Q4 2024 Similarweb Ltd Earnings Call
Or
Rami Myerson, Rami Myerson, Raymond Jones, Or Offer
Speaker Change: Greetings and welcome to the SimilarWeb fourth quarter fiscal year 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad.
Speaker Change: It is now my pleasure to introduce Rami Myerson, Vice President, Investor Relations. Please go ahead.
Rami Myerson: Thank you, operator. Welcome, everyone, to our fourth quarter 2024 earnings conference call.
Speaker Change: Joining me today are our CEO and co-founder, Or Offer, and our CFO, Jason Schwartz.
Rami Myerson: Yesterday, after market close, we released our results for the fourth 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.
Rami Myerson: Certain statements made on the court 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.
Rami Myerson: Please refer to our earnings release and our most recent annual report, filed on 4-20-F, for more information on the risk factors that could cause actual results to differ from our forward-looking statements.
Rami Myerson: 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 all adjacent highlights of the quarter, and then we will open up the call to questions from sales lab analysts.
Rami Myerson: With that, I'll turn the call over to Or. Or, please go ahead.
Thank you, Rami, and welcome everyone joining the call today.
Rami Myerson: I'm extremely proud of the financial results for the fourth quarter and the 2024 that we reported yesterday.
Rami Myerson: Revenue for the year of nearly $250 million was up 15% year-over-year and for Q4 was up 16% year-over-year.
Rami Myerson: Overall NRR was 101%, and for the over 100k ARR customer, the NRR was 112%, up from 111% in Q3 and 107% for last year.
Rami Myerson: Our customer base grew 17% year-over-year, ending with more than 5,500 ARR customers.
Rami Myerson: In Q4, we signed 15 customer contracts, each of which were 7-digit contract values.
Rami Myerson: Our top-line demand remains strong, with more than 10 million visitors to our website on a monthly basis and more than 120 million users visiting our SimilarWeb website in 2024.
Rami Myerson: I am encouraged by two new customer relationships with companies that are global leaders in the financial sector. In December, we announced that S&P Global, a leader in credit scoring and risk management analytics,
Rami Myerson: will begin to integrate similar web digital data into its credit risk analysis.
Rami Myerson: Today, I am also excited to share that Bloomberg Professional Services has entered into a multi-year agreement to supply similar web digital data to Bloomberg Terminal subscribers.
Rami Myerson: I believe that these deals highlight the strength and the versatility of our data assets as alternative data for investors.
Rami Myerson: But 2024 was not only about revenue and customer growth. We also demonstrate our disciplined execution as a top line growth accelerated. We delivered our first full financial year of non-gap operating profit.
Rami Myerson: and Free Cash Flow and I'm super proud that we delivered a rule of 26 performance for the full year of 2024 with a great mix of accelerating growth and improving profitability.
Rami Myerson: As a leading supplier of digital data, the AI evolution presents a significant opportunity for SimulaWeb.
Rami Myerson: High-quality, comprehensive, actionable, and trusted data, like SimilarWeb, is a critical component for every AI and LLM tech stack.
Rami Myerson: The AI revolution presents a significant opportunity for our digital data with many new use cases.
Rami Myerson: Last quarter I discussed about four different opportunities for us to capitalize and monetize the generative AI opportunity. The first one is embedding AI solution into our own platform.
Rami Myerson: The second one is helping brands navigate the shift in consumer behavior, driven by increase of the use of the chatbots. All those brands need this visibility and they come to us.
The third one is providing fresh data for LLM training.
Rami Myerson: And the last one is to streamline the internal process and make more efficiency internally in our company.
For more information, visit www.FEMA.gov
Rami Myerson: To capitalize on this huge growth opportunity, we have decided to ramp up our investment in R&D and our go-to-market teams.
Rami Myerson: We plan to increase our investment in R&D to enhance our data collection and measurement for the new Gen AI world and continue to develop additional products and solutions that companies require to compete and win in this new world.
Rami Myerson: We are also investing in our go-to-market teams, hiring people across all the geographies, as well as upskilling and expanding our sales force to capture the opportunity presented by the AI revolution and the high demand we are seeing on top of our funnel.
Rami Myerson: I believe that we are still only starting to realize the potential of our data and the addressable market we serve.
Rami Myerson: This investment will reduce our operating profit in the short term, but I believe it will enable us to continue to accelerate growth and capitalize on the growth opportunity.
