Stock Track | Similarweb Shares Plunge 5.06% After-Hours as Q3 Revenue Misses Estimates

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Shares of Similarweb Ltd. (SMWB) tumbled 5.06% in after-hours trading on Tuesday following the release of the company's third-quarter 2025 financial results. Despite beating earnings expectations, the digital intelligence company's revenue fell short of analyst estimates, raising concerns about its growth trajectory.

Similarweb reported Q3 revenue of $71.789 million, representing an 11% year-over-year increase. However, this figure narrowly missed the consensus estimate of $71.977 million. The company's adjusted earnings per share came in at $0.05, surpassing analysts' expectations of $0.03 and matching the previous year's figure.

While Similarweb maintained its full-year 2025 revenue guidance of $285 million to $288 million, investors appeared to focus on the slight revenue miss and decelerating growth rate. The company's customer base grew by 15% year-over-year, but the dollar-based net retention rate for customers with ARR of $100,000 or more declined to 105% from 111% in the same quarter last year. This slowdown in expansion within existing large customers may be contributing to investor concerns about future growth prospects, despite the company's efforts to capitalize on emerging trends such as Generative AI solutions.

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