Marketing analytics software Semrush (NYSE:SEMR) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Semrush beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $90.95 million, up 21.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA and billings estimates. It added 4,000 customers to reach a total of 116,000.
Is Semrush a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Semrush’s revenue to grow 22.9% year on year to $96.72 million, improving from the 19.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Semrush has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Semrush’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and VeriSign reported revenues up 3.8%, in line with consensus estimates. GoDaddy traded up 3.1% following the results while VeriSign was down 2.1%.
Read our full analysis of GoDaddy’s results here and VeriSign’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 7% on average over the last month. Semrush is down 3.1% during the same time and is heading into earnings with an average analyst price target of $17.67 (compared to the current share price of $13.29).
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