Similarweb Announces First Quarter 2025 Results
Revenue growth of
Sixth consecutive quarter of positive free cash flow
Customer base increased by
“Revenue growth and cash generation were strong in the first quarter and reflect the value of our comprehensive and proprietary Digital Data that is trusted by thousands of customers,” stated Or Offer, Co-Founder and CEO of Similarweb. “During the first quarter we launched a series of new products including App Intelligence, AI Chatbot data and three new AI Agents to help our customers win their markets by providing a comprehensive view of the digital world.” Offer concluded, “We believe we are just beginning to tap into the vast potential of our data and the addressable markets we serve.”
First Quarter 2025 Financial Highlights
-
Total revenue was
$67.1 million 14% compared to$59.0 million -
GAAP operating loss was
$(9.3) million $(2.7) million -
GAAP net loss per share was
$(0.11) $(0.03) -
Non-GAAP operating loss was
$(1.3) million $2.8 million 5% of revenue for for the first quarter of 2024. -
Non-GAAP basic and diluted operating loss per share was
$(0.02) $0.04 $0.03 -
Cash and cash equivalents totalled
$59.6 million $63.9 million -
Net cash provided by operating activities was
$4.9 million $10.1 million -
Free cash flow was
$4.4 million $9.7 million -
Normalized free cash flow was
$4.9 million $9.7 million
Recent Business Highlights
-
Grew number of customers to 5,767 as of March 31, 2025, an increase of
19% compared to March 31, 2024. -
Grew number of customers with ARR of
$100,000 9% compared to March 31, 2024. -
Customers with ARR of
$100,000 61% of the total ARR as of March 31, 2025, increased from58% as of March 31, 2024. -
Dollar-based net retention rate, or NRR, for customers with ARR of
$100,000 111% in the first quarter of 2025, increased from107% in the first quarter of 2024. -
Overall NRR was
101% in the first quarter of 2025, increased from98% in the first quarter of 2024. -
52% of our overall ARR is contracted under multi-year subscriptions as of March 31, 2025, increased from42% as of March 31, 2024. -
Remaining performance obligations, or RPO, increased
18% year-over-year, to$252.7 million $213.6 million
Financial Outlook
“Revenue growth was driven by
-
FY 2025 Guidance
-
Total revenue estimated between
$285.0 million $288.0 million 15% growth year over year at the mid-point of the range. -
Non-GAAP operating profit estimated between
$1.0 million $4.0 million
-
Total revenue estimated between
-
Q2 2025 Guidance
-
Total revenue estimated between
$68.6 million $69.0 million -
Non-GAAP operating loss estimated between
$(1.0) million $(0.5) million
-
Total revenue estimated between
The Company’s second quarter and full year 2025 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and the Company’s expectations may change. There can be no assurance that the Company will achieve these results.
The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating loss, and similarly cannot provide a reconciliation of this measure to their closest GAAP equivalent without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.
Conference Call Information
The financial results and business highlights will be discussed on a conference call and webcast scheduled at 8:30 a.m. Eastern Time on Wednesday, May 14, 2025. A live webcast of the call can be accessed from Similarweb’s Investor Relations website at https://ir.similarweb.com. An archived webcast of the conference call will also be made available on the Similarweb website following the call. The live call may also be accessed via telephone at (877) 407-0726 toll-free and at +1 (201) 689-7806 internationally.
About Similarweb
Similarweb powers businesses to win their markets with Digital Data. By providing essential web and app data, analytics, and insights, we empower our users to discover business opportunities, identify competitive threats, optimize strategy, acquire the right customers, and increase monetization. Similarweb products are integrated into users’ workflow, powered by advanced technology, and based on leading comprehensive Digital Data.
Learn more: Similarweb | Similarweb Digital Data
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Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our guidance for the second quarter and full year of 2025 described under "Financial Outlook" and the expected performance of our business, future financial results, strategy, long-term growth and overall future prospects. Forward-looking statements include all statements that are not historical facts. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements reflect our current views regarding our intentions, products, services, plans, expectations, strategies and prospects, which are based on information currently available to us and assumptions we have made. Actual results may differ materially from those described in such forward-looking statements and are subject to a number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to sustain profitability; (v) anticipated trends, growth rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of the October 2023 attack by Hamas and other terrorist organizations, and
These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Form 20-F filed with the Securities and Exchange Commission on February 27, 2025, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.
Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. Except as required by law, we undertake no duty to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.
Non-GAAP Financial Measures
This press release contains certain financial measures that are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, non-GAAP financial measures have limitations as an analytical tool and are presented for supplemental informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP or as a measure of liquidity. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software costs. Normalized free cash flow represents free cash flow less capital investments related to the Company's new headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses and the related margins represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, as applicable and indicated in the below tables.
Other Metrics
Customer acquisition costs (CAC) represent the portion of sales and marketing expenses allocated to acquire new customers. Customer retention costs (CRC) represent the portion of sales and marketing expenses allocated to retain existing customers and to increase existing customers’ subscriptions. Annual recurring revenue (ARR) represents the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. CAC payback period is the estimated time in months to recover CAC in terms of incremental gross profit that newly acquired customers generate. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage.
Similarweb Ltd. Consolidated Balance Sheets
|
|||||||
|
December 31, |
|
March 31, |
||||
|
|
2024 |
|
|
|
2025 |
|
|
|
|
(Unaudited) |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
63,869 |
|
|
$ |
59,567 |
|
Restricted deposits |
|
10,572 |
|
|
|
10,707 |
|
Accounts receivable, net |
|
50,975 |
|
|
|
40,004 |
|
Deferred contract costs |
|
11,373 |
|
|
|
11,070 |
|
Prepaid expenses and other current assets |
|
4,567 |
|
|
|
5,570 |
|
Total current assets |
|
141,356 |
|
|
|
126,918 |
|
Property and equipment, net |
|
25,921 |
|
|
|
24,869 |
|
Deferred contract costs, non-current |
|
9,895 |
|
|
|
8,913 |
|
Operating lease right-of-use assets |
|
34,393 |
|
|
|
35,443 |
|
Goodwill and intangible assets, net |
|
30,846 |
|
|
|
40,807 |
|
Other non-current assets |
|
500 |
|
|
|
737 |
|
Total assets |
$ |
242,911 |
|
|
$ |
237,687 |
|
Liabilities and shareholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
12,403 |
|
|
$ |
9,564 |
|
Payroll and benefit related liabilities |
|
20,304 |
|
|
|
19,146 |
|
Deferred revenue |
|
108,232 |
|
|
|
109,170 |
|
Other payables and accrued expenses |
|
29,330 |
|
|
|
28,905 |
|
Operating lease liabilities |
|
6,923 |
|
|
|
8,036 |
|
Total current liabilities |
|
177,192 |
|
|
|
174,821 |
|
Deferred revenue, non-current |
|
1,172 |
|
|
|
1,189 |
|
Operating lease liabilities, non-current |
|
32,809 |
|
|
|
31,933 |
|
Other long-term liabilities |
|
4,230 |
|
|
|
5,762 |
|
Total liabilities |
|
215,403 |
|
|
|
213,705 |
|
Shareholders' equity |
|
|
|
||||
Ordinary Shares, |
|
227 |
|
|
|
229 |
|
Additional paid-in capital |
|
391,449 |
|
|
|
397,922 |
|
Accumulated other comprehensive income |
|
388 |
|
|
|
(354 |
) |
Accumulated deficit |
|
(364,556 |
) |
|
|
(373,815 |
) |
Total shareholders' equity |
|
27,508 |
|
|
|
23,982 |
|
Total liabilities and shareholders' equity |
$ |
242,911 |
|
|
$ |
237,687 |
|
Similarweb Ltd. Consolidated Statements of Comprehensive Income (Loss)
|
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(Unaudited) |
||||||
Revenue |
$ |
58,982 |
|
|
$ |
67,087 |
|
Cost of revenue |
|
12,696 |
|
|
|
13,970 |
|
Gross profit |
|
