Semrush Holdings (SEMR) Stock Forecast & Price Target

SEMrush Holdings Inc. demonstrated a strong financial performance with a total revenue increase of 19.7% year-over-year, driven significantly by interest in artificial intelligence and robust enterprise growth. The company also experienced notable expansion in its large customer segments, evidenced by an 83% year-over-year increase in customers generating $50,000 or more in annual recurring revenue (ARR), alongside a 35% year-over-year growth in those paying $10,000 or more annually. This growth trajectory, coupled with the company's focus on AI-powered software solutions, fosters a solid foundation for sustained performance in the competitive online visibility management landscape.

SEMrush Holdings Inc. has revised its 2025 revenue outlook down to $443 million-$446 million, reflecting an 18% growth at the midpoint, a decrease from prior expectations of 19.6% growth. Additionally, the company's gross margins have contracted by 290 basis points year-over-year to 80.7%, falling short of estimates and resulting in a gross profit miss of $750,000. These factors indicate a combination of weakened demand in lower market segments and declining profitability, contributing to a negative outlook for the stock.