Similarweb (SMWB) investor relations material

Executive summary

• Q2 2025 revenue grew 17% year-over-year to $71M, driven by strong demand for digital data, GenAI, and LLM solutions, with GenAI-related revenues accounting for nearly 8% of Q2 revenue.

• Customer base expanded 18% to 5,951, with large customers ($100K+ ARR) up 13% and now contributing 63% of total ARR.

• Achieved seventh consecutive quarter of positive free cash flow and returned to positive non-GAAP operating profit.

• Multi-year contracts now represent 57% of ARR, up from 44% last year, improving revenue visibility and customer commitment.

• Recognized as a leader in multiple G2 Spring 2025 categories, underscoring market position.

Financial highlights

• Q2 2025 revenue reached $71M, a 17% increase year-over-year, with non-GAAP gross margin at 81% and non-GAAP operating profit of $2.4M (3% margin).

• Normalized free cash flow for Q2 2025 was $3.8M (5% margin), maintaining positive cash generation.

• Remaining performance obligations (RPO) totaled $274M, up 26% year-over-year, with 68% expected to be recognized as revenue in the next 12 months.

• Dollar-based net retention rate (NRR) for all customers was 100%, and 108% for $100K+ ARR customers in Q2 2025.

• Average annualized revenue per customer was $48K, while $100K+ ARR customers averaged $370K.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at $285M–$288M, representing 15% year-over-year growth at midpoint.

• Non-GAAP operating profit guidance raised to $5M–$7M for 2025.

• Q3 2025 revenue expected between $71.5M and $72M, with non-GAAP operating profit of $1.5M–$2M.

• Target model aims for 85% gross margin, 25% operating margin, and 30% normalized free cash flow margin long-term.

• Growth strategy focuses on accelerating customer acquisition, expanding within existing accounts, deepening product portfolio, and M&A.