Similarweb NYSE: SMWB reported first-quarter fiscal 2026 revenue at the top end of its guidance range and said it is seeing stronger sales productivity, stabilizing retention metrics and expanding demand tied to artificial intelligence.
The digital intelligence company generated revenue of $73.9 million in the quarter, up 10% from the same period a year earlier. Chief Financial Officer Ran Vered said growth was driven by “good performance across the book of business, including new sales and upsells, as well as growth in AI-related revenues.”
Non-GAAP operating profit was $2.4 million, representing a 3% margin, compared with a non-GAAP operating loss of $1.3 million in the first quarter of 2025. Similarweb also generated $6.6 million in normalized free cash flow, marking its 10th consecutive quarter of positive normalized free cash flow.
CEO Or Offer Announces Planned Transition
Chief Executive Officer and co-founder Or Offer opened the call by addressing the company’s announcement that it has begun a search for his successor. Offer said the timing coincides with the fifth anniversary of Similarweb’s IPO and his approach to 20 years leading the company.
“Similarweb has been my life work,” Offer said, adding that he and the board are aligned on the timing and process. The company has initiated a search with an executive search firm, and Offer said he will remain CEO through the search and transition period. The leadership transition is expected to be completed by mid-2027.
Offer emphasized that the transition does not change the company’s strategy, operations or financial outlook. “I remain fully focused on the execution of our strategy for our shareholders, our customers, and our employees,” he said.
AI Demand Drives Pipeline and Product Strategy
Management repeatedly pointed to artificial intelligence as a major growth driver. Offer said demand for Similarweb’s GenAI data and solutions is “truly amazing,” with AI-related revenue continuing to expand. During the quarter, the company signed one of the large LLM contracts that had been pushed back from the fourth quarter of 2025, and Offer said Similarweb continues to progress on two additional large deals as well as other opportunities involving its digital data.
Offer outlined three parts of the company’s AI strategy: licensing data to large language model companies and AI agents, building AI-native products, and expanding distribution through partnerships and integrations. He said Similarweb is seeing traction in licensing data directly to leading LLM companies for pre- and post-training use cases, while autonomous agents increasingly require “trusted, structured digital intelligence.”
The company also highlighted GenAI Intelligence, which helps brands understand visibility and sentiment in generative AI environments, and Similarweb AI Studio, an AI-powered interface that allows users to ask business questions in plain language and receive insights across the company’s datasets. Offer said AI Studio is increasing engagement and enabling a consumption-based monetization model.
On distribution, Similarweb said it has launched an MCP integration with ChatGPT, following a previously announced Claude connector. Offer said hundreds of customers can now plug Similarweb data directly into Claude and ChatGPT. The company also expanded its partnership with Manus, allowing broader access to Similarweb data and enabling customers to connect to Manus through MCP.
Retention Stabilizes as Sales Productivity Improves
Similarweb reported net revenue retention of 98% across all customers and 103% for customers with more than $100,000 in annual recurring revenue. Offer said the metrics stabilized in the first quarter and are expected to improve in 2026 as the company executes its customer expansion playbook.
Vered said gross revenue retention reached “a new two-year peak” in the first quarter and that strength was continuing into the second quarter. In response to an analyst question, Offer said the reported NRR metric reflects the average of the last four quarters, and improvements seen in recent quarters are not yet fully reflected in the average.
The company also said sales productivity increased for the third consecutive quarter, contributing to its best first-quarter increase in ARR since 2022. Offer said Similarweb has separate commercial teams focused on new sales and customer expansion, and that expansion performed “remarkably well” in the quarter.
Similarweb ended the quarter with 6,038 customers, up 5% year over year but down sequentially from 6,128 in the fourth quarter. Vered said the sequential decline was mainly related to self-service customers that did not renew annual subscriptions or moved to monthly subscriptions. Going forward, the company plans to stop disclosing total logo count and instead report cohorts that it views as more representative of its enterprise business.
- Customers with more than $25,000 in ARR totaled 1,840, up 2% year over year.
- That cohort represented 86% of ARR.
- Average account value for customers above $25,000 in ARR was $132,000, up 9% from 2025.
- Sixty-four percent of ARR was contracted under multi-year contracts, up from 52% a year earlier.
New Products Target Retail and Advertising Intelligence
Offer said Similarweb launched Retail Intelligence in March, combining Amazon data with cross-retail coverage of more than 650 online stores and marketplaces. The product is designed to provide brands, sellers and retailers with a unified view of shopper behavior, digital shelf performance, product mix, availability and pricing.
The company also launched Delivered, a paid media intelligence product covering search, social and display, with LLM ads expected to be added. Offer said the product is intended to help advertisers understand competitor spending, evaluate returns and identify overspending or missed opportunities across channels.
In the question-and-answer session, Offer said Similarweb is adding LLM advertisement data as AI platforms begin to include ads. He said the company expects to start selling that data to customers during the current quarter.
Guidance Raised at Low End
For full-year fiscal 2026, Similarweb raised the lower end of its revenue guidance and now expects total revenue of $307 million to $350 million, representing 10% growth at the midpoint, according to Vered. The company also raised its full-year non-GAAP operating profit outlook to a range of $17 million to $19 million.
For the second quarter, Similarweb expects revenue of $74.5 million to $76.5 million, representing 6% year-over-year growth at the midpoint. Vered noted that the second quarter of 2025 benefited from a one-time pull-forward of revenue from the third quarter, creating a difficult comparison. Non-GAAP operating profit for the second quarter is expected to be between $3 million and $5 million.
The company ended the quarter with approximately $65 million in cash and cash equivalents, no debt and an available $75 million line of credit. Remaining performance obligations totaled $298 million, up 18% year over year, with approximately 70% expected to be recognized as revenue over the next 12 months.
Offer closed the call by saying the first quarter was a solid start to the year and that Similarweb is seeing improving fundamentals. “AI is a magnificent tailwind for data companies like us,” he said.
About Similarweb NYSE: SMWB
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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