Semrush Holdings (SEMR) Stock Forecast & Price Target

SEMrush Holdings Inc demonstrated a robust financial performance, with total revenues increasing by 19.7% year-over-year, driven primarily by heightened interest in artificial intelligence and the strength of its enterprise segment. The company exhibited significant expansion in its large customer cohorts, achieving an impressive 83% year-over-year growth in customers with an annual recurring revenue of $50,000 or more, alongside a 35% increase in customers paying $10,000 or more annually. Additionally, SEMrush reported a 15.3% growth in average revenue per customer (ARPC), bringing the metric to approximately $3,753, highlighting the company’s ability to enhance its monetization strategies.

SEMrush Holdings Inc. recently revised its 2025 revenue outlook downward to between $443 million and $446 million, reflecting an 18% growth projection at the midpoint, down from previous estimates that anticipated 19.6% growth. Additionally, the company's gross margins contracted by 290 basis points year-over-year to 80.7%, resulting in a gross profit shortfall of $750,000 compared to prior expectations. Furthermore, net dollar retention declined from 106% to 105%, indicating deteriorating demand downmarket and casting uncertainty on the company’s ability to sustain long-term growth.