SMWB

Similarweb (SMWB) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this digital intelligence company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Similarweb, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.08 per share, which is a change of +60.0% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for Similarweb has increased 266.67% because two estimates have moved higher compared to no negative revisions. For the full year, the earnings estimate of $0.22 per share represents a change of +266.7% from the year-ago number. The revisions trend for the current year also appears quite promising for Similarweb, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 100%. Thanks to promising estimate revisions, Similarweb currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Similarweb shares have added 31.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Similarweb Ltd. (SMWB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 12, 2026, at 8:30 a.m. ET Vice President, Investor Relations - Rami Myerson CEO and Co-Founder - Or Offer Chief Financial Officer - Ran Vered Chief Business Officer - Maoz Lakovski Operator: Hello, and welcome, everyone, joining today's Similarweb Q2 Fiscal 2026 Earnings Call. [Operator Instructions] Please note this call is being recorded. [Operator Instructions] It is now my pleasure to turn the meeting over to Rami Myerson, Vice President, Investor Relations. Please go ahead. Rami Myerson: Thank you, operator. Welcome, everyone, to our second quarter 2026 earnings conference call. Joining me today are our CEO and Co-Founder, Or Offer; our Chief Financial Officer, Ran Vered; and Maoz Lakovski, our Chief Business Officer. This morning, we released our results for the second quarter and published an investor presentation with a strategic overview of the business as well as a summary presentation of second quarter results on our Investor Relations website at ir.similarweb.com. Certain statements made on the call today constitute forward-looking statements, which reflect management's best judgment based on the currently available information. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our earnings release and our most recent Annual Report on Form 20-F filed with the SEC on March 2, 2026, for more information on the risk factors that could cause actual results to differ from our forward-looking statements. Additionally, certain non-GAAP financial measures will be discussed on the call today. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation. We will begin with Or and Ran's highlights of the quarter, and then we will open up the call to questions from sell-side analysts. With that, I'll turn the call over to Or. Or, please go ahead. Or Offer: Thank you, Rami, and welcome, everyone, today. I'm extremely proud of how the Similarweb team delivered in the second quarter. Similarweb is at inflection point. Our core business is getting stronger while AI is opening a significant new growth opportunity. Larger deals, longer commitments, improving retention and expanding profitability are validating the strength of our business. At the same time, strong demand from leading AI companies demonstrate that our proprietary digital data has become critical infrastructure for the AI ecosystem. Over the last several quarters, we have been very focused on 3 things: strengthening our data moat, deepening our relationship with the largest enterprise in the world; and positioning Similarweb to capture the enormous opportunity created by AI. In Q2, we started to see those pieces come together. We delivered the strongest quarter in Similarweb history for net new ARR. We had one of the strongest quarter ever for gross retention. We achieved positive GAAP operating profit for the first time ever, NRR improved to 100% across all customers and 107% for customers above $100,000 of ARR. We exceeded our expectation for both revenue and operating profit and are raising our full year guidance for the second time this year. AI-related revenue reached 13% of revenue in the second quarter, up from 11% at the end of the fourth quarter of 2025, and we will continue to expand it moving forward. And perhaps most importantly, we signed 3 very large multiyear enterprise contracts representing more than $60 million of accumulated contract value. So when I look at this quarter, I see more than just a strong set of numbers. I see evidence that the strategy we've been executing is working. Let me walk you through why I believe this is so important. And let's start with the financial performance. Revenue grew 9% year-over-year to $77.2 million above the top end of our guidance. We also delivered non-GAAP operating profit above our expectation and for the first time in our history, positive GAAP operating profit. This is a direct result of the operational disciplines we have been implementing across the company. We have been very focused on improving sales productivity, sharpening our go-to-market execution and becoming more efficient across the organization. At the same time, we continue to invest in the opportunities where we believe we can generate the highest long-term returns. We generated $8.7 million of normalized free cash flow in the quarter, representing an 11% free cash flow margin. Moving into the second half of 2026 and beyond, we remain committed to expanding our margin and leveraging the operational efficiencies that come with our increased scale. So we are seeing the combination we have been working on: growth, improving retention, profitability and strong cash generation. Our customer metrics also continue to improve. NRR increased to 100% across all customers and to 107% for customers above $100,000 of ARR. This is particularly encouraging because as we discussed in the last several quarters, we have been focused on improving the expansion motion with our existing enterprise customers. We are seeing better gross retention, stronger customer engagement and increasing demand for additional Similarweb data and products. And we believe there is more room for -- improve from here. But the part of the quarter that I'm most excited about is what we are seeing with the largest enterprise. Our strategy to move upmarket is working. During Q2, we signed 3 very large multiyear contracts with a cumulative value of more than $60 million. Those are strategically important contracts. They are also very different from the way Similarweb historically sold. For many years, our model was primarily a land and expand model. We would land the customer with a relatively small initial contract and then expand over time across additional products, teams and geographies. That model remains important, but something new is happening. The largest companies in the world are increasingly looking at Similarweb not simply as a software application, but as strategic source of digital data. And when they do that, the size and scope of relationship change dramatically. Those contracts require a significant amount of work across sales, R&D, data scientists, finance and legal. And I want to recognize the entire team because those deals are truly companywide efforts. The strategic ALO go-to-market team that we created at the end of 2025, specifically focused on AI, LLM and OEM opportunities has been instrumental in this success. The team is building relationships with some of the most sophisticated companies in the world and is creating a pipeline that is materially larger than what we have historically seen. In fact, in July, we signed a fourth large contract and we continue to see a very strong pipeline of additional opportunities like never before. And let me explain to you why this is different. Historically, large 7-figure contracts were relatively rare for Similarweb. As recently as 2025, we were still seeing large 7-figure opportunities infrequently a handful of times a year at most. That has changed. The number and size of opportunities we're seeing from Large Enterprise has increased significantly. And I believe there is a very important reason for that. AI is changing the economics of data. Let me explain you what I mean. Historically, the value an enterprise could extract from Similarweb was limited in part by the number of people who could actually work with the data. You had an analyst that analysts needed to understand our data. They needed to know how to query it. They needed to analyze it. They needed to connect different data sets. And then they needed to turn those insights into recommendation for the business. That is powerful, but it's still constrained