Similarweb Ltd. (SMWB) shares dropped more than 10% Wednesday after delivering the kind of quarterly report that makes investors shrug: good, but not quite good enough.

The Numbers Game

Similarweb reported adjusted earnings of 5 cents per share for the third quarter, comfortably beating the 3-cent consensus. But revenue came in at $71.78 million, just missing the $71.97 million estimate. That slight revenue miss was apparently enough to send shares tumbling to $7.61, down 10.26% at the time of reporting.

The Bright Spots

Looking past the headline miss, there's actually some solid momentum here. Revenue grew 11% year-over-year, and the company notched its eighth consecutive quarter of positive free cash flow. Customer count jumped 15% during the quarter.

The real story might be in the enterprise segment. Remaining performance obligations climbed 26% year-over-year to $267.6 million, suggesting healthy future revenue visibility. High-value customers with annual recurring revenue of $100,000 or more reached 447 accounts, representing 63% of total ARR. That cohort posted a dollar-based net retention rate of 105%, meaning existing big customers are spending more over time.

The company held $65.5 million in cash and equivalents as of September 30.

Looking Ahead

For fiscal 2025, Similarweb expects revenue between $285 million and $288 million. The midpoint sits slightly below the $286.61 million consensus estimate, which likely didn't help the stock's cause.