Should You Buy This US Small Cap Stock-SEMR

Acrobull Canada Advisory Inc.

June 18			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Semrush Holdings Inc.	SEMR-NYSE	Technology		$1.36 Billion	Medium

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. The company enables companies to identify and reach the right audience for their content through the right channels.

Recent Highlights

Revenue Growth: Look at the year-over-year (YoY) and sequential growth in revenue. A good quarter typically shows strong growth or at least stable performance.

Profitability: Check whether SEMRush has been able to maintain or improve its profitability. This would include examining the net income and operating margins.

User Growth: Given SEMRush’s business model as a SaaS (Software as a Service), user growth (like active subscribers) and retention rates are important metrics.

First Quarter 2025 Highlights

Revenue Growth: SEMrush reported $105.0 million in revenue for the first quarter, which is a 22% increase compared to the same quarter the previous year.

Loss from Operations: SEMrush posted a loss from operations of $0.1 million, compared to income from operations of $1.5 million in the prior year.

Operating Margin: SEMrush reported an operating margin of -0.1% for Q1 2025, compared to a 1.7% operating margin in the prior year.

Non-GAAP Income: On a Non-GAAP basis, SEMrush generated $12.2 million in income from operations with a Non-GAAP operating margin of 11.6%. This compares to $9.7 million and 11.3% from the previous year’s first quarter.

Stock Observation- Positive Sentiment on Growth: Analysts tend to focus on strong revenue growth as a key indicator of the company’s ability to scale. With 22% YoY revenue growth, SEMrush is showing that its SaaS model is working well, attracting more customers or expanding existing ones. The RSI level for the stock is at 37 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$9.18 USD
Acrobull Recommendation	Buy
Target Price	$10.25 USD
RSI Level	14 Day RSI 37
Total Shares Outstanding	127.16 Million
Shares held by Insiders Risk Factor Stop Loss	49.75% Medium 5%