Similarweb is a digital-market-intelligence vendor that just printed its first GAAP operating profit while converting demand from model builders into multi-year enterprise contracts. Founder and chief executive Or Offer called the second quarter an inflection, pointing to overall net retention back to a flat installed base and three large multi-year awards. Annual recurring revenue, the contracted subscription run-rate assuming no expansion or contraction, crossed $300 million in June. The debate is whether those awards recast the company as a data supplier to models and agents, or whether they sit on a still-slow software book whose growth remains in the high single digits.
The print beat the company's own range, but the year-on-year comparison was soft because last year's second quarter included a pull-forward that inflated the base. What moved underneath is mix rather than a sudden acceleration in the core seat business. Customers above the six-figure ARR threshold now contribute sixty-nine percent of the recurring book, multi-year contracts cover two-thirds of ARR, and remaining performance obligations, the contracted backlog not yet recognized as revenue, grew about a quarter. Three multi-year awards totaling about $60 million of committed value included an expansion that created a third eight-figure ARR account. AI-related revenue reached thirteen percent of the quarter, up from the year-end mix, so the profit inflection has a commercial story rather than a cost-cut story alone.
Second-quarter revenue was $77 million. Operations flipped to a slim GAAP profit after a year-ago loss, and the non-GAAP operating line more than doubled. Full-year revenue guidance moved up for the second time, to a midpoint near $316 million. Cash generation stayed positive for an eleventh consecutive quarter. The question the next several quarters resolve is whether net retention holds at or above breakeven while the AI mix keeps rising, or whether the large-deal pulse fades as the founder-succession search becomes the louder story.