Similarweb Ltd. (SMWB), a digital intelligence company, witnessed a staggering 26.4% plunge in its stock price during the intraday trading session on Tuesday. This sharp decline came despite the company reporting strong fourth-quarter results that met Wall Street's expectations.
For the fourth quarter of 2024, Similarweb reported revenue of $65.6 million, in line with the consensus estimate of $65.48 million. The company also reported an adjusted earnings per share (EPS) of $0.03, meeting analysts' expectations. However, the company's guidance for the first quarter of 2025 and the full year fell short of analysts' projections, prompting the sell-off in the stock.
Similarweb expects first-quarter revenue to range between $66 million and $66.5 million, lower than the consensus estimate of $67.32 million. For the full year 2025, the company forecasts revenue between $285 million and $288 million, compared to the consensus estimate of $286.14 million. This weaker-than-expected outlook overshadowed the company's solid performance in the fourth quarter and triggered a significant decline in its stock price.
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