Similarweb (SMWB) AI Stock Analysis

• Market Cap: $795.16M
• Dividend Yield: N/A
• Average Volume (3M): 468.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 16.06%
• EPS Growth: -134.90%
• Country: US
• Employees: 1,085
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 0.01
• Shares Outstanding: 82,829,430
• 10 Day Avg. Volume: 269,398
• 30 Day Avg. Volume: 468,582
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: -50.89
• 1Y Price Target: $12.81
• Price Target Upside: 33.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: $9.50 ▼(-1.04% Downside)

Similarweb's stock score is primarily influenced by its financial performance challenges, including profitability issues and high leverage. The positive earnings call highlights revenue growth and strategic advancements, providing some optimism. Technical analysis shows mixed signals, with short-term momentum but potential resistance. Valuation is a concern due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Similarweb's digital intelligence services, enhancing its market position and supporting long-term expansion.

AI Integration

Successful integration of AI solutions boosts Similarweb's product offerings, potentially increasing customer engagement and creating new revenue streams.

Customer Base Expansion

Expanding customer base reflects strong market demand and effective sales strategies, which can lead to sustained revenue growth and market share gains.

Negative Factors

Profitability Challenges

Ongoing profitability issues, with negative net and EBIT margins, may limit Similarweb's ability to reinvest in growth and weather economic downturns.

High Leverage

High leverage could strain Similarweb's financial flexibility, increasing risk during economic fluctuations and potentially impacting long-term sustainability.

CFO Departure

CFO departure may disrupt financial strategy execution, creating uncertainty in leadership continuity and impacting investor confidence in the short to medium term.

Similarweb Business Overview & Revenue Model

Company Description

Similarweb (SMWB) is a leading digital intelligence platform that provides insights into website traffic and performance metrics across various industries. The company operates primarily within the technology sector, specializing in web analytics and competitive intelligence. Its core products include a suite of tools that enable businesses to analyze their online presence, understand user engagement, and benchmark against competitors, helping clients optimize their digital strategies and improve their market positioning.

How the Company Makes Money

Similarweb generates revenue primarily through subscription-based services. The company offers tiered pricing plans that provide varying levels of access to its analytics tools, with higher tiers offering more advanced features and data granularity. Key revenue streams include enterprise subscriptions, where businesses pay for comprehensive access to market intelligence and analytics for multiple users, and individual plans for smaller companies or specific projects. Additionally, Similarweb may generate income through partnerships with other technology firms, providing integrated solutions or co-branded services that enhance their offerings. Furthermore, the company may engage in performance-based advertising or affiliate marketing to supplement its revenue, although the majority of its earnings stem from subscription fees.

Similarweb Financial Statement Overview

Summary

Similarweb is experiencing revenue growth but faces challenges in achieving profitability and managing leverage. The company's strong gross profit margin is offset by negative net and EBIT margins. High debt levels and negative return on equity raise concerns about financial stability. Cash flow metrics show some resilience, but declining free cash flow growth is a concern.

Income Statement

Similarweb has shown consistent revenue growth, with a TTM growth rate of 4.0%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 78.5% TTM, but the negative EBITDA margin suggests operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 1.74 TTM, indicating significant leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio is low, suggesting potential financial instability.

Cash Flow

Operating cash flow is positive, but free cash flow has declined by 16.1% TTM. The free cash flow to net income ratio is strong at 0.90, indicating good cash conversion despite net losses. However, the operating cash flow to net income ratio is low, highlighting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.35M	249.91M	218.02M	193.23M	137.67M	93.49M
Gross Profit	210.53M	195.10M	170.93M	139.96M	105.92M	72.07M
EBITDA	-12.37M	864.00K	-18.55M	-77.27M	-62.94M	-17.71M
Net Income	-29.09M	-11.46M	-29.37M	-83.66M	-68.98M	-22.00M
Balance Sheet
Total Assets	245.38M	242.91M	239.01M	246.04M	227.00M	103.63M
Cash, Cash Equivalents and Short-Term Investments	59.34M	63.87M	71.73M	77.81M	128.88M	53.94M
Total Debt	40.88M	39.73M	67.42M	74.17M	0.00	26.85M
Total Liabilities	221.82M	215.40M	223.47M	224.09M	142.09M	112.88M
Stockholders Equity	23.55M	27.51M	15.55M	21.95M	84.91M	-9.25M
Cash Flow
Free Cash Flow	18.44M	27.44M	-5.42M	-77.24M	-30.74M	-4.89M
Operating Cash Flow	20.51M	30.17M	-3.04M	-46.06M	-27.63M	-3.76M
Investing Cash Flow	-29.85M	-18.70M	-2.59M	-33.01M	7.36M	-30.76M
Financing Cash Flow	5.73M	-18.84M	1.19M	29.12M	125.25M	51.23M

Similarweb Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.6 is below the 20-day moving average (MA) of 9.81, above the 50-day MA of 9.06, and below the 200-day MA of 9.87, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMWB.

Similarweb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	76 Outperform	$746.73M	11.67	10.97%	6.13%	14.20%	38.92%
FVRR	73 Outperform	$931.93M	53.23	4.49%	―	12.60%	64.81%
TBLA	70 Outperform	$1.04B	95.64	-0.36%	―	12.01%	―
GETY	55 Neutral	$833.77M	-7.18	-19.35%	―	4.43%	-399.14%
NXDR	54 Neutral	$824.86M	-12.65	-14.98%	―	9.65%	56.50%
SMWB	52 Neutral	$795.16M	―	-123.81%	―	16.06%	-134.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Similarweb Corporate Events

Similarweb Announces CFO Departure Amid Strong Financial Performance

On September 2, 2025, Similarweb Ltd. announced the planned departure of its Chief Financial Officer, Jason Schwartz, after a decade of service. The company has begun the search for a new CFO, with Schwartz remaining in his role until a successor is appointed to ensure a smooth transition. This change comes as Similarweb recently reported better-than-expected second quarter financial results, highlighting strong demand for its digital data services and a focus on strategic priorities such as AI innovation and enterprise expansion. The company remains confident in meeting its financial targets and sustaining its growth momentum.

Similarweb Appoints Tamar Rapaport-Dagim to Board Following Shareholder Meeting

On August 28, 2025, Similarweb held its annual general shareholders meeting where all proposals were approved, including the election of Tamar Rapaport-Dagim as a Class I director. Rapaport-Dagim, currently the CFO and COO of Amdocs, brings extensive experience in finance and operations, which is expected to provide strategic guidance for Similarweb’s future endeavors.

Similarweb Reports Strong Q2 2025 Financial Results with 17% Revenue Growth

On August 12, 2025, Similarweb Ltd. announced its financial results for the second quarter of 2025, reporting a 17% increase in revenue to $71 million compared to the same period in 2024. The company achieved a positive non-GAAP operating profit and free cash flow, with a notable 18% growth in its customer base. The results reflect strong demand for Similarweb’s digital data services, including revenues from Gen AI and LLM training, which contributed significantly to the quarter’s performance. The company also reported an increase in remaining performance obligations and a stable net retention rate, indicating confidence in its market potential and future growth.

Similarweb Announces 2025 Annual General Meeting Details

Similarweb Ltd. has announced its 2025 Annual General Meeting of Shareholders, scheduled for August 28, 2025, at its headquarters in Givatayim, Israel. The meeting will cover the re-election and election of directors, the re-appointment of the company’s independent public accounting firm, and a review of the company’s financial statements for the fiscal year ending December 31, 2024. Shareholders of record as of July 23, 2025, are encouraged to participate and vote on the proposals, either in person or by proxy, to ensure their shares are represented.