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Similarweb (SMWB)
NYSE:SMWB
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Similarweb
(NYSE:SMWB)
56Neutral
Positive Factors
Market Opportunity
Similarweb targets a large total addressable market estimated at $52B, highlighting significant growth potential.
Partnerships
Partnerships with Bloomberg and S&P validate Similarweb’s platform.
Product and Strategy
Analyst views Similarweb as an attractive opportunity for capital appreciation due to its compelling digital data products and AI strategy.
Negative Factors
FX Impact
FX headwinds are having a bigger impact on top-line growth than it appears, with a significant impact on revenue growth in constant currency terms.
Profitability Guidance
Shares are down 31% as Similarweb’s 2025 operating margin guide missed expectations.
Sales Execution
Disappointing results and outlook raise questions about sales execution and internal targets.
Similarweb (SMWB) vs. S&P 500 (SPY)
Market Cap
$538.39M
Dividend YieldN/A
Average Volume (3M)399.32K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth14.63%
EPS Growth62.75%
CountryUS
Employees1,085
SectorTechnology
Sector Strength44
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.14
Shares Outstanding82,829,430
10 Day Avg. Volume432,082
30 Day Avg. Volume399,324
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.99
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.14Price Target Upside148.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Similarweb Business Overview & Revenue Model
Company DescriptionSimilarweb Ltd. (NASDAQ: SMWB) is a global leader in digital intelligence, providing comprehensive insights into online behavior and market trends. The company operates within the digital analytics and market research sectors, offering a suite of products that help businesses understand web traffic, market dynamics, and competitive landscapes. Similarweb's core services include web analytics, competitive analysis, and industry benchmarking, which enable businesses to optimize their digital strategies, identify growth opportunities, and make data-driven decisions.
How the Company Makes MoneySimilarweb generates revenue primarily through subscription-based services offered to businesses seeking in-depth digital intelligence and competitive insights. Its main revenue streams include enterprise subscriptions, which provide clients with access to advanced analytics and reporting tools tailored to their specific needs. Additionally, the company monetizes its platform by offering tailored solutions and consultancy services, helping organizations leverage its data for strategic decision-making. Significant partnerships with technology companies and market research firms also enhance its service offerings and expand its customer base, contributing to its overall earnings.
Similarweb Financial Statement Overview
Summary
Similarweb demonstrates strong revenue growth and improved cash flow management, but persistent profitability issues and high leverage pose risks. Continued focus on improving profitability and maintaining cash flow improvements will be crucial for long-term 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.62
Positive
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.55
Neutral
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.70
Positive
| 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
Negative
6.50
Price Trends
9.00
Negative
11.79
Negative
10.19
Negative
Market Momentum
-0.76
Negative
33.97
Neutral
33.33
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 6.5 is below the 20-day moving average (MA) of 7.49, below the 50-day MA of 9.00, and below the 200-day MA of 10.19, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 33.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMWB.
Similarweb Risk Analysis
Similarweb disclosed 83 risk factors in its most recent earnings report. Similarweb reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Similarweb Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $560.85M | 15.95 | 6.87% | 7.65% | 6.94% | -66.92% | |
60 Neutral | $750.87M | 19.10 | 6.07% | ― | 2.48% | 103.37% | |
58 Neutral | $9.99B | 10.12 | -6.46% | 3.10% | 7.47% | -11.60% | |
56 Neutral | $538.39M | ― | -53.22% | ― | 14.63% | 62.75% | |
47 Neutral | $228.50M | ― | -11.75% | ― | -4.88% | 85.67% | |
45 Neutral | $28.92M | ― | -33.05% | ― | -0.92% | -140.08% | |
37 Underperform | $17.85M | ― | -4.47% | ― | 0.22% | 49.14% |
* Technology Sector Average
Performance Comparison
SMWB
Similarweb
6.75
-1.16
-14.66%
FENG
Phoenix New Media
1.50
-0.32
-17.58%
SSTK
Shutterstock
16.33
-24.69
-60.19%
IZEA
IZEA Worldwide
1.77
-0.69
-28.05%
TRVG
trivago
3.48
0.89
34.36%
GETY
Getty Images Holdings
1.90
-2.05
-51.90%
Similarweb Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -61.26% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with significant revenue growth, customer expansion, and strategic partnerships. While there are challenges such as increased expenses and forex pressure, the company remains optimistic about future opportunities and profitability.Highlights
Revenue Growth
Revenue for the year was nearly $250 million, up 15% year-over-year, with Q4 revenue up 16% year-over-year.
Customer Base Expansion
Customer base grew 17% year-over-year, ending with more than 5,500 ARR customers. Additionally, 15 customer contracts were signed in Q4, each worth 7-digit contract values.
Strategic Partnerships
New customer relationships with S&P Global and Bloomberg Professional Services were announced, highlighting the strength of Similarweb's data assets.
Non-GAAP Profitability
Achieved first full financial year of non-GAAP operating profit, with a Rule of 26 performance combining growth and profitability.
Strong Performance Indicators
NRR for over $100,000 ARR customers was 112%, up from 107% last year. 49% of ARR is contracted under multiyear contracts, up from 42% last year.
Lowlights
Increased Operational Expenses
Increased investment in R&D and go-to-market teams expected to reduce operating profit in the short term.
Forex Pressure
Forex headwinds impacted Q4 and Q1, contributing to a softer financial performance.
Soft Q4 Execution
Q4 execution was described as 'soft,' with some areas experiencing low performance and managerial changes impacting results.
Company Guidance
During the Similarweb fourth quarter fiscal year 2024 earnings call, the company reported revenue of nearly $250 million for the year, marking a 15% year-over-year increase, with Q4 revenue up 16% compared to the previous year. The customer base grew by 17% year-over-year, totaling over 5,500 ARR customers, and the company signed 15 seven-figure contracts in Q4. The net revenue retention (NRR) for customers with over $100,000 ARR improved to 112%, and 49% of ARR was contracted under multiyear agreements. Similarweb achieved a non-GAAP operating margin of 4% in Q4 and 6% for the full year, along with a free cash flow margin of 11%. Looking forward to 2025, the company expects revenue between $285 million and $288 million, representing a 15% year-over-year growth at the midpoint, with Q1 revenue anticipated to be between $66 million and $66.5 million. The guidance incorporates increased operating expenses related to investments in R&D and go-to-market strategies, aiming to capitalize on opportunities presented by AI and LLM technologies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.