SEMrush Holdings (SEMR) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: N/A
• Average Volume (3M): 534.96K
• Price to Earnings (P/E): 187.9
• Beta (1Y): 1.72
• Revenue Growth: 22.47%
• EPS Growth: 872.41%
• Country: US
• Employees: 1,561
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 127,151,460
• 10 Day Avg. Volume: 480,210
• 30 Day Avg. Volume: 534,955
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.02
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.83
• Price Target Upside: 54.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

SEMrush Holdings demonstrates strong financial performance with solid revenue and cash flow growth, which significantly supports its stock score. However, technical analysis indicates caution due to the downward trend and high P/E ratio pointing to potential overvaluation. The earnings call provides a positive outlook with ongoing challenges in certain market segments, while recent leadership changes are viewed favorably, potentially enhancing strategic direction and innovation.

Positive Factors

Enterprise Growth

The SEO Enterprise platform is gaining traction with 40 customers joining the platform, more than the rest of the year combined.

Financial Performance

SEMR reported a strong 4Q print with upmarket traction and efficient execution driving strong overall metrics.

Product Development

The company announced the upcoming beta of an Enterprise AI Optimization product which is believed to further aid its up market inertia.

Negative Factors

Client Churn

Low-end clients continue to churn at a faster than anticipated pace.

Leadership Changes

A surprise came with co-founder and CEO Oleg Shchegolev moving into the role of CTO with BoD member Bill Wagner set to succeed him as CEO.

Revenue Guidance

FY25 revenue guidance bracketed consensus estimates although the mid-point was below consensus and was likely the source of shares selling-off.

SEMrush Holdings Business Overview & Revenue Model

Company Description

Semrush 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 Money

SEMrush makes money primarily through a subscription-based revenue model. Customers pay for access to its platform on a monthly or annual basis, with different pricing tiers depending on the features and level of service required. The key revenue streams include subscriptions from its suite of digital marketing tools, which are segmented into various plans tailored for individuals, small businesses, and enterprises. SEMrush also generates revenue through partnerships and integrations with other digital marketing and analytics platforms, which enhance the value of its offerings. Additionally, the company may offer training and certification programs for digital marketing professionals, contributing to its earnings.

SEMrush Holdings Financial Statement Overview

Summary

SEMrush Holdings exhibits a strong financial performance marked by substantial revenue and cash flow growth, coupled with improving profitability and efficient cost management. The company's low leverage and strong equity position support financial stability. However, there remains an opportunity to enhance profitability margins further to optimize overall financial health. The robust cash flow generation positions the company well for future growth and investment opportunities.

Income Statement

SEMrush Holdings demonstrates a strong revenue growth trajectory with Total Revenue increasing from $307.7 million in 2023 to $376.8 million in 2024, indicating a revenue growth rate of 22.48%. The Gross Profit Margin is robust at 82.63% for 2024, reflecting effective cost management. The transition from a negative EBIT of $-7.67 million in 2023 to a positive $8.31 million in 2024 signifies significant operational improvement. Net Income also improved from $0.95 million in 2023 to $8.24 million in 2024, resulting in a Net Profit Margin of 2.19%. Despite this, the net profit margin remains relatively low, suggesting room for improvement in profitability.

Balance Sheet

The company maintains a solid financial position with a Debt-to-Equity Ratio of 0.05, reflecting low leverage and prudent financial management. The Return on Equity (ROE) improved to 3.21% in 2024 from 0.43% in 2023, indicating better utilization of shareholder's equity. The Equity Ratio of 65.63% suggests a strong equity base relative to total assets, enhancing financial stability. However, the moderate ROE highlights potential inefficiencies in generating profit from equity.

Cash Flow

SEMrush Holdings shows impressive cash flow performance with a substantial increase in Free Cash Flow from $0.335 million in 2023 to $43.19 million in 2024, marking a significant growth rate. The Operating Cash Flow to Net Income Ratio is high at 5.71, suggesting efficient cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 5.24 further underscores strong cash flow management and liquidity. These metrics highlight the company's capability to generate cash, essential for sustaining operations and funding growth.

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
	EBIT
8.31M	-7.67M	-25.11M	-2.49M	-6.14M
	EBITDA
8.31M	-306.00K	-19.03M	1.05M	-4.66M
	Net Income Common Stockholders
8.24M	950.00K	-33.85M	-3.29M	-7.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
235.57M	238.57M	237.54M	269.67M	35.53M
	Total Assets
390.94M	331.49M	298.69M	300.07M	54.96M
	Total Debt
12.27M	14.61M	12.62M	0.00	0.00
	Net Debt
-36.60M	-44.24M	-67.14M	-269.67M	-35.53M
	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

• Technical Analysis Sentiment: Negative
• Last Price: 10.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 10.22 is above the 20-day moving average (MA) of 9.66, above the 50-day MA of 9.89, and below the 200-day MA of 13.13, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 57.68 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
SEMR	72 Outperform	$1.54B	187.88	3.46%	―	22.47%	872.41%
CXM	72 Outperform	$1.97B	16.81	18.83%	―	8.74%	150.66%
DSP	65 Neutral	$937.70M	438.53	4.15%	―	30.64%	―
AMPL	61 Neutral	$1.24B	―	-32.87%	―	8.32%	2.04%
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%
PRO	59 Neutral	$781.43M	―	29.80%	―	7.97%	74.22%
SPT	59 Neutral	$1.21B	―	-39.88%	―	21.66%	8.66%

SEMrush Holdings Corporate Events

SEMrush Holdings Expands Board with New Director

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.

Spark’s Take on SEMR Stock

According to Spark, TipRanks’ AI Analyst, SEMR is a Neutral.

SEMrush Holdings demonstrates strong financial performance with solid revenue and cash flow growth, which significantly supports its stock score. However, technical indicators suggest caution, as the stock is in a downward trend with a high P/E ratio indicating overvaluation. The earnings call provides a positive outlook with ongoing challenges in certain market segments, while recent leadership changes are viewed favorably, potentially enhancing strategic direction and innovation.

To see Spark’s full report on SEMR stock, click here.

SEMrush Holdings Announces Leadership Changes for 2025

On February 22, 2025, Semrush Holdings announced significant leadership changes effective March 10, 2025. Co-Founder Oleg Shchegolev will transition from CEO to CTO, focusing on product innovation and AI, while William Wagner, a seasoned SaaS industry veteran, will assume the role of CEO. These changes aim to leverage Shchegolev’s expertise in technology and Wagner’s experience in scaling software companies to drive Semrush’s growth and innovation. The company also reported strong financial performance for the fourth quarter and full year 2024, with revenue growth of 23% and 22% year-over-year, respectively, and a positive outlook for 2025.