Marketing analytics software Semrush (NYSE: SEMR) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Semrush beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $102.6 million, up 23.1% year on year. It was a slower quarter for the company, with decelerating customer growth and a slight miss of analysts’ annual recurring revenue estimates. Its number of customers was flat at a total of 117,000.
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 21.3% year on year to $104.1 million, in line with the 21.1% 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.7% on average.
Looking at Semrush’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 4.1%, and Freshworks reported revenues up 18.9%, topping estimates by 2.1%. Zeta’s stock price was unchanged after the results, while Freshworks was up 2.9%.
Read our full analysis of Zeta’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 15% on average over the last month. Semrush is up 23.3% during the same time and is heading into earnings with an average analyst price target of $16 (compared to the current share price of $10.39).
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