Rami Myerson: As we have demonstrated, we know how to drive efficiency and scale, and believe that this is the right time for us to make those investments. And as I like to say, we are just getting started.
Jason Schwartz: Thank you to everyone on the call for continued support and with that I will turn the call over to Jason.
Jason Schwartz: Thanks, Or, and everyone joining us on the call today to discuss our fourth quarter results. I'll provide highlights of our financial performance, and then we'll open off the call to questions.
Jason Schwartz: We generated $65.6 million of revenue in Q4, a 16% increase relative to the fourth quarter of 2023.
Jason Schwartz: For the full year of 2024, we generated $249.9 million of revenue, representing 15% growth over 2023.
11% year-over-year.
Jason Schwartz: As this customer base grew, the average ARR per customer increased 7% year over year to approximately $376,000.
Jason Schwartz: The increase in the average annual revenue per customer was driven by further product adoption and expansion by our customers.
Jason Schwartz: We are proud that 49% of our ARR is contracted under multi-year contracts.
up from 42% last year.
Jason Schwartz: We believe this demonstrates the importance and critical nature of our data to our customers, and we expect these multi-year contracts will contribute to improved retention rates ahead.
Jason Schwartz: Our remaining performance obligations or RPO total $246 million at the end of Q4, up 26% year-over-year. We expect to recognize approximately 69% of total RPO as revenue over the next 12 months.
Jason Schwartz: Our operational performance in the quarter and the full year demonstrates our continued commitment to disciplined execution, and we delivered a non-GAAP operating margin of 4% in Q4, a sixth consecutive quarter of non-GAAP operating profits.
Jason Schwartz: For the full year, we delivered a non-GAAP operating margin of 6%, an 800 basis point improvement relative to 2023, and our first full year of operating profit on a non-GAAP basis.
Jason Schwartz: We generated $2.7 million of normalized free cash flow in the quarter, a fifth consecutive quarter of positive free cash flow, and $27.7 million in 2024, reflecting an 11% free cash flow margin. We expect to continue to generate positive free cash flow for 2025 as well.
Jason Schwartz: Turning to our outlook for 2025. For the full year of 2025, we expect total revenue in the range of 285 to 288 million dollars, representing 15% year over year growth at the midpoint of the range.
Jason Schwartz: In Q1 2025, we expect total revenue in the range of $66 to $66.5 million.
Jason Schwartz: For the full year, we expect our operating profit to be between $1 and $4 million. Non-GAAP operating loss for the first quarter of 2025 is expected to be in the range of $1 to $1.5 million.
Speaker Change: Our guidance reflects increased operating expenses to accelerate our hiring, to capture the opportunities presented by the growing demand for our data and solutions, as Or mentioned.
Speaker Change: After delivering a year of accelerating revenue growth, non-gap operating profit, and positive free cash flow, we remain focused on delivering profitable growth over time, as well as achieving our long-term profit and free cash flow targets.
Speaker Change: And with that, Or and I are ready to answer your questions.
Speaker Change: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start keys.
One moment, please, while we poll for questions.
Speaker Change: Thank you. Our first question is from Surrender Finn with Jeffries. Please proceed with your question.
Thank you.
Surrender Finn: Can you provide a little bit more color on this incremental spend? I'm estimating it's about 20 million dollars versus expectations here. How much of that is towards the go-to-market strategy? How much is that towards R&D? And how should we think about the cadence of hiring as we look across the year?
Speaker Change: I think the majority of the spend is for accelerating our go-to-market and ramping it up.
Speaker Change: Also a nice investment in the R&D, but I think also the forks pressure that we saw in Q4 and Q1 is also part of that 20 billion dollar that you're talking about
Speaker Change: And then just the the cadence of the spending like how did you come up with that number in terms of just thinking about was it that you just wanted to keep you know margins kind of positive at this point like why not more why not less at this point?
Speaker Change: I think it's a great question. So our philosophy was always that we are pivoting our company to profitability and we're going to stay profitable moving forward as long we're going to see good opportunity to accelerate our growth. We're still a small cap company.
Speaker Change: And now ending up the year with close to $250 million, meaning that we have a lot of markets to capture.
Speaker Change: So we made a decision to do a big investment and now to capture this opportunity as long as we are in a profitable growth and keeping the company profitable on the free cash flow basis and the EBITDA for the year.
Speaker Change: And we can maximize the opportunity, as we do see that we can bring Similarware to be one of the top-growing software companies in the public market, with the possibility ahead of us, and we want to capture it.
