Q4 2021 Similarweb Ltd Earnings Call
[music].
Greetings and welcome to similar web water for fiscal 2021 earnings conference call.
At this time, all participants are in listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I would now like to turn the conference over to your host any religion book.
Thank you and.
Over to you man.
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 impacts of the COVID-19, pandemic and associated global economic uncertainty long term growth and overall future prospects.
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 of certain events may differ materially from the results or timing predicted or implied by such forward looking statements and reported results should not be considered as an indication of future performance.
Please review our filings with the SEC, including our final perspective in the section entitled Risk factors therein filed with the SEC on May 12, 2021 for a discussion of the factors that could cause our results to differ also note that forward looking statements on this call are based on information available as of today's date.
Disclaim any obligation to update any forward looking statements, except as required by law.
As a reminder, certain financial measures we use in this presentation and on our call today are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures when taken collectively made.
Be helpful to investors, because they provide consistency and comparability with that 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 and should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.
Reconciliations between these GAAP and non-GAAP financial measures is included in our earnings press release, which can be found on our Investor Relations website at IR, that's similar to a dot com with that I will turn the call over to <unk> CEO of similar web.
Thank you Amy and thank you all for joining us today.
Q4, 2021 element.
It's great to be here with all of US This morning, we.
We finished off a very strong 2021 with excellent performance in Q4, GAAP revenue grew 51% year over year to $42 million exceeding our guidance for the quarter I am very proud of our team for continuing to execute well.
And accelerating our growth.
During today's call our CFO Jae song.
We'll provide more details around the Q4 and 2021 results and provide Q1 and full year guidance for 2022.
So let's discuss the results.
In many ways 2021 it was a game changing year for us. Most importantly, our growth trajectory has changed in 2021 total revenue grew by 47% to $137 7 million below that.
Represent an increase of 15% point of growth over the last year it was 32%.
We ended this year with $165 million email, concluding a third straight year of accelerating growth.
<unk>.
As we move into 2020, we're seeing very strong tailwind for the business and increasing Tom and rapidly expanding demand for our solution.
In light of those favorable condition, we will continue to invest across the business and although two further marriage and grow our customer base as well as strengthening our product.
Portfolio and data assets.
The strength of our customer base is also improved in.
In 2021, almost significant growth come from our largest and most strategic customer segments.
Those companies that generates more than $100000 in L.
We grew the total number of those customer by 45% and together Theyre now represent more than 51% of our total air home.
Overall, we more than doubled our rate of new customer acquisition versus 2020.
We continue to see our customer growth being driven from a diverse set of industries.
In 2021, the new logos, we added including Amazing global brands like Fiat Chrysler Intel free him model leaves the door Dash, Tesco Cvs health and many more.
Our customers are more engaged with our solution and more committed to them than ever before.
33% of all the alcohol is generated from our customer signed a multiyear contract. This is an eight percentage point increase from the 25%.
The last deal.
And even more significantly we have increased our customer total lifetime value, but the MLR hitting an all time high we closed Q4 with overall in the hall at 113%.
It's 125% for the critical $100000 customer segment.
At 12% point improvement over Q4 2020 non bills.
I want to pause here for a second to reflect on what they see as the most important multiple level for our business growth.
We believe that today the number one mission for every CEO and business lead though is to drive growth and the biggest growth opportunities come from the digital world.
Race without borders where it's possible to almost instantly reach an audience at a global scale.
In this world where growth potential is almost unlimited data is king.
We will see and capture the growth opportunities every company is looking for better market data.
Need a complete picture of what's happening in the markets and so the most strategic growth questions like how do I go meet demand how do I go my product portfolio, how do I go on my market share how do I go my audience and how do I grow my sense. This is what's similar web does we give companies the visibility.
They don't have an insight the guide them to what to do next in order to grow.
We believe our proprietary data and growth inside but give our customer an advantage in their markets.
So we believe the value we deliver is outstanding and it's every company that wants to compete and win in the digital World meet US and this is why we see a huge and potential for high growth for many years to come.
In 2021 to accelerate our own growth rates were extended and improve our product portfolio in.
In Q2, we launch of Shawcor intelligence solution and by Q3, we already signed our first seven figure deal to this product.