by human capacity. AI fundamentally changed this equation. Now you can take Similarweb digital data and make it available to AI systems that can analyze enormous amount of information across thousands of questions and use case at a speed at scale that humans simply cannot match. The result is that the ROI from the same underlying data can increase dramatically. And this is the part of the story that I think is still underappreciated. AI doesn't make our data less valuable, it make our data much more valuable. Because the better the AI becomes its reasoning, the more valuable high-quality, comprehensive and trusted the data become. This is why I believe the opportunity for Similarweb goes far beyond simply selling data for LLM training. But still, the LLM opportunity is big and growing. One of the largest contracts we signed this quarter is with a leading big tech company for data used to train its large language model. Following this expansion, this customer become our third customer with more than $10 million of ARR engagement. It is remarkable to see how Similarweb data become a fundamental source of digital intelligence for top large language model in the world. But what excites me even more is that the other large contracts are not only about LLM training, they demonstrate that enterprise can use Similarweb data at scale for many different AI-driven use case and applications. And that is much bigger opportunity because if our data can be used across multiple AI use case and applications inside a Large Enterprise, the potential consumption of our data increased dramatically. One customer can have multiple teams, multiple teams can have multiple use case and each use case can consume more data. That creates powerful expansion opportunity. The more use case we unlock, the more valuable our data becomes. And more valuable the data become, the more Similarweb can expand within the organization. This is a very different model from selling seats of software. We are increasingly monetizing access to data and the consumption of the data, and we believe AI will accelerate this transition. Similarweb has become an enterprise data company. You can already see this transformation in our business. The portion of our business driven by customers generating over $100,000 in ARR has reached almost 70%, a significant rise from 63% a year ago. Furthermore, the share of our revenue tied to a multiyear commitment expand to 66%, up from 57% a year ago. And we see this momentum continue. Those metrics underscore a fundamental transition. Similarweb has become more deeply integrated in the world's largest and most enduring enterprise organization. We are increasingly an enterprise-focused business, providing digital data to some of the largest, most sophisticated companies in the world. And our goal is to become even more deeply embedded in those organizations, not just with one product, not just with one team, but across multiple teams, multiple products and multiple use cases. This is the expansion opportunity in front of us. Let me now turn into our AI strategy. Over the last several quarters, we have talked about our AI strategy through 3 pillars: powering AI system with our data, building an AI-native product ourselves and expanding distribution throughout the AI ecosystem. We are seeing strong progress across all 3. First, we are powering LLM and AI Agent. We continue to see strong demand from leading AI companies for our digital data for both pretraining and post-training use case, but we are also seeing increased demand from AI Agents. Agents need trusted, structured and comprehensive information about the digital world in order to perform their task efficiently. Our data is built for both human and Agent, and that is becoming increasingly important. Second, we are building our own AI-native products. Gen AI intelligence is shaping up as a huge opportunity. It's lucrative, fast-growing market that is top of mind for every CMO and executive at Large Enterprise right now. We're already seeing an early sign we can win here and become a leader at this category. Our solution helps brands understand how they can show up across Generative AI platforms. We think it's an entirely new category, and our data give us a real edge. And earlier this year, we launched Similarweb AI Studio. The response has been extremely strong. AI Studio changed the way people interact with Similarweb. Instead of needing to know exactly which report to open or which data set to use, user can simply ask a business question in natural language and receive an actionable answer with insights and recommendation. This dramatically expands who can use Similarweb. And importantly it creates a new consumption-based monetization model. We believe this is the direction the industry is moving. Third, we are expanding distribution. Increasingly, research and decision-making are happening inside AI platforms. So we want Similarweb to be there. Our data available through MCP on Claude and ChatGPT. During the quarter, we expanded our relationship with Perplexity to bring Similarweb digital data directly into its AI-native workflow, and we expand our partnership with Manus following the successful launch of Similarweb data on the platform. Those partnerships are more than integration. They are new distribution channels for Similarweb. They allow us to reach users who we couldn't not reach through our traditional go-to-market motion. They expand our TAM, and they reinforce our position as a critical data layer for AI-driven research and decision-making. So now let me walk you through what I believe is happening. First, our core business is getting healthier. Gross retention is improving, NRR is inflected, sales productivity is improving, and we are seeing better expansion across enterprise customer. Second, our enterprise strategy is working. We are seeing larger contracts, longer commitments, more multiproduct relationship and increasing demand from the world's largest companies for digital data. And third, AI is dramatically expanding the opportunity for our data. It's created new customers, new use case, new distribution channels and new ways to monetize consumption. Those 3 things reinforce each other, and this is why I believe Q2 represents an important inflection point for Similarweb. And as I have to say before, AI is the engine, but data is the fuel. Regarding the CEO search, we are making good progress, and we are interviewing very strong candidates. And with that, I will hand it over to Ran, our CFO. Ran Vered: Thank you, Or. It is great feeling to deliver a strong set of results and raise guidance for the year. I'll provide highlights of our financial performance and guidance for the third quarter and the full year of 2026. Turning to our quarterly results. We generated $77.2 million of revenue in Q2, a 9% increase year-over-year and above the guidance range we provided. Revenue growth was driven by good performance across the book of business, including new sales and upsells as well as growth in AI-related revenues that reached 13% of revenues in the second quarter, up from 11% at the end of the fourth quarter of 2025. I would like to remind you that the second quarter of 2025 provided a tough comparison for this quarter. We expect revenue growth to accelerate in the second half of 2026, supported by the growth in ARR in the second quarter and the accelerated momentum in our business as Or discussed. Non-GAAP operating profit for the quarter was $6.5 million, reflecting an 8% margin compared to $2.4 million in the second quarter of 2025. Non-GAAP operating profit was also above our guidance range, thanks to top line growth and disciplined cost control that more than mitigated FX headwinds. We continue our efforts to offset the headwinds to profit presented by the strengthening of the Israeli shekel versus the U.S. dollar. As a reminder, approximately half of our employees are based in Israel. Non-GAAP finance expenses was $108,000. Non-GAAP tax expense was $1.2 million in the quarter compared to $86,000 and $1.2 million in the second quarter of 2025. To help with your modeling, we expect these items to remain approximately at this level on a quarterly basis for the rest of the year. Non-GAAP diluted earnings per share was $0.06 compared to $0.01 in Q2 2025. ARR contracted under multiyear contracts continue to expand to 66% of ARR from 57% last year. We believe that this metric is very important and demonstrate the durability of our revenues and the importance of our data to our customers. Good cash generation and