search icon

    Market Snapshot

    blog search icon

    Semrush Holdings (SEMR) is Flying to New Heights

    By Wasim Omar

    Oct 22,2022

    11:11 PM UTC

    Semrush Holdings Inc. (NYSE: SEMR) is a small-cap IT company that is increasingly proving to be a rising star. Its superior SaaS platform is fast becoming a favorite amongst customers in the visibility management and search engine optimization realms.

    Semrush Holdings Superior Market Position

    In the present market condition, Semrush Holdings Inc. (SEMR) stands as one of the top high-growth opportunities that investors can tap into. Online visibility management and content marketing is a dynamic global industry, that Semrush aims to conquer through its SaaS platform. Over 55% of its revenues come from the US and UK markets and has almost 82,000 customers on its premium model. It also has over half a million customers on its freemium model, it is gradually working on converting into paying customers. With a net retention rate of 126%, Semrush is largely succeeding at this, ensuring highly impressive business growth, which is one of the strongest points of attraction for investors.

    The Russian Exit for SEMR

    More recently, SEMR stock has seen a significant portion of its business risk drastically reduced, after the exit of its operations from Russia. In order to do so, the company has relocated almost all of its workforce focused on Russia, to alternative markets. With a smooth execution, the SEMR management has maintained to retain its full guidance for the following year. One reason why cutting off the Russian market from its market scope has not proven too disastrous for SEMR is due to the rapid growth it is experiencing, in terms of customer acquisitions, from other regions.

    Conclusion

    SEMR is a highly attractive stock for those seeking rapid growth. Growth to this degree is typically rare in recessionary market conditions. This is partly why the stock climbed by almost 15% in the last six months, while the S&P 500 dipped by the same percentage.

    More From Stocks telegraph