Overview

• Digital data company Q4 revenue grew 11% yr/yr but missed analyst expectations

• Company achieved ninth consecutive quarter of positive free cash flow

• Multi-year subscriptions reach 60% of ARR, up from 49% a year ago

Outlook

• Similarweb estimates FY 2026 revenue between $305 mln and $315 mln

• Company expects FY 2026 non-GAAP operating profit between $16 mln and $19 mln

• Similarweb projects Q1 2026 revenue between $72 mln and $74 mln

Result Drivers

• AI PARTNERSHIP - Similarweb's partnership with Manus is seen as a key development in leveraging AI for business growth

• LONGER SALES CYCLES - Larger multi-year opportunities resulted in longer sales cycles, impacting revenue growth

• MULTI-YEAR SUBSCRIPTIONS - Multi-year subscriptions increased to 60% of ARR, up from 49% a year ago, boosting financial stability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Similarweb Ltd is $10.50, about 163.8% above its February 13 closing price of $3.98

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 47 three months ago

Press Release: ID:nBw7dMRV2a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)