SEMrush (SEMR) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2022/05/09 7:48 am EDT

Marketing analytics software Semrush (NYSE:SEMR) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Last quarter SEMrush reported revenues of $53.7 million, up 47.4% year on year, beating analyst revenue expectations by 3.12%. It was a decent quarter for the company, with an exceptional revenue growth but an underwhelming guidance for the next year. The company added 3,000 customers to a total of 82,000.

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 39.9% year on year to $55.9 million, in line with the 43.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 4.8%.

Looking at SEMrush's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 42.2% year on year, beating analyst estimates by 5.91% and Qualtrics reported revenues up 40.6% year on year, exceeding estimates by 3.06%. Freshworks traded down 0.52% on the results, and Qualtrics was up 4.31%. Read our full analysis of Freshworks's results here and Qualtrics's results here.

There has been a stampede out of high valuation technology stocks and software stocks have been swept alongside with it, with share price down on average 18.1% over the last month. SEMrush is down 13.1% during the same time, and is heading into the earnings with analyst price target of $18.1, compared to share price of $9.66.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.