strong balance sheet are critical for our business at any stage. We generated $8.7 million of normalized free cash flow and 11% free cash flow margin despite the FX headwinds. We believe we will generate positive normalized free cash flow on a quarterly basis going forward. We ended the quarter with approximately $73.9 million of cash and cash equivalents and no debt. We also have an available line of credit of $75 million. Our remaining performance obligations, RPO, totaled $345 million at the end of Q2, up 26% year-over-year. We expect to recognize approximately 66% of total RPO as revenue over the next 12 months. The growth in RPO provides us with confidence in our full year guidance. We are also proud that our deferred revenue increased to a total of $141 million, a 21% increase year-over-year. In Q2, overall NRR was 100% across all customers and 107% for customers with over $100,000 of ARR. We are proud of the improvement in NRR in the quarter, which came through earlier than expected. We expect further improvement in NRR over 2026. At the end of the second quarter, we had 1,815 customers with ARR above $25,000 compared to 1,809 in 2025. This sequential trend reflects our decision to prioritize go-to-market resources and focus on large-scale opportunities within our existing customer base over smaller inbound SMB deals. Consistent with this focus, the average account value for this cohort grew 19% year-over-year to $149,000. The number of customers with ARR over $100,000 increased to 473 at the end of Q2, up 9% compared to 2025. Average account value for this customer cohort increased 18% to $438,000 compared to 2025. We believe that accounts generating more than $25,000 and $100,000 of ARR that account for 90% and 69% of ARR, respectively, demonstrate that Similarweb is an enterprise-focused data company. Moving to guidance; for the full year of 2026, we are raising our revenue guidance range and expect total revenue in the range of $340 million to $380 million, representing approximately 12% year-over-year growth at the midpoint of the range. In Q3 2026, we expect total revenue in the range of $80.5 million to $82.5 million, representing [ 17.5% ] year-over-year growth at the midpoint, accelerating versus Q2 2026. For the full year, we are raising our guidance for non-GAAP operating profit to be between $24 million and $26 million. Non-GAAP operating profit for the third quarter of 2026 is expected to be in the range of $7.5 million to $9.5 million. With that, Or and I are ready to take -- to answer your questions. Following Q&A, Or will share some closing remarks. Operator, please open the line for questions. Operator: [Operator Instructions] And we'll take our first question from Raimo Lenschow with Barclays. Raimo Lenschow: Congratulations. That's an amazing evolution. Or, can you talk a little bit more about those customers that you signed and they are kind of showing up in the pipeline? Is this kind of using the similar rep data in a much broader sense than we've seen classically? And in theory, if that's the case and we open it up for more end users, then in a way, the sky is the limit because like you should like every single customer could do a lot more with your data. So that we -- it sounds almost like we are at the beginning of a very great journey here. Can you talk a little bit more on that? Or Offer: Yes. So first of all, yes, thank you for the question. And yes, you're right. The most advanced enterprise are now realized that with AI, they can get -- they can first crunch much more data and they can get much more better insight and recommendation and the ROI dramatically for the same data is now much higher, and they can consume much more data. So we're seeing this trend. It's very exciting, and we're very happy about that. And we think that we continue to see this great success with onboarding more enterprise to use our data in that approach. Raimo Lenschow: And then Ran, if you think about it, where are we sitting on this new approach of getting against the big enterprise, where are we on sales capacity, et cetera? Like can the organization kind of support the growth that potentially is coming your way? Ran Vered: Right now, yes, we are set up correctly. We're starting with the engagements we currently have in our book of business. We already work with the biggest and best enterprise in the world, and we start rolling up and start increasing those engagements. Operator: We'll take our next question from Ken Wong with Oppenheimer & Company. Hoi-Fung Wong: Fantastic. I think you guys mentioned that NRR potentially could trend up still. I'm just looking at the levels of -- there's a big step-up. What gives you the confidence there? How much of that is mechanical? I recall you guys already were exiting at a pretty high rate after Q1 and how much of that is kind of underlying activity that you're seeing that gives you confidence that, that number could keep trending higher? Or Offer: Yes. We have a very, very high confidence because the NRR we report to the market, as we said, is the average of the previous 4 quarters. And because we know that this quarter NRR was very, very high, we already know that the next quarter's NRR will continue to increase. Ran Vered: And just to add on that, we see very strong -- Or mentioned it in the prepared remarks, we see very strong GRR trends. And the changes that we did last -- at the beginning of the year that the account management are more focused on expansion, this is a focus on GRR. We already see the fruit of this change. So we see very strong GRR that continues to be at a very strong level. And on top of it, the account management that are focused on expansion provide us with the confidence that the NRR is going to increase. Hoi-Fung Wong: Understood. And then, Or just on the really strong pipeline results, again, fantastic in terms of what you guys saw in Q2. When you look at the quarter, how much of that execution was some of the labors from last year, you guys kind of refreshed the go-to-market, you added capacity. How much of that is, as you said, truly an underlying change in terms of some of the customer actions like where data is now kind of proliferating across organizations or is there still more of that to come? Or Offer: I think, as I said in the earnings, a lot of it came just focusing the people on doing the right things that can produce the highest outcome. One of them that we changed and took some of our best people and just put them on the ALO team, we call it, the strategic sales team to build better, bigger relationship with the top enterprise and basically unlock this potential. So just moving those priorities, including the account manager, focusing on expansion, all of those decision of changing strategy really are bearing the fruits. So these are the result of that. Operator: We'll take our next question from [ Arun ] Bhatia with William Blair & Company. Willow Miller: Hi, it's Willow Miller on for Arjun Bhatia. Nice quarter. A couple of quarters ago, you saw some variability in, I believe, 2 large AI deals. I believe you closed one last quarter. But can we get an update on the second? Is that still in the pipeline and how are you thinking about the timing of closing it? Or Offer: Yes. Funny enough, this second one is still in the pipeline. And we still think that this is another nice big surprise that can come by the end of the year. Yes. Operator: We'll take our next question from Patrick Walravens with Citizens. Kincaid LaCorte: Great. This is Kincaid on for Patrick. Super excited to see this narrative playing out for you guys. Is it possible to get a little bit of color when I think about the $60 million as well as just the total spectrum of these new deals, you mentioned it's not just pretraining and post-training, but it also includes like correct me if I'm wrong, like Agents in production that want to understand how the Internet is structured and where they should go next. Can you give us a sense of like how that ARR is split? Is it 50% post-training, 25% pretraining and 25% in production? What's that breakdown? Or Offer: I cannot go specifically to the full breakdown, but we had -- what we said, we had 3 big deals. Each one of them is above 8-figure engagement. Only one of them is for LLM training pre and post. So only one is pre and post. The other 2 are just big enterprise leveraging our data in different ways than LLM training that is much more exciting and very big opportunity. Ran Vered: Yes. Maybe just to add [indiscernible] the way we think about it, the various