Shopper intelligent is highly differentiated solutions that give our customers an amazing insights into consumer behavior, we've been online marketplaces.
In Q4, we expanded this offering significantly improving our marketplace insights coverage by adding valmont, Doug Bestbuy ensure we on top of our existing support for Amazon insights. Our goal is to become the market stem built in this emerging space.
And to be an essential growth enabler for every CPG retail company looking to do business in the online marketplaces.
Within our customer base alone we identified over 700 companies that's made that until it gets profile. So the opportunity for this product is huge.
We will continue to add major enhancements as well, although offering as well in.
In Q4, we enhance our self intelligence solution by partnering with a leading data provider to add contacts database offering.
That solution that will bring together, all 400 million plus contacts with digital traffic and engagement insights.
Pictographic Doctor.
We believe this combination of data and insight is ideal for a sales organization, while targeting digital first businesses.
Such as the <unk> publishing payment and digital advertising.
No.
Just one singular web solution sales representative can I indentified qualify the cone connect with the right decision makers and Influencers and engage those prospect with a compelling pitch that leverage our proprietary digital insights.
Finally.
As you may have seen that I'm very excited about today announcement of a new data licensing agreement with F N b.
A market leader in the mobile App in science, the agreements give us access to an important set of App and mobile application data, which we will incorporate into our platform. We plan to launch a new offering based on the up any data and insight in Q2.
By bringing together our respective best in class that we believe similar web will be able to deliver an even more accurate more comprehensive view of the digital world and.
Powerful offering that will improve the insight and competitive advantage, we create for our customers.
And of course, this mean that companies will be able to purchase industry, leading web and mobile web.
Data and insights from a single cells. We believe this will be a very compelling proposition in our markets and a game changer for companies looking to take.
Unified approach to optimizing their digital strategy across platforms.
In 2021, we also only enhance and expand our product offering by completing two acquisitions similar to tech and in mobile and <unk>.
Funds auction demonstrate our ability to execute on a small acquisition opportunities and improve our customer value.
Similar to the graphic that is now used across the board in almost every similar web product.
Almost free offering to a solution like sales intelligence and Bristol intelligence.
Well API and data feeds.
And the mobile which was completed in Q4 is already being used to enhance our offering is one for example in Q4, we added a new feature on the shopper intelligence solution called shopper demographics.
It's surely enabled e-commerce companies to get to know the audience on a deeper level. So they can inform new product development and optimize bio.
Things going beyond basic identifiers like age and gender.
Honestly segment every category and brand on Amazon. According to education, 11 household size and income.
Employment status when we believe it is a highly different feature in the market and it would not.
Not have been possible without data from M B mobile acquisition.
Finally in 2021, we continue to invest in our people aggressively aggressively scaling our organization to support our growth, we expanded geographically and adding new offices in Munich in Northern Virginia, and we're working hard to build out our newest similar with the headquarter, which.
Be located in the central delivery with hopefully an area.
When it is completed we believe it will be a significant attraction that will help us to continue to recruit top talent here in Israel.
To summarize we believe the 'twenty to 'twenty, one was a pivotal year and we are entering into 2022 with a great momentum, including a track record of accelerating growth and growing market opportunities ahead of us.
Back in May we successfully completed our IPO on the New York Stock Exchange. Since then we have delivered free consistent quarters of strong revenue growth all known for 45% year over year growth, concluding this quarter with more than 50% year over year growth.
Story has improved materially since our IPO across all of our business, we continue to add and to improve our product portfolio and offering both organically and inorganically expanding our Tam.
We are rapidly increasing our product value and stickiness, resulting in double digit growth in our net revenue retention.
We believe our combination of consistently strong growth and solid gross margin positions us as a small group of best in class businesses.
And most importantly, we are a leader in the large and high value market with a unique opportunity to become a critical growth driver for every company that wants to compete and win in the digital world.
Im excited about our progress and opportunity we have going forward, we delivered a strong Q4 capping off a year of tremendous acceleration in our business. We are confident about our growth strategy and our ability to unlimited capture a large share of a very valuable market.
I will now turn the call over to our CFO , Jason to discuss more about our financial result in 2022 financial guidance Dave.
Zone.
