Yahoo Finance

Marketing analytics software Semrush (NYSE:SEMR) reported Q1 CY2025 results topping the market’s revenue expectations , with sales up 22.4% year on year to $105 million. The company expects next quarter’s revenue to be around $108.7 million, close to analysts’ estimates. Its GAAP profit of $0.01 per share was $0.01 below analysts’ consensus estimates.

Is now the time to buy Semrush? Find out in our full research report.

Semrush (SEMR) Q1 CY2025 Highlights:

• Revenue: $105 million vs analyst estimates of $104.1 million (22.4% year-on-year growth, 0.9% beat)

• EPS (GAAP): $0.01 vs analyst estimates of $0.02 ($0.01 miss)

• Adjusted Operating Income: $12.21 million vs analyst estimates of $11.23 million (11.6% margin, 8.8% beat)

• Q2 adjusted operating margin guidance of 11% missed expectations of closer to 12%

• The company reconfirmed its revenue guidance for the full year of $450.5 million at the midpoint

• Operating Margin: -0.1%, down from 1.7% in the same quarter last year

• Free Cash Flow Margin: 17.6%, up from 9.3% in the previous quarter

• Customers: 118,000, up from 117,000 in the previous quarter

• Net Revenue Retention Rate: 106%, in line with the previous quarter

• Market Capitalization: $1.50 billion

Company Overview

Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies optimize their search engine and content marketing efforts.

Sales Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Semrush’s sales grew at a solid 24.5% compounded annual growth rate over the last three years. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.

This quarter, Semrush reported robust year-on-year revenue growth of 22.4%, and its $105 million of revenue topped Wall Street estimates by 0.9%. Company management is currently guiding for a 19.5% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 18% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is healthy and indicates the market is baking in success for its products and services.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.