- Needham analyst Scott Berg reiterated a Buy on SEMrush Holdings, Inc (NYSE:SEMR) with a $20 price target.
- SEMrush reported much better than expected 3Q22 financial results as strong sales execution bested incremental macro headwinds.
- The 3Q22 ARR growth and customer count were all within typical Q3 seasonality patterns.
- However, management guided 4Q22 revenue below the consensus estimate as some new headwinds are lengthening the sales cycles for more significant enterprise renewals and extensions.
- He views the new guidance as appropriately risk-adjusted, given uncertain Q4 close rates.
- The company has made significant progress in relocating its operations, and he expects this to be fully reflected in 4Q22 expenses.
- Lastly, he was intrigued with the company’s new App Center, a product strategy he had seen other software vendors utilize effectively to drive incremental revenue over time.
- Price Action: SEMR shares traded lower by 4.90% at $9.52 on the last check Wednesday.
Gold Down 1%; PNC Financial Posts Upbeat Earnings
U.S. stocks traded lower toward the end of trading, with the Dow Jones index falling around 350 points on Tuesday.
The Dow traded down 0.93% to 37,243.85 while the NASDAQ fell 0.58% to 14,885.45. The S&P 500 also fell, dropping, 0.66% to 4,752.36.
