SEMrush (SEMR) Reports Q2: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/08/09 5:03 am EDT

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

Last quarter SEMrush reported revenues of $57.1 million, up 42.8% year on year, beating analyst revenue expectations by 2.04%. It was a very strong quarter for the company, with accelerating customer growth and an exceptional revenue growth. The company added 5,000 customers to a total of 87,000.

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 33.3% year on year to $60 million, slowing down from the 58.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 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 over the past two years on average by 4.25%.

Looking at SEMrush's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 37.4% year on year, beating analyst estimates by 2.95% and Sprout Social reported revenues up 37.4% year on year, exceeding estimates by 1.95%. Freshworks traded down 3.01% on the results, and Sprout Social was flat on the results. Read our full analysis of Freshworks's results here and Sprout Social's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 10.3% over the last month. SEMrush is up 14.4% during the same time, and is heading into the earnings with analyst price target of $13.3, compared to share price of $13.73.

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