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SEMrush Holdings (SEMR)
NYSE:SEMR
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SEMrush Holdings
(NYSE:SEMR)
Rating:70Outperform
Price Target:
$11.00
▲(14.82%Upside)
Positive Factors
Enterprise SEO Growth
Enterprise SEO momentum and cross-sell/upsell traction are driving over 20% growth results.
New Product Offerings
New product offerings, like the company's AIO offering, are expected to drive upsell and cross-sell opportunities.
Negative Factors
Customer Churn
Low-end clients continue to churn at a faster than anticipated pace, impacting overall growth.
FX Expenses and Customer Additions
The stock is trading down due to new FX expenses and lighter than anticipated customer and Net ARR additions.
SEMrush Holdings (SEMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.42B
Dividend YieldN/A
Average Volume (3M)813.19K
Price to Earnings (P/E)206.0
Beta (1Y)1.63
Revenue Growth22.75%
EPS Growth-47.45%
CountryUS
Employees1,561
SectorTechnology
Sector Strength86
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.07
Shares Outstanding127,163,650
10 Day Avg. Volume909,931
30 Day Avg. Volume813,192
Financial Highlights & Ratios
PEG Ratio-21.89
Price to Book (P/B)4.81
Price to Sales (P/S)0.00
P/FCF Ratio29.08
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit3.80
Enterprise Value/Ebitda21.89
Forecast
1Y Price Target
$16.00Price Target Upside67.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
SEMrush Holdings Business Overview & Revenue Model
Company DescriptionSemrush Holdings, Inc. develops an online visibility management software-as-a-service platform worldwide. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company was founded in 2008 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneySEMrush generates revenue primarily through subscription fees for access to its SaaS platform. Customers can choose from various subscription tiers, each offering different levels of access to SEMrush’s tools and features. The company also offers custom solutions for larger enterprises requiring more comprehensive services. Key revenue streams include individual and business subscriptions, with options for monthly or annual billing. SEMrush benefits from a high customer retention rate due to the value and insights its platform provides. Additionally, the company may engage in strategic partnerships with other digital marketing firms or technology providers to enhance its service offerings and expand its customer base, further contributing to its revenue growth.
SEMrush Holdings Key Performance Indicators (KPIs)
Any
Customers
Tracks the number of active customers, providing a clear view of market penetration and the effectiveness of SEMrush’s sales and marketing strategies.
Tracks the number of active customers, providing a clear view of market penetration and the effectiveness of SEMrush’s sales and marketing strategies.
Data provided by:
Main Street Data
Main Street DataSEMrush Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -6.26%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, highlighting strong revenue growth, successful product launches, and increased adoption of enterprise solutions. However, there are some concerns regarding exchange rate impacts and retention metrics.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for Q1 2025 was $105 million, representing over 22% year-over-year growth and exceeding the high-end of the guidance.
Enterprise SEO Solution Success
The Enterprise SEO Solution has nearly 200 paying customers with an average ARR per customer of approximately $60,000, almost 20% higher than previous expectations.
AI Product Adoption
AI products, including the AI Toolkit, have grown to over $4 million in ARR. The AI Toolkit quickly became one of the fastest-growing new products in the company's history.
Positive Financial Performance
Non-GAAP operating margin was 11.6%, and free cash flow margin increased by 360 basis points over the previous year.
Increase in High-Value Customers
The number of customers paying over $50,000 increased 86% year-over-year to 388, and over 5,000 customers are paying over $10,000, which grew approximately 40% year-over-year.
Negative Updates
Exchange Rate Impact
Incremental $8 million expense headwind due to fluctuations in exchange rates, impacting full-year non-GAAP operating margin guidance.
Seasonal ARR Dynamics
ARR growth for the quarter was slightly below 20%, attributed to seasonality and a strategic focus on higher value customers, which may affect perceived growth momentum.
Dollar-Based Net Revenue Retention
Dollar-based net revenue retention was 106%, slightly lower than expected, suggesting some retention challenges despite strong enterprise momentum.