markets that we're seeing tailwinds and demand in different markets. One is the LLM that we were speaking about. The other one is OEMs, so build on top of our data. Then we have the brands and last we have the investors. And we see great demand across the board in all of them for large deals to integrate our data at scale because of the ability to digest and ingest more data at scale with AI. So what we've seen in the past, which was deal every now and then, deal every quarter of our pipeline. So now it's becoming much more sustainable, much more robust. It helps us increase our TAM and increase our average deal value. Kincaid LaCorte: Spectacular. And then if you have any update with specifics on your Gen AI intelligence product, I've always found that one fascinating. Or Offer: Yes. There is -- the demand there is increasing. We do see a nice increase there. And I think there is now more strategic team start building up on the Gen AI data that we have that's becoming very interesting for brands to connect the full journeys of the users with what people are asking those LLMs and the outcomes. So everything around how the interaction with LLM change the consumer behavior. So this is -- we're seeing also a very big success on that. Operator: [Operator Instructions] We'll take our next question from Scott Berg with Needham. Scott Berg: Really nice quarter here. Or, you obviously spoke a lot about the new use cases that you're seeing in some of these large deals. They're not all LLM training exercises. But as you think about the new use cases, are you changing the pricing of the platform to evolve with some of these new use cases or are the pricing mechanisms the same? Or Offer: The pricing is the same because most of those big deals are around data. So it's more about consumption and data access. It's less about the software. And so the price didn't change and just selling much more data and much -- many more different data sets because as I said, AI is changing the equation. Now companies can consume much more data and get much more ROI of data. Scott Berg: Very helpful there. And then Ran, as we think about a couple of these deals here, these large deals, are there any onetime revenues to be cognizant of -- from these? I believe that maybe one of them has some onetime revenues. And if there is, what is the timing of those revenues look like for modeling purposes? Ran Vered: Scott, thanks for the question. So those deals are ARR deals. And if there is a onetime element, it's really quite negligent and material. And usually, it's recognized on the initiation of the deal or a couple of months later at max. But those deals are pure ARR deals with, again, a small and immaterial amount of onetime, if at all. Operator: We'll take our next question from Luke Horton with Northland Securities. Lucas John Horton: Congrats again on the great quarter here. Obviously, the momentum is really building on the enterprise side. Just curious if you're -- if there's anything to call out on the kind of SMB or smaller customer cohort. Are they seeing any sort of macro pressures or I guess, how is growth looking on the smaller customer cohort side? Or Offer: Nothing special there. I think overall, the traffic was going down, the visitor traffic to the website, the world change and there is less traffic coming from [ SaaS ] or like market broader. But overall, AOV is the same, [indiscernible] is the same. And I think a lot of more commercial people are moving now to drive more expansion as we can see this opportunity. Lucas John Horton: Okay, great. And then just wondering about as far as adding net new customers, are you seeing any trends with initial customer contracts coming in at higher price points now? And kind of how much of the focus is on the cross-sell and upsell with existing customers versus kind of outbound net new customers? Or Offer: So I think that most of our tenure senior commercial people that were doing outbound and enterprise new sell, we removed them more to focus on expansion. As I said before, we have an amazing book of business, and we already engaged with most of the best and biggest companies in the world. And now we just come and have a huge opportunity on cross-sell and upsell with this new change that's happening with AI. Operator: At this time, there are no further questions in queue. I will now turn the meeting back to Or Offer for closing remarks. Or Offer: So thank you for all the questions today. So now let me recap what we discussed today at the call. When we entered to 2026, we said this was going to be a transformation year for Similarweb. We said we were moving from building to scaling. We said our priorities were to strengthen our data mode, deepen our enterprise relationship and scale our AI-first solutions. 6 months into this year, we are seeing tangible evidence that this strategy is working. We delivered the strongest net new ARR quarter in our history. We achieved positive GAAP operating profit for the first time ever. We improved NRR to 100%. We signed multiple transformational enterprise contracts, and we continue to see expanding demand for our data from AI companies and Large Enterprise. There is still a lot of work ahead of us. We need to continue improving execution. We need to continue to expand our enterprise relationship, and we need to continue building the best digital data infrastructure for the AI era. Thank you, everyone, on the call for your continued support. We're looking forward to speaking to you again over the coming weeks. Thank you all. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in Similarweb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Similarweb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Similarweb (SMWB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Raising full-year guidance on strong AI demand and more than $60M in new contracts Revenue and Non-GAAP operating profit above the guidance range First ever quarter of positive GAAP operating profit Overall NRR increased to 100% TEL AVIV, Israel, August 12, 2026--(BUSINESS WIRE)--Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its second quarter ended June 30, 2026. "We delivered a strong second quarter that I believe marks an important inflection point for Similarweb, with revenue and profit ahead of our expectations," stated Or Offer, Co-Founder and CEO of Similarweb. "NRR increased to 100% for all customers, and we signed three seven-figure multi-year contracts worth more than $60 million combined, including an expansion that made a leading big tech customer our third eight-figure ARR account." Offer concluded, "Commercial demand for our AI-related data and solutions is strong, and an expanding pipeline of opportunities gives us confidence to raise our guidance for the second time this year." Second Quarter 2026 Financial Highlights(All results compared with the second quarter of 2025) Total revenue was $77.2 million, an increase of 9% compared to $71.0 million. GAAP profit (loss) from operations was $0.7 million or 1% of revenue, compared to $(6.9) million or (10)% of revenue. GAAP net loss was $(3.6) million compared to $(11.8) million. GAAP net loss per share was $(0.04), compared to $(0.14). Non-GAAP operating profit was $6.5 million or 8% of revenue, compared to $2.4 million or 3% of revenue. Non-GAAP net income was $5.2 million or 7% of revenue, compared to $1.1 million or 2% of revenue. Non-GAAP diluted net income per share was $0.06, compared to $0.01. Second Quarter 2026 Operational Highlights Number of customers with ARR of $100,000 or more increased to 473, an increase of 9% compared to June 30, 2025. Customers with ARR of $100,000 or more contributed 69% of the total ARR as of June 30, 2026, increased from 63% as of June 30, 2025. Dollar-based net retention rate (NRR) for customers with ARR of $100,000 or more was 107% in the second quarter of 2026, compared to 108% in the second quarter of 2025. Overall NRR was 100% in the second quarter of 2026, compared to 100% in the second quarter of 2025. 