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The one-year earnings decline has likely contributed toSemrush Holdings' (NYSE:SEMR) shareholders losses of 61% over that period

Investing in stocks comes with the risk that the share price will fall. Unfortunately, shareholders of Semrush Holdings, Inc. (NYSE:SEMR) have suffered share price declines over the last year. The share price is down a hefty 61% in that time. We wouldn't rush to judgement on Semrush Holdings because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 24% in the last 90 days.

After losing 6.6% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for Semrush Holdings

Semrush Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Semrush Holdings grew its revenue by 45% over the last year. That's definitely a respectable growth rate. Meanwhile, the share price tanked 61%, suggesting the market had much higher expectations. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. If you are thinking of buying or selling Semrush Holdings stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We doubt Semrush Holdings shareholders are happy with the loss of 61% over twelve months. That falls short of the market, which lost 20%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 24%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Semrush Holdings has 2 warning signs we think you should be aware of.

We will like Semrush Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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