the biggest search engine for e-commerce for shopping activity and.
And we recognize that our customers want to also understand the trends though.
And to develop their own strategies. So we realized that we can be innovative and agree with very high quality and result.
And around our killer generate on and and we're very happy with the wood, we did that and you'll see we put though and.
And really be coverage with the almost 800 million and.
For you to to check, though and I don't think this and emotions.
Bringing and lot of new ideas and the milk review strategy as to our customer and go after them and acquire more traffic.
Great. Thank you.
Okay.
Our next question is from the line of Jason and how soon with Oppenheimer. Please proceed with your question.
Hey, guys. This is Patrick Joseph on for Jason Thanks for taking our questions and congrats on the strong start out of the gate.
I just wanted to dive a little bit deeper on into the record consolidated and all our metrics.
Specifically, whether deals that leaked into the second quarter that couldn't be closed during the pandemic or is it just broadly.
Shifting client behavior, which is just driving more spend on that same middleware and also I know that you guys are guiding to enter our metrics, but should we expect and our greater one five per cent going forward them on.
On a consolidated basis. Thanks.
So I will try to and so that's from my side, and there's some kind of and and.
His opinion on all of them and the hour growth on though.
And first many quarters is there's a lot of hard work, we did historically and I always thought to collecting the fruits and.
A lot of improvement and our data platform and our sales approach and pricing and packaging and a relationship built without customer and introducing a new offering and adding more ROI and value to our customers.
And this is and why we're seeing a great result of Omaha, and keep growing and all that many cocoa.
And this is why they also spend more money with us and.
And so there's something you want to and from maybe from you on assignment.
I think Oh I agree with you on that this is the result of a lot of hard work and.
Ross all customer segments.
And we saw string.
Strengthening both on on retention and up sell which is what's driving that debt and Aurora metric.
Okay, great. Thanks, and just a follow up question related.
So the App and.
And the AD measurement products could you give us an update on the development of the.
And at measurement product and whether there has been any delays.
Given the iOS update thanks.
And Oh.
Sorry, the App and measurement products.
Okay.
So yeah. So this deal with decided to double down on our Apple filling them and provide them all our market insights around the ecosystem and so a lot of great development, though.
And they're gonna introduced a lot of development to the Android debt and.
And the coming months and hopefully also introduced a lot of improvement to the Io and stuff out but at the end of the deal.
And so that's all great improvement coming and the next few quarters, but on this area. So we are doubling down and putting more vessels.
So scared and and rich fulfilling.
Okay, great. Thanks for the question.
Thank you. Your final question comes from Pat Walsh, and <unk> with JMP Group. Please proceed with your questions.
Oh, great. Thank you and congratulations you guys.
So my first one is if you look at this I mean, it's a great win expansion with the E Commerce company to three and a half million dollars.
So my first question is how much more room is there and a company like that at three and a half million or are you done or can it keep getting bigger.
Oh this is a.
Great question, because it doesn't have a great talk with my team and I told him that the target discussed them and it would be on first $10 million customer. This is what I hope and think so there's much room to grow with them.
Okay, Great. That's what I was hoping and then how many other ones are there.
Where and Jason on them, if you've disclosed this but have you told us how many you have that are north of a million dollars and they are and and and if it's.
Not that just and what does the pipeline look like for other customers that can be north of a million a day are.
And so we are not keep bolting on stumped on it but to answer and then there's something you could well not reported now harmony.
And how much a seven figure customers that we have.
But we do see is astonishing.
Did you increase this effect of customer growth and.
And I've talked and and presenting on the whole show we are a big part of the Fortune 500.
And I already has all the cash.
And I think most of them need to pay a seven figure goes down the road and hopefully we would get though.
Jason do you want to add on debt.
Yeah.
And you know today.
Our focus and the numbers that we talk about our that that strategic customer group that are customers, who spend more than $100000 with us.
And what we've seen and we saw that 52% growth year over year.
This quarter in in that cohort of customers today that makes up about 49% of ours in Iraq.
We see over time that the same motion, where we're seeing customers, starting as smaller customers and growing into and become and expanding from in the in a single solution or it's what we talked about the multi solutions I'm getting up to multi $100000 and.
Driving that lifetime value, we think over time, we can get a number of customers to be.
And <unk> accounts.
Great and then last one for me and you know, obviously, you're not guiding to the out years, but just Jason and how should we think about sort of what the.
What you aspire to in terms of.
Longer term.
Revenue growth was what so what's the plan that you're you're building internally in terms of of your hiring and your quotas and and.
Uh huh.
The products are going to bring to market and putting all that together and how fast do you think that this company is growing over the longer term.
You know, it's a great question Pat and.
Like we said.
We see a huge Tam ahead of us and and.
We've also looked at the performance and how we've shown that we know how to both grow.
And do it in a responsible and efficient way and so to the extent that we can continue to do that we will continue to invest.
Smartly to balance that growth and efficiency.
But we really look forward to leaning in and and capturing a larger share of that market that we see.
Okay. That's it for me and thank you.
Yeah.
Thank you at this time, we've reached and there's a question and answer session and I'll now turn the call over to management for closing remarks.
Thank you everyone really excited to be here and answering your question. It's.
And it's our first time and call out of many to come and we hope to continue to deliver and make our investors happy.
And that's.
That's helpful Amazing what you. Thank you for your question.
Bye.
Thank you.
Today's conference you may disconnect your lines at this time, thank you for your participation.