Speaker Change: And then I guess it's my second or the follow-up question here.
Speaker Change: Can you talk a little bit about the growth outlook in terms of the midpoint being 15% year-over-year? That seems like it's roughly the same as what it was in 2024. So with the incremental spend, is the idea that you're expecting to see an acceleration in growth in 2026 then, or
Speaker Change: Is there expectation of what, how do we think about the return or what we should expect in terms of the acceleration that we should expect?
And maybe wiser not perhaps
Higher expectations for growth given all the spend in 2025.
Speaker Change: I think it's an excellent question and you're right. I think there's two elements that
Speaker Change: that this is why we decided to come with the 15 as a starting line for us for the year. What we did see is that because we are arming our go-to-market and hiring a lot of people during the end of Q4 and still continue hiring them.
and Kiwano.
Speaker Change: And a lot of our sellers and managers are spending time with interviewing ramping people.
Speaker Change: And also going for change management. So we replace manager as a low performance in Q4 and then ramp up
Speaker Change: People. So, we did see a little bit of softness with the execution in Q4, now going into Q1. And on top of that, we have the forex pressure. We as a global company, around 50% of the revenue comes outside of the U.S.
Speaker Change: We saw a headwind from the Forex on Q4 that hurt the growth.
Speaker Change: And, you know, then if you start the year already below, so you need to close that gap. Then you saw another headwinds on the 4x1 into Q1, meaning that the Q1 is a little bit soft.
Speaker Change: And we guide for 12%, but you see we are very confident on the 50 and 40 series, meaning that...
Speaker Change: During the next quarter, we're going to see an acceleration of the growth, meaning that we are expecting
Speaker Change: and much more growth rate going to Q3, Q4, and then X-ray rate.
Speaker Change: for 2026, so we're going to see significant increase in growth in the second part of the year.
Speaker Change: And this is why we decided to give 15 as a starting point.
Okay, thank you. That's helpful on understanding the near-term dynamics.
Speaker Change: And I'm going to be talking about the The The The The The The The The The The The The The
Right.
Speaker Change: Thank you. Our next question is from Ryan McWilliams with Barclays. Please proceed with your question.
Ryan McWilliams: Hey guys, thanks for taking the question. Maybe for Jason, how did revenue results in the fourth quarter perform versus your expectations into the quarter? It looks like you guys kind of came in around the high end of your guide and usually you do a little higher than that. And then can you quantify any one-time impacts to consider for the fourth quarter? Like if there was an FX impact, what that looked like either on the revenue or profitability side?
Speaker Change: Sure. Thanks. Thanks, Ryan. So, as Orb mentioned, we saw, you know, some of the FX pressure hitting in Q4, and part of that is built into the guide.
Speaker Change: It's about 1-2% on run rate, so that is built into some of what you see in achieving the high end of our guide for Q4, as well as the guide that we have going forth.
Speaker Change: Okay, and then just on the fourth quarter, was there any effects impact to that quarter? And then I guess, how would you characterize the quarter in general versus your expectations into the quarter?
Speaker Change: acceleration in terms of the larger customers, both in growth of 11% year over year.
Speaker Change: In customer count, the AOR average revenue from those customers up 7%.
Speaker Change: seeing the NRR for that group pick up another 1%. We think that that was.
Speaker Change: Some of these large relationships, one of which we had shared previously while we were on the road.
Speaker Change: Sorry, the second one which we announced just today with Bloomberg, a multi-year relationship as well. We think those things are good indications as to what we have been working on and continue that growth.
Speaker Change: We were pleased with where it was, you know, the effects.
Speaker Change: Headwinds are something that we are, you know, dealing with in terms of the guidance going forward, but we feel comfortable with the overall momentum that we're seeing in the business.
I'll leave it there. Appreciate the color. Thanks, guys.
Speaker Change: Thank you. Our next question is from Arjun Bhatia with William Blair. Please proceed with your question.
Perfect. Thank you, guys.
Speaker Change: Or maybe one for you, on the AI investments you're making, I know you mentioned a lot of it's go-to-market, but on the product side, I think you mentioned you're investing in data collection and forecasting.
to get ready for the Gen AI kind of revolution.
Speaker Change: Can you expand on that a little bit because I had assumed that
Speaker Change: The platform, the way it exists today, has a lot of those capabilities.
