Citizens has adjusted its view on Similarweb Ltd (NYSE:SMWB), moving the stock from Market Outperform to Market Perform in reaction to the company’s fourth-quarter financial report. The decision follows figures that missed consensus on both the top and bottom lines.
Similarweb posted non-GAAP earnings per share of $0.03 in the quarter, under the consensus estimate of $0.04. Revenue totaled $72.8 million, which was below the lower bound of the company’s own guidance range of $75.2 million to $78.2 million and nearly 5% under consensus expectations.
On a forward-looking operational metric, current remaining performance obligations reached $199 million, representing a 17% increase and outpacing the consensus estimate of $194 million. Free cash flow for the quarter was reported at $1.0 million, slightly under the $1.2 million consensus figure.
Market reaction was immediate: the shares fell about 19% in aftermarket trading following the earnings release. Prior to the announcement, the stock had already dropped 48% year-to-date. By comparison, the Russell 3000 index showed flat performance over the same period.
Alongside the results, Similarweb introduced a new enterprise product, AI Studio, which is designed to let organizations query digital market data via conversational AI. The platform is integrated with the company’s digital intelligence systems and draws on data covering 100 million websites and 20 million companies.
Similarweb also expanded distribution for its alternative data by making it available to Bloomberg Terminal users. That dataset provides near real-time digital metrics, including unique visitors and page views, to help track public companies’ online performance.
Analyst responses have been mixed. Goldman Sachs downgraded Similarweb from Buy to Neutral and lowered its price target to $7.50, citing concerns about growth potential. Oppenheimer adjusted its price target to $10.00 while keeping an Outperform rating, pointing to demand volatility and leadership changes as factors. The article also notes that Citizens, despite the earlier downgrade reported in this piece, is cited as maintaining a Market Outperform rating with a $17.00 price target in other coverage, emphasizing the company’s digital intelligence product set and data capabilities.
The company’s results and these analyst moves highlight the tension between near-term execution and enterprise demand for digital intelligence data. Investors and market participants will likely weigh the revenue and EPS shortfalls against the strength in remaining performance obligations and new product distribution.
Separate tools and services referenced alongside the reporting include a Fair Value calculator promoted to help assess whether SMWB is attractively valued, using a blend of 17 industry valuation models. The tool is mentioned as a way to screen for undervalued stocks, including SMWB.