Similarweb Ltd. announced robust financial results for the second quarter ended June 30, 2025, with revenue reaching $71 million. This represents a 17% increase year-over-year, surpassing the company's own expectations.
The company returned to positive non-GAAP operating profit, reporting 3% in Q2 2025, and achieved its seventh consecutive quarter of positive free cash flow, which totaled $4 million, representing a 5% free cash flow margin.
Similarweb's customer base grew 18% year-over-year to nearly 6,000 ARR customers, with AI-related revenues contributing approximately 8% of Q2 2025 revenues and showing strong growth. The company also reported an overall Net Revenue Retention (NRR) of 100%, a 100 basis point increase year-over-year.
Remaining Performance Obligations (RPO) totaled $274 million at the end of Q2 2025, a 26% year-over-year increase, with 68% expected to be recognized as revenue over the next 12 months. Additionally, 57% of ARR is now contracted under multi-year agreements, up from 44% last year, indicating strong revenue durability.
For the full year 2025, Similarweb reiterated its revenue guidance in the range of $285 million to $288 million, representing 15% year-over-year growth at the midpoint. The company also raised its non-GAAP operating profit guidance to between $5 million and $7 million, an increase from previous expectations.
For Q3 2025, revenue is projected to be between $71.5 million and $72 million, with non-GAAP operating profit expected in the range of $1.5 million to $2 million. Management's confidence is driven by a robust pipeline, particularly for Gen AI and App Intelligence products, and anticipated conversion of large transactions.
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