Semrush Q3 revenue up 15% on AI portfolio growth

Semrush Holdings

05/11/2025 21:54

Overview

Semrush Q3 revenue rises 15% yr/yr, slightly beating analyst expectations

Company reports Q3 loss from operations, compared to profit last year

AI portfolio ARR more than doubles from Q2 2025

Outlook

Semrush expects Q4 revenue between $117.5 mln and $119.5 mln

Company forecasts full-year revenue between $443.5 mln and $445.5 mln

Semrush anticipates Q4 non-GAAP operating margin of approximately 12.5%

Result Drivers

ENTERPRISE TRACTION - CEO Bill Wagner credits enterprise traction as a key driver of Q3 performance

AI PORTFOLIO GROWTH - AI portfolio ARR more than doubled from Q2 2025

UPMARKET EXPANSION - Increase in customers paying over $50,000 annually grew by over 72% yr/yr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$112.08 mln
$111.60 mln (5 Analysts)
Q3 Net Loss
-$2.40 mln
Q3 Gross Profit
$89.86 mln
Q3 Loss From Operations
-$4.49 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 "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 $11.00, about 35.6% above its November 4 closing price of $7.08

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBwbBjQjQa

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(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.)