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Similarweb Ltd. (SMWB)
:SMWB
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Similarweb
(NYSE:SMWB)
Rating:53Neutral
Price Target:
$9.00
▼(-1.85% Downside)
Positive Factors
Customer Additions
Solid overall customer additions are driving the top line outperformance.
Revenue Growth
Similarweb delivered a strong second quarter with revenue growth of 17% ahead of the midpoint of prior guidance at 13%.
Negative Factors
NRR and Billings
The stock likely trades down due to $100k ARR NRR trending lower quarter over quarter and a weaker billings result.
Profitability
The BOY investments continue to pressure profitability (NG Operating Margins 540bps lower Y/Y).
Similarweb (SMWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$774.46M
Dividend YieldN/A
Average Volume (3M)493.60K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth16.06%
EPS Growth-134.90%
CountryUS
Employees1,085
SectorTechnology
Sector Strength86
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.01
Shares Outstanding82,829,430
10 Day Avg. Volume593,181
30 Day Avg. Volume493,598
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue2.35
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda-50.89
Forecast
1Y Price Target
$12.75Price Target Upside39.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Similarweb Business Overview & Revenue Model
Company DescriptionSimilarweb Ltd. (SMWB) is a digital intelligence company that operates within the technology and data analytics sectors. The company provides a platform that offers insights into website and app traffic, helping businesses understand market trends, consumer behavior, and competitive dynamics. Similarweb's core products include digital research solutions, marketing analytics, and sales intelligence tools, which are utilized by enterprises to make data-driven decisions and optimize their digital strategies.
How the Company Makes MoneySimilarweb makes money primarily through a subscription-based revenue model. The company offers tiered subscription plans for its digital intelligence platform, allowing clients to access varying levels of data and insights based on their needs. Key revenue streams include enterprise clients who use Similarweb's services for comprehensive market analysis, competitive benchmarking, and consumer insights. Additionally, Similarweb collaborates with strategic partners and forms alliances, which may include data-sharing agreements or co-marketing initiatives, to enhance its service offerings and expand its market reach. The company's ability to deliver actionable insights from its data analytics platform is a significant factor contributing to its earnings.
Similarweb Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: 8.78%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive with significant achievements in revenue growth, customer expansion, and successful integration of AI solutions. While there were minor concerns about NRR for large customers and reliance on onetime licensing revenue, these were outweighed by the overall positive financial performance and strategic advancements.Q2-2025 Updates
Positive Updates
Revenue Growth
Revenue increased by 17% year-over-year to $71 million, ahead of expectations.
Customer Base Expansion
Customer base grew 18% year-over-year to almost 6,000 ARR customers at quarter end.
Positive Cash Flow and Profitability
Reported seventh consecutive quarter of positive free cash flow and returned to positive operating profit.
Successful AI Integration
Gen AI data and solutions accounted for 8% of second quarter revenues and are growing.
Sales Force Productivity
Number of salespeople booking deals increased by 50% year-over-year in the second quarter.
RPO Increase
Remaining performance obligations totaled $274 million at the end of Q2, up 26% year-over-year.
Improved Operating Margins
Operating margins improved by 4,500 basis points over the last 3 years.
Negative Updates
NRR for Large Customers
Net Revenue Retention (NRR) for over $100,000 customers decreased by 100 basis points year-over-year to 108%.
Onetime Licensing Revenue
Second quarter results benefited from onetime fees for customers who completed evaluations earlier than expected.
