Similarweb Ltd. (NYSE: SMWB) shares surged 20.99% in pre-market trading on Wednesday following the company's impressive second-quarter earnings report and increased full-year profit guidance. The digital intelligence firm demonstrated robust financial performance, surpassing analyst expectations on both earnings per share and revenue fronts.

For the second quarter, Similarweb reported adjusted earnings of $0.01 per share, beating the analyst consensus estimate of a $0.01 loss. While this represents a decrease from $0.05 per share in the same period last year, it marks a significant outperformance of expectations. The company's revenue climbed 17% year-over-year to $70.97 million, exceeding the analyst forecast of $68.80 million.

The strong quarterly results were driven by an 18% increase in the company's customer base, with CFO Jason Schwartz highlighting the growing demand for Generative AI and Large Language Model (LLM) training. Notably, AI-related revenues accounted for nearly 8% of Q2 revenues, contributing significantly to the company's growth. Furthermore, Similarweb raised its fiscal year 2025 adjusted operating profit guidance to a range of $5 million to $7 million, up from the previous forecast of $1 million to $4 million, signaling management's confidence in the company's future performance. The positive earnings surprise and optimistic outlook have reignited investor enthusiasm, propelling the stock to its substantial pre-market gain.