Download PDF

1. Company Snapshot

1.a. Company Description

Semrush Holdings, Inc.develops an online visibility management software-as-a-service platform worldwide.The company enables companies to identify and reach the right audience for their content through the right channels.


Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns.The company was founded in 2008 and is headquartered in Boston, Massachusetts.

Show Full description

1.b. Last Insights on SEMR

Semrush Holdings' recent performance was driven by a strong Q3 2024 earnings beat, with revenue growth accelerating 24% year-over-year to $97.4 million, and ARR also growing 24% year-over-year. The company's focus on growing its core business, upselling, and cross-selling its products contributed to the growth. Additionally, a rating upgrade to "buy" due to a bullish growth outlook, driven by a better macro environment and renewed digital advertising investments, further supports the company's growth potential. International growth is a significant upside, with over 50% of revenue from outside the US, and localized content enhancing global reach.

1.c. Company Highlights

2. Semrush Holdings Delivers Strong Q3 2025 Results with Double-Digit Revenue Growth

Semrush Holdings reported a robust third quarter of 2025, with revenue reaching $112.1 million, non-GAAP operating margin of 12.6%, and cash flow from operations of $21.9 million. The company's annual recurring revenue (ARR) grew 14% year-over-year to $455.4 million, driven by the adoption of its AI products and continued momentum in the Enterprise segment. Earnings per share (EPS) came in at $0.08, in line with analyst estimates.

Publication Date: Nov -21

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $112.1 million, with non-GAAP operating margin at 12.6% and cash flow from operations at $21.9 million.
  • AI Product Momentum:: AI Toolkit and AI Optimization added $10 million in ARR, doubling Q2 figures, driving AI portfolio ARR to near $30 million by year-end.
  • Customer Value Growth:: Average ARR per customer increased 17% YoY to $4,000, the highest growth in 13 quarters, with Enterprise segment averaging $10,000 ARR.
  • Enterprise Expansion:: Enterprise segment grew 33% YoY, with 9,000 customers and $10 million average ARR, while only a few hundred currently use the Enterprise solution.
  • Q4 Guidance:: Anticipated revenue of $117.5–$119.5 million for Q4 2025, representing 15.5% YoY growth, with non-GAAP operating margin maintained at ~12.5%.

Revenue Growth Drivers

The company's AI search products, including the AI Toolkit and AI Optimization, added $10 million in ARR in the quarter, more than doubling from Q2 to Q3. This growth was driven by both new customers and existing customers increasing their average ARR per customer by 17% year-over-year. The Enterprise segment also saw significant growth, with ARR expanding 33% year-over-year and average ARR per customer reaching $10,000.

Product Innovation and Expansion

Semrush continued to innovate and expand its product offerings, launching Semrush One, a new product that provides marketers with a comprehensive tool to win in every search, whether on a search engine like Google or on a platform like ChatGPT. The company's AI products are becoming increasingly linked with its core business, as marketers need both SEO and AI search capabilities.

Outlook and Valuation

For the fourth quarter of 2025, Semrush expects revenue of $117.5 million to $119.5 million, representing growth of approximately 15.5% year-over-year. Analysts estimate revenue growth of 15.0% for the next year. With a current P/S Ratio of 4.1, the market is pricing in moderate growth expectations. However, with the company's strong track record of innovation and expansion, there is potential for upside. The company's ROE of -1.65% and ROIC of 2.67% indicate that there is room for improvement in terms of profitability.

Competitive Advantage

3. NewsRoom

Card image cap

Johnson Fistel Investigates Semrush (SEMR) Shareholders' Rights Following Adobe's $12 Buyout Offer

Dec -04

Source: prnewswire.com

Card image cap

Semrush (NASDAQ:SEMR) vs. Leafly (OTC:LFLY) Critical Contrast

Dec -01

Source: defenseworld.net

Card image cap

Head to Head Contrast: Leafly (OTC:LFLY) vs. Semrush (NASDAQ:SEMR)

Nov -29

Source: defenseworld.net

Card image cap

The Digital Development Group (OTCMKTS:DIDG) versus SEMrush (NYSE:SEMR) Head-To-Head Contrast

Nov -25

Source: defenseworld.net

Card image cap

SEMR Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Sale of Semrush to Adobe

Nov -24

Source: globenewswire.com

Card image cap

Adobe's Massive Reach Will 'Unlock' Semrush's True Potential: Analyst

Nov -20

Source: benzinga.com

Card image cap

Semrush Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Semrush Holdings, Inc. - SEMR

Nov -20

Source: businesswire.com

Card image cap

$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Semrush Holdings, Inc. (NYSE: SEMR)

Nov -19

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.12%)

6. Segments

Online Visibility Management Software-as-a-service Platform

Expected Growth: 12.12%

Semrush's Online Visibility Management Software-as-a-service Platform growth is driven by increasing demand for digital marketing tools, rising adoption of cloud-based solutions, and expanding presence in e-commerce and small-to-medium-sized businesses. Additionally, the platform's comprehensive feature set, user-friendly interface, and competitive pricing strategy contribute to its 12.12% growth.

7. Detailed Products

SEMrush

An all-in-one digital marketing toolkit for SEO, competitor analysis, and content optimization

Ahrefs

A comprehensive SEO toolset for backlink analysis, keyword research, and content optimization

Prowly

A PR and media outreach platform for crafting and distributing press releases, and building relationships with journalists and influencers

Sellerly

An e-commerce optimization platform for Amazon sellers to optimize product listings, improve sales, and streamline inventory management

8. Semrush Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Semrush Holdings, Inc. operates in a niche market with a unique product offering, reducing the threat of substitutes. However, the digital marketing industry is constantly evolving, and new technologies could potentially disrupt the market.

Bargaining Power Of Customers

Semrush Holdings, Inc. has a diverse customer base, and no single customer accounts for a significant portion of its revenue. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Semrush Holdings, Inc. is not heavily dependent on a single supplier, and the digital marketing industry has a large pool of skilled professionals, reducing the bargaining power of suppliers.

Threat Of New Entrants

The digital marketing industry is highly competitive, and new entrants can easily enter the market with innovative products and services, posing a significant threat to Semrush Holdings, Inc.

Intensity Of Rivalry

The digital marketing industry is highly competitive, with many established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.25%
Debt Cost 3.95%
Equity Weight 93.75%
Equity Cost 11.77%
WACC 11.28%
Leverage 6.66%

11. Quality Control: Semrush Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mitek Systems

A-Score: 5.0/10

Value: 5.3

Growth: 6.8

Quality: 6.8

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Dave

A-Score: 4.8/10

Value: 1.1

Growth: 8.0

Quality: 8.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
ON24

A-Score: 4.6/10

Value: 6.2

Growth: 4.0

Quality: 4.2

Yield: 4.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Grindr

A-Score: 4.5/10

Value: 4.8

Growth: 5.4

Quality: 4.9

Yield: 0.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Semrush

A-Score: 3.7/10

Value: 3.8

Growth: 9.0

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
PAR Technology

A-Score: 3.6/10

Value: 7.6

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.84$

Current Price

11.84$

Potential

-0.00%

Expected Cash-Flows