Why Similarweb (SMWB) Is Down 9.5% After Raising 2025 Revenue Guidance and Reporting a Wider Loss

• Earlier this week, Similarweb Ltd. reported third-quarter 2025 earnings, with revenue reaching US$71.79 million, up from US$64.71 million a year earlier, alongside a net loss of US$4.33 million compared to US$2.57 million in the prior year.
• Management also issued earnings guidance for 2025, anticipating total revenue between US$285.0 million and US$288.0 million, signaling approximately 15% annual growth at the mid-point of the outlook range.
• We’ll examine how the company’s updated guidance for double-digit revenue growth influences Similarweb’s investment narrative moving forward.

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Similarweb Investment Narrative Recap

To be a shareholder in Similarweb, you need to believe in the long-term adoption of AI-powered analytics and the company’s ability to deliver strong revenue growth despite volatility in profitability. The recent third-quarter results reinforce revenue momentum with double-digit growth guidance, but these updates do not meaningfully impact the immediate risk around continued net losses and margin pressure, nor do they change the primary short-term catalyst of large contract wins and enterprise adoption of AI capabilities.

Among recent announcements, Similarweb’s new 2025 earnings guidance is most relevant, projecting revenue between US$285.0 million and US$288.0 million. This aligns with the narrative that increasing demand for advanced digital intelligence products and multi-year contracts could support higher top-line growth, crucial for improving operational leverage and the company’s route to profitability.

However, investors should be aware that, in contrast to promising revenue projections, Similarweb remains unprofitable and its ability to balance growth investments with delivering sustained net margin improvements...

Read the full narrative on Similarweb (it's free!)

Similarweb's outlook anticipates $431.3 million in revenue and $32.6 million in earnings by 2028. This scenario assumes a 17.1% annual revenue growth rate and a $61.7 million increase in earnings from the current -$29.1 million.

Uncover how Similarweb's forecasts yield a $13.38 fair value, a 71% upside to its current price.

Exploring Other Perspectives

Community members on Simply Wall St estimate Similarweb’s fair value from US$10.37 to US$20.81 across 7 independent views. While some highlight strong revenue growth potential, others caution that persistent net losses and uncertain profitability could weigh on performance, suggesting alternative perspectives are worth considering.

Explore 7 other fair value estimates on Similarweb - why the stock might be worth over 2x more than the current price!

Build Your Own Similarweb Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Similarweb research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Similarweb research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Similarweb's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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