SEMrush Holdings, Inc. (SEMR) saw its stock price plummet 6.46% in after-hours trading on Wednesday, following the release of its first-quarter 2025 financial results. The digital marketing software company's performance painted a mixed picture, with revenue exceeding expectations but earnings falling short of estimates.

SEMrush reported Q1 revenue of $105.02 million, surpassing the analyst estimate of $104.36 million and representing a robust 22% year-over-year growth. However, the company's earnings per share (EPS) of $0.01 missed the market expectation of $0.02, which likely contributed to the negative investor reaction. The quarter's net income stood at $655,000, while income from operations showed a slight loss of $74,000.

Despite the earnings miss, SEMrush reiterated its full-year guidance, projecting revenue between $448 million and $453 million. The company also provided Q2 revenue outlook of $108.2 million to $109.2 million. The after-hours stock plunge suggests that investors may be focusing on the earnings shortfall and potential concerns about profitability, overshadowing the strong revenue growth and reaffirmed guidance.