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 reported mixed results, with revenue surpassing expectations but earnings falling short of analyst estimates.

According to the company's report, SEMrush posted Q1 earnings per share (EPS) of $0.01, missing the consensus estimate of $0.02. However, the company's revenue came in at $105.02 million, beating the expected $104.36 million and representing a 22% year-over-year increase. The net income for the quarter stood at $655,000, while the gross profit reached $85.147 million.

Despite the revenue beat, investors seemed to focus on the earnings miss, leading to the significant after-hours decline. SEMrush also provided guidance for the second quarter, projecting revenue between $108.2 million and $109.2 million. The company reiterated its full-year guidance, with expected revenue ranging from $448 million to $453 million. While the maintained outlook suggests confidence in the company's long-term prospects, the market's immediate reaction indicates concerns about profitability in the short term.