Investment Overview - Semrush Holdings (NYSE: SEMR) reported strong 2Q24 results, with total revenue of $91 million, slightly above consensus estimates of $89.7 million, and a year-over-year growth of 21.8% [3][4] - The company maintains a hold rating due to the near-term upside being largely priced in, despite positive growth indicators [2][44] Financial Performance - Adjusted gross margin expanded by 60 basis points year-over-year, contributing to adjusted EBIT growth from 3.1% in 2Q23 to 13.4% in 2Q24 [3] - Annual recurring revenue (ARR) grew by 23% in 2Q24, with a notable organic growth acceleration of 200 basis points from 1Q24 [3][4] Customer Growth and Strategy - The number of net new paying customers increased by 12% year-over-year, indicating a strong up-sell and cross-sell potential, with average revenue per paying customer (ARPC) growing by approximately 12% [4][37] - The company is optimistic about future growth from its Enterprise GO product, with a 37% increase in customers with over $10k ARR, marking the third consecutive quarter of acceleration [39] Acquisition Impact - The acquisitions of Brand24 and Ryte are expected to enhance SEMR's capabilities, particularly in social media, brand marketing, and technical SEO, potentially driving significant ARPC uplift in the long term [37][38] - However, the benefits from these acquisitions are not expected to materialize in the near term as cross-selling efforts are still in the early stages [41][43] Valuation Metrics - The forward revenue multiple is currently at 4.0, with a target share price of $13.90, indicating limited near-term upside based on current growth expectations [40][41] - The market is likely to reassess SEMR's valuation as growth accelerates in the medium term, potentially allowing for a higher multiple [42][44]

Core Insights - The article discusses stocks priced below $50 that have potential for long-term investors due to rising revenue and earnings, along with growth catalysts and low valuations [1][2][3] Company Summaries Semrush (SEMR) - Semrush is a search engine marketing tool with a strong annual recurring revenue model, achieving 21% year-over-year revenue growth in Q1, totaling $85.8 million, with net income of $2.1 million and a net profit margin of 2.5% [5][6] - The company has nearly 112,000 paying customers and is expected to expand profit margins, with a single-year stock gain of 31% and an average price target suggesting a 19% upside [6] Upwork (UPWK) - Upwork is an online freelance marketplace benefiting from the remote work trend, despite a 25% year-to-date stock loss [7][8] - The company reported 19% year-over-year revenue growth in Q1, reaching $190.9 million, with net income up 7% to $18.4 million and a net profit margin of 9.7% [8] - Upwork has seen significant growth in ad revenue (93% YOY) and Freelancer Plus revenue (76% YOY), with over 100,000 active subscriptions for the latter [9] SoFi (SOFI) - SoFi is a digital bank offering various financial products, currently facing a 31% year-to-date stock loss [10][11] - The company reported 20% year-over-year revenue growth in Q2, with net income of $17.4 million compared to a $47.5 million net loss in the same quarter last year, and membership growth from 6.24 million to 8.77 million [11] - The digital banking industry is projected to grow at a compounded annual growth rate of 11.7% until 2033, positioning SoFi to gain market share and potentially rally by 23% from current levels [12]

Financial Data and Key Metrics Changes - The company reported revenue of $91 million for Q2 2024, representing a 22% year-over-year increase [5] - Annual Recurring Revenue (ARR) grew by 25% year-over-year to $377.7 million [16] - Non-GAAP operating income was $12.2 million, with a non-GAAP operating margin of 13.4%, up from 3.1% in the prior year [5][17] - Cash flow from operations was $12.1 million [17] - The company ended the quarter with cash and cash equivalents of $231.5 million [18] Business Line Data and Key Metrics Changes - The acquisition of Brand24 contributed approximately 2% to the reported ARR [16] - The average ARR per paying customer grew by 12% year-over-year and is up over 50% since the beginning of 2021 [16] - Approximately 4,100 net new paying customers were added in Q2, with three-quarters coming from the Brand24 acquisition [17] Market Data and Key Metrics Changes - The company has over 116,000 paying customers and approximately 1.1 million free active users across more than 150 countries [8] - The enterprise product launched in May has already attracted 8,000 enterprise accounts, indicating strong market demand [9] Company Strategy and Development Direction - The company is focused on expanding its leadership position in online visibility and enhancing profitability and free cash flow generation [6] - Recent acquisitions, including Brand24 and Ryte, are aimed at extending capabilities in social media, brand marketing, and technical SEO [10][12] - The company plans to leverage profitability to invest in new products and solidify its position as the marketing platform of choice across various industries [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong start to 2024 and the foundation built for future growth [10] - The company raised its full-year 2024 revenue guidance, expecting revenue in the range of $373 million to $375 million [19] - Management noted that the combination of Brand24 and Ryte is expected to contribute approximately 200 basis points of growth [19] Other Important Information - The company is maintaining its non-GAAP operating margin guidance for the full year at 10.5% to 11.5% [20] - The company anticipates higher general and administrative expenses due to changes in its affiliate ownership structure [21] Q&A Session Summary Question: Demand environment and enterprise solution pricing - Management confirmed that they have increased prices for the enterprise product after initial feedback indicated they were underpriced, maintaining a pricing range of 10x to 15x the core product [24] Question: Impact of pricing increase on growth rates - Management noted that a price increase in Q3 2023 contributed approximately $4 million of ARR in the second half of last year, with continued impacts expected [26] Question: Features of the new enterprise product - Key features include deep customization, automated AI workflows, and connections to leading experts for services [30] Question: Opportunities with Brand24 and Ryte - Management highlighted strong bundling opportunities with Brand24 and Ryte, particularly for larger customers [34][35] Question: Generative AI and its impact on SEO - Management discussed how new search elements, including AI overviews, are expected to increase total traffic and outgoing clicks over time [43]