66% of our overall ARR is contracted under multi-year subscriptions as of June 30, 2026, increased from 57% as of June 30, 2025. Remaining performance obligations, or RPO, increased 26% year-over-year, to $345.3 million as of June 30, 2026, as compared to $273.8 million as of June 30, 2025. Recent Business Highlights Similarweb surpassed $300 million in ARR in June. Similarweb signed three multi-year enterprise contracts in the quarter, each representing seven-figure ARR commitments, together worth approximately $60 million in total contract value. The customers are leading AI-driven companies and large global enterprises relying on Similarweb's data for strategic decision-making and AI-driven initiatives. In June, Similarweb expanded its AI ecosystem through a new integration with Perplexity, embedding its digital data and MCP connector directly into Perplexity Computer's AI-native workflows, providing businesses with access to trusted market and competitive intelligence data without leaving the Perplexity environment. In May, Similarweb expanded its Manus partnership, embedding additional keyword, referral, and landing page datasets into Manus's AI agent experience, letting users generate competitive intelligence briefs that explain not just who is winning online, but why. Balance Sheet and Cash Flow In the second quarter of 2026, net cash provided by operating activities was $9.0 million, compared to $2.9 million for the second quarter of 2025. Free cash flow was $8.7 million, compared to $2.7 million for the second quarter of 2025. Normalized free cash flow was $8.7 million, compared to $3.8 million for the second quarter of 2025. Cash and cash equivalents was $73.9 million as of June 30, 2026, compared to $72.4 million as of December 31, 2025. "Our second quarter results came in above the guidance range on both the top and bottom line, driven by strong performance across our book of business, including new sales and upsells, as well as continued growth in AI-related revenues," said Ran Vered, Chief Financial Officer of Similarweb. "We generated $8.7 million in normalized free cash flow, our eleventh consecutive quarter of positive normalized free cash flow, while delivering an 8% non-GAAP operating margin and our first ever quarter of GAAP operating profit." Vered concluded, "Remaining performance obligations grew 26% year-over-year to $345 million, providing us with confidence to raise our full-year revenue and profit guidance." Financial Outlook FY 2026 Guidance Q3 2026 Guidance The Company’s third quarter and full year 2026 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and the Company’s expectations may change. There can be no assurance that the Company will achieve these results. The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating loss, and similarly cannot provide a reconciliation of this measure to its closest GAAP equivalent without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results. The Company has introduced disclosure of both non-GAAP net income (loss) and non-GAAP net income (loss) per share beginning with the second quarter of 2025. A reconciliation of non-GAAP to GAAP financial measures is presented at the end of this press release. Conference Call InformationThe financial results and business highlights will be discussed on a conference call and webcast scheduled at 8:30 a.m. Eastern Time on Wednesday, August 12, 2026. A live webcast of the call can be accessed from Similarweb’s Investor Relations website at https://ir.similarweb.com. An archived webcast of the conference call will also be made available on the Similarweb website following the call. The live call may also be accessed via telephone at (877) 407-0726 toll-free and at +1 (201) 689-7806 internationally. About Similarweb: Similarweb powers businesses to win their markets with Digital Data. By providing essential web and app data, analytics, and insights, we empower our users to discover business opportunities, identify competitive threats, optimize strategy, acquire the right customers, and increase monetization. Similarweb products are integrated into users’ workflow, powered by advanced technology, and based on leading comprehensive Digital Data. Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our guidance for the third quarter and full year of 2026 described under "Financial Outlook". Forward-looking statements include all statements that are not historical facts. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. These forward-looking statements reflect our current views regarding our intentions, products, services, plans, expectations, strategies and prospects, which are based on information currently available to us and assumptions we have made. Actual results may differ materially from those described in such forward-looking statements and are subject to a number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to successfully develop and market AI solutions and to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to sustain profitability; (v) anticipated trends, growth rates, changes in currency exchange rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of geopolitical and macroeconomic conditions or on our company and business; (vi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (vii) the costs and success of our sales and marketing efforts and our ability to promote our brand; (viii) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (ix) our ability to effectively manage our growth, including continued international expansion; (x) our reliance on certain third party platforms and sources for the collection of data necessary for our solutions; (xi) our ability to protect our intellectual property rights and any costs associated therewith; (xii) our ability to identify and complete acquisitions that complement and expand our reach and platform; (xiii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business, including in Israel, the United States, the European Union, the United Kingdom and other jurisdictions where we elect to do business; (xiv) our ability to compete effectively with existing competitors and new market entrants; and (xv) the growth rates of the markets in which we compete. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Form 20-F filed with the Securities and Exchange Commission on March 2, 2026, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. Except as required by law, we undertake no duty to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise. Non-GAAP Financial MeasuresThis press release contains certain financial measures that are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, non-GAAP financial measures have limitations as an analytical tool and are presented for supplemental informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP or as a measure of liquidity. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software costs. Normalized free cash flow represents free cash flow less capital investments, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, non-operating foreign exchange gains or losses and the relevant net tax effect as applicable and indicated in the below tables. Other MetricsAnnual recurring revenue (ARR) represents the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage. We define Annual Recurring Revenue (ARR) as the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. A contract is included in ARR for a particular period if it is active at the end of the applicable period and is excluded if it is not active at the end of the applicable period. Multi-year contracts are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by 12. ARR excludes non-recurring revenues, non-subscription revenues, revenues that are one-time in nature or revenues from subscriptions to our offerings for a period that is less than an annual subscription term. ARR is an operational measure that management uses to evaluate the scale of our annual subscription contracts. While ARR is useful in assessing the scale of our contracted subscription business, it is not necessarily indicative of future GAAP revenue, which is subject to factors such as customer renewals, expansions, contractions, churn and upsell or cross-sell opportunities. Since ARR is not a defined measure under GAAP, investors should not consider ARR as a substitute for revenue recognized under GAAP or for other GAAP-related measures such as remaining performance obligations or deferred revenue. ARR differs from revenue recognized in accordance with GAAP because GAAP revenue is recognized as performance obligations are satisfied, includes non-recurring revenues, such as revenue that is one-time in nature, subscriptions with less than an annual term, non-subscription revenue and the effects of contract modifications. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812027439/en/ Contacts Press Contact: David [email protected] Investor Contact: Rami [email protected]

