Gold prices steady amid Fed rate cut hopes; Trump-Putin talks awaited
Investing.com -- Similarweb Ltd. (NYSE:SMWB) shares surged 16.9% after the digital data and analytics company reported second quarter earnings that significantly exceeded analyst expectations, driven by strong revenue growth and positive momentum in its AI-related business.
The company reported adjusted earnings per share of $0.07 for the second quarter, beating the analyst consensus estimate of $0.00. Revenue came in at $71 million, surpassing the consensus estimate of $68.84 million and representing a 17% increase compared to $60.6 million in the same quarter last year. The strong performance was partly fueled by the company’s growing presence in the AI sector, with Gen AI and LLM training-related revenues accounting for nearly 8% of Q2 revenues.
"We are proud of the strong second quarter financial results that were better than expected and reflect the demand for our Digital Data and our continued focus on disciplined execution," stated Or Offer, Co-Founder and CEO of Similarweb.
The company’s customer base grew 18% YoY to 5,951, while customers with annual recurring revenue of $100,000 or more increased 13% to 433. Remaining performance obligations (RPO) jumped 26% YoY to $273.8 million, providing visibility into future growth.
"Revenue growth was driven by 18% growth in total customers and also benefited from one-time fees from customers who acquired our data for evaluation of Gen AI related applications and LLM training," said Jason Schwartz, Chief Financial Officer of Similarweb.
For the third quarter, Similarweb expects revenue between $71.5 million and $72 million, slightly below the consensus estimate of $72.58 million. For the full fiscal year 2025, the company projects revenue of $285-288 million, in line with the consensus of $286.2 million.
The company reported non-GAAP operating profit of $2.4 million, marking a return to positive non-GAAP operating profit, and achieved its seventh consecutive quarter of positive free cash flow, which reached $2.7 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.