Semrush Holdings (SEMR) Stock Forecast & Price Target

SEMrush Holdings Inc. experienced a robust 19.7% year-over-year increase in total revenues, attributed to strong interest in artificial intelligence and growth in enterprise customer engagement, despite some limitations from weaker downmarket demand. The company reported significant expansion in its large customer segments, with an 83% year-over-year increase in customers with annual recurring revenues (ARR) of $50,000 or more, and a 35% growth in customers paying $10,000 or more annually. This momentum in revenue and customer growth supports a positive outlook on the company's long-term financial health and market position.

SEMrush Holdings Inc. has revised its 2025 revenue outlook downward due to weaker demand downmarket, now estimating revenue between $443 million and $446 million, reflecting an 18% growth rate at the midpoint, compared to the prior estimate of 19.6% growth. Additionally, the company's gross margins have compressed by 290 basis points year-over-year to 80.7%, falling short of previous estimates and resulting in a gross profit miss of $750,000. These factors indicate a concerning trend in both revenue growth and profitability, contributing to a negative outlook on SEMrush's stock.