Thank you Omar and good morning, everyone I will now walk you through our fourth quarter financial results before introducing our guidance for the first quarter and full year 2022.
Total revenue for the fourth quarter of 2021 was $42 million, reflecting record 51% year over year growth.
This increase was driven both by an increase in our total number of customers, which rose by 28% in Q4 to 3487 also a record high for us as well as an increase of 18% in our average revenue per customer to nearly $48000 in Q4.
Sure.
For the full year 2021, total revenue was $137 7 million.
Reflecting 47% year over year growth.
Dollar based net retention rate or <unk> was 113% overall and was 125% for a greater than $100000 AOR customer segment, an increase of 12 percentage points each of those metrics compared to last year.
As you know substantially all of our revenue is annual recurring revenue or <unk> with a minimum subscription term of one year, but we continue to increase the number of our customers who commit to multiyear subscriptions as of the end of Q4, 33% of our.
<unk> is generated from customers with multiyear subscriptions compared to 25% last year.
This trend towards increasing contractual commitments, along with our high NRI reaffirms the value our customers see in central web and speaks to the increasing health and durability of our AOR.
Please note that unless otherwise stated.
All references to our expenses and operating results are on a non-GAAP basis and are reconciled to the GAAP results in the earnings press release that was issued earlier today.
Gross profit totaled $32 million in the quarter, representing a gross margin of 75, 1% versus 78, 9% in Q4 2020.
The decrease is primarily the result of the acquisition of <unk> mobile, which closed in Q4, whose fixed cost contributed to an increase in cost of revenue.
Operating expenses grew to $48 $5 million in Q4 up from $25 $7 million in Q4, 2020, largely reflecting the investment in personnel across the business to support our growth.
The specific components of our operating expenses were research and development $12 8 million versus $6 $2 million. In Q4 2020. This increase was driven primarily by growth in employee head count, particularly among employees focused on our newer solutions such as shopper intelligence thousands.
<unk>, an investor intelligence.
As I discussed in Q3, we are already realizing revenue growth from these new solutions and believe that these investments will prove to be meaningful growth drivers in the future.
Sales and marketing was $26 6 million versus $15 $4 million in Q4, 2020, driven principally by increased investment in sales and account management head count and marketing activities as we scale to build pipeline and support our plans for growth in 2022.
General and administrative $9 $1 million versus $4 $2 million in Q4, 2020, which includes $1 $4 million of additional costs for the quarter that we now incur as a publicly traded company as well as additional employee head count required to support.
Our growing operations globally.
As a result, our non-GAAP operating loss for the quarter totaled $18 $4 million better than our guidance compared to $4 $7 million in Q4 of 2020.
For the full year, our non-GAAP operating loss totaled $51 $7 million better than our guidance compared to $14 $9 million in 2020.
Free cash flow for the quarter was negative $11 5 million compared to negative $1 $4 million in Q4 2020, primarily as the result of the investment and employee hiring to drive our growth.
These investments continue to show their value and the acceleration of AOR customer growth and higher NRI.
Turning to the balance sheet. We ended Q4 2021, with a $128 $9 million in cash and cash equivalents and no debt.
We believe that our cash balance and our $75 million credit facility totaling $204 million of available funds provides us with more than enough liquidity to execute on our growth plans and to take us to positive cash flow, which we plan to reach in 2024.
Our deferred revenue increased 46% year over year to $78 8 million compared.
Compared to $53 $9 million at the end of Q4 2020.
Our remaining performance obligations or RPI increased 60% year over year to $137 5 million compared to $85 $7 million at the end of Q4 2020, we expect to recognize approximately 88% of total RPI as rare.
Over the next 12 months and we believe these metrics are a good indicator of the health of our business and our revenue streams.
As a result of our strong performance over the last three quarters since completing our IPO as well as the product innovation that we continue to deliver and the market opportunity that we see ahead of us.
Issuing strong guidance for Q1 and for the 2022 fiscal year for the first quarter of 2022, we expect total revenue in the range of $41 1 million to $41 $5 million, representing 40% growth year over year at the midpoint for.
For the full year, we expect total revenue in the range of $193 million to $194 million.
Representing 41% growth year over year at the midpoint.
non-GAAP operating loss for the first quarter is expected to be in the range of 25 million to $29 million and for the full year of between $83 million and $84 million.