46,286 |
|
|
|
53,117 |
|
Operating expenses: |
|
|
|
||||
Research and development |
|
13,539 |
|
|
|
18,004 |
|
Sales and marketing |
|
25,240 |
|
|
|
32,156 |
|
General and administrative |
|
10,191 |
|
|
|
12,248 |
|
Total operating expenses |
|
48,970 |
|
|
|
62,408 |
|
Loss from operations |
|
(2,684 |
) |
|
|
(9,291 |
) |
Finance income, net |
|
455 |
|
|
|
1,007 |
|
Loss before income taxes |
|
(2,229 |
) |
|
|
(8,284 |
) |
Provision for income taxes |
|
504 |
|
|
|
975 |
|
Net loss |
$ |
(2,733 |
) |
|
$ |
(9,259 |
) |
Net loss per share attributable to ordinary shareholders, basic and diluted |
$ |
(0.03 |
) |
|
$ |
(0.11 |
) |
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted |
|
79,361,522 |
|
|
|
83,135,281 |
|
Net loss |
$ |
(2,733 |
) |
|
$ |
(9,259 |
) |
Other comprehensive income (loss), net of tax |
|
|
|
||||
Change in unrealized loss on cashflow hedges |
|
(517 |
) |
|
|
(742 |
) |
Total other comprehensive loss, net of tax |
|
(517 |
) |
|
|
(742 |
) |
Total comprehensive loss |
$ |
(3,250 |
) |
|
$ |
(10,001 |
) |
|
|
|
|
||||
Share-based compensation costs included above:
|
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(Unaudited) |
||||||
Cost of revenue |
$ |
167 |
|
|
$ |
249 |
|
Research and development |
|
1,444 |
|
|
|
1,794 |
|
Sales and marketing |
|
1,185 |
|
|
|
1,336 |
|
General and administrative |
|
1,331 |
|
|
|
2,430 |
|
Total |
$ |
4,127 |
|
|
$ |
5,809 |
|
Similarweb Ltd. Consolidated Statements of Cash Flows
|
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(Unaudited) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(2,733 |
) |
|
$ |
(9,259 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
2,520 |
|
|
|
2,098 |
|
Finance expense (income) |
|
236 |
|
|
|
(160 |
) |
Unrealized loss (gain) from hedging future transactions |
|
31 |
|
|
|
(30 |
) |
Share-based compensation |
|
4,127 |
|
|
|
5,809 |
|
Gain from sale of equipment |
|
(4 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Change in operating lease right-of-use assets and liabilities, net |
|
(2,271 |
) |
|
|
(813 |
) |
Decrease in accounts receivable, net |
|
6,993 |
|
|
|
11,759 |
|
Decrease in deferred contract costs |
|
413 |
|
|
|
1,285 |
|
Increase in other current assets |
|
(1,324 |
) |
|
|
(1,225 |
) |
Decrease (increase) in other non-current assets |
|
33 |
|
|
|
(237 |
) |
Decrease in accounts payable |
|
(2,463 |
) |
|
|
(2,810 |
) |
Increase in deferred revenue |
|
6,988 |
|
|
|
54 |
|
Increase in other non-current liabilities |
|
194 |
|
|
|
67 |
|
Decrease in other liabilities and accrued expenses |
|
(2,676 |
) |
|
|
(1,652 |
) |
Net cash provided by operating activities |
|
10,064 |
|
|
|
4,886 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment, net |
|
(364 |
) |
|
|
(501 |
) |
Increase in restricted deposits |
|
(168 |
) |
|
|
(135 |
) |
Payment for business combinations, net of cash acquired |
|
(3,809 |
) |
|
|
(9,274 |
) |
Net cash used in investing activities |
|
(4,341 |
) |
|
|
(9,910 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
2,671 |
|
|
|
562 |
|
Repayment of Credit Facility |
|
(25,000 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(22,329 |
) |
|
|
562 |
|
Effect of exchange rates on cash and cash equivalents |
|
(236 |
) |
|
|
160 |
|
Net decrease in cash and cash equivalents |
|
(16,842 |
) |
|
|
(4,302 |
) |
Cash and cash equivalents, beginning of period |
|
71,732 |
|
|
|
63,869 |
|
Cash and cash equivalents, end of period |
$ |
54,890 |
|
|
$ |
59,567 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Interest received, net |
$ |
(235 |
) |
|
$ |
(355 |
) |
Taxes paid |
