SEMrush (SEMR) Q4 Earnings: What Investors Need to Know

As the market awaits SEMrush's (SEMR) Q4 earnings report, slated for release after market hours tomorrow, investors are eager to understand the key aspects that could influence the company's stock performance. With a market cap of $2.33B, SEMrush has been a popular choice among investors, but recent trends in customer growth and revenue guidance have raised some concerns. Let's dive into the critical factors investors should watch for in SEMrush's upcoming earnings report.



Revenue Growth Trajectory

SEMrush's revenue growth trajectory has been evolving over the past few quarters. In Q4 2024, the company reported revenues of $78.72 million, up 19.6% year on year, which was a weaker quarter compared to previous periods. The company added 2,800 customers to a total of 106,800, indicating decelerating customer growth.



For Q1 2025, analysts are expecting SEMrush's revenue to grow 20.9% year on year to $83.13 million. This growth rate is slower than the 28% year-over-year increase in revenue the company had recorded in the same quarter last year. While SEMrush has a history of exceeding top-line expectations, with an average surprise of 1.9% over the last two years, investors should closely monitor the company's earnings report to assess the sustainability of its growth trajectory.

Customer Growth and Acquisition Strategies

SEMrush's recent customer growth deceleration has raised concerns among investors. To reaccelerate growth and attract new customers, the company is implementing several strategies, such as expanding its product offerings, strengthening customer focus, investing in strategic acquisitions, and targeting small and medium-sized businesses (SMBs) while expanding to larger enterprises.



Peer Performance and Market Sentiment

SEMrush's peers in the sales and marketing software segment, such as Shopify and HubSpot, have reported strong top-line growth in their Q4 earnings results. Shopify delivered top-line growth of 23.6% year on year, beating analyst estimates by 3.4%, while HubSpot reported revenues up 23.9% year on year, exceeding estimates by 4.1%. Although Shopify traded down 8.3% on the results, HubSpot was up 5.3%.

This positive sentiment among investors in the sales and marketing software segment, with stocks up on average 3.7% over the last month, could influence SEMrush's earnings outlook and stock performance. SEMrush is up 15.9% during the same time, heading into the earnings with an analyst price target of $13.5, compared to the share price of $12.9.

However, it is essential to note that SEMrush's earnings outlook and stock performance will ultimately be influenced by its own financial performance and guidance. Investors should closely monitor SEMrush's earnings report and any updates on its customer growth and revenue guidance.

In conclusion, as SEMrush prepares to release its Q4 earnings report, investors should pay close attention to the company's revenue growth trajectory, customer growth strategies, and the performance of its peers in the sales and marketing software segment. By staying informed and engaged, investors can make well-informed decisions about their investments in SEMrush and the broader market.