This is driven by the investments we are making to continue our strong growth as well as the investments we are making to further expand our data modes through strategic moves such as the acquisitions of similar tech and <unk> mobile as well as the data licensing agreement with App Annie.
This also includes negative impact due to foreign exchange movements, which we estimate at approximately $10 million of additional cost.
In light of our strong unit economics, and efficient land and expand model, which are reflected in our strong NRI and in order to capitalize on our strong momentum and market opportunity. We expect to continue to make significant investments in the business through 2022 and 2023 as we execute.
On our plans to become cash flow positive on an IRR of between $450 million to $500 million in 2024.
As I mentioned, we are in a strong cash position and believe that our available funds provide us with more than enough liquidity to execute on our growth plan until we reach positive cash flow.
To conclude we've executed well since our IPO last year, our business is performing extremely well across all of our major initiatives and our financial results and guidance indicate that we are heading into 2022 with strong momentum.
And with that or and I are happy to take your questions.
Operator.
Thank you.
At this time, we will be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from Q4.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Thank you. The first question comes from the line of Brent Thill with Jefferies. Please go ahead.
Hi, This is John Byun for Brent.
But the question I had just two questions.
First on the aggressive investment plan for 2020 to continue if you could give a little bit more detail as to where.
Those things will be focus to prioritize across.
Opex and other investment needs and then in terms of the 2020 for I mean that looks like a pretty big growth and just wondering how you're thinking about.
The bridge from Alaska is 165 to get to that number 24. Thank you.
Thanks, so much.
We are.
We mentioned in the in the first part of the call we're seeing a great opportunity.
It ahead of us and the momentum that we're seeing in the business in terms of both.
Unit economics, and the revenue growth is is pretty big received the demand coming in.
Youre seeing I think the guidance that we're giving for the upcoming year and we see that that the opportunity that is ahead of us and the big Tam and our market position is not going away.
Okay. Thank you.
Thank you.
Next question comes from the line of above one <unk> with William Blair. Please go ahead.
Hey, Jason.
This is actually Arjun bhatia on for Brian .
Great quarter guys.
If I can ask on the App Annie partnership can.
Can you just give us a sense for how the data assets that youre getting a drag that is different.
And the mobile are these going to be complementary in the new offering that you are planning to introduce in Q2 here.
Or do they do they both did they both end up eating into that offering and just help us understand the different how the data.
Between the two assets there.
Hi of calls so Neil.
So it's a great question and first of all Lam.
There is different between the major difference between NB mobile data to up any debt down.
And that is based more on metal panel when you have a small sample of panel, but that deep debt that both demographic.
And sat Fi and one example to discuss <unk> and how we're using this data to enrich our shoretel solution.
People are.
Basically.
The demographic of people of buyers online.
And also <unk> more deeply into where you can see in app activity thats, a little bit different than the data that.
Presenting.
There is a major different than different use case.
Assets.
Perfect.
Helpful and then.
Large customer activity it seems like.
The deal sizes are getting larger overall and even amongst your largest customer deal sizes are getting larger.
Maybe just give us a sense for where.
Digital data and intelligence is on the investment priority list list four for enterprises today, and then I would love to understand <unk>.
<unk> thousand four targets that you've put out where enterprise activity in large deals actually flow into how those flow into that.
I think it's like a 40% to 45% CAGR that you've implied in that in that 2024 target. Thank you.
Yeah, I think that as.
Our offering is growing and.
Improving our product and not only at the access to the data the insights we are pulling in our ability to.
Train and teach our customer how to drive more LOI from the market that we provide and they seem a little ROI in the end.
We'll go next to pay as go up.
Think about similar web for example at least those solutions five years ago compared to what we're giving them today that lies domestically bigger so we presenting more deep and more advanced software.
So the customer has the ability to pay then the willingness is go up. This is one of them and second is our transition of the company to a multi offering a solution you know historically, we used to lend on it with a research solution now we come into the enterprise and we have Mrs.
Full suite of offerings to them, we will end with the results and then we have a nice.
Our solution for the marketing organization to drive more growth in NOI and then.
And then we have.
Another offering for the sales organization that we go and help them drive more growth.
