After JabbokRiver42 introduced Sprout Social (SPT) a few weeks back, discussion.fool.com/sprout-social-spt-34927484.aspx?sort=whole#3…, I wanted to see how it compares against Semrush (SEMR) both as a service as well as an investment. Even though Semrush is not a social media management solution exclusively, it offers a social media tool kit as well semrush.com/social-media/#smp.
Total score: 4.6/5 from 1410 reviews Listed as a top performer in Social Media Management and Social Media Marketing.
Sprout Social capterra.com/p/121447/Sprout-Social/
Total Score: 4.4/5 from 449 reviews Listed as a top performer in Social Media Marketing only.
Here you can see that Semrush is far ahead of Sprout Social as a Social Media Management Software capterra.com/social-media-management-software/#shortlist
Here’s the direct comparison capterra.com/marketing-analytics-software/compare/121447-198…
It was a bit surprising to see Sprout Social rank far behind Semrush in the Social Media Management (SMM) category as I was expecting SPT to be ahead since they are focusing on SMM exclusively. Maybe SEMR with all the data available and all the integrations makes it a better tool even for those seeking an SMM tool only.
SEMR 20.3 22.1 23.8 25.7 27.7 28.4 32.1 36.4 40 45 SPT 23.3 24.6 26.2 28.1 30.5 31.4 33.6 37.3 40.8 44.6
SEMR 8% 7% 8% 8% 2% 13% 13% 10% 12% SPT 5% 6% 7% 8% 3% 7% 11% 9% 9%
Gross Profit Margin (last 4 Qs)
SEMR 76% 75% 76% 76% SPT 73% 74% 75% 75%
SEMR 121% SPT 110%
Customers (as of last Q)
SEMR 76K up 29% YoY**(30K active social media tool kit users, up 25% QoQ)** SPT 29K up 21% YoY
Operating loss (last Q)
SEMR $279K (-$2.1M a year ago) SPT $5.3M (-$8.3M a year ago)
Non-GAAP net income
SEMR $290K (-$1.9M a year ago) SPT $0.0M (-$5.8M a year ago)
SEMR $3.7B SPT $7.6B
Is the discount in valuation simply because of the Russian origin? Many successful companies are not born in the US but carry a hefty evaluation nonetheless (MNDY, GLBE, and many others). However, from the latest 10-Q s27.q4cdn.com/202248034/files/doc_financials/Semrush-10-Q-Q2… we can see that the company has 6x their property and equipment in the US in the last 6 months alone while reducing their other geographic locations including Russia.
My thesis remains intact. Semrush is needed by more and more companies in different sectors. Even management seemed surprised by the increasing demand especially after covid in the latest earnings call. The tailwinds remain strong especially with eCommerce on the rise and the aggressive shift to digital. As the COO of Salesforce said today, If I started a company today, I’d start with my digital headquarters". He was referring to Slack as being the digital headquarters for every company. Similarly, companies now come to realize that SEO/SEM tools are at the very core of every business.