Similarweb Ltd. Q4 FY2025 earnings call

2025 was a build year where the company built the platform to win in the AI era. They accelerated product innovation, launched new offerings like App Intelligence and AI Studio. In 2025, they achieved second consecutive year of positive operating profit and free cash flow. 60% of ARR is now multiyear, up from 49% a year ago. 63% of ARR comes from customers generating over $100,000 annually. In 2026, they focus on disciplined execution and scaling, with strategies including strengthening data mode, deepening enterprise relationship, and scaling AI-first integrated solution.

Revenue grew 11% year-over-year to $72.8 million in Q4 2025. Net revenue retention for all clients was 98% and 103% for clients above $100,000. AI-related revenue reached 11% of sales in the fourth quarter.

For 2026 full year, expect total revenue in range of $305 million to $315 million (10% growth midpoint). Q1 2026 expects total revenue in range of $72 million to $74 million (9% growth midpoint). Non-GAAP operating profit for full year expected between $16 million and $19 million. Non-GAAP operating profit for Q1 2026 expected in range of $0.5 million to $2.5 million. Guidance is prudent due to uncertainty around large AI contracts in pipeline.

Uncertainty in timing of large LLM contracts affecting revenue; sales team resources投入 to big contracts impacting core business growth; market dynamics and budget allocation risks.

Q: Raimo Lenschow asked about correlation between LLM contracts and NRR.

A: Or Offer said no correlation as different use cases.

Q: Arjun Bhatia asked about core business growth excluding AI revenue.

A: Or Offer and Maoz Lakovski said core business still growing, working on improving NRR.

Q: Raimo Lenschow asked about guidance philosophy regarding large AI deals.

A: Ran Vered said guidance range widened due to uncertainty in timing of large deals.

Q: Ken Wang asked about miss in quarter and inclusion in Q1 guide.

A: Or Offer said majority miss due to large AI deals and cautious approach in Q1.

Q: Scott Berg asked about sales investments and productivity.

A: Or Offer and Maoz Lakovski talked about optimizing go-to-market and no need for additional sales investments in 2026.

Q: Patrick Walravens asked about breakdown of AI revenue and closed LLM deals.

A: Or Offer said AI revenue includes multiple streams and some smaller LLM deals closed.

Q: Lucas John Horton asked about commercial execution shortfalls and AI Studio monetization.

A: Or Offer and Maoz Lakovski talked about optimizing go-to-market and AI Studio monetization model.

Q: Adam Hotchkiss asked about elongated sales cycles and competitive landscape.

A: Or Offer and Maoz Lakovski talked about sales cycle changes and positioning in GEO/AIO market