Datos' integration significantly enhances Semrush's portfolio of competitive intelligence products and the new Enterprise SEO platform. The Enterprise SEO platform harnesses an extensive database of more than 25.7 billion keywords and 43 trillion backlinks, providing users with unparalleled insights and competitive advantages. The enhanced data analytics capabilities empower users to better understand the consumer journey and the path to purchase. This comprehensive understanding allows businesses to refine ...

Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) both soared after announcing 10-for-1 stock splits. Chipotle (NYSE:CMG) also rocketed to all-time highs after announcing a 50-for-1 stock split. People want to own entire shares of their favorite companies and have a large quantity of shares. Stock splits make that possible for corporations with high stock prices, but you can find plenty of companies with market prices below $50/share. Source: shutterstock.com/CC7 Many businesses will continue to use Semrush t ...

Core Insights - Semrush Holdings, Inc. has launched the Semrush Enterprise SEO platform, which integrates AI workflows to enhance SEO operations for large businesses, aiming to streamline complex tasks and improve productivity [1][2] Group 1: Platform Features - The Semrush Enterprise SEO platform automates labor-intensive tasks, conducts technical audits, and creates customized workflows, significantly reducing analysis and issue resolution time [2] - It utilizes a database of over 25.7 billion keywords and 43 trillion backlinks, providing users with valuable insights and competitive advantages [3] - The platform includes AI-powered tools for real-time content optimization across multiple languages, sophisticated A/B testing, and forecasting features to support data-driven decision-making [3] Group 2: Professional Services and Collaboration - A notable feature is access to a professional services network that connects businesses with industry experts for strategic support in areas like mobile SEO and competitive intelligence [4] - The integrated collaboration suite facilitates project management and messaging, enabling seamless execution and measurement of marketing campaigns, thus enhancing the ROI of SEO investments [5] Group 3: Market Impact and Performance - Early adopters like AutoScout24 and BlueGlass have reported significant benefits, with the platform enhancing strategic SEO views and workflow management [6] - The launch is expected to drive substantial growth for Semrush, positioning it as a key player in the digital marketing industry and setting a new standard for enterprise-level SEO solutions [6] - Semrush's stock has increased by 96.7% over the past year, outperforming the industry's growth of 28% [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40276 Semrush Holdings, Inc. (Exact ...

Semrush Holdings, Inc. (NYSE:SEMR) Q1 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants Brinlea Johnson - Investor Relations Oleg Shchegolev - Chief Executive Officer Eugene Levin - President Brian Mulroy - Chief Financial Officer Conference Call Participants Scott Berg - Needham Surinder Thind - Jefferies Jackson Ader - KeyBanc Capital Markets Adam Hotchkiss - Goldman Sachs Elizabeth Porter - Morgan Stanley Arti Vula - JPMorgan Operator Hello everyone, and welcome to the Semrush Hol ...

Semrush Announces First Quarter 2024 Financial Results May 6, 2024 — BOSTON — (BUSINESS WIRE) — Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the first quarter ended March 31, 2024. "We had a strong start to 2024, achieving first quarter revenue and ARR growth of 21% year-over- year. Importantly, we reported strong profitability exceeding our guidance, with income from operations of $1.5 million and non-GAAP income from operat ...

The latest trading session saw SEMrush Holdings, Inc. (SEMR) ending at $12.29, denoting a +0.33% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.02%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.1%.The the stock of company has fallen by 5.26% in the past month, lagging the Computer and Technology sector's loss of 5.13% and the S&P 500's loss of 3.01%.Analysts and investors alike will be keeping a close eye on the performance ...