Similarweb stock plunges on weak Q1 guidance, earnings miss

Published 11/02/2025, 22:42
© Rotem Cnaani, SimilarWeb PR

TEL AVIV - Similarweb Ltd. (NYSE:SMWB) shares tumbled 22.2% after the digital data and analytics company reported fourth-quarter earnings that missed estimates and provided weak guidance for the first quarter of 2025.

The company posted adjusted earnings per share of $0.03 for Q4, falling short of the $0.04 analyst consensus. Revenue came in at $65.6 million, slightly above the expected $65.48 million and up 16% YoY from $56.8 million in the same quarter last year.

For Q1 2025, Similarweb forecasts revenue between $66 million and $66.5 million, below the $67.321 million analyst consensus. The company also expects a non-GAAP operating loss of $1 million to $1.5 million for the quarter.

"We finished the year with 15% revenue growth, an acceleration relative to the 13% growth in 2023," said Or Offer, Co-Founder and CEO of Similarweb. "Our focus on disciplined execution has resulted in our first full year of non-GAAP operating profit and free cash flow, demonstrating that we can successfully accelerate growth while generating profit."

Despite the positive full-year results, investors appeared focused on the weak Q1 outlook. The company’s customer base grew 17% YoY to 5,534, while customers with annual recurring revenue of $100,000 or more increased 11% to 405.

Similarweb’s full-year 2025 guidance of $285 million to $288 million in revenue was in line with the $286.1 million analyst consensus, representing approximately 15% growth at the midpoint.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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