So I.
I think all of those combination together, what you see in the increase in value for the increase.
HCV.
No.
Did you see that growing very nicely over the past few years.
Alright, Thank you very much and congrats again on a great Q4.
Thank you.
Thank you.
Our next question comes from the line of Sterling Auty with Jpmorgan.
Please go ahead.
Hi, This is my answer for Sterling silver.
So looking at the 75% at crest.
Chris.
During the quarter.
Most of that coming from the App Annie licensing deal how are you thinking about gross margin.
Going forward.
Yeah, So I will answer.
Alright, then if Jason wants he can also joined but and.
Any deal will only go into now for in this Q1. So the gross margin you're seeing is for Q4, I mean, it's mostly <unk>.
Come from the acquisition of MB with data that we need to integrate their data operation both managing <unk>.
And the headcount involved this acquisition was.
And to strength automotive.
With Doctor modes.
And we are very bullish around that.
I think all the move that we're doing to increase though about the acquisition and then the most about our uniqueness provided that there is really very strong smart strategic move and as the company grow on their own the long term model that will bring the company to the 80% gross margins that we're targeting.
Tim.
But this.
This is my thoughts around its based on the one plant anything from your side.
Yes, I think like you said or.
The App Annie licensing agreement will go into effect.
In 2022.
And just as a reminder, most of the costs that we have in our in.
In our cost of revenue.
Is our fixed cost and therefore as we integrate.
And in mobile and then see the revenue that comes in we get a lot of leverage out of those fixed costs. Both on the data side as well as on the personnel.
Okay, Great and then just on <unk>.
Follow up so between now and those fiscal 'twenty four targets.
Can you see that 125% retention rate for the top bucket of customers as kind of a target.
Retention rate.
Between now and then.
Of course not.
We are only getting started I'd like to say.
I think I think right.
We're excited about the performance that we've had this year and the transformation that you've been seeing.
From 2020 into 2021.
And we like the momentum.
Of course that there is a lot of that's a lot.
<unk> business to be done over the next couple of years.
Great. Thank you.
Thank you. The next question comes from the line of Jason <unk> with Oppenheimer. Please go ahead.
Hey, guys. Thanks, So just.
Just because I think I'm not sure how much.
We will all have that factored into our gross margin.
I guess how fast.
Would you expect the gross margin to recover as you scale those costs I mean again.
By the end of this year would the gross margins, maybe kind of back to historical levels and then.
And then I guess on top of that and maybe the answer is no. How are you thinking about the impact of App Annie this year on revenue gross margins and EBITDA.
And then I guess I don't think you did but maybe opine on.
The deal the deal lane that terms.
Why not buy them anything you kind of want to Shanghai.
Sure. So let me maybe I'll start with a financial questions that you had I think that's exactly right.
We're expecting to see gross margins start going back towards the end of the year back to the same historical levels that you've seen and I think this is consistent with what we've done in the past when you look back.
Going back to 2018, 2019 and 2020.
<unk> gross margin go from 54% to 71% to 77% to 78% this year as we added <unk>.
Additional datasets and increase our data moat and then.
Leverage that as we grew and accelerated our our revenue I think thats. The same thing Youll see here in terms of the impact of.
At any.
Any deal all of that is baked into the guidance that we've given earlier today.
I guess I'm asking like if we.
I wanted to think about how much of the guide into that Fannie versus not at Danny and then <unk> can answer any other questions.
Yes.
We're feeling very comfortable with the guidance that we've that we've given and are looking forward to a strong.
Okay.
Okay, Alright, and then just any more color on like the length of the deal.
In terms of the terms get more favorable over time.
If you sell more of it and then why not do it.
Why partner not acquire.
Yes.
And so I will try here.
Total care something that goes away.
Agreement.
And would any of that.
100% sure what we can disclose we'll not disclose.
The time is that it's a <unk>.
Fixed price.
And that we pay so this is Greg.
Great motion.
And we have.
Really great relationship with any management in a highly respect and we're very excited that we're able to put in place. This partnership together.
Relationship.
And and working together.
Time will tell.
Yeah.
Okay.
Okay. Thanks added try.
Thank you.
The next question comes from the line of Pat Wall Ravens.