Speaker Change: can be maybe more easily pivoted for Gen-AI, but it sounds like there's some more change on the platform required. So what are you changing and what's evolving on the product side?
Speaker Change: Yes. Hi, Arjun. Thank you for the questions. There's two fronts now that we need to make investments.
Speaker Change: Basically, we want to integrate AI in order to accelerate the insight coming from our data to make our customer's life easier to discover value and get ROI from the platform.
Speaker Change: So we're starting a really amazing innovation with that, basically putting agents.
Speaker Change: On top of our platform and, you know, automatically generating insights. So we're shifting a lot of the teams to start working on those innovations, and we don't want to stop the regular cadence. We had to do some investment on that front.
to continue their development to make our platforms.
Speaker Change: and much better for the majority of the users. This is the first front.
Speaker Change: The second front, as we are getting more and more demand for brands.
that want to get better visibility.
Speaker Change: on the change chatbot and Gen AI is having on the consumers and the way they search consumer information and making purchase decision. And in order to do that, we need to collect and analyze much more granular data around chat conversation and the different channels.
Speaker Change: basically introducing what I will call Gen-AI intelligence, that brains can understand the sentiment and the impact each one of those...
Chad Bottea, Vaughan Bearer
Speaker Change: and Purchase Decision. So this is some investment that we are doing now to collect this data, productize that, and start presenting to customers in a more scalable way. So this is another fund of investment that we are doing.
Jason Schwartz: Okay, understood. Thank you. And then, Jason, one for you again on the revenue guidance.
Speaker Change: It seems like there's a few changes on go-to-market that you're incorporating in, but is it fair to say this is a more conservative outlook on 25 than you've given historically? Are the changes just driving any kind of...
Speaker Change: change in your guidance philosophy as you maybe wait to see how the year unfolds in the first half year before growth really starts to pick up? What did you consider when you were giving the revenue guidance?
Speaker Change: George, as you know, we like to give guidance. We know we can meet.
Speaker Change: And we looked at the backlog that we have, as well as the...
some of the macro, like the FX impact.
Speaker Change: And we built all that into our assumption. As Or mentioned, when you look at the guide, which starts at a midpoint of 12% for Q1,
Speaker Change: And ends with a 15% for the full year, that mathematically means that we are expecting to have a strong back end of the year that is already built into our philosophy, which is
Speaker Change: exactly what we've been talking about, that we are accelerating the investment in our go-to-market teams in order to drive that contribution happening in the back end of the year, and we think this is the right way to approach that.
Okay, got it. Thank you.
Speaker Change: Thank you. Our next question is from Luke Horton with Northland Securities. Please proceed with your question.
Luke Horton: Yeah, hey guys, I just wanted to touch on gross margin, which is down sequentially here. Could you just talk a little bit about what drilled this? And then is this kind of a level you see it being at across 2025 as you guys are investing in the business?
Thank you. Thank you.
Luke Horton: and Ed Intelligent. This is two acquisitions we did in 2024. So we are now integrating those data sets. So every time we are adding more data sets, it's increasing a little bit the growth margin, but we expect that to...
And that's it for the year.
Speaker Change: Thank you for watching. Please see the complete disclaimer at https://sites.google.com If you have any questions or other problems, please post them in the comments. I will see you in the next video.
Speaker Change: Got it. And then just on the Bloomberg customer announcement, seems like a very nice win.
Speaker Change: It was just wondering if this is going to be like an add-on that people will be paying separately
Speaker Change: As an add-on for that service, or if this will be just embedded into everyone who has a Bloomberg terminal, and if this is kind of a fixed contract for you guys, or if it has anything to do with people adding that on to their Bloomberg.
Speaker Change: Yes, so we're very proud of this engagement. It's many years of dialogue and Bloomberg testing our data and getting to the conclusion that we are the number one digital data providers of choice.
Speaker Change: And this is why they decided to go with us. It was a long discussion and we feel very proud.
about this relationship and what I remember the...
They will take a small portion of our data.
Speaker Change: that represents digital growth and will add it as part of their alternative data solution.
Speaker Change: for the subscribers, and I'm not sure if it will be free, the subscribers, or a little bit premium.
Speaker Change: But the consumer will be able to get exposed to the concept of digital market data and how it can predict public companies' growth.
Speaker Change: And if they would love a user, they can come to SimilarWeb and buy a more advanced solution that we are offering with our stock intelligence. So what will we see in Bloomberg is a small part of our capabilities for all of the subscribers.
