Similarweb Ltd.: Initiation of Research Coverage

William Blair initiated research coverage of Similarweb Ltd. (SMWB $21.61), a leading provider of digital data intelligence software that helps businesses become more data driven in their decision-making.

Analysts Bhavan Suri and Arjun Bhatia estimated the company would generate revenue of $125.3 million in 2021 and $160.5 million in 2022, and has the potential to sustainably grow revenue at a 30%-plus rate over the coming years.

'Similarweb's intelligence helps businesses understand their competition, their market, and, ultimately, make more informed, data-driven decisions,' Suri said. 'Its platform operates at an impressive scale, providing insights on over 100 million websites and nearly 5 million apps. On a daily basis, Similarweb collects 10 billion digital signals and analyzes two terabytes of data. The combination of Similarweb's proprietary data sources and its unique machine learning capabilities paints a cohesive picture of digital activity for customers and provides a competitive moat for Similarweb. Along with its digital research offering, Similarweb has solutions for marketing, e-commerce, sales, and investor use-cases, providing opportunities for cross-selling and average contract value, or ACV, expansion.'

Bhatia said, 'Over the past several years, Similarweb has been focused on moving upmarket with larger customers. Similarweb has a significant opportunity to bring new customers onto its platform, especially as more businesses start to build data strategies around their decision-making. In addition, Similarweb has a lot of runway to expand ACVs within its existing customer base through up-sell and cross-sell opportunities. With its solutions now catered to different personas and functions, we believe the company is better set up to establish sticky, long-lasting, and expanding relationships with its customers.'

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Current Ratings Distribution (as of 6/6/21)

Coverage Universe
Outperform (Buy): 76%
Market Perform (Hold): 24%
Underperform (Sell): 1%

Inv. Banking Relationships*
Outperform (Buy): 29%
Market Perform (Hold): 12%
Underperform (Sell): 0%

* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.

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