Overview
Online visibility management platform's Q4 revenue grew 15% yr/yr, slightly missing analyst expectations
Q4 net new ARR rose 48%, driven by AI products and Enterprise platform
Company's acquisition by Adobe expected to close in H1 2026
Outlook
Semrush will not provide guidance for Q1 or full-year 2026 due to Adobe acquisition
Result Drivers
AI PRODUCT GROWTH - AI products ARR increased from $4 million to $38 million, contributing significantly to overall ARR growth
ENTERPRISE PLATFORM EXPANSION - Enterprise platform ARR grew from $9 million to $37 million, with 579 customers, enhancing total ARR
HIGH-VALUE CUSTOMERS - Customers paying over $50,000 annually increased by over 74% year-over-year, boosting revenue
Company press release: ID:nBwbBwMdya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $117.66 mln | $118.63 mln (5 Analysts) |
Q4 Net Income | -$10.98 mln | ||
Q4 Gross Profit | $94.55 mln | ||
Q4 Income From Operations | -$13.90 mln | ||
Q4 Operating Expenses | $108.46 mln | ||
Q4 Pretax Profit | -$9.81 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for SEMrush Holdings Inc is $12.00, about 1.5% above its February 27 closing price of $11.82
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 29 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)