SEMR - SEMrush slumps on KeyBanc downgrade led by relocation SMB/Risks/expenses

SEMrush (NYSE:SEMR) eroded 14% until mid-day trading today after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight while Jefferies lowered price target to $10 from $15. KeyBanc cites relocation and SMB Risks/Expenses as the reason for downgrade despite posting a impressive Q1 in a challenging environment. ARR of $236M was higher by 41% while Dollar-based net revenue retention of 127% as of Mar.31, 2022, up ~19% from year ago; it reported 19% growth in paying customers. Q2 guidance of $59.5 to $60.5M compared to consensus estimates of $60.12M; non-GAAP net loss is expected to be in a range of $9 to $8M reflecting an incremental additional $3.5 to $4.5M of one-time relocation costs. FY22 revenue guidance at $249 to $251M while non-GAAP net loss is expected to be in a range of $46 to $44M; both within the analysts consensus estimates range. Operational risk of plans to shut down Russian

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SEMrush slumps on KeyBanc downgrade led by relocation, SMB/Risks/expenses