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Similarweb (SMWB)
NYSE:SMWB
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Similarweb
(NYSE:SMWB)
Rating:59Neutral
Price Target:
$8.00
▲( 6.38% Upside)
Positive Factors
Market Opportunity
Similarweb targets a large total addressable market estimated at $52B, highlighting significant growth potential.
Product Development
Product investments are gaining traction including App Intelligence with 400+ customers along with new AI Chatbot Insights and AI Agents.
Revenue Growth
Faster revenue growth could enable Similarweb to reach its financial targets sooner, indicating potential for improved performance.
Negative Factors
ARR and Billings
The stock likely trades down due to $100k ARR NRR trending lower quarter over quarter and a weaker billings result.
Profitability Expectations
2025 revenue and profitability guidance came in well below Street expectations due to some deal slippage.
Upsell Performance
Similarweb experienced disappointing upsells in a quarter that was otherwise one of its best in terms of new business.
Similarweb (SMWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$622.88M
Dividend YieldN/A
Average Volume (3M)630.17K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth15.06%
EPS Growth15.99%
CountryUS
Employees1,085
SectorTechnology
Sector Strength78
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.02
Shares Outstanding82,829,430
10 Day Avg. Volume1,176,586
30 Day Avg. Volume630,169
Financial Highlights & Ratios
PEG Ratio3.87
Price to Book (P/B)26.85
Price to Sales (P/S)0.00
P/FCF Ratio27.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.40Price Target Upside64.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Similarweb Business Overview & Revenue Model
Company DescriptionSimilarweb Ltd. (NASDAQ: SMWB) is a global leader in digital intelligence, providing comprehensive insights into online behavior and market trends. The company operates within the digital analytics and market research sectors, offering a suite of products that help businesses understand web traffic, market dynamics, and competitive landscapes. Similarweb's core services include web analytics, competitive analysis, and industry benchmarking, which enable businesses to optimize their digital strategies, identify growth opportunities, and make data-driven decisions.
How the Company Makes MoneySimilarweb generates revenue primarily through subscription-based services offered to businesses seeking in-depth digital intelligence and competitive insights. Its main revenue streams include enterprise subscriptions, which provide clients with access to advanced analytics and reporting tools tailored to their specific needs. Additionally, the company monetizes its platform by offering tailored solutions and consultancy services, helping organizations leverage its data for strategic decision-making. Significant partnerships with technology companies and market research firms also enhance its service offerings and expand its customer base, contributing to its overall earnings.
Similarweb Financial Statement Overview
Summary
Similarweb demonstrates strong revenue growth and improved cash flow management, but persistent profitability issues and high leverage pose risks. Continued focus on improving profitability and maintaining cash flow improvements will be crucial for long-term stability.Income Statement
Similarweb has shown consistent revenue growth over the years, with a 14.63% increase in 2024 compared to 2023. However, the company continues to struggle with profitability as evidenced by negative EBIT and net income margins. The gross profit margin is healthy at 78.08%, indicating strong product pricing or cost management, but the net profit margin is negative, highlighting profitability challenges.62
Positive
Balance Sheet
The company has a high debt-to-equity ratio, indicating reliance on debt financing, which could pose risks in a high-interest-rate environment. However, the equity ratio has improved, suggesting better asset management. The return on equity remains negative due to consecutive net losses, reflecting ongoing challenges in generating shareholder value.55
Neutral
Cash Flow
There is a significant improvement in operating cash flow, turning positive in 2024 from a negative position in 2023, suggesting better cash management. The free cash flow has also improved, indicating better capital expenditure management. However, the company needs to continue focusing on sustaining these improvements to stabilize its financial health.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 249.91M | 218.02M | 193.23M | 137.67M | 93.49M | Gross Profit |
| 195.10M | 170.93M | 139.96M | 105.92M | 72.07M | EBIT |
| -9.66M | -28.81M | -87.86M | -66.11M | -19.67M | EBITDA |
| 864.00K | -18.55M | -77.27M | -62.94M | -17.71M | Net Income Common Stockholders |
| -11.46M | -29.37M | -83.66M | -68.98M | -22.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 63.87M | 71.73M | 77.81M | 128.88M | 53.94M | Total Assets |
| 242.91M | 239.01M | 246.04M | 227.00M | 103.63M | Total Debt |
| 39.73M | 67.42M | 74.17M | 0.00 | 26.85M | Net Debt |
| -24.14M | -4.31M | -3.64M | -128.88M | 2.91M | Total Liabilities |
| 215.40M | 223.47M | 224.09M | 142.09M | 112.88M | Stockholders Equity |
| 27.51M | 15.55M | 21.95M | 84.91M | -9.25M |
| Cash Flow | Free Cash Flow | |||
| 27.44M | -5.42M | -77.24M | -30.74M | -4.89M | Operating Cash Flow |
| 30.17M | -3.04M | -46.06M | -27.63M | -3.76M | Investing Cash Flow |
| -18.70M | -2.59M | -33.01M | 7.36M | -30.76M | Financing Cash Flow |
| -18.84M | 1.19M | 29.12M | 125.25M | 51.23M |
Similarweb Technical Analysis
Negative
7.52
Price Trends
7.75
Negative
10.48
Negative
10.28
Negative
Market Momentum
-0.08
Negative
48.41
Neutral
28.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMWB, the sentiment is Negative. The current price of 7.52 is below the 20-day moving average (MA) of 7.55, below the 50-day MA of 7.75, and below the 200-day MA of 10.28, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 28.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMWB.
