What To Expect From SEMrush’s (SEMR) Q3 Earnings

Adam Hejl /
2022/11/14 8:33 am EST

Marketing analytics software Semrush (NYSE:SEMR) will be reporting earnings today afternoon. Here's what to look for.

Last quarter SEMrush reported revenues of $62.6 million, up 39.1% year on year, beating analyst revenue expectations by 4.32%. It was a decent quarter for the company, with exceptional revenue growth but decelerating customer growth. The company added 4,000 customers to a total of 91,000.

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 29.8% year on year to $63.9 million, slowing down from the 52.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 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 4.26%.

Looking at SEMrush's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 45.5% year on year, beating analyst estimates by 3.27% and Zeta reported revenues up 32.2% year on year, exceeding estimates by 7.94%. ZoomInfo traded down 12.00% on the results, Zeta was up 5.26%. Read our full analysis of ZoomInfo's results here and Zeta's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 7.07% over the last month. SEMrush is up 0.84% during the same time, and is heading into the earnings with analyst price target of $16.30, compared to share price of $11.97.

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