Similarweb (NYSE:SMWB) Releases Earnings Results, Hits Estimates

Key Points

• Similarweb beat revenue expectations in Q1, reporting $73.88 million in sales and $0.01 EPS, which matched analyst estimates. The stock rose after the results as investors reacted positively to the better-than-expected top line.
• Management said AI-related demand is driving growth, including strong traction in data licensing to LLM companies and expanding adoption of its GenAI products. The company also highlighted new integrations and partnerships, such as ChatGPT MCP integration and an expanded Manus deal.
• Similarweb raised the lower end of its full-year 2026 guidance for both revenue and operating profit, signaling confidence in continued demand. At the same time, the company remains unprofitable, and CEO Or Offer announced a planned succession process expected to be completed by mid-2027.

Similarweb (NYSE:SMWB - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.01 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.01, FiscalAI reports. Similarweb had a negative return on equity of 70.38% and a negative net margin of 11.65%.The business had revenue of $73.88 million during the quarter, compared to the consensus estimate of $73.04 million.

Here are the key takeaways from Similarweb's conference call:

• Similarweb reported a solid Q1, with revenue up 10% year over year to $73.9 million and non-GAAP operating profit at the top end of guidance, while the company also raised the lower end of its full-year 2026 revenue and operating profit guidance.
• Management said net revenue retention has stabilized and growth retention improved, with GRR reaching a new two-year peak and sales productivity improving for a third straight quarter. The company expects NRR to improve further through 2026 as it executes on expansion and cross-sell.
• AI-related demand remains a major growth driver, with strong traction in licensing data to LLM companies and expanding adoption of Similarweb’s GenAI products. The company also launched MCP integration with ChatGPT and expanded its Manus partnership, broadening distribution inside leading AI ecosystems.
• Similarweb is pushing into new product areas, including Retail Intelligence and Delivered, to monetize its data across e-commerce and media use cases. Management also signaled a shift toward more consumption-based monetization, which it believes can improve usage, retention, and margins.
• CEO Or Offer announced the company has started a search for his successor, with a transition expected to be completed by mid-2027. He emphasized there is no change to the company’s strategy or financial outlook, but the leadership transition adds a longer-term governance consideration.

Similarweb Stock Up 7.2%

Shares of SMWB traded up $0.21 during trading hours on Thursday, hitting $3.06. The company had a trading volume of 1,109,169 shares, compared to its average volume of 843,982. Similarweb has a 52-week low of $2.22 and a 52-week high of $10.75. The stock's 50 day moving average price is $2.73 and its 200 day moving average price is $5.15. The firm has a market cap of $267.62 million, a P/E ratio of -7.83 and a beta of 1.11.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Larson Financial Group LLC bought a new position in Similarweb during the 3rd quarter valued at approximately $25,000. New York State Common Retirement Fund raised its holdings in Similarweb by 0.4% in the 4th quarter. New York State Common Retirement Fund now owns 852,915 shares of the company's stock worth $6,388,000 after purchasing an additional 3,170 shares in the last quarter. PDT Partners LLC lifted its position in shares of Similarweb by 3.9% in the 2nd quarter. PDT Partners LLC now owns 98,388 shares of the company's stock worth $771,000 after purchasing an additional 3,717 shares during the period. Lazard Asset Management LLC boosted its stake in shares of Similarweb by 31.9% during the 3rd quarter. Lazard Asset Management LLC now owns 19,761 shares of the company's stock valued at $184,000 after purchasing an additional 4,777 shares in the last quarter. Finally, Legal & General Group Plc boosted its stake in shares of Similarweb by 13.7% during the 3rd quarter. Legal & General Group Plc now owns 43,374 shares of the company's stock valued at $403,000 after purchasing an additional 5,235 shares in the last quarter. Institutional investors own 57.59% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms recently commented on SMWB. Oppenheimer dropped their price objective on Similarweb from $7.00 to $4.00 and set an "outperform" rating on the stock in a research note on Thursday, February 19th. Citigroup cut Similarweb from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $8.50 to $3.00 in a report on Friday, April 10th. Barclays decreased their price target on Similarweb from $7.00 to $5.00 and set an "overweight" rating on the stock in a research report on Monday, April 20th. William Blair cut shares of Similarweb from an "outperform" rating to a "market perform" rating in a research note on Wednesday, February 18th. Finally, Wall Street Zen cut shares of Similarweb from a "buy" rating to a "hold" rating in a research note on Saturday, February 21st. Three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $7.07.

Key Stories Impacting Similarweb

Here are the key news stories impacting Similarweb this week:

• Positive Sentiment: Similarweb reported Q1 EPS of $0.01, matching expectations, while revenue of $73.88 million came in above estimates. The company also emphasized profitable AI-driven growth in its earnings call, which may be supporting sentiment. Similarweb Earnings Call Signals Profitable AI-Driven Growth
• Positive Sentiment: The company issued full-year 2026 revenue guidance of $307 million to $315 million and Q2 revenue guidance of $74.5 million to $76.5 million, both roughly in line with or slightly above expectations, suggesting management sees steady demand ahead. Similarweb outlines $307M-$315M 2026 revenue outlook as CEO transition is expected by mid-2027
• Positive Sentiment: Similarweb and Manus expanded data coverage to deepen digital marketing insights and improve AI agents, a strategic product update that could strengthen the company’s competitive positioning. Similarweb and Manus Expand Data Coverage, Enabling Deeper Digital Marketing Insights and Smarter AI Agents
• Neutral Sentiment: Similarweb said it has started CEO succession planning, with a transition expected by mid-2027. The longer timeline reduces near-term disruption, but leadership changes can still create some uncertainty. Similarweb Initiates CEO Succession Planning Process
• Neutral Sentiment: The company also tightened executive pay policy and adjusted audit committee leadership ahead of its May 28 AGM, a governance update that appears procedural rather than a major operating catalyst. Similarweb Tightens Executive Pay Policy and Adjusts Audit Committee Leadership Ahead of May 28 AGM
• Negative Sentiment: Despite beating revenue estimates, Similarweb remains unprofitable with a negative net margin and negative return on equity, and analysts still expect a full-year loss, which may limit upside. Similarweb (SMWB) Matches Q1 Earnings Estimates

Similarweb Company Profile

Similarweb Ltd. NYSE: SMWB is a digital intelligence company that provides insights into website and mobile app performance. Its cloud-based platform aggregates and analyzes data on global web traffic, user engagement, and referral sources, enabling businesses to benchmark their digital presence against competitors. The company’s core offering includes metrics on audience behavior, traffic acquisition channels, and industry trends, which are designed to inform strategic decisions in marketing, sales, and product development.

Similarweb’s platform delivers a suite of tools for market research, competitor analysis, and performance optimization.

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