Similarweb Shares Plunge to Record Low After Earnings Miss

The stock fell 31% to $2.71 after touching a session low of $2.63, marking a 73% decline over the past 12 months. The data and analytics provider reported a quarterly loss of $7.5 million, or 9 cents per share, a significant expansion from the $5.4 million loss recorded during the same period last year. The results missed the mark for Wall Street analysts polled by FactSet, who had anticipated a much narrower loss of $2.5 million.

Revenue for the quarter reached $72.8 million, up from $65.6 million year-over-year, but still failed to meet the $76.4 million forecast by analysts. This top-line miss was compounded by a decline in the company’s quarterly net retention rate, which dropped to 98% from 101% in the prior year.

Weakening Retention and Outlook

The report highlighted specific pressure among Similarweb’s most valuable accounts. The dollar-based net retention rate for customers with annual recurring revenue of $100,000 or more fell to 103%, down from 112% in the fourth quarter of the previous year. This metric is a critical indicator of the company's ability to upsell and maintain its core enterprise base.

Looking ahead, management provided a cautious outlook that trailed market expectations. For the first quarter, the company projects revenue between $72 million and $74 million, missing the analyst consensus of $76.4 million. Similarweb also issued a long-term revenue forecast for 2026 of $305 million to $315 million, well below the $319.6 million that analysts had previously estimated.