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Similarweb (NYSE:SMWB) Posts Narrower Q3 Loss; Revenue Beats Estimates

Story Highlights

Similarweb posted strong results where both the top and bottom lines beat analyst estimates. The guidance provided was also upbeat.

Digital intelligence platform provider Similarweb (NYSE:SMWB) released its third-quarter earnings results on Tuesday, in which both the top and bottom lines exceeded analyst expectations.

The non-GAAP operating loss of $0.18 per share was narrower than the estimated loss of $0.27 as well as the prior-year quarter’s loss of $0.19 per share. Moreover, revenues of $50 million came slightly above the expected $49.14 million. Revenues were also 41% higher year-over-year.

Further, the number of customers increased 21% year-over-year to 3,911, and the average annual revenue per customer climbed 15% during the same period to $51,570 in Q3.

For the upcoming fourth quarter, Similarweb expects revenues to be in the range of $50.5 million and $50.9 million. For the full year of 2022, the company expects revenues between $192.4 million and $192.8 million, representing a 40% growth over 2021 at the midpoint.

Following the earnings results, shares of the company dipped more than 24% in Wednesday’s trading.

Is Similarweb a Good Investment?

Over the last three months, only two analysts have covered Similarweb. Both issued a Buy rating with an average price target of $17.

However, with a price-to-sales ratio of 3 times the trailing 12 months, SMWB stock looks inexpensive. Also, a beta of 0.68 means that the stock is less volatile than the market, which is important in times of high volatility.

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