Similarweb (SMWB) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this digital intelligence company would post earnings of $0.01 per share when it actually produced earnings of $0.01, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Similarweb, which belongs to the Zacks Internet - Content industry, posted revenues of $77.19 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.23%. This compares to year-ago revenues of $70.97 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Similarweb shares have lost about 3.2% since the beginning of the year versus the S&P 500's gain of 12.9%. While Similarweb has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Similarweb was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $78.93 million in revenues for the coming quarter and $0.15 on $310.27 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Smith Micro Software, Inc. (SMSI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +85.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Smith Micro Software, Inc.'s revenues are expected to be $4.8 million, up 8.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Similarweb Ltd. (SMWB) : Free Stock Analysis Report Smith Micro Software, Inc. (SMSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Similarweb Ltd.? Here are five stocks we like better. Similarweb reported strong Q2 results, with revenue rising 9% year over year to $77.2 million and its first-ever positive GAAP operating profit. Non-GAAP operating profit increased to $6.5 million, while free cash flow reached $8.7 million. Enterprise and AI demand accelerated: the company signed three multiyear contracts worth more than $60 million cumulatively, including an agreement involving large-language-model training. AI-related revenue rose to 13% of total revenue, and net revenue retention improved to 107% among customers with more than $100,000 in ARR. Management raised its full-year 2026 outlook to $340 million–$380 million in revenue and $24 million–$26 million in non-GAAP operating profit, expecting growth to accelerate in the second half as enterprise momentum and ARR strengthen. 3 Unique AI Software Plays With Strong Analyst Support Similarweb (NYSE:SMWB) reported second-quarter fiscal 2026 revenue growth of 9% year over year and raised its full-year outlook, as the company cited larger enterprise contracts, improving retention and rising demand for its digital data from artificial intelligence companies. Revenue for the quarter totaled $77.2 million, above the company’s prior guidance range. Non-GAAP operating profit was $6.5 million, or an 8% margin, compared with $2.4 million in the second quarter of 2025. The company also recorded positive GAAP operating profit for the first time in its history, according to CEO and Co-Founder Or Offer. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “Similarweb is at [an] inflection point,” Offer said, pointing to stronger core-business performance and what he described as a significant growth opportunity tied to AI. He said the company delivered its strongest quarter for net new annual recurring revenue, or ARR, while also improving retention and profitability. Offer said Similarweb signed three large multiyear enterprise contracts during the quarter with cumulative contract value of more than $60 million. The company also signed a fourth large contract in July, he said. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be The three Q2 agreements each represented eight-figure engagements, Offer said during the question-and-answer session. One of the contracts involved a major technology company using Similarweb data to train its large language model, and the expansion made that customer Similarweb’s third with an ARR engagement exceeding $10 million. Offer said only one of the three large deals was tied to LLM pre-training and post-training. The other two involved large enterprises using the company’s data in other ways, which he said could offer broader opportunities as organizations deploy AI across multiple teams and applications. → First Solar’s Profit Engine Faces a New Policy Test in Washington “We are increasingly monetizing access to data and the consumption of the data,” Offer said. “We believe AI will accelerate.” The company said AI-related revenue represented 13% of total revenue in the second quarter, up from 11% at the end of the fourth quarter of 2025. Offer said AI is increasing the value enterprises can derive from Similarweb’s data because AI systems can analyze more information and support more use cases than individual analysts. Chief Financial Officer Ran Vered said the company is seeing demand across several markets, including LLM-related uses, original equipment manufacturer arrangements, brands and investors. He said large organizations are increasingly seeking to integrate Similarweb’s data at scale. Net revenue retention reached 100% across all customers and 107% among customers with more than $100,000 in ARR. Vered said the reported NRR figure is based on an average of the previous four quarters, and management expects it to continue rising after a strong quarterly performance. Vered attributed the retention improvement in part to changes made earlier in the year, including shifting account-management efforts toward expansion while maintaining a focus on gross retention. The company continued to emphasize larger customers and multiyear arrangements. ARR under multiyear contracts represented 66% of ARR at the end of the quarter, compared with 57% a year earlier. Customers generating more than $100,000 of ARR accounted for 69% of ARR, while customers generating more than $25,000 accounted for 90%. Similarweb had 1,815 customers with ARR above $25,000, compared with 1,809 a year earlier. Average account value for customers above $25,000 in ARR increased 19% year over year to $149,000. The number of customers above $100,000 in ARR rose 9% year over year to 473. Average account value in the above-$100,000 cohort increased 18% to $438,000. Vered said the relatively flat count of customers above $25,000 reflected a decision to prioritize larger opportunities within the existing customer base rather than smaller inbound small- and medium-sized business deals. Normalized free cash flow was $8.7 million in the quarter, representing an 11% margin. Similarweb ended the quarter with about $73 million in cash and cash equivalents, no debt and a $75 million available credit line. Remaining performance obligations totaled $345 million, up 26% year over year, with the company expecting to recognize about 66% as revenue over the next 12 months. For the third quarter, Similarweb forecast revenue of $80.5 million to $82.5 million, representing 17.5% year-over-year growth at the midpoint. The company projected third-quarter non-GAAP operating profit of $7.5 million to $9.5 million. For full-year 2026, the company raised its revenue guidance to a range of $340 million to $380 million, representing about 12% growth at the midpoint. It also increased its full-year non-GAAP operating-profit outlook to $24 million to $26 million. Management said it expects revenue growth to accelerate in the second half of 2026, supported by second-quarter ARR growth and enterprise momentum. Vered said the company is continuing to manage the impact of a stronger Israeli shekel against the U.S. dollar, noting that about half of Similarweb’s employees are based in Israel. Offer said the company’s pricing for its large data agreements has not materially changed, describing the contracts as primarily consumption- and data-access-oriented rather than software-seat-based. He added that any one-time revenue elements in the large contracts are immaterial, while the agreements are principally ARR deals. Looking ahead, Offer said Similarweb plans to continue expanding relationships with large enterprises, pursuing cross-sell and upsell opportunities within its existing customer base, and building AI-focused products and distribution channels. The company said its data is available through MCP on Claude and ChatGPT and that it expanded partnerships with Perplexity and Manus during the quarter. Similarweb Ltd. (NYSE: SMWB) is a digital intelligence company that provides insights into website and mobile app performance. Its cloud-based platform aggregates and analyzes data on global web traffic, user engagement, and referral sources, enabling businesses to benchmark their digital presence against competitors. The company’s core offering includes metrics on audience behavior, traffic acquisition channels, and industry trends, which are designed to inform strategic decisions in marketing, sales, and product development. Similarweb’s platform delivers a suite of tools for market research, competitor analysis, and performance optimization. