Marketing analytics software Semrush (NYSE:SEMR) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Semrush beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $97.41 million, up 23.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but decelerating customer growth. It added 1,000 customers to reach a total of 117,000.

Is Semrush a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Semrush’s revenue to grow 21.7% year on year to $101.5 million, in line with the 21.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Semrush has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.8% on average.

Looking at Semrush’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 44%, beating analysts’ expectations by 8.6%, and Freshworks reported revenues up 21.5%, topping estimates by 2.7%. AppLovin traded up 24.1% following the results while Freshworks’s stock price was unchanged.

Read our full analysis of AppLovin’s results here and Freshworks’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the sales and marketing software stocks have shown solid performance, the group has generally underperformed, with share prices down 4.7% on average over the last month. Semrush is up 10% during the same time and is heading into earnings with an average analyst price target of $19.17 (compared to the current share price of $18).

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