Speaker Change: Got it, makes sense. Awesome, well, thanks for taking the questions, guys.
Thank you. Thank you.
Speaker Change: Thank you. Our next question is from Jason Helstein with Oppenheimer. Please proceed with your question.
Jason Helstein: Hey everybody, so just really it's kind of like one question. How do you think about the timing of the payback on the increased investments again around like AI and go-to-market?
Speaker Change: Should we think about target margins for 2026 and 2027, or do you want to think about it like your progress to a rule of 40 scale?
Speaker Change: And then can you kind of be maybe a bit specific on, you know, how you see yourself progressing over the next few years, obviously given that everyone's surprised by the level of investment, but you obviously are confident around the payback. Thank you.
Speaker Change: Yeah, we are confident. Thank you for the question, Jason. We are confident on the demand because we solved the hardest part, that is, we need demand. And it's there, and we just need to approach and monetize it.
Speaker Change: And what we're doing now is just changing the way we are growing. We are focusing more on growth.
Speaker Change: and maintaining profitability. I think that last year we were super proud, driving 15% growth and 11% free cash flow. And going into this year, we're just going to change the balance.
and more on the growth side.
Speaker Change: And I think we're going to see the return in the second part of the year, while this investment. And going into 2026, we are positioning the company to be top-notch growth, software,
Speaker Change: Company, and of course, Profitable, which helps to work on increasing the possibility
and to publish in double-digit around 2026.
Speaker Change: Thank you. Our next question is from Scott Berg with Needham & Company. Please proceed with your question.
Scott Berg: Hi everyone, thanks for taking my questions. Or I wanted to focus on a comment you had early in the Q&A that you did see some softness in your fourth-quarter execution. Can you help elaborate on that a little bit and I guess as you look at that softness.
Speaker Change: Is it corrected for it in Q1 or how do we think about the timing to returning to a more normalized sales case? Thanks
Schwartz.
Speaker Change: Yeah, we start seeing an improvement, you know, we have an amazing new CRO.
Speaker Change: It came over from Nelson IQ, and as she was driving good changes and doing some great change management in order to set the foundation for the growth.
Speaker Change: and also moving low performance, getting useful managers and increasing the hiring.
Speaker Change: We saw that it creates some, you know, more noise in the go-to market and we're able to stable it.
Speaker Change: And we're seeing better performance now in Q1. Funny enough, all across our team around the world, the seller has got too many meetings.
from the hype man that it started hurting the winners.
Speaker Change: So, we were not hiring fast enough in Q4, and we're now also closing again in Q1.
Speaker Change: So, we do see strong performance now through hitting the floor.
Speaker Change: Very helpful. And then Jason, as we look at your guidance for this year, this is kind of a follow-up to the last question, your revenue growth guidance suggests.
Speaker Change: The rest of the year accelerates from the from the Q1 guidance here today. First of all, is that an accurate statement? I assume that it is given how the math works, but then two, is your confidence high in that acceleration relative to what you're seeing on the sales execution side here in Q1.
Speaker Change: So, on the first question, the answer is yes. Like you said, that's the way the math works.
Speaker Change: So we do see that acceleration coming in the back end of the year. We also see, you know, pipeline and so we have.
Speaker Change: I have some disability that gives us the confidence that we build the tie-ins. Like I like to say, we like to give guidance we know we can meet.
Speaker Change: Thank you. Our next question is from Adam Hopskiss with Goldman Sachs. Please proceed with your question.
Adam Hopskiss: Great. Thanks so much for taking the questions. You talked a lot about this initiative to monetize brands that are navigating shifts in consumer behavior. I just want to get an update on how that's trending, particularly your conversations into the beginning of the year. How are brands sort of evolving to the evolving Gen AI environment and how does SimilarWeb plan to address that?
Yeah, I think more brands.
start to look out there for more visibility.
Adam Hopskiss: about how much consumers are querying chatbots about their brand or about the industry and how the answers that chatbots are giving are changing the decision of purchase they're going to make.
Adam Hopskiss: And they want to understand if this sentiment is positive around them, or negative, or if the...
And both are bringing them the right choice.
Adam Hopskiss: and how they can impact the chatbots to understand the resource the chatbots are using in order to generate those answers. And this is data that's probably...
Adam Hopskiss: Only similar work can bring, or maybe very few companies in the world can give, visibility about what people are asking the chatbots, what are those answers.
and how they're impacting the consumer journey.