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Similarweb Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the record net new ARR and positive GAAP operating profit to a strategic pivot from a 'land and expand' software model to becoming a core enterprise data provider. AI is fundamentally changing data economics by removing human capacity constraints; AI systems can now ingest and analyze Similarweb data at a scale and speed that significantly increases the ROI for customers. The company successfully moved upmarket, with customers generating over $100,000 in ARR now representing almost 70% of total business, up from 63% a year ago. Strategic focus on the 'ALO' (AI, LLM, and OEM) go-to-market team has unlocked 8-figure engagements that were historically rare for the company. Operational discipline and improved sales productivity drove the first-ever quarter of positive GAAP operating profit, despite ongoing FX headwinds from the Israeli shekel. Management notes that proprietary digital data has transitioned from a software application tool to 'fuel' for the AI ecosystem, serving both pre-training and post-training use cases. Full-year revenue guidance was raised for the second time this year to $340M–$380M, assuming accelerated growth in the second half of 2026 supported by strong Q2 ARR momentum. Management expects NRR to continue trending upward throughout 2026, citing that current reported figures are a trailing 4-quarter average and do not yet fully reflect the high NRR achieved in Q2. The company anticipates generating positive normalized free cash flow on a quarterly basis going forward, supported by an 11% free cash flow margin in Q2. Future growth is predicated on a three-pillar AI strategy: powering external AI systems, building AI-native products like 'AI Studio', and expanding distribution through platforms like Claude, ChatGPT, and Perplexity. Guidance assumes continued expansion of multi-year commitments, which currently stand at 66% of ARR, providing increased revenue durability. Signed three large multi-year contracts in Q2 with a cumulative value exceeding $60 million, representing a fundamental shift in deal size and complexity. AI-related revenue reached 13% of total revenue in Q2, up from 11% at the end of 2025, signaling the growing materiality of the AI sector. The company is intentionally deprioritizing smaller inbound SMB deals to focus resources on large-scale enterprise opportunities, resulting in a 19% increase in average account value for the $25k+ cohort. Management confirmed the CEO search is progressing with strong candidates currently being interviewed. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that only one of the three major Q2 deals was for LLM training; the others involve enterprises leveraging data for internal AI-driven applications and decision-making. The shift toward data consumption models rather than seat-based software licenses allows for much larger contract values as AI agents can query data across thousands of use cases. The improvement in NRR to 100% was driven by a strategic change at the beginning of the year to focus account managers specifically on expansion and gross retention (GRR). Management expressed high confidence in further NRR increases because the Q2 performance was significantly higher than the trailing 4-quarter average. One of the two previously delayed large AI deals remains in the pipeline; management views this as a potential 'nice big surprise' that could close by the end of the year. While the underlying pricing per data set hasn't changed, the total contract values are rising because customers are purchasing access to a much broader variety of data sets for AI ingestion. The monetization model is increasingly shifting toward data access and consumption rather than traditional software seats.

Similarweb Ltd. (NYSE:SMWB) shares jumped 17% in premarket trading on Wednesday after the digital data and analytics company reported second-quarter earnings and revenue above Wall Street expectations and raised its full-year guidance amid strong demand for AI-related solutions. Adjusted earnings per share came in at $0.06, double the analyst consensus estimate of $0.03. Revenue increased 9% year on year to $77.2 million from $71.0 million in the second quarter of 2025, exceeding the $75.54 million consensus forecast. Similarweb secured more than $60 million in new multi-year contracts during the quarter, including three agreements valued at seven figures. “We delivered a strong second quarter that I believe marks an important inflection point for Similarweb, with revenue and profit ahead of our expectations,” stated Or Offer, Co-Founder and CEO. “NRR increased to 100% for all customers, and we signed three seven-figure multi-year contracts worth more than $60 million combined, including an expansion that made a leading big tech customer our third eight-figure ARR account.” The contract wins, alongside improving net revenue retention, highlighted stronger demand for Similarweb’s data and analytics products as customers increasingly seek solutions related to artificial intelligence. For the third quarter of 2026, Similarweb expects revenue of between $80.5 million and $82.5 million. The midpoint of $81.5 million would represent year-on-year growth of approximately 13.5%, indicating an acceleration from the 9% increase recorded during the second quarter. The company also raised its full-year 2026 revenue forecast to between $314.0 million and $318.0 million. At the midpoint of $316.0 million, annual revenue would increase by approximately 11.8% year on year. Profitability improved substantially during the second quarter, with adjusted operating profit rising to $6.5 million, equivalent to 8% of revenue. That compares with adjusted operating profit of $2.4 million, or 3% of revenue, in the corresponding quarter of 2025. Similarweb also achieved its first quarter of positive GAAP operating profit, recording $0.7 million for the period. The combination of above-consensus results, major multi-year contract wins, improving profitability and a stronger full-year outlook helped drive the sharp increase in Similarweb shares following the announcement. Similarweb stock price

This article first appeared on GuruFocus. Revenue: $77.2 million in Q2 2026, a 9% increase year over year, above the top end of guidance. GAAP Operating Profit: Positive for the first time in company history. Non-GAAP Operating Profit: $6.5 million, an 8% margin, compared to $2.4 million in Q2 2025. Non-GAAP Diluted EPS: $0.06, compared to $0.01 in Q2 2025. Normalized Free Cash Flow: $8.7 million, representing an 11% free cash flow margin. Net Revenue Retention (NRR): 100% across all customers and 107% for customers with over $100,000 of ARR. AI-Related Revenue: Reached 13% of revenue in Q2, up from 11% at the end of Q4 2025. Remaining Performance Obligation (RPO): Totaled $345 million, up 26% year over year. Deferred Revenue: Increased to $141 million, a 21% increase year over year. Customers with ARR over $100,000: Increased to 473, up 9% year over year, with average account value up 18% to $438,000. Customers with ARR over $25,000: 1,815 customers, with average account value growing 19% year over year to $149,000. Multi-Year Contract ARR: Expanded to 66% of ARR, up from 57% a year ago. Full-Year 2026 Revenue Guidance: Raised to a range of $340 million to $380 million, representing approximately 12% year-over-year growth at the midpoint. Q3 2026 Revenue Guidance: Expected in the range of $80.5 million to $82.5 million, representing 17.5% year-over-year growth at the midpoint. Full-Year 2026 Non-GAAP Operating Profit Guidance: Raised to between $24 million and $26 million. Q3 2026 Non-GAAP Operating Profit Guidance: Expected in the range of $7.5 million to $9.5 million. Warning! GuruFocus has detected 3 Warning Signs with SMWB. Is SMWB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Delivered the strongest quarter in Similarweb Ltd (NYSE:SMWB) history for net new ARR, with revenue growing 9% year-over-year to $77.2 million, exceeding guidance. Achieved positive GAAP operating profit for the first time ever, alongside a non-GAAP operating profit of $6.5 million (8% margin), and raised full-year guidance for the second time. NRR improved to 100% across all customers and 107% for customers above $100,000 ARR, with expectations for further improvement driven by strong gross retention and expansion focus. Signed three large multi-year enterprise contracts with a combined value of over $60 million, including