Similarweb (SMWB) AI Stock Analysis

• Market Cap: $655.18M
• Dividend Yield: N/A
• Average Volume (3M): 462.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 15.06%
• EPS Growth: 15.99%
• Country: US
• Employees: 1,085
• Sector: Technology
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): -0.02
• Shares Outstanding: 82,829,430
• 10 Day Avg. Volume: 368,818
• 30 Day Avg. Volume: 462,878
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: -123.03
• 1Y Price Target: $12.60
• Price Target Upside: 58.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: $9.00 ▲(13.49% Upside)

Similarweb's overall stock score is driven by strong revenue growth and positive cash flow developments, as highlighted in the earnings call. However, ongoing profitability challenges and valuation concerns, evidenced by a negative P/E ratio, temper the overall score. Technical indicators provide additional support with a generally positive trend.

Positive Factors

Market Position

Similarweb trades at a meaningful discount to the software growth peer group median.

Revenue Growth

Similarweb benefited from two 8-figure ARR expansion deals from existing Big Tech customers, which drove revenue growth to accelerate.

Sales Strategy

Additional sales capacity is coming on and becoming productive, driving revenue reacceleration.

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.

Comparable Challenges

A challenging year-over-year compare is expected in the third quarter.

Similarweb Business Overview & Revenue Model

Company Description

Similarweb Ltd. provides a platform for digital intelligence in the United States, Europe, Asia Pacific, the United Kingdom, Israel, and internationally. It offers digital research intelligence solutions that allow senior leaders, strategy, business intelligence, and consumer insights teams to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing solutions, which enable marketing leaders, search engine optimization, and content managers, pay-per-click, performance marketers, affiliate marketers, and media buyers to understand their competitors' online acquisition strategies in each marketing channel. The company also provides shopper intelligence solutions that allows digital commerce leadership, and category and product managers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process; and sales intelligence solutions, which enables sales management and operations, sales representatives, and account management teams to access relevant buying signals and digital insights of their customers in to generate leads quickly. In addition, it offers investor intelligence solution that allows portfolio managers, investment professionals, data scientists, and research analysts to access an end-to-end view of market, sector or company performance to ideate and monitor investment opportunities, forecast market performance, and perform due diligence. The company serves retail, consumer packaged goods, travel, consumer finance, business-to-business software, and logistics companies; and consultancies, marketing and advertising agencies, media and publishers, payment processors, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Similarweb 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 Financial Statement Overview

Summary

Similarweb has demonstrated strong revenue growth and improved cash flow metrics, but continues to face challenges with profitability and high leverage. The revenue growth and positive cash flow trends are promising, yet the negative net profit and EBIT margins weigh down the overall financial performance score.

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.

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.

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.

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
EBITDA	864.00K	-18.55M	-77.27M	-62.94M	-17.71M
Net Income	-11.46M	-29.37M	-83.66M	-68.98M	-22.00M
Balance Sheet
Total Assets	242.91M	239.01M	246.04M	227.00M	103.63M
Cash, Cash Equivalents and Short-Term Investments	63.87M	71.73M	77.81M	128.88M	53.94M
Total Debt	39.73M	67.42M	74.17M	0.00	26.85M
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

• Technical Analysis Sentiment: Negative
• Last Price: 7.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.93 is below the 20-day moving average (MA) of 8.47, below the 50-day MA of 8.09, and below the 200-day MA of 10.14, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 3.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMWB.

Similarweb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	81 Outperform	$661.95M	10.35	11.62%	6.26%	14.20%	38.92%
TRVG	65 Neutral	$277.28M	―	-11.66%	―	0.77%	87.59%
SMWB	64 Neutral	$655.18M	―	-83.47%	―	15.06%	15.99%
GETY	62 Neutral	$688.59M	19.73	-12.40%	―	4.20%	-350.95%
Sector *	60 Neutral	€6.79B	13.83	3.81%	2.07%	2.71%	-33.71%
IZEA	56 Neutral	$62.80M	―	-28.40%	―	7.16%	-90.90%
FENG	44 Neutral	$25.46M	―	-4.89%	―	0.38%	19.52%