The earnings call highlighted robust growth in the enterprise and AI sectors, which are becoming significant contributors to Semrush's revenue. However, challenges persist with the lower market segments, and increased costs have necessitated a revision of revenue guidance. The strategic focus on high-value segments and the share repurchase program reflect a positive long-term outlook, despite near-term headwinds.
Company Guidance
During the Semrush Holdings Second Quarter 2025 Conference Call, the company provided guidance reflecting strong growth in both their enterprise and AI product offerings. Revenue for the quarter reached $108.9 million, marking a 20% year-over-year increase with a non-GAAP operating margin of 11%. The enterprise SEO solution played a significant role, growing to 260 customers with an average annual recurring revenue (ARR) of approximately $60,000, and contributing as the largest driver of overall company growth. Additionally, Semrush's new enterprise AI search product, AI optimization, quickly garnered over 30 enterprise customers, generating nearly $1 million in ARR. Despite experiencing softness in the lower market segment, comprising freelancers and less sophisticated users, the company has strategically shifted its focus and resources toward high-growth areas in enterprise and AI search. This shift is reflected in their updated 2025 revenue guidance, now anticipated to be between $443 million and $446 million, with a continued emphasis on a 12% non-GAAP operating margin and free cash flow margin. The company also announced a $150 million share repurchase program, underscoring their confidence in long-term growth and shareholder value.
Strong Revenue Growth
Revenue in the quarter was $108.9 million, representing 20% year-over-year growth, exceeding the midpoint of guidance.
Enterprise Segment Expansion
The enterprise SEO solution grew to 260 customers with an average ARR of approximately $60,000. The number of customers paying over $50,000 per year grew by 83%.
AI Product Success
The AI toolkit grew from 0 to $3 million ARR in a few months, and overall, AI-related products are expected to approach $50 million ARR by year-end.
Share Repurchase Program
A $150 million share repurchase program was announced, demonstrating confidence in the company's future.
SEMrush Holdings (SEMR) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SEMR Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Aug 04, 2025
$9.21
$7.30
-20.74%
May 07, 2025
$10.22
$10.00
-2.15%
Feb 26, 2025
$15.09
$11.88
-21.27%
Nov 07, 2024
$14.28
$13.26
-7.14%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does SEMrush Holdings (SEMR) report earnings?
SEMrush Holdings (SEMR) is schdueled to report earning on Nov 05, 2025, After Close (Confirmed).
What is SEMrush Holdings (SEMR) earnings time?
SEMrush Holdings (SEMR) earnings time is at Nov 05, 2025, After Close (Confirmed).
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