Similarweb Ltd., a digital intelligence company, saw its shares plunge over 20% in after-hours trading on Tuesday, despite reporting strong fourth-quarter results that met Wall Street's expectations. The sell-off was driven by the company's disappointing first-quarter and full-year 2025 outlook.
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. 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.