Company Guidance
During the Semrush First Quarter 2025 Earnings Conference Call, the company outlined its guidance for the upcoming periods and highlighted key performance metrics. Semrush reported a Q1 revenue of $105 million, marking a 22% year-over-year increase and surpassing their guidance's high-end. The non-GAAP operating margin stood at 11.6%, and the free cash flow margin improved by 360 basis points compared to the previous year. Their Enterprise SEO Solution gained traction with nearly 200 customers, each averaging $60,000 in annual recurring revenue (ARR), which exceeded prior expectations by 20%. The company's AI products, including the newly launched AI Toolkit, contributed over $4 million in ARR, positioning it as one of the fastest-growing products in Semrush's history. For Q2 2025, Semrush expects revenue between $108.2 million and $109.2 million, aiming for a 20% year-over-year growth at the midpoint, while maintaining a non-GAAP operating margin of around 11%. The full-year 2025 revenue guidance remains at $448 million to $453 million, with a non-GAAP operating margin goal of approximately 12%, despite an $8 million headwind due to exchange rate shifts. The company's cash and short-term investments rose to $261.8 million, up by $26.2 million, while ARR for the quarter reached $424.7 million, representing a 20% year-over-year increase. Semrush's calculated average ARR per customer rose to over $3,600, a 14% year-over-year growth, and the number of customers exceeding $50,000 in payments grew by 86% to 388. The company is focused on expanding its enterprise segment and further leveraging AI advancements to drive future growth.SEMrush Holdings Financial Statement Overview
Summary
SEMrush Holdings demonstrates strong financial health with consistent revenue growth and improving profitability. The balance sheet is stable with low debt, although rising liabilities and fluctuations in operating expenses and investing cash flows require attention.Income Statement
SEMrush Holdings has shown robust revenue growth, with an impressive increase of approximately 55% from 2020 to 2025. The company has transitioned from negative to positive net income, indicating improved profitability. Gross profit margins have remained strong, around 80-82%, showcasing efficiency in cost management. However, EBIT and EBITDA margins have been less stable, pointing to potential volatility in operating expenses.78
Positive
Balance Sheet
The company's balance sheet reflects a healthy equity position with a debt-to-equity ratio remaining low due to minimal debt levels. The equity ratio is strong, indicating financial stability. Despite these strengths, the growth in total liabilities over the periods suggests careful monitoring is necessary to maintain this stability.70
Positive
Cash Flow
SEMrush Holdings demonstrates solid cash flow management with consistent positive free cash flow growth in recent periods. The operating cash flow to net income ratio is healthy, signaling efficient conversion of profits into cash. However, fluctuations in investing cash flows warrant attention to ensure long-term capital allocation efficiency.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 376.81M | 307.68M | 254.32M | 188.00M | 124.88M |
| Gross Profit | 311.34M | 255.35M | 205.76M | 146.07M | 94.94M |
| EBITDA | 18.38M | -306.00K | -19.03M | 1.05M | -4.66M |
| Net Income | 8.24M | 950.00K | -33.85M | -3.29M | -7.01M |
Balance Sheet | |||||
| Total Assets | 390.94M | 331.49M | 298.69M | 300.07M | 54.96M |
| Cash, Cash Equivalents and Short-Term Investments | 235.57M | 238.57M | 237.54M | 269.67M | 35.53M |
| Total Debt | 12.27M | 14.61M | 12.62M | 0.00 | 0.00 |
| Total Liabilities | 124.59M | 107.17M | 98.79M | 74.53M | 61.80M |
| Stockholders Equity | 256.60M | 219.15M | 199.90M | 225.54M | -6.84M |
Cash Flow | |||||
| Free Cash Flow | 43.19M | 335.00K | -15.56M | 19.98M | 2.45M |
| Operating Cash Flow | 47.00M | 7.99M | -9.62M | 23.76M | 5.85M |
| Investing Cash Flow | -58.22M | -29.07M | -179.83M | -4.63M | -6.08M |
| Financing Cash Flow | 1.87M | -19.00K | -345.00K | 215.32M | -1.67M |
SEMrush Holdings Technical Analysis
Positive
9.58
Price Trends
9.57
Positive
9.66
Positive
11.97
Negative
Market Momentum
>-0.01
Negative
65.05
Neutral
88.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEMR, the sentiment is Positive. The current price of 9.58 is above the 20-day moving average (MA) of 9.04, above the 50-day MA of 9.57, and below the 200-day MA of 11.97, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 88.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEMR.
SEMrush Holdings Risk Analysis
SEMrush Holdings disclosed 42 risk factors in its most recent earnings report. SEMrush Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SEMrush Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.34B | 22.03 | 17.50% | ― | 6.75% | 97.06% | |
70 Outperform | $1.42B | 206.02 | 2.81% | ― | 22.75% | -47.45% | |
69 Neutral | $884.69M | 469.77 | 4.15% | ― | 30.64% | ― | |
64 Neutral | $751.28M | ― | 29.80% | ― | 7.97% | 74.22% | |
64 Neutral | $1.12B | ― | -36.95% | ― | 17.79% | 16.49% | |
63 Neutral | $1.66B | ― | -32.87% | ― | 8.56% | -4.21% | |
63 Neutral | $34.70B | 4.89 | -11.39% | 1.66% | 5.53% | -19.00% |
* Technology Sector Average
Performance Comparison
SEMR
SEMrush Holdings
9.58
-4.57
-32.30%
PRO
PROS Holdings
15.70
-10.39
-39.82%
SPT
Sprout Social
19.07
-19.13
-50.08%
DSP
Viant Technology
14.14
2.30
19.43%
CXM
Sprinklr
9.04
-0.56
-5.83%
AMPL
Amplitude
12.70
4.17
48.89%
SEMrush Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
SEMrush Holdings Amends CFO Employment Agreement
Neutral
Jun 11, 2025
On June 11, 2025, SEMrush Holdings, Inc. amended the employment agreement with CFO Brian Mulroy, enhancing severance benefits and salary terms. Additionally, at the annual stockholders’ meeting on June 5, 2025, key proposals were approved, including director elections, ratification of Ernst & Young LLP as auditors, and annual advisory votes on executive compensation, reflecting shareholder support for the company’s governance practices.
The most recent analyst rating on (SEMR) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on SEMrush Holdings stock, see the SEMR Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
SEMrush Holdings Expands Board with New Director
Positive
May 5, 2025
On April 29, 2025, Semrush Holdings, Inc. announced the expansion of its Board of Directors from eight to nine members, appointing Caroline Tsay as an independent director effective May 1, 2025. Tsay, who brings over 20 years of experience in the technology sector, is expected to contribute significantly to the company’s strategic direction as it accelerates innovation at the intersection of AI and marketing. Her appointment is anticipated to enrich boardroom discussions and support Semrush’s continued growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.