$ |
831 |
|
|
$ |
133 |
|
Supplemental disclosure of non-cash financing activities: |
|
|
|
||||
Additions to operating lease right-of-use assets and liabilities |
$ |
2,398 |
|
|
$ |
2,728 |
|
Deferred proceeds from exercise of share options included in other current assets |
$ |
20 |
|
|
$ |
134 |
|
Deferred costs of property and equipment incurred during the period included in accounts payable |
$ |
142 |
|
|
$ |
112 |
|
|
|
|
|
||||
Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Reconciliation of GAAP gross profit to non-GAAP gross profit |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(In thousands) |
||||||
GAAP gross profit |
$ |
46,286 |
|
|
$ |
53,117 |
|
Add: |
|
|
|
||||
Share-based compensation expenses |
|
167 |
|
|
|
249 |
|
Retention payments related to business combinations |
|
— |
|
|
|
19 |
|
Amortization of intangible assets related to business combinations |
|
1,087 |
|
|
|
325 |
|
Non-GAAP gross profit |
$ |
47,540 |
|
|
$ |
53,710 |
|
Non-GAAP gross margin |
|
81 |
% |
|
|
80 |
% |
Reconciliation of Loss from operations (GAAP) to Non-GAAP operating profit (loss) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(In thousands) |
||||||
Loss from operations |
$ |
(2,684 |
) |
|
$ |
(9,291 |
) |
Add: |
|
|
|
||||
Share-based compensation expenses |
|
4,127 |
|
|
|
5,809 |
|
Retention payments related to business combinations |
|
228 |
|
|
|
1,559 |
|
Amortization of intangible assets related to business combinations |
|
1,121 |
|
|
|
660 |
|
Non-GAAP operating profit (loss) |
$ |
2,792 |
|
|
$ |
(1,263 |
) |
Non-GAAP operating margin |
|
5 |
% |
|
|
(2 |
)% |
Reconciliation of GAAP operating expenses to non-GAAP operating expenses |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(In thousands) |
||||||
GAAP research and development |
$ |
13,539 |
|
|
$ |
18,004 |
|
Less: |
|
|
|
||||
Share-based compensation expenses |
|
1,444 |
|
|
|
1,794 |
|
Retention payments related to business combinations |
|
— |
|
|
|
271 |
|
Non-GAAP research and development |
$ |
12,095 |
|
|
$ |
15,939 |
|
Non-GAAP research and development margin |
|
21 |
% |
|
|
24 |
% |
|
|
|
|
||||
GAAP sales and marketing |
$ |
25,240 |
|
|
$ |
32,156 |
|
Less: |
|
|
|
||||
Share-based compensation expenses |
|
1,185 |
|
|
|
1,336 |
|
Retention payments related to business combinations |
|
228 |
|
|
|
844 |
|
Amortization of intangible assets related to business combinations |
|
34 |
|
|
|
335 |
|
Non-GAAP sales and marketing |
$ |
23,793 |
|
|
$ |
29,641 |
|
Non-GAAP sales and marketing margin |
|
40 |
% |
|
|
44 |
% |
|
|
|
|
||||
GAAP general and administrative |
$ |
10,191 |
|
|
$ |
12,248 |
|
Less: |
|
|
|
||||
Share-based compensation expenses |
|
1,331 |
|
|
|
2,430 |
|
Retention payments related to business combinations |
|
— |
|
|
|
425 |
|
Non-GAAP general and administrative |
$ |
8,860 |
|
|
$ |
9,393 |
|
Non-GAAP general and administrative margin |
|
15 |
% |
|
|
14 |
% |
Reconciliation of Net cash provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2025 |
|
|
(In thousands) |
||||||
Net cash provided by operating activities |
$ |
10,064 |
|
|
$ |
4,886 |
|
Purchases of property and equipment, net |
|
(364 |
) |
|
|
(501 |
) |
Free cash flow |
$ |
9,700 |
|
|
$ |
4,385 |
|
|
|
|
|
||||
Deferred payments related to business combinations |
|
— |
|
|
|
485 |
|
Normalized free cash flow |
$ |
9,700 |
|
|
$ |
4,870 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250513577742/en/
Press Contact:
David Carr
Similarweb
press@similarweb.com
Investor Contact:
Rami Myerson
Similarweb
rami.myerson@similarweb.com
Source: Similarweb Ltd.
