Israel's Similarweb Q1 revenue beats, helped by AI-related demand

Overview

• Israel digital analytics firm's Q1 revenue rose 10% yr/yr, beating analyst expectations

• Company posted non-GAAP operating profit after prior-year loss; multi-year subscriptions rose to 64% of ARR

• Raised lower end of 2026 revenue and profit guidance; normalized free cash flow positive for tenth straight qtr

Outlook

• Similarweb raises lower end of FY 2026 guidance for revenue and non-GAAP operating profit

• Company sees FY 2026 revenue between $307 mln and $315 mln

• Company expects Q2 2026 revenue between $74.5 mln and $76.5 mln

Result Drivers

• SALES PRODUCTIVITY - Co said improved sales productivity for third consecutive qtr contributed to strongest Q1 ARR increase since 2022

• LARGE CUSTOMERS - Number of customers with ARR of $100 mln or more grew 12% yr/yr, contributing 64% of total ARR

• AI-RELATED DEMAND - Co said commercial interest in AI-related data and solutions continues to expand, supporting pipeline growth

Company press release: ID:nBw8xDf2pa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "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 $4.75, about 52.2% above its May 12 closing price of $3.12

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 24 three months ago

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