Group 1 - The core thesis for SimilarWeb (NYSE: SMWB) is that its fundamentals remain healthy, with signs of revenue growth gaining momentum supported by go-to-market strategies and product development [1] - The investment approach emphasizes a blend of value investing principles and a focus on long-term growth, aiming to buy quality companies at a discount to their intrinsic value [1] Group 2 - No stock, option, or similar derivative positions are held in any of the companies mentioned, and there are no plans to initiate such positions within the next 72 hours [2] - The article expresses personal opinions and is not receiving compensation from any company mentioned [2]

Financial Data and Key Metrics Changes - Revenue increased by 17% year over year to $71 million, exceeding expectations [5][13] - Customer base grew by 18% year over year to almost 6,000 ARR customers [5][13] - Non-GAAP operating profit was reported at 3%, marking a significant improvement in operating margins by 4,500 basis points from -42% in 2022 [16] - Normalized free cash flow of $4 million was generated in the quarter, representing a 5% free cash flow margin [16] Business Line Data and Key Metrics Changes - Revenues from GenAI data and new solutions accounted for approximately 8% of second quarter revenues and are experiencing growth [6][8] - The company launched several new products, including AI traffic and AI brand visibility, which are gaining traction among customers [6][10] Market Data and Key Metrics Changes - The company reported a net revenue retention (NRR) of 100%, with the renewal rate in the second quarter being the highest in three years [14] - NRR for customers over $100,000 decreased by 100 basis points year over year to 108% due to significant upsells from large contracts booked during 2024 [14] Company Strategy and Development Direction - The company is focused on three high-impact opportunities in GenAI intelligence, AI agents, and generative AI data [6][7] - The investment in go-to-market strategies is ramping up, with a 50% year-over-year increase in the number of salespeople booking deals [11] - The company aims to maintain profitable growth while achieving long-term profit and free cash flow targets [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about converting evaluation contracts into ARR contracts in 2025 [14][30] - The company is confident in its ability to build a strong pipeline and convert prospects into paid customers, particularly in the GenAI and LLM sectors [30][32] Other Important Information - Remaining performance obligations (RPO) totaled $274 million at the end of Q2, up 26% year over year, with an expectation to recognize approximately 68% as revenue over the next twelve months [15] - The company reiterated its revenue guidance for 2025, expecting total revenue in the range of $285 million to $288 million, representing 15% year-over-year growth at the midpoint [17] Q&A Session Summary Question: Can you talk about the large customer and how that potentially played out for you? - The process involves delivering a one-time bulk of data for testing, followed by long-term commitments if the data proves effective [21] Question: How do I think about the NRR number inflecting going forward? - The NRR has been affected by large expansion deals from 2024, and as these are worked through, improvements are expected [24] Question: What do you think it will take for GenAI and LLM evaluations to convert into paid customers? - The sales cycle involves testing and validating the data, with confidence in the pipeline for conversions [30] Question: Can you share what customer conversations around the new AI products look like? - There is significant interest in GenAI products, which are currently the fastest-growing in the portfolio [36] Question: How is the company thinking about pricing for data licensing contracts? - Data licensing deals typically start at seven figures, with room for expansion based on various datasets [56]

Q2 2025 Financial Highlights - Q2 2025 revenue reached $71.0 million[8], showing a year-over-year growth of 17%[8] - The company's annualized revenue, calculated as Q2 2025 revenue multiplied by 4, is $284 million[8] - Remaining Performance Obligations (RPO) totaled $273.8 million[8], with 68%[8] expected to be recognized over the next 12 months[8] - Non-GAAP gross margin for Q2 2025 was 81%[8] - The dollar-based net retention rate (NRR) for Q2 2025 was 108%[8] - 63%[8] of the total ARR comes from customers with over $100K+ ARR[8] - 57%[8] of ARR is from multi-year subscriptions[8] Business Model and Market Opportunity - The company estimates its addressable market to be $55 billion[42] - The company's sales and marketing spend is approximately 45% to 50% for customer acquisition and 50% to 55% for customer retention[75]

Exhibit 99.1 SIMILARWEB ANNOUNCES SECOND QUARTER 2025 RESULTS Revenue growth of 17% in the second quarter Positive non-GAAP operating profit and free cash flow Customer base increased by 18% TEL AVIV, ISRAEL -- August 12, 2025 -- Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its second quarter ended June 30, 2025. The Company published a letter to shareholders from managem ...

