Similarweb Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Expanding Customer Base

Similarweb Ltd reported Q2 2025 earnings with a 17% YoY revenue increase to $71 million, surpassing expectations. The customer base grew by 18% YoY to nearly 6,000 AR customers. The company achieved its seventh consecutive quarter of positive free cash flow and a return to positive operating profit. GenAI data and solutions contributed approximately 8% of second-quarter revenues. However, NRR for customers over $100,000 decreased by 100 basis points YoY to 108%, and the company is still working through large expansion deals from 2024.

Title: Similarweb Ltd Reports Strong Q2 2025 Earnings

Similarweb Ltd (NYSE: SMWB) reported robust second-quarter (Q2) 2025 earnings, with revenue surging 17% year-over-year (YoY) to $71 million, surpassing analyst expectations [1]. The digital data and analytics company also experienced an 18% YoY growth in its customer base, reaching nearly 6,000 annual recurring revenue (ARR) customers [1].

Key highlights of the Q2 2025 performance include:

- Revenue Growth: Revenue increased by 17% YoY, driven by an 18% increase in total customers and one-time fees from customers evaluating Gen AI and LLM training applications [1].
- Free Cash Flow: Similarweb generated $4 million in free cash flow during the quarter, marking its seventh consecutive quarter of positive free cash flow [1].
- Operating Profit: The company reported a non-GAAP operating profit of 3% for Q2 2025, indicating a return to positive operating profit [1].
- Customer Base: The number of customers with ARR of $100,000 or more increased by 13% YoY to 433, while the overall customer base grew by 18% YoY to 5,951 [1].
- Multi-Year Contracts: 57% of ARR is now under multi-year contracts, up from 44% last year, reflecting a strong commitment from customers [1].

For the full fiscal year 2025, Similarweb expects revenue between $285 million and $288 million, representing 15% growth at the midpoint. The company also guided Q3 2025 revenue between $71.5 million and $72 million [1].

The strong performance in Q2 2025 is largely attributed to the growing demand for digital data and analytics services, particularly in the AI sector. Similarweb's Gen AI and LLM training-related revenues accounted for nearly 8% of Q2 revenues, highlighting the company's strategic focus on this high-growth area [1].

However, the company acknowledged that the net revenue retention (NRR) for customers over $100,000 decreased by 100 basis points YoY to 108%, and it is still working through the cohort of large expansion deals from 2024, which may affect NRR [2].

For the complete transcript of the earnings call, please refer to the [press release] [3].

References:
[1] https://www.investing.com/news/earnings/similarweb-soars-as-q2-earnings-beat-expectations-93CH-4186827
[2] https://finance.yahoo.com/news/similarweb-ltd-smwb-q2-2025-070930916.html
[3] https://ir.similarweb.com/news-events/press-releases/detail/127/similarweb-announces-second-quarter-2025-results