- Similarweb continues to deliver growth and create long-term engagements for high revenue visibility.
- Gross margin hit until new acquisitions create some leverage, but these have served to create cross-selling opportunities and increase retention.
- Stock has traded down and continues to be at an unjustified discount to SEMRush.
- Risks are macroeconomic in that spending may decline on these sorts of products, but we believe Similarweb is essential enough to weather these issues.
- Moreover, dilution risks are pretty minimal given the cash guidance, and the company has an inherent cash generative subscription-based business model that we like.
For further details see:
Similarweb Is Cheaper Than It's Ever Been