SMWB Earnings Prediction
The chart below shows how SMWB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SMWB sees a +5.60% change in stock price 10 days leading up to the earnings, and a +0.62% change 10 days following the report. On the earnings day itself, the stock moves by +0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
SMWB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
64.71M
18.01%
6.71%
Gross Margin
78.02%
-3.33%
-1.68%
Operating Margin
-3.01%
-65.00%
385.48%
Net Margin
-3.97%
-54.99%
225.41%
EPS
-0.03
-50.00%
200.00%
No Data Available
SMWB Earnings Analysis
Similarweb Ltd. Corporation (SMWB.N) Earnings Conference Call
Positive
Consistent Revenue Acceleration: 1. Accelerated Revenue Growth: Similarweb reported an 18% year-over-year revenue growth in Q3 2024, marking the fourth consecutive quarter of accelerating revenue growth.
Customer Count Surge: 2. Customer Count Increase: The total customer count grew by 21% year-over-year, indicating strong demand for Similarweb's services.
Net Revenue Retention Improvement: 3. Improved Net Revenue Retention: The overall net revenue retention rate reached 101%, with a notable 111% for customers with over $100,000 in annual recurring revenue, reflecting enhanced customer satisfaction and loyalty.
Consistent Free Cash Flow: 4. Positive Free Cash Flow: The company generated $9 million in free cash flow during Q3, marking the fourth consecutive quarter of positive free cash flow.
Future Revenue Visibility: 5. Significant Remaining Performance Obligations: Similarweb's remaining performance obligations totaled $212 million at the end of Q3, up 27% year-over-year, indicating strong future revenue visibility.
Negative
Q4 Revenue Guidance Downgrade: 1. Revenue Guidance Downgrade: The Q4 revenue guidance was set at $64.7 million to $65.7 million, indicating only a 15% year-over-year growth at the midpoint, which is a slowdown compared to the 18% growth reported in Q3.
Operating Margin Challenges: 2. Operating Margin Pressure: Despite achieving a non-GAAP operating margin of 7% in Q3, the company anticipates increased operating expenses due to accelerated hiring, which may pressure future margins.
Customer Acquisition Slowdown: 3. Customer Growth Deceleration: Although total customer count grew by 21% year-over-year, the guidance suggests a potential slowdown in customer acquisition momentum moving into Q4.
Rising Operating Expenses: 4. Increased Operating Expenses: The company noted that increased headcount would lead to higher operating expenses, which could impact profitability in the near term.
Free Cash Flow Concerns: 5. Free Cash Flow Volatility: While the company generated $9 million of free cash flow in Q3, this was positively impacted by the timing of customer seat collections, raising concerns about sustainability in future quarters.
SMWB FAQs
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SMWB Earning Call Sentiment
Similarweb Ltd. (SMWB) Q3 2024 Earnings Call Transcript
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SMWB.N
-1.32%Positive
The earnings call highlighted strong financial performance with a 18% YoY revenue increase, positive free cash flow, and improved guidance. Despite competitive pressures and regulatory challenges, the company shows strong customer growth and product demand. The Q&A session revealed analysts' confidence in the company's strategy and growth trajectory, particularly in AI integration and customer retention. The lack of clear guidance on Q4 revenue volatility slightly tempers optimism, but overall, the financial health and strategic initiatives suggest a positive stock price movement in the near term.
