Similarweb Ltd. (SMWB) experienced a sharp sell-off in its stock price, plummeting more than 36% in pre-market trading on Wednesday. This significant decline was triggered by the company's weaker-than-expected outlook for the first quarter and full year of 2025, despite reporting solid 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 the significant decline in its stock price.