Similarweb (NYSE:SMWB) Posts Narrower Q3 Loss; Revenue Beats Estimates

Digital intelligence platform provider Similarweb (NYSE:SMWB) released its third-quarter earnings results on Tuesday, in which both the top and bottom lines exceeded analyst expectations.

The non-GAAP operating loss of $0.18 per share was narrower than the estimated loss of $0.27 as well as the prior-year quarter’s loss of $0.19 per share. Moreover, revenues of $50 million came slightly above the expected $49.14 million. Revenues were also 41% higher year-over-year.

Further, the number of customers increased 21% year-over-year to 3,911, and the average annual revenue per customer climbed 15% during the same period to $51,570 in Q3.

For the upcoming fourth quarter, Similarweb expects revenues to be in the range of $50.5 million and $50.9 million. For the full year of 2022, the company expects revenues between $192.4 million and $192.8 million, representing a 40% growth over 2021 at the midpoint.

Following the earnings results, shares of the company dipped more than 9% in after-hours trading on Tuesday.

Is Similarweb a good investment?

Over the last three months, only one analyst has covered Similarweb with a Buy rating and a $20 price target.

However, with a price currently 2.8 times the trailing twelve-month sales, the SMWB stock looks inexpensive. Also, a beta of 0.68 means that the stock is less volatile than the market, which is important in times of high volatility.

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