Company Guidance
During Similarweb's second quarter fiscal 2025 earnings call, the company reported a 17% year-over-year revenue increase to $71 million, surpassing expectations. The customer base expanded by 18% to nearly 6,000 ARR customers. The firm highlighted significant interest in its Gen AI data, accounting for 8% of quarterly revenue. They also noted that their Gen AI Agents experienced a 60% month-over-month growth in usage. The company reiterated its revenue guidance for 2025 and raised its profit guidance, projecting full-year revenue between $285 million to $288 million and a non-GAAP operating profit increase to $5 million to $7 million. They achieved a seventh consecutive quarter of positive free cash flow, with a $4 million normalized free cash flow this quarter, representing a 5% margin. The firm also highlighted a 26% year-over-year rise in remaining performance obligations, totaling $274 million, with expectations to recognize 68% as revenue over the next year.Similarweb Financial Statement Overview
Summary
Similarweb shows strong revenue growth and positive cash flow trends, but faces profitability challenges with negative net income and high leverage.Income Statement
Similarweb's revenue has shown a steady growth trajectory, with a notable increase from $93.5M in 2020 to $258M in TTM (Trailing-Twelve-Months) 2025. Although gross profit margin remains strong at approximately 78.2% in TTM 2025, the net profit margin is negative due to ongoing losses. EBIT and EBITDA margins also reflect negative figures, indicating challenges in profitability despite revenue growth.65
Positive
Balance Sheet
The balance sheet highlights a company with a high debt-to-equity ratio, reflecting significant leverage. However, the equity ratio has improved slightly in recent years, suggesting a gradual strengthening of equity position. Return on equity remains negative due to net losses, indicating a need for improved profitability.55
Neutral
Cash Flow
Operating cash flow has improved significantly, turning positive in the TTM 2025 after negative figures in prior years, showing better cash generation capabilities. The free cash flow has also turned positive, indicating improved financial health. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion despite reported net losses.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 268.35M | 249.91M | 218.02M | 193.23M | 137.67M | 93.49M |
| Gross Profit | 210.53M | 195.10M | 170.93M | 139.96M | 105.92M | 72.07M |
| EBITDA | -12.37M | 864.00K | -18.55M | -77.27M | -62.94M | -17.71M |
| Net Income | -29.09M | -11.46M | -29.37M | -83.66M | -68.98M | -22.00M |
Balance Sheet | ||||||
| Total Assets | 245.38M | 242.91M | 239.01M | 246.04M | 227.00M | 103.63M |
| Cash, Cash Equivalents and Short-Term Investments | 59.34M | 63.87M | 71.73M | 77.81M | 128.88M | 53.94M |
| Total Debt | 40.88M | 39.73M | 67.42M | 74.17M | 0.00 | 26.85M |
| Total Liabilities | 221.82M | 215.40M | 223.47M | 224.09M | 142.09M | 112.88M |
| Stockholders Equity | 23.55M | 27.51M | 15.55M | 21.95M | 84.91M | -9.25M |
Cash Flow | ||||||
| Free Cash Flow | 18.44M | 27.44M | -5.42M | -77.24M | -30.74M | -4.89M |
| Operating Cash Flow | 20.51M | 30.17M | -3.04M | -46.06M | -27.63M | -3.76M |
| Investing Cash Flow | -29.85M | -18.70M | -2.59M | -33.01M | 7.36M | -30.76M |
| Financing Cash Flow | 5.73M | -18.84M | 1.19M | 29.12M | 125.25M | 51.23M |
Similarweb Technical Analysis
Positive
9.17
Price Trends
8.25
Positive
7.85
Positive
10.10
Negative
Market Momentum
0.25
Negative
66.00
Neutral
94.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMWB, the sentiment is Positive. The current price of 9.17 is above the 20-day moving average (MA) of 8.21, above the 50-day MA of 8.25, and below the 200-day MA of 10.10, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 94.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $753.83M | 12.16 | 11.62% | 6.03% | 14.20% | 38.92% | |
61 Neutral | $35.62B | 8.22 | -10.94% | 1.88% | 8.86% | -10.36% | |
61 Neutral | $70.33M | ― | -22.39% | ― | 12.49% | -30.99% | |
57 Neutral | $804.73M | 19.73 | -18.24% | ― | 4.43% | -399.14% | |
53 Neutral | $774.46M | ― | -123.81% | ― | 16.06% | -134.90% | |
52 Neutral | $224.98M | ― | -12.44% | ― | 8.29% | 87.33% | |
46 Neutral | $26.66M | ― | -5.32% | ― | 5.72% | -39.22% |
* Technology Sector Average
Performance Comparison
SMWB
Similarweb
9.35
0.17
1.85%
FENG
Phoenix New Media
2.45
-0.25
-9.26%
SSTK
Shutterstock
20.89
-11.73
-35.96%
IZEA
IZEA Worldwide
4.14
1.90
84.82%
TRVG
trivago
3.20
1.20
60.00%
GETY
Getty Images Holdings
1.91
-1.76
-47.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.