Stock Story -
Marketing analytics software Semrush (NYSE:SEMR) will be reporting results tomorrow after the bell. Here's what investors should know.
SEMrush met analysts' revenue expectations last quarter, reporting revenues of $85.81 million, up 21.1% year on year. It was a solid quarter for the company, with accelerating customer growth and a decent beat of analysts' ARR (annual recurring revenue) estimates. It added 4,000 customers to reach a total of 112,000.
Is SEMrush a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting SEMrush's revenue to grow 20.2% year on year to $89.78 million, in line with the 19.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
The majority of analysts covering the company have 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 1.4% on average.
Looking at SEMrush's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 32.6%, beating analysts' expectations by 7.2%, and Freshworks (NASDAQ:FRSH) reported revenues up 20%, topping estimates by 3%. Zeta traded up 11.9% following the results while Freshworks was down 5.8%.
Read the full analysis of Zeta's and Freshworks's results on StockStory.
Inflation fears have put pressure on growth stocks, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. SEMrush is down 1.2% during the same time and is heading into earnings with an average analyst price target of $16.1 (compared to the current share price of $13.35).
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