Similarweb Risk Analysis
Similarweb disclosed 83 risk factors in its most recent earnings report. Similarweb reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
The evolving role of artificial intelligence and its impact on Internet search engines and related products and services could result in reduced demand for our solutions. Q4, 2024
2.
If we fail to determine the optimal prices for our solutions, our ability to attract new customers or retain existing customers could suffer. Q4, 2024
Similarweb Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $636.33M | 16.63 | 7.07% | 6.81% | 10.30% | -57.87% | |
65 Neutral | $711.08M | 19.73 | -12.40% | ― | 4.20% | -350.95% | |
64 Neutral | $96.10M | ― | -11.66% | ― | 0.77% | 87.59% | |
61 Neutral | $11.28B | 10.16 | -6.88% | 2.97% | 7.41% | -8.93% | |
59 Neutral | $622.88M | ― | -83.47% | ― | 15.06% | 15.99% | |
55 Neutral | $48.07M | ― | -28.40% | ― | 7.16% | -90.90% | |
41 Neutral | $12.53M | ― | -4.89% | ― | 0.38% | 19.52% |
* Technology Sector Average
Performance Comparison
SMWB
Similarweb
7.52
-0.44
-5.53%
FENG
Phoenix New Media
2.32
0.45
24.06%
SSTK
Shutterstock
18.34
-16.72
-47.69%
IZEA
IZEA Worldwide
2.93
0.12
4.27%
TRVG
trivago
4.20
1.77
72.84%
GETY
Getty Images Holdings
1.72
-1.84
-51.69%
Similarweb Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -7.96%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected positive trends in revenue, customer base expansion, and product innovation, with several new product launches receiving strong customer interest. However, the company faced challenges with a non-GAAP operating loss and slower growth in billing and current RPO. Despite these challenges, the positive highlights, particularly in revenue growth and product development, outweigh the lowlights.Q1-2025 Updates
Positive Updates
Revenue Growth
Revenue increased by 14% year-over-year to $67 million, exceeding expectations.
Customer Base Expansion
The customer base grew by 19% year-over-year to more than 5,700 ARR customers.
Positive Free Cash Flow
Reported the sixth consecutive quarter of positive free cash flow with a $5 million contribution, representing a 7% free cash flow margin.
Product Innovations
Launched new features including GenAI, traffic intelligence, and free AI agents, with a positive customer response.
App Intelligence Launch
Expanded app data coverage to over 4 million iOS and Android mobile apps in 58 countries, with 484 customers signed up.
AI Chatbot Traffic Intelligence
Introduced AI Chatbot traffic intelligence into the platform, providing insights on traffic generated by chatbots.
Multi-Year Contracts Increase
52% of ARR is contracted under multi-year contracts, up from 42% last year.
Negative Updates
Non-GAAP Operating Loss
Reported a non-GAAP operating loss of 2% in Q1 due to increased investment in sales and R&D.
NRR Decline for Over $100,000 Customers
NRR for over $100,000 customers decreased by 100 basis points sequentially.
Billing Slower Growth
Billing growth slowed in Q1, attributed to seasonal shifts and prior year's large upsells.
Current RPO Growth Slowdown
Current RPO growth slowed to 9% year-over-year, reflecting large deal compares from previous quarters.
Company Guidance
In the Q1 Fiscal 2025 earnings call, Similarweb provided several key metrics and guidance for the year ahead. The company reported a 14% increase in revenue, reaching $67 million, and a 19% growth in its customer base, now totaling over 5,700 ARR customers. Notably, 52% of ARR is under multi-year contracts, reflecting its critical nature to clients. The company maintained its guidance for the full year, projecting total revenue between $285 million and $288 million, a 15% year-over-year growth at the midpoint, with a non-GAAP operating profit ranging from $1 million to $4 million. For Q2 2025, revenue is expected in the range of $68.6 million to $69 million. Despite a non-GAAP operating loss of 2% in Q1, Similarweb reported its sixth consecutive quarter of positive free cash flow, generating $5 million, and anticipates continued positive free cash flow throughout 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.