Let’s face it: We thought the internet would make us all supersmart. While it has obviously helped some, all it really did was create a new problem: information overload. We are bombarded with more information than our brains were ever…
designed to take in. That’s a huge problem for smaller companies that are trying to get customers’ attention.
That’s where SEMrush Holdings (NYSE:SEMR) comes into play. This recent IPO offers a whole suite of tools — from search engine optimization (SEO) help to digital marketing to public relations — that helps these smaller companies get noticed. When Motley Fool analysts Brian Stoffel and Brian Feroldi first dug into the company, they were skeptical. But after their due diligence was done, they were shocked by how much they liked the company. To find out how it scored on their investing frameworks, and why they’re convinced there’s multibagger potential, watch this five-minute video the duo produced for Foolish investors on Oct. 12.
Brian Feroldi: Is SEMrush, ticker a symbol SEMR, a good investment? Let’s run through the bull and bear case in about five minutes to find out. My name is Brian Feroldi.
Brian Stoffel: My name is Brian Stoffel. [MUSIC]
Feroldi: Brian, SEMrush recently came public. What does this company do?
Stoffel: The SEM in SEMrush actually stands for “search engine marketing.” Why is that important? Well, in today’s world, there’s information overload. When there’s 400 million Facebook (NASDAQ: FB) status updates today and 6 billion Google (NASDAQ: GOOG)(NASDAQ: GOOGL) searches every 24-hours, there’s so much information out there that it can be hard to reach your customers. SEMrush offers a suite of tools that help companies reach the people that they want to reach. They do that by offering search engine optimization, which is SEO, commonly used in Google or digital advertising, content marketing. Basically, they offer a suite of tools that are cobbled together to help you get your name out there.
Feroldi: If you are a small, medium, or even large-size business and you want to go into the digital jungle and find and reach your customers, SEMrush provides a suite of tools to help you do just that. SEMrush operates as a software-as-a-service business model. With that kind of business model, the metrics that we need to look at is the company lending customers and are they sticking around? This chart clearly indicates that, yes, on both fronts. The company has a history of not only adding new customers to its platform, but having them increase their spending over time. That’s exactly what we want to see…
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