SEMrush Holdings (SEMR) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: 19.87%
• EPS Growth: -136.93%
• Country: US
• Employees: 1,561
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 128,163,860
• 10 Day Avg. Volume: 1,766,009
• 30 Day Avg. Volume: 1,344,648
• PEG Ratio: 0.28
• Price to Book (P/B): 6.75
• Price to Sales (P/S): 4.60
• P/FCF Ratio: 40.12
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 2.31
• Enterprise Value/Ebitda: 82.73
• 1Y Price Target: $10.50
• Price Target Upside: 44.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): $444.62M

• Rating: 64 Neutral
• Price Target: $8.00 ▲(10.19% Upside)

SEMrush Holdings' overall stock score is driven by strong financial stability and promising growth prospects in AI and enterprise segments. However, challenges in profitability and valuation, along with mixed technical indicators, moderate the score. The strategic focus on high-value customers and innovation provides a positive outlook, but improving profitability remains crucial.

Positive Factors

Enterprise Segment Expansion

Expansion in the enterprise segment indicates a successful upmarket strategy, enhancing revenue stability and growth potential.

AI Product Success

Rapid growth in AI products suggests strong market demand and positions SEMrush as a leader in innovative digital marketing solutions.

Strong Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder long-term financial health and limit reinvestment opportunities.

Softness in Lower Market Segments

Weakness in lower market segments may reduce revenue diversification and increase reliance on higher-tier customers.

Increased Customer Acquisition Costs

Rising customer acquisition costs could pressure margins and affect the company's ability to attract new customers efficiently.

SEMrush Holdings Business Overview & Revenue Model

Company Description

SEMrush Holdings (SEMR) is a leading digital marketing software as a service (SaaS) company that provides online visibility management, search engine optimization (SEO), and advertising analytics services. The company serves a diverse clientele, including marketing professionals, agencies, and businesses of all sizes, helping them improve their online presence and performance across various digital channels. SEMrush's core products include tools for keyword research, site audits, competitive analysis, content marketing, and social media management, positioning it as a comprehensive solution for digital marketers worldwide.

How the Company Makes Money

SEMrush generates revenue primarily through subscription-based models, offering various tiers of service with different features and capabilities. The company has multiple pricing plans tailored to meet the needs of freelancers, small businesses, and large enterprises. Key revenue streams include monthly and annual subscriptions, with a significant portion of income derived from its Pro, Guru, and Business plans. Additionally, SEMrush may earn revenue from value-added services, such as training and consultancy. Strategic partnerships with digital marketing agencies and other tech platforms also contribute to its earnings by expanding its reach and enhancing its service offerings.

SEMrush Holdings Financial Statement Overview

Summary

SEMrush Holdings demonstrates solid revenue growth and strong cash flow generation, which are positive indicators for future performance. However, profitability remains a challenge with negative net income margins and return on equity. The company's low leverage and strong equity position provide financial stability, but improving profitability will be key to enhancing shareholder value.

Income Statement

SEMrush Holdings shows a positive revenue growth trend with a TTM revenue growth rate of 3.54%. However, profitability is a concern as indicated by a negative net profit margin of -0.31% and a negative EBIT margin. The gross profit margin remains strong at 81.43%, suggesting efficient cost management at the gross level.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.046, indicating low leverage and financial stability. However, the return on equity is negative at -0.49%, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong equity base relative to total assets.

Cash Flow

Cash flow performance is strong with a significant free cash flow growth rate of 41.28% in the TTM period. The operating cash flow to net income ratio is 0.34, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.87, showing efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	428.63M	376.81M	307.68M	254.32M	188.00M	124.88M
Gross Profit	346.61M	311.34M	255.35M	205.76M	146.07M	94.94M
EBITDA	9.68M	18.38M	415.00K	-18.46M	1.05M	-4.66M
Net Income	-4.51M	8.24M	950.00K	-33.85M	-3.29M	-7.01M
Balance Sheet
Total Assets	450.41M	390.94M	331.49M	298.69M	300.07M	54.96M
Cash, Cash Equivalents and Short-Term Investments	275.70M	235.57M	238.57M	237.54M	269.67M	35.53M
Total Debt	13.94M	12.27M	14.61M	12.62M	0.00	0.00
Total Liabilities	151.86M	124.59M	107.17M	98.79M	74.53M	61.80M
Stockholders Equity	289.68M	256.60M	219.15M	199.90M	225.54M	-6.84M
Cash Flow
Free Cash Flow	52.48M	43.19M	335.00K	-15.56M	19.98M	2.45M
Operating Cash Flow	56.62M	47.00M	7.99M	-9.62M	23.76M	5.85M
Investing Cash Flow	-19.30M	-58.22M	-29.07M	-179.83M	-4.63M	-6.08M
Financing Cash Flow	-1.74M	1.87M	-19.00K	-345.00K	215.32M	-1.67M

SEMrush Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEMR, the sentiment is Negative. The current price of 7.26 is below the 20-day moving average (MA) of 7.42, below the 50-day MA of 7.39, and below the 200-day MA of 9.53, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 44.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEMR.

SEMrush Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLNK	66 Neutral	―	―	-5.41%	―	5.96%	50.29%
SEMR	64 Neutral	$1.05B	―	-1.68%	―	19.87%	-136.93%
SPT	64 Neutral	$595.05M	―	-26.69%	―	13.09%	32.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PD	60 Neutral	$1.44B	-98.78	-8.04%	―	8.20%	82.75%
LAW	53 Neutral	$369.83M	―	-41.00%	―	6.33%	-66.34%
AMPL	53 Neutral	$1.42B	―	-37.47%	―	12.78%	-20.47%

SEMrush Holdings Corporate Events

Semrush Reports Strong Q2 2025 Performance

Semrush Holdings, Inc. is a leading SaaS platform specializing in online visibility management, offering tools for search engine optimization, advertising, content, social media, and competitive research to businesses worldwide.

Semrush Holdings’ Earnings Call: Growth Amid Challenges

Semrush Holdings, Inc. recently held its earnings call, revealing a mixed sentiment characterized by robust growth in its enterprise and AI segments, juxtaposed with challenges in the lower market segment and rising costs in paid search acquisition. Despite these hurdles, the company remains optimistic about its long-term growth, as evidenced by the introduction of a new share repurchase program.