<unk> Securities. Please go ahead.
Oh, great. Thank you.
Congrats on the 51% growth you guys.
So first of all and.
And Jason that E mailed to you about this during the quarter, but when I was when I was using the product, which we do.
In January there was a.
There was a message that popped up that said, we are having issues with the App analysis that can it began in January and we expect Abbott resolved sometime in February .
Can you talk about what that was and was that related to the.
The App Annie data.
Yes.
I will talk about that.
So first and what's happened is that.
It was about.
<unk> one of them deploy code and the Friday night that will create the bag and then caused a little bit of math and just took them at time to recover the discovered after two days.
And then until the fix it. So this is what this very stupid mistake Hill.
<unk>.
And that this thing does nothing to to do without any deal as you can.
Probably I think this conversation and relationship with up and it's been going on for many many months.
And so there's nothing there's no relation between those two.
Okay, Great and then.
Yes.
Jason can you maybe.
If you look at the operating income are really operating loss guidance versus the street.
For 2022, its a $35 million Delta can you bucket that for us.
There's a third that are happening at that just roughly how does that $35 million breakdown.
Yes.
The bulk of that is what you will see in both our R&D and our and our sales and marketing.
<unk> really focused on making the investments in order to like I said two to really focus on growing the business. The thing that we've seen we have the conviction when we started 2021.
We had hit an inflection point that the business with solid remember at the end of <unk> at the end of 2020, we're effectively a cash flow breakeven business, we know how to manage a business that's cash flow breakeven, but what we saw in front of us with this with this big Tam and this.
Big opportunity and what we're seeing today is strong is strong unit economics, and the efficient land and expand model, which which youre seeing in ultimately in not only revenue growth, but the strong in Aurora and Thats.
The proof putting to us that our conviction was right and therefore, we are continuing to invest in order to grab the Tam that we see ahead of us.
And I would tell you is that.
We know where we're going so youll see the breakdown, we could take offline and go through each line.
But it's mostly focused on on head count and marketing activities to continue to grab that Tam and on the flip side on the on the R&D and building up the data moats, it's the kinds of things to strengthening our product set.
Is the exact factor that drives that higher end of our having more products and solutions to sell into our existing installed base as well.
Okay, and then I know you mentioned, but can you just remind me what the FX.
The circle.
Super strong right that's the issue.
Yes, exactly stays FX, we said about $10 million of that is in is in FX.
Wow, so a third well almost a third of that.
Correct, it's just FX, okay alright.
Exactly.
The absence in the absence of the FX change in the absence of an exchange it would be even stronger guidance because as you pointed out.
Alright, thank you.
Got it.
Yeah.
Thank you. The next question comes from the line of Ryan Macwilliams with Barclays. Please go ahead.
Thanks for taking the questions I'm pleased to hear about the opportunity ahead for some or web or how can similarly benefit from Amazon retiring Alexa Dot com and May do you view this primarily as a source of new logo growth or do you think this could be a meaningful revenue opportunity.
Okay.
Yeah.
Thank you.
It's a great thing for similar web and ethylene to element.
One from a traffic and awareness.
And Alexa Dot com it was.
Our website on the Amazon was the big source full ranking digital assets and it was attracting I think that this website. There's a threatening thing today few million visitors that will need to find a new home to get this ruling king and statistic and they will come to us would be the only place to get there is that though.
So this is one is a lot of.
So full awareness that will come to effect and I think there is a great amount of local business.
For a new home in an alternative.
Don't know what to expect how much I don't have the number but it was a decent business. That's one for maybe 2025 years exactly so I can assume we have a lot of customers.
I think similar is the right place to come.
Okay.
So I.
I think we are going to have some benefits I don't know how much.
Perfect and then maybe for Jason.
Two part question here, if you quantified what MB mobile meant for revs for this quarter and then maybe into the guide for next year and you mentioned targeted investments to support new products. So what does that investment look like for shopper intelligence to capitalize on the early momentum there. Thanks.
Hey, Thanks, Brian .
So the <unk> Standalone contribution to Q4 or 2021 revenue was not meaningful.
Cereal.
But one of the things that <unk> mentioned, and we talked about when we announced.
The acquisition last quarter was that the data moat that that creates and the enhancements that enables us to do on our existing.
