SEMrush (SEMR) Q4 Earnings Report Preview: What To Look For

Anthony Lee /
2024/03/03 2:00 am EST

Marketing analytics software Semrush (NYSE:SEMR) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter SEMrush reported revenues of $78.72 million, up 19.6% year on year, missing analyst expectations by 0%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth. The company added 2,800 customers to a total of 106,800.

Is SEMrush buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting SEMrush's revenue to grow 20.9% year on year to $83.13 million, slowing down from the 28% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

SEMrush Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.9%.

Looking at SEMrush's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Shopify delivered top-line growth of 23.6% year on year, beating analyst estimates by 3.4% and HubSpot reported revenues up 23.9% year on year, exceeding estimates by 4.1%. Shopify traded down 8.3% on the results, HubSpot was up 5.3%.

Read our full analysis of Shopify's results here and HubSpot's results here.

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 3.7% over the last month. SEMrush is up 15.9% during the same time, and is heading into the earnings with analyst price target of $13.5, compared to share price of $12.9.

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