TLDR: Similarweb Ltd. (NYSE: SMWB) reported a 17% year-over-year increase in second-quarter 2025 revenue, reaching $71.0 million, driven significantly by demand for its digital data in AI and large language model (LLM) training. While the company achieved a non-GAAP operating profit of $2.4 million and positive free cash flow, its GAAP net loss expanded to $(11.8) million.
Similarweb Ltd. (NYSE: SMWB), a prominent digital data and analytics company, announced robust financial results for its second quarter ended June 30, 2025, with revenue climbing to $71.0 million, marking a 17% increase compared to $60.6 million in the same period last year. This growth significantly outpaced analyst expectations, with adjusted earnings per share (EPS) reaching $0.07 against a consensus estimate of $0.00.
The company attributed a substantial portion of its strong performance to the burgeoning demand for its digital data within the artificial intelligence (AI) sector. Revenues specifically from generative AI (Gen AI) and large language model (LLM) training applications constituted nearly 8% of the total Q2 revenues, establishing themselves as one of Similarweb’s fastest-growing income streams. Jason Schwartz, Chief Financial Officer of Similarweb, highlighted that ‘Revenue growth was driven by 18% growth in total customers and also benefited from one-time fees from customers who acquired our data for evaluation of Gen AI related applications and LLM training.’
Despite the impressive revenue growth and non-GAAP profitability, the company’s GAAP losses widened. Similarweb reported a GAAP loss from operations of $(6.9) million, or (10)% of revenue, a notable increase from $(1.0) million, or (2)% of revenue, in Q2 2024. The GAAP net loss for the quarter stood at $(11.8) million, compared to a net loss of $(0.7) million in the prior year’s second quarter, resulting in a GAAP net loss per share of $(0.14).
However, on a non-GAAP basis, Similarweb achieved an operating profit of $2.4 million, or 3% of revenue, and recorded its seventh consecutive quarter of positive free cash flow, which reached $2.7 million. Or Offer, Co-Founder and CEO of Similarweb, expressed pride in the results, 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.’ He further added that the 26% growth in Remaining Performance Obligations (RPO) to $273.8 million, coupled with a healthy sales pipeline, instills confidence in the vast potential of their data and addressable markets.
The company’s customer base expanded by 18% year-over-year, reaching 5,951, while the number of customers with an annual recurring revenue (ARR) of $100,000 or more grew by 13% to 433.
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Looking ahead, Similarweb projects third-quarter 2025 revenue to be between $71.5 million and $72 million, slightly below the consensus estimate. For the full fiscal year 2025, the company anticipates revenue in the range of $285 million to $288 million, aligning with current market expectations.