Adam Hopskiss: So we are positioned, I think, the best in the world to supply those answers that are becoming more and more important to brands as the consumer behaviors change and they start using more and more of those chatbots.
For purchase this
and decisions.
Speaker Change: Okay, great. That's helpful. And then could you just give us an update on the large language model opportunity? I know this evolves quickly and you've signed a couple of eight-figure deals here, but I'm curious how you're thinking about monetization potential now that we're a couple of months away from some of those announcements. Have you had any incremental conversations with folks that give you confidence around monetization? How should we think about that?
Speaker Change: Yeah, I think there is not a lot of companies with numbers that's trying to build those chatbots.
It's not a big market, it's a lot of...
Speaker Change: So the investment they need to do in order to build those shutbots on this market is not big, but when they are going into those adventure to build shutbots, they will need the test.
of TvD viewers. LLN.
Speaker Change: And when they want to choose the best data providers, like Bloomberg, they all end up engaging in similar ways. They recognize us as the leader for digital market data. They know that we are...
Speaker Change: That's one way to provide this data. So it's low-level engagement because there's not a lot of them, but if we have, it's great engagement.
Okay, thank you very much.
Speaker Change: Thank you. Our next question is from Patrick Walravens with Citizens JMP. Please proceed with your question.
Speaker Change: Oh, great. Thank you. And thanks for all the color on this.
Patrick Walravens: How soft was the execution in Q4? Was it a pretty big miss by the sales team? When's the last time you guys had a soft execution quarter?
Patrick Walravens: Was Susan surprised? Right? And when you broke it down after, you know, what caused it? Right? So, like, we don't usually hear that too many leads or too many meetings is the reason for a miss, right? Usually we hear things like...
Patrick Walravens: You know, customers didn't want to commit. So if you could if you could drill into that more, that would be great I just think the reason it's important is because
Patrick Walravens: you're investing on the back of that. So we just wanna sort of close that, get a better understanding of why you decide to invest in sales and marketing if Q4 wasn't very good, right? Thanks so much.
Patrick Walravens: Yeah, yeah, of course, and I think it's a great question. Thank you for raising it. I think that Q4 was okay. It wasn't great. Usually our Q4 is amazing, if you look at it.
historically on 2023 and 2022.
Patrick Walravens: And Q4 was okay, like it was soft, I wish it was better, but it was okay.
Patrick Walravens: And we had some areas in the business when the softness were stronger, mostly because of managerial and low performance and decisions that hadn't been planned before.
And in Q4, we have the opportunity to improve.
Patrick Walravens: to improvement around the market and we did some change management in there.
Patrick Walravens: And it was behind the change management in Japan when they were behind the numbers. And I think this is also was impacting, you know, the performance a little bit.
Patrick Walravens: But new people, we hire their own place and they look good.
Patrick Walravens: looking good. So I'm fully confident and I see the numbers and we are
Thank you very much.
That's super helpful. Thank you.
Speaker Change: Thank you. Our next question is from Ashley Kim with Citi. Please proceed with your question.
Ashley Kim: Hi Oren, Jason, thanks for the question. I just wanted to ask about the 15 customer contracts that were seven figures. Could you kind of give more color on whether the deals grew into that or were there any anywhere new lands and how many of those were AI related?
Oren: Yeah, Ashley, first of all, thank you for asking this question because I think it's important to discuss this great indication.
Speaker Change: This is a record high quota response for closing seven figures.
Speaker Change: Most, the majority of those 157 figures were expansion. It's meaning that we have more and more customers that are now ready to invest more with us.
Speaker Change: and a really great mobile business of customers that SimulaWeb have. And you can also see that with the multi-year increase of our customers.
Speaker Change: We are now going into this year with almost 50% of the business is multi-year. This is a very strong indication.
Speaker Change: that the customers are trusting our data and want a long-term relationship. I think these 15 deals are showing you that a lot of them are now ready to invest more with us.
Speaker Change: And we, from our side, just need to hire more executive, more experienced sales and people on both sides in order to drive this expansion and improving our NRR going forward.
Thank you.
Speaker Change: Thank you. There are no further questions at this time. I'd like to hand the floor back over to management for any closing remarks.
Speaker Change: Thank you everyone for the questions. We have the confidence for a really great year, the end of 2024, with really amazing results.
Speaker Change: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.