Group 1 - The analyst downgraded Similarweb (NYSE: SMWB) to a hold rating in November due to concerns that the valuation had become too rich despite positive views on the fundamentals [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, blending value investing principles with a long-term growth focus [1] - The strategy emphasizes buying quality companies at a discount to their intrinsic value and holding them for the long term to allow for compounding of earnings and shareholder returns [1]

Financial Data and Key Metrics Changes - Revenue increased by 14% to $67 million compared to the previous year [6][14] - Customer base grew by 19% year over year to over 5,700 ARR customers [6] - Non-GAAP operating loss was reported at 2% due to increased investments in sales and R&D [15][16] - Generated $5 million of normalized free cash flow, marking the sixth consecutive quarter of positive free cash flow [16] Business Line Data and Key Metrics Changes - The growth in revenue was driven by a 19% increase in customers, particularly in the below $100,000 ARR cohort [14] - NRR for customers over $100,000 increased by 400 basis points year over year to 111% [14] - 52% of ARR is now contracted under multiyear contracts, up from 42% last year [15] Market Data and Key Metrics Changes - Remaining performance obligations (RPO) totaled $253 million at the end of Q1, an 18% increase year over year [15] - The company continues to monitor global macroeconomic developments, with no material impact from tariffs observed so far [17] Company Strategy and Development Direction - The company is focused on becoming an AI-first organization, with new product launches indicating positive returns on investments made in sales and R&D [10][13] - The launch of App Intelligence allows the company to provide data on over 4 million mobile apps, enhancing its digital visibility offerings [9] - The company aims to drive enterprise motion and expand its offerings to existing customers, leveraging its diverse product portfolio [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profit and cash flow targets, citing improved operating margins over the past three years [16] - For the full year 2025, the company maintains its revenue guidance of $285 million to $288 million, representing a 15% year-over-year growth at the midpoint [17] - Management is optimistic about the commercial pipeline for new AI products and the overall demand for digital data [11][12] Other Important Information - The company completed an accelerated recruitment of new salespeople, with expectations for improved productivity by Q3 [8] - The integration of AI chatbot traffic data into the platform has generated strong customer interest and engagement [22][24] Q&A Session Summary Question: Quality of new hires and productivity ramp - Management is pleased with the quality of new hires and has established metrics to track their productivity [20][21] Question: Customer interest in AI chatbot data - Customers have shown excitement about the new AI chatbot data, which provides unique insights into traffic generated by chatbots [22][24] Question: Visibility on revenue growth in the second half - Management indicated that the ramp-up of new sales hires varies by role, with inside sales showing quicker productivity [28] Question: Impact of SearchMonitor acquisition - The acquisition is not expected to materially impact revenue but is seen as a strategic addition to enhance product offerings [30] Question: Trends among larger clients - Management noted a slight decline in NRR due to tougher comps from previous upsells but remains optimistic about ongoing demand [35][36] Question: Changes in guidance philosophy - Management confirmed that there have been no significant changes to guidance philosophy despite market uncertainties [32][33] Question: Expansion activity and customer growth - Management reported healthy pipeline activity and noted that expansion with existing customers remains strong [87][89] Question: AI product sales strategy - The company is targeting a broader audience for AI products, with excitement across various customer roles [47] Question: Timeline for new sales hires to show results - New sales hires are expected to ramp up productivity by Q3, with management prepared to adjust if necessary [66][68]

