Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Management attributes the record net new ARR and positive GAAP operating profit to a strategic pivot from a 'land and expand' software model to becoming a core enterprise data provider.
AI is fundamentally changing data economics by removing human capacity constraints; AI systems can now ingest and analyze Similarweb data at a scale and speed that significantly increases the ROI for customers. The company successfully moved upmarket, with customers generating over $100,000 in ARR now representing almost 70% of total business, up from 63% a year ago. Strategic focus on the 'ALO' (AI, LLM, and OEM) go-to-market team has unlocked 8-figure engagements that were historically rare for the company.
Operational discipline and improved sales productivity drove the first-ever quarter of positive GAAP operating profit, despite ongoing FX headwinds from the Israeli shekel. Management notes that proprietary digital data has transitioned from a software application tool to 'fuel' for the AI ecosystem, serving both pre-training and post-training use cases. Full-year revenue guidance was raised for the second time this year to $340M–$380M, assuming accelerated growth in the second half of 2026 supported by strong Q2 ARR momentum.
Management expects NRR to continue trending upward throughout 2026, citing that current reported figures are a trailing 4-quarter average and do not yet fully reflect the high NRR achieved in Q2. The company anticipates generating positive normalized free cash flow on a quarterly basis going forward, supported by an 11% free cash flow margin in Q2. Future growth is predicated on a three-pillar AI strategy: powering external AI systems, building AI-native products like 'AI Studio', and expanding distribution through platforms like Claude, ChatGPT, and Perplexity.
Guidance assumes continued expansion of multi-year commitments, which currently stand at 66% of ARR, providing increased revenue durability. Signed three large multi-year contracts in Q2 with a cumulative value exceeding $60 million, representing a fundamental shift in deal size and complexity. AI-related revenue reached 13% of total revenue in Q2, up from 11% at the end of 2025, signaling the growing materiality of the AI sector.
The company is intentionally deprioritizing smaller inbound SMB deals to focus resources on large-scale enterprise opportunities, resulting in a 19% increase in average account value for the $25k+ cohort. Management confirmed the CEO search is progressing with strong candidates currently being interviewed. Nvidia-level potential. 30M+ investors trust Moby to find it first.
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