a third customer with more than $10 million ARR, demonstrating strong upmarket momentum. AI-related revenue reached 13% of total revenue, up from 11% at the end of Q4 2025, with expanding partnerships (e.g., Perplexity, Manus) and new AI-native products like AI Studio driving growth. Generated $8.7 million in normalized free cash flow (11% margin) and ended the quarter with $73 million in cash and no debt, with RPO up 26% year-over-year to $345 million. Revenue growth of 9% year-over-year was modest, and the company noted a tough comparison from Q2 2025, indicating potential deceleration in the core business. The number of customers with ARR above $25,000 remained nearly flat sequentially (1,815 vs. 1,809), reflecting a strategic shift away from smaller deals that could limit near-term customer growth. FX headwinds from the strengthening Israeli shekel continue to pressure profitability, requiring ongoing cost control measures to mitigate the impact. The company faces execution risks in scaling its go-to-market strategy to support the growing pipeline of large enterprise opportunities, as highlighted by the need for significant cross-functional effort in closing deals. The CEO search is still in progress, creating potential leadership uncertainty during a critical transformation period. The company's reliance on a few large AI-related deals (e.g., the second large AI deal still in pipeline) introduces concentration risk, with timing of closures uncertain. Q: Can you talk a little bit more about those large customers that you signed and how they are showing up in the pipeline? Is this using Similarweb data in a much broader sense than we've seen classically?A: Or Offer (CEO): Yes, you're right. The most advanced enterprises now realize that with AI, they can crunch much more data and get much better insights and recommendations. The ROI for the same data is now much higher, and they can consume much more data. We're seeing this trend, and we think we will continue to see great success onboarding more enterprises to use our data in this approach. Q: You mentioned that NRR could potentially trend up. What gives you the confidence there? How much of that is mechanical versus underlying activity?A: Or Offer (CEO) and Ran Vered (CFO): We have very high confidence because the NRR we report is the average of the previous four quarters. Since we know this quarter's NRR was very high, we already know the next quarter's NRR will continue to increase. We also see very strong gross retention trends, and the changes we made to have account management focus more on expansion are already bearing fruit. Q: When you look at the quarter, how much of the strong pipeline results was execution from the go-to-market refresh versus an underlying change in customer actions where data is proliferating across organizations?A: Or Offer (CEO): A lot of it came from focusing people on doing the right things that can produce the highest outcome. We took some of our best people and put them on the strategic ALO team to build better, bigger relationships with top enterprises. Moving those priorities, including having account managers focus on expansion, is bearing fruit. Q: A couple of quarters ago, you saw variability in two large AI deals. Can we get an update on the second one? Is it still in the pipeline?A: Or Offer (CEO): Funny enough, the second one is still in the pipeline, and we still think this could be another surprise that can come at the end of the year. Q: Regarding the $60 million in new deals, can you give us a sense of how the ARR is split between pre-training, post-training, and production use cases?A: Or Offer (CEO) and Ran Vered (CFO): We cannot go into the full breakdown, but of the three big deals, each is above an eight-figure engagement. Only one is for LLM training (pre and post). The other two are big enterprises leveraging our data in different ways, which is much more exciting. We see great demand across all marketsLLM, OEM, brands, and investorsfor integrating our data at scale because of AI's ability to digest more data. Q: As you think about the new use cases, are you changing the pricing of the platform to evolve with them, or are the pricing mechanisms the same?A: Or Offer (CEO): The pricing is the same because most of those big deals are around data. It's more about consumption and data access rather than software. We are selling much more data and many more different data sets because AI is changing the equation, allowing companies to consume more data and get more ROI. Q: Are there any one-time revenues to be cognizant of from these large deals, and what is the timing of those revenues?A: Ran Vered (CFO): Those deals are ARR deals. If there is a one-time element, it is quite negligible and immaterial. Usually, it is recognized at the initiation of the deal or a couple of months later at max. These are pure ARR deals with small and immaterial one-time amounts, if at all. Q: Is there anything to call out on the SMB or smaller customer cohort? Are they seeing macro pressures, and how is growth looking there?A: Or Offer (CEO): Nothing special there. Overall, digital traffic to websites is going down, and there is less traffic coming from search, which is a broader market trend. But overall, average order value is the same, and win rates are the same. More commercial people are now moving to drive more expansion as we see this opportunity. Q: Are you seeing trends with initial customer contracts coming in at higher price points, and how much focus is on cross-sell and upsell versus outbound net new customers?A: Or Offer (CEO): Most of our senior commercial people doing outbound enterprise new sales have been moved to focus more on expansion. We have an amazing book of business and already engage with most of the best and biggest companies in the world. We now have a new opportunity for cross-sell and upsell with the changes happening with AI. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Perion Network (PERI) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +350.00%. A quarter ago, it was expected that this digital media company would post earnings of $0.06 per share when it actually produced earnings of $0.11, delivering a surprise of +83.33%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Perion Network, which belongs to the Zacks Internet - Content industry, posted revenues of $98.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.76%. This compares to year-ago revenues of $102.98 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Perion Network shares have added about 2.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While Perion Network has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Perion Network was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $120.15 million in revenues for the coming quarter and $1.02 on $464.24 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Similarweb (SMWB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This digital intelligence company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Similarweb's revenues are expected to be $75.5 million, up 6.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perion Network Ltd (PERI) : Free Stock Analysis Report Similarweb Ltd. (SMWB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Yelp (YELP) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +93.75%. A quarter ago, it was expected that this online business reviews company would post earnings of $0.26 per share when it actually produced earnings of $0.36, delivering a surprise of +38.46%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Yelp, which belongs to the Zacks Internet - Content industry, posted revenues of $375.52 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.74%. This compares to year-ago revenues of $370.39 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Yelp shares have lost about 15.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While Yelp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Yelp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $372.56 million in revenues for the coming quarter and $1.79 on $1.46 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Similarweb (SMWB), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This digital intelligence company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Similarweb's revenues are expected to be $75.5 million, up 6.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yelp Inc. (YELP) : Free Stock Analysis Report Similarweb Ltd. (SMWB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research