Financial Data and Key Metrics Changes - Revenue increased by 14% to $67 million, exceeding expectations [5][13] - Customer base grew by 19% year-over-year to over 5,700 ARR customers [5] - Non-GAAP operating loss was 2% due to increased investments in sales and R&D [14] - Generated $5 million of normalized free cash flow, marking the sixth consecutive quarter of positive free cash flow [15] Business Line Data and Key Metrics Changes - The growth in revenue was driven by a 19% increase in customers, particularly in the below $100,000 ARR cohort [13] - NRR for over $100,000 customers increased by 400 basis points year-over-year to 111% [13] - 52% of ARR is contracted under multiyear contracts, up from 42% last year, indicating improved customer retention [14] Market Data and Key Metrics Changes - Remaining performance obligations (RPO) totaled $253 million at the end of Q1, up 18% year-over-year [14] - The company continues to monitor global macroeconomic developments, with no material impact from tariffs observed so far [16] Company Strategy and Development Direction - The company is focused on becoming an AI-first organization, with new product launches aimed at maximizing ROI for customers [12][10] - Investments in sales and R&D are expected to yield higher margins and faster growth moving forward [12] - The launch of App Intelligence and AI Chatbots traffic intelligence is part of the strategy to provide comprehensive digital visibility [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve profit and cash flow targets, despite current investments [15] - The company maintains its revenue guidance for 2025, expecting total revenue in the range of $285 million to $288 million, representing 15% year-over-year growth [16] - Management is optimistic about the commercial pipeline for new AI products and the overall customer reaction to recent launches [10][12] Other Important Information - The company has completed an accelerated recruitment of new salespeople, with over 80% expected to be fully ramped by Q3 [6] - The integration of AI chatbot traffic data into the platform has generated strong customer interest and engagement [22][24] Q&A Session Summary Question: Inquiry about the quality of new hires and productivity ramp - Management expressed satisfaction with the quality of new hires and outlined metrics for measuring productivity [20][21] Question: Early indications of customer interest in AI chatbot traffic data - Customers have shown excitement and engagement with the new AI chatbot traffic data, indicating a strong demand for insights [22][24] Question: Visibility on deals supporting revenue reacceleration - Management discussed the diverse roles within the sales team and the varying sales cycles for different customer segments [29][30] Question: Impact of SearchMonitor acquisition on guidance - The acquisition is not expected to materially impact guidance, as it is a small business [31] Question: Trends in larger clients and NRR - A slight decline in NRR was attributed to last year's significant upsell activity, with ongoing engagement from large clients [36][38] Question: Changes in guidance philosophy - Management confirmed that there have been no significant changes to guidance philosophy despite market uncertainties [33] Question: Execution priorities for the year - The focus is on driving enterprise motion and expanding existing customer relationships [73] Question: Engagement and pipeline for AI chatbot traffic product - The product is currently in beta, with positive customer engagement and plans for monetization in the near future [83]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Similarweb shares have lost about 43.2% since the beginning of the year versus the S&P 500's decline of -0.6%. What's Next for Similarweb? While Similarweb has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Similarweb (SMWB) came out with a ...

Financial Performance - Q1 2025 revenue reached $67.1 million, representing a 14% year-over-year growth[8] - Q1 2025 non-GAAP gross margin was 80%[8] - The company's Remaining Performance Obligations (RPO) totaled $252.7 million, with 69% expected to be recognized over the next 12 months[8] - Q1 2025 Revenue Annualized (Q1 2025 Revenue * 4) is $268 million[8] - The company's dollar-based net retention rate (NRR) for $100K+ ARR customers was 111% in Q1 2025[8] - Non-GAAP operating loss was $(1.3) million in Q1 2025, representing a -2% operating margin[68] - Non-GAAP Normalized Free Cash Flow was $4.9 million in Q1 2025, a 7% margin[68] Customer Base - The company has over 5,700 customers[26] - 61% of total ARR comes from customers with $100K+ ARR[8] - 52% of ARR is from multi-year subscriptions[8] Market Opportunity - The company estimates its addressable market to be $55 billion[32]

