Similarweb Q2 revenue beats estimates

Overview

• Similarweb Q2 revenue grows 17%, beating analyst expectations, per LSEG data

• GAAP net loss for Q2 was $11.8 mln, missing analyst estimates, per LSEG data

• Co's customer base increased by 18%, driven by demand for Gen AI and LLM training

Outlook

• Similarweb expects FY 2025 revenue between $285 mln and $288 mln

• Company forecasts Q3 2025 revenue between $71.5 mln and $72.0 mln

• Similarweb anticipates FY 2025 non-GAAP operating profit of $5 mln to $7 mln

• Company projects Q3 2025 non-GAAP operating profit of $1.5 mln to $2 mln

Result Drivers

• CUSTOMER GROWTH - 18% increase in customer base contributed to revenue growth, per CFO Jason Schwartz

• AI REVENUE - Gen AI and LLM training-related revenues accounted for nearly 8% of Q2 revenues, driving growth

• RPO INCREASE - 26% rise in remaining performance obligations reflects confidence in future revenue potential

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Similarweb Ltd is $13.50, about 49.1% above its August 11 closing price of $6.87

• The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 81 three months ago

Press Release: ID:nBw9zRn9Ja