Similarweb (SMWB) AI Stock Analysis

• Market Cap: $631.99M
• Dividend Yield: N/A
• Average Volume (3M): 693.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 15.06%
• EPS Growth: 15.99%
• Country: US
• Employees: 1,085
• Sector: Technology
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): -0.02
• Shares Outstanding: 82,829,430
• 10 Day Avg. Volume: 481,690
• 30 Day Avg. Volume: 693,679
• PEG Ratio: 0.38
• Price to Book (P/B): 22.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.30
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: -1.12K
• 1Y Price Target: $12.40
• Price Target Upside: 56.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $8.00 ▲(1.14%Upside)

Similarweb's overall score is driven by strong revenue growth and positive earnings call sentiment, despite profitability challenges and a bearish technical outlook. The company's innovative product offerings and customer base expansion are key strengths, but ongoing efforts to improve financial health are crucial.

Positive Factors

Market Position

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

Partnerships and Collaborations

Partnerships with Bloomberg and S&P validate Similarweb’s platform.

Price Strategy

SMWB raised the price on its core products' Business plans.

Negative Factors

Revenue Challenges

The stock likely trades down due to $100k ARR NRR trending lower quarter over quarter and a weaker billings result.

Sales Performance

Similarweb experienced disappointing upsells in a quarter that was otherwise one of its best in terms of new business.

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 shows strong revenue growth and improved cash flow management, but persistent profitability issues and high leverage pose risks. The need to focus on profitability and maintaining cash flow improvements is crucial for 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.91 is above the 20-day moving average (MA) of 7.69, above the 50-day MA of 7.45, and below the 200-day MA of 10.24, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 52.50 is Neutral, 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	71 Outperform	$644.44M	16.84	7.07%	7.51%	10.30%	-57.87%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
GETY	61 Neutral	$723.48M	19.73	-12.40%	―	4.20%	-350.95%
TRVG	59 Neutral	$274.47M	―	-11.66%	―	0.77%	87.59%
SMWB	58 Neutral	$631.99M	―	-83.47%	―	15.06%	15.99%
IZEA	55 Neutral	$47.22M	―	-28.40%	―	7.16%	-90.90%
FENG	45 Neutral	$24.98M	―	-4.89%	―	0.38%	19.52%