Semrush Holdings Inc. (SEMR:NYE), a leading online visibility management SaaS platform, recently announced its acquisition of Traffic Think Tank, a well-known marketing education company. This acquisition is expected to strengthen Semrush’s Academy offerings, the company’s online learning program that offers various courses in multiple languages.
The Academy has been a significant growth driver for Semrush, as it helps the company create brand awareness, improve its existing offerings, engage with the marketing community, and develop new products. Semrush has been expanding its Academy offerings both organically and through strategic acquisitions. Prior to the Traffic Think Tank acquisition, Semrush acquired Backlinko in January 2022.
Semrush is set to announce its fourth-quarter financials on March 13, 2023. Although the company has acquired new clients and had over 94K paying customers at the end of Q3, near-term macro headwinds limit customers’ spending capabilities in the short term. Despite surpassing the Street’s projections in the past four consecutive quarters, its loss per share has widened quarter-over-quarter in the current fiscal year. For Q4, analysts expect Semrush to report a loss of $0.08 a share compared to a loss of $0.03 in the prior year’s quarter.
Considering the ongoing macroeconomic headwinds, analysts remain cautiously optimistic about Semrush’s prospects. Semrush stock has received one Buy and two Hold recommendations, resulting in a Buy consensus rating. However, analysts’ average price target of $12.14 implies a 50.96% upside potential for Semrush stock.