[Similarweb Q1 2025 Earnings Release](index=1&type=section&id=Similarweb%20Q1%202025%20Earnings%20Release) [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) The company reported accelerated revenue growth and expanded its customer base, achieving its sixth consecutive quarter of positive free cash flow - Revenue growth accelerated to **14% in Q1 2025**, up from 12% in Q1 2024[1](index=1&type=chunk) - The company launched several new products during the quarter, including App Intelligence, AI Chatbot data, and three new AI Agents to enhance its market intelligence offerings[3](index=3&type=chunk) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $67.1M | $59.0M | +14% YoY | | **GAAP Operating Loss** | $(9.3)M | $(2.7)M | Increased Loss | | **GAAP Operating Margin** | (14)% | (5)% | Decreased | | **GAAP Net Loss per Share** | $(0.11) | $(0.03) | Increased Loss | | **Non-GAAP Operating (Loss)/Profit** | $(1.3)M | $2.8M | Profit to Loss | | **Non-GAAP Operating Margin** | (2)% | 5% | Decreased | | **Non-GAAP Net Loss/Profit per Share** | $(0.02) | $0.04 (basic) | Profit to Loss | [Q1 2025 Business & Operational Highlights](index=2&type=section&id=Q1%202025%20Business%20%26%20Operational%20Highlights) Key Business Metrics as of March 31, 2025 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Customers** | 5,767 | 4,846 (approx) | +19% YoY | | **Customers with ARR > $100k** | 411 | 377 (approx) | +9% YoY | | **Overall NRR** | 101% | 98% | +3 p.p. | | **NRR for Customers > $100k ARR** | 111% | 107% | +4 p.p. | | **Remaining Performance Obligations (RPO)** | $252.7M | $213.6M | +18% YoY | | **Multi-year Subscriptions (% of ARR)** | 52% | 42% | +10 p.p. | Cash Flow Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $4.9M | $10.1M | | **Free Cash Flow** | $4.4M | $9.7M | | **Normalized Free Cash Flow** | $4.9M | $9.7M | [Financial Outlook](index=3&type=section&id=Financial%20Outlook) The company provided positive full-year guidance, projecting 15% revenue growth and a return to Non-GAAP operating profitability for FY 2025 Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $285.0M - $288.0M | | **YoY Growth (Midpoint)** | ~15% | | **Non-GAAP Operating Profit** | $1.0M - $4.0M | Second Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $68.6M - $69.0M | | **Non-GAAP Operating Loss** | $(1.0)M - $(0.5)M | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) The statements show a slight decrease in total assets, an increased GAAP net loss driven by higher expenses, and positive net cash from operations [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $59,567 | $63,869 | | **Total current assets** | $126,918 | $141,356 | | **Total assets** | $237,687 | $242,911 | | **Deferred revenue (current)** | $109,170 | $108,232 | | **Total liabilities** | $213,705 | $215,403 | | **Total shareholders' equity** | $23,982 | $27,508 | [Consolidated Statements of Comprehensive Income (Loss)](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q1 Income Statement Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue** | $67,087 | $58,982 | | **Gross Profit** | $53,117 | $46,286 | | **Total Operating Expenses** | $62,408 | $48,970 | | **Loss from Operations** | $(9,291) | $(2,684) | | **Net Loss** | $(9,259) | $(2,733) | | **Net Loss Per Share (basic & diluted)** | $(0.11) | $(0.03) | - Total share-based compensation costs increased to **$5.8 million** in Q1 2025 from $4.1 million in Q1 2024, contributing to the higher operating loss[25](index=25&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $4,886 | $10,064 | | **Net cash used in investing activities** | $(9,910) | $(4,341) | | **Net cash provided by financing activities** | $562 | $(22,329) | | **Net decrease in cash** | $(4,302) | $(16,842) | | **Cash at end of period** | $59,567 | $54,890 | - Cash used in investing activities increased significantly in Q1 2025 to **$9.9 million**, primarily due to a $9.3 million payment for business combinations[27](index=27&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) The report reconciles GAAP to non-GAAP results by adjusting for items like share-based compensation and business combination-related costs Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | **Loss from operations (GAAP)** | **$(9,291)** | | Share-based compensation | $5,809 | | Retention payments (business combinations) | $1,559 | | Amortization of intangibles (business combinations) | $660 | | **Non-GAAP operating loss** | **$(1,263)** | Reconciliation to Free Cash Flow and Normalized Free Cash Flow (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | **Net cash provided by operating activities (GAAP)** | **$4,886** | | Purchases of property and equipment, net | $(501) | | **Free cash flow** | **$4,385** | | Deferred payments (business combinations) | $485 | | **Normalized free cash flow** | **$4,870** |