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Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue increased by 14% to $67 million, surpassing expectations.
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Customer base grew 19% year over year, reaching over 5,700 customers.
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Achieved a sixth consecutive quarter of positive free cash flow.
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Successful launch of new products like Gen AI, Traffic Intelligence, and App Intelligence.
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52% of ARR is contracted under multi-year agreements, indicating strong customer commitment.
Negative Points
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Non-GAAP operating loss of 2% due to increased investment in sales and R&D.
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NRR for over $100,000 customers dipped slightly, indicating potential challenges in upselling.
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Billing growth slowed, raising concerns about potential seasonal patterns.
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Current RPO growth has slowed, with expectations of re-acceleration later in the year.
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New customer additions are coming in at a lower average deal size, impacting immediate revenue growth.
Q & A Highlights
Q: How do you feel about the quality of the new hires and their ramp to productivity? A: (CEO) We are very happy with the quality of the hires. We've developed a strong process to measure their activities and expected outcomes during the onboarding process. So far, everything looks good.
Q: What are the early indications of customer interest in the AI chatbot traffic data integration? A: (CEO) Customers are very excited, and there's a "wow" effect when they see the data. It provides unique insights into traffic generated by chatbots, which is currently a black box for many website owners.
Q: Can you explain the visibility you have on deals supporting revenue re-acceleration in the second half of the year? A: (CEO) We have hired across various roles in the go-to-market organization. Inside sales show faster ramp-up, while enterprise sales take longer. We are seeing improved productivity and expect positive results in the second half.
Q: Is there any material impact from the Search Monitor acquisition on your guidance? A: (CFO) No, the acquisition is not expected to have a material contribution to our financials for the quarter or the year.
Q: What is the most important execution item for Similarweb this year? A: (CEO) Driving the enterprise motion is crucial. We have over 1,000 enterprise customers, and expanding our solutions to them can generate significant impact. Improving the performance of our account management team is key.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.