Similarweb Reports 17% YoY Revenue Growth, Raising 2025 Profit Guidance and Expanding AI-Driven Revenue Streams

Similarweb reported a 17% YoY revenue increase to $71mln in Q2 2025, beating expectations, and an 18% rise in ARR customers to nearly 6,000. CEO Or Offer expressed pride in the growth and highlighted expanding AI-driven revenue streams. The company has raised its 2025 profit guidance.

Title: Similarweb Reports Strong Q2 2025 Financial Performance with 17% Revenue Growth

Similarweb Ltd. (NYSE: SMWB), a leading digital data and analytics company, announced its second-quarter 2025 financial results, showcasing robust growth and a positive outlook for the remainder of the year. The company reported a 17% year-over-year (YoY) increase in revenue to $71.0 million, surpassing expectations and marking a significant milestone in its expansion.

The company's customer base grew by 18% to nearly 6,000, with a notable increase of 13% in customers with an annual recurring revenue (ARR) of $100,000 or more, totaling 433. This growth was driven by the strong demand for Similarweb's digital data and analytics solutions, as well as one-time fees from customers acquiring data for Gen AI and LLM training applications.

CEO Or Offer expressed pride in the company's performance, stating, "We are proud of the strong second quarter financial results that were better than expected and reflect the demand for our Digital Data and our continued focus on disciplined execution." The company's revenue growth was bolstered by an 8% contribution from Gen AI and LLM training-related revenues, highlighting the potential of these emerging revenue streams.

The company also reported a return to positive non-GAAP operating profit and a seventh consecutive quarter of positive free cash flow. Non-GAAP operating profit for the second quarter was $2.4 million, while non-GAAP net income stood at $1.1 million. The company's cash and cash equivalents totaled $59.3 million as of June 30, 2025, compared to $63.9 million at the end of 2024.

In addition to financial highlights, Similarweb announced an increase in its remaining performance obligations (RPO) by 26% to $273.8 million, reflecting the company's strong sales pipeline and confidence in its data and addressable markets. The company's overall net retention rate (NRR) for customers with an ARR of $100,000 or more was 108%, indicating strong customer loyalty and satisfaction.

Looking ahead, Similarweb has raised its 2025 profit guidance, with total revenue estimated between $285.0 million and $288.0 million, representing approximately 15% growth year over year at the mid-point of the range. The company's third-quarter 2025 revenue guidance stands at $71.5 million to $72.0 million, with non-GAAP operating profit expected between $1.5 million and $2.0 million.

The company's financial outlook is based on several assumptions and is subject to change, with risks and uncertainties including macroeconomic conditions, competition, and regulatory environments. Similarweb will discuss its financial results and business highlights on a conference call and webcast scheduled for August 13, 2025.

[1] https://ir.similarweb.com/news-events/press-releases/detail/127/similarweb-announces-second-quarter-2025-results