Semrush Q2 revenue up 20%, meets estimates

Reuters
Aug 05
Semrush <a href="https://laohu8.com/S/QTWO">Q2</a> revenue up 20%, meets estimates

Overview

  • Semrush Q2 revenue rises 20% yr/yr, beating analyst expectations

  • Company announces $150 mln share repurchase program

Outlook

  • Semrush expects Q3 revenue between $111.1 mln and $112.1 mln

  • Company anticipates full-year revenue of $443.0 mln to $446.0 mln

  • Company expects full-year free cash flow margin of 12%

Result Drivers

  • AI AND ENTERPRISE PRODUCTS - Accelerated adoption of AI and Enterprise products contributed to revenue growth, per CEO Bill Wagner

  • HIGH-VALUE CUSTOMERS - Customers paying more than $50,000 annually increased by 83% yr/yr

  • SEO LEADERSHIP - Named leader in SEO Solutions by Forrester, enhancing market position

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

In-line

$108.89 mln

$108.80 mln (5 Analysts)

Q2 Net Income

-$6.78 mln

Q2 Gross Profit

$87.78 mln

Q2 Income From Operations

-$4.34 mln

Q2 Operating Expenses

$92.13 mln

Q2 Pretax Profit

-$2.06 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for SEMrush Holdings Inc is $16.00, about 46.9% above its August 1 closing price of $8.49

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw2CKFNza

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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