On our existing solution set is pretty is pretty it's pretty impactful and as Joe mentioned in his remarks earlier for example, we were able to enhance shopper intelligence and give now debit.
<unk> graphic data that we couldnt do before.
Now that we were able to leverage that.
That data that we get from from MB mobile and so we're pretty excited about what that does to all of our existing products.
And the net retention that will drive that youll see ongoing for the sales of the into the existing.
<unk> customer base as well as new sales to new customers as well.
And the investments on the investment side like I said, we don't breakdown for one solution to another solution, where the the head count is going.
But it's.
We look at shopper intelligence as an example is a great asset.
Very early days of their growth of that product growth and.
For sure.
And within the guidance that we've given today some some nice contribution from that product specifically.
You said the color thanks, guys.
Thanks, so much.
Thank you. The next question comes from the law.
Line of Tyler Radke with Citi. Please go ahead.
Hey, good morning, Thanks for taking the question.
Wanted to ask you just about what you saw in the quarter in terms of.
Seasonality I think if I look at the net <unk> contribution last year Q4 was your biggest.
This year it looks like Q3 came in ahead of Q4, so anything to call out from a seasonality perspective.
And then would you expect with accelerated sales and marketing investments that.
Our growth should accelerate next year as well thank you.
Yes, Tyler thanks for the question. So yes, we are seeing.
Last year was an outstanding Q3. This year Q4 was with great and really really strong performance.
A good end.
I think it exceeded all of our expectations.
But what we had guided to and I think you guys had expected. So we're pretty proud of the results in Q4 and more importantly, the momentum that we see going into this year, which is part of the guidance that we have updated.
An issue therefore for 2022.
I think that what we are already starting to see as favorable unit economics from the from the investments that we've already made in the in the sales and marketing teams.
You guys are seeing in terms of the both the revenue growth and the net retention numbers I think the MLR numbers are again are really outstanding and what.
Customer growth in the the other metrics that we talked about when you look all across the board.
The customer lifetime value of our customer base is growing up.
Net retention was growing up pricing is going up the number of customers are growing up number of customers, who are expanding to being a $100000 customers are more are going up that is now representing 51% of our overall revenue. When you look at that we're feeling that we're seeing from where we sit.
A really strong performance and ROI on those investments that we've made and we anticipate that we're going to continue to see that as part of our investment plan.
Thanks, and just a follow up I guess as we think about your.
Long term guidance here in 2020 for 2025.
Like if you think about the <unk>.
That means you need to make on the data acquisition side I mean, do you feel like with this app Annie partnership and MB, you've kind of completed the portfolio.
I guess what gives you the confidence that you can go out and make these margin.
Multiyear commitments, given just kind of the rapidly.
Evolving landscape and.
Obviously some of the investments that you've made recently thank you.
First of all I think it's a good question I think that.
But from our side thinking about that the motive thing with this.
Move with MB and.
Any partnership.
Fully cover everything on mobile aspect.
I think.
We'll probably.
I'm not going to have a lot of.
No more expenses down the road to increase this failure. So I think around every single data expenses I think we're in good place right now so I think.
Looking into the future I don't think.
The increase in.
Anymore, Jason maybe of any thing to add there.
Yes, I think Tyler one other thing.
You were asking was about the like where do we get the confidence to go into these multi year investment agreement I think that the other thing that was a big standout this quarter.
We're we're two metrics one is that today.
33% of our IRR is now struck contracts under multi year agreements. So it's not only cost.
To some degree but it also.
Third our borrower a wrong is already contracted a multiyear agreement and you see that not only that but you see it also in the 60% growth in the <unk>. So we have to some degree a great visibility into the revenue that we that we see going forward.
And that gave us the confidence that that we need in order to raise.
The street's expectations as to what we think.
Q1 as well as.
The full year of 2022 will look like.
Okay.
Thank you.
Thank you ladies and gentlemen, we have reached the end of question and answer session and I would like to turn the call back to Paul.
Or offer co founder and CEO for closing remarks. Thank you.
So thank you everyone really appreciate for use both gum and spending the time and as I said before we're just getting started and we are very excited.
Into Q1 and 2020.
Great momentum.
Amazing you. Thank you.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
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