The technology company similrv lays off 10% of all its employees. The company, which provides a platform for measuring, examining and predicting the behaviors of Internet surfers, announced this yesterday (Tuesday) with the publication of the reports for the third quarter. As of last May, Similrave employed approximately 1,250 employees, of which approximately 700 are in Israel, after a significant increase in the number of employees in the previous period.
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In a letter to investors attached to the reports, Similrav’s founder and CEO Or Ofer wrote: “We believe that the factors that have led to our performance to date may not continue in the short term for a number of reasons. Looking back at the start of the pandemic in 2020, the global economy has progressed much more positively than expected. The transition to remote work became possible and accelerated initiatives that support digital transformation, which led to our further growth. We experienced high growth rates throughout 2020 and 2021 compared to what we experienced before. Our annual revenue has almost doubled and we are focused on continuing the rapid growth. As a result, we designed and built our operational infrastructure with the expectation of supporting much higher recurring revenues starting in 2022. In the last months, the favorable conditions that we took into account in our plans, began to deteriorate. Now, heading into 2023, we sense that parts of the world may enter recession.
“Along with our clients, we are not immune to the reality of inflation, interest rate increases, energy crisis and geopolitical conflict that contribute to a slowdown in the global economy. To succeed in such an environment we must adjust our priorities and change our focus. We are accelerating the plan to reach a positive free flow in 2023. Accordingly, we need to adjust our cost structure. Today we are announcing the most difficult change we have ever had to make at Similarweb. We are reducing the size of our team by approximately 10% and parting ways with many talented people. We believe these actions will position us well.”
In the third quarter, Similrav’s revenues amounted to 50 million dollars, a growth of 41% compared to the corresponding quarter. Its net loss according to generally accepted accounting rules was $21 million, an increase compared to $17.3 million in the corresponding quarter. Since the beginning of the year, revenues grew by 46% to 142 million dollars and the net loss increased by 52% to 68.7 million dollars. The free flow was negative at $62.6 million since the beginning of the year, compared to a negative free flow of $18.9 million in the corresponding period last year.