Latest news with #SemrushHoldings
Business Wire
5 days ago
- Business
- Business Wire
Semrush Holdings, Inc. to Participate in Canaccord Genuity's 45th Annual Growth Conference
BOSTON--(BUSINESS WIRE)--Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, announced today that management will present and host one-on-one investor meetings at the Canaccord Genuity 45th Annual Growth Conference: Canaccord Genuity 45th Annual Growth Conference Location: Boston, MA Presentation: 8:30 a.m. ET Conference fireside chats will be available via live audio webcast and archived replay on Semrush's investor relations website at About Semrush Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan.
Business Wire
04-08-2025
- Business
- Business Wire
Semrush Announces Second Quarter 2025 Financial Results
BOSTON--(BUSINESS WIRE)--Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the second quarter ended June 30, 2025. 'We posted strong revenue growth in the second quarter and were especially pleased by the accelerated adoption of our AI and Enterprise products,' said Bill Wagner, CEO. 'We are very excited about our leadership position in the market and our long-term growth opportunities. To underscore this conviction, we are announcing a $150 million share repurchase program.' Second Quarter 2025 Financial Highlights Second quarter revenue of $108.9 million, up 20% year-over-year. Loss from operations of ($4.3) million for the second quarter, compared to income from operations of $3.4 million in the prior year's quarter. Second quarter operating margin of (4.0%), compared to 3.7% in the prior year period. Non-GAAP income from operations of $12.0 million for the second quarter for a non-GAAP operating margin of 11.0%, compared to non-GAAP income from operations of $12.2 million in the prior year period for a non-GAAP operating margin of 13.4%. Cash flow from operations was $0.7 million in the second quarter, representing a cash flow from operations margin of 0.6%. ARR of $435.3 million as of June 30, 2025, up 15% year-over-year. Approximately 116,000 paying customers as of June 30, 2025. Dollar-based net revenue retention of 105%, as of June 30, 2025. See 'Non-GAAP Financial Measures & Definitions of Key Metrics' below for how Semrush defines ARR, dollar-based net revenue retention, non-GAAP income from operations, non-GAAP operating margin, free cash flow, and free cash flow margin, and the financial tables that accompany this release for reconciliations of each non-GAAP financial measure to its closest comparable GAAP financial measure. Second Quarter 2025 Business Highlights We are committed to empowering our customers with a best-in-class platform designed to boost their online presence and gain an edge in the market. We advanced and expanded many of our offerings and continued investments in Generative AI to provide enhanced, more efficient content creation and marketing capabilities through Semrush's platform: Announced general availability of AI Optimization (AIO), a Semrush Enterprise Solution, providing businesses with tools to track, control, and optimize brand presence across AI-powered search platforms. Introduced Toolkits, an AI-powered, all-in-one platform that provides businesses with streamlined workflows, centralized marketing tools, and the ability to drive measurable performance. Added SearchGPT as a search engine option within the Position Tracking tool, enabling users to monitor domain visibility on leading AI conversational platforms alongside traditional search engines. Released the AI Traffic dashboard inside the Traffic & Market Toolkit, allowing businesses to track brand visibility across AI tools like ChatGPT, Copilot, Gemini, and Perplexity. Launched a new algorithm update in Semrush .Trends, offering sharper insights, broader domain coverage, and faster delivery of fresh traffic data. Semrush customers who pay more than $10,000 annually grew by 35% year-over-year. Forrester named Semrush as a Leader in SEO Solutions and recognized Semrush's competitive intelligence, robust analytics, and vision for SEO as the 'engine of digital discoverability.' Company strengthens leadership with appointment of Caroline Tsay to Board of Directors. 'Looking ahead, I am energized about our ability to drive durable growth, profitability, and strong cash flow,' said Brian Mulroy, CFO. 'Our share repurchase program demonstrates our strong conviction in the business, reflects the strength of our balance sheet and free cash flow generation, highlights the attractive valuation opportunity and reinforces our commitment to delivering shareholder value.' Share Repurchase Program Today, the Company announces that a special committee composed of independent members of our Board of Directors authorized an inaugural share repurchase program. Share repurchases of our Class A common stock under the $150 million program may be made from time to time on the open market (including pursuant to Rule 10b5-1 trading plans), through privately negotiated transactions, or other legally permissible means. The share repurchase program has no time limit, does not obligate Semrush to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Based on information as of today, August 4, 2025, we are issuing the following financial guidance: Third Quarter 2025 Financial Outlook For the third quarter, we expect revenue in a range of $111.1 million to $112.1 million, which at the mid-point would represent growth of approximately 15% year-over-year. We expect third quarter non-GAAP operating margin to be approximately 11.5%. Full-Year 2025 Financial Outlook The company is revising its annual revenue outlook to reflect softer demand at the lower end of the market, impacted by an increase in paid-search cost per click. For the full year, we expect revenue in a range of $443.0 to $446.0 million, which at the mid-point would represent growth of approximately 18% year-over-year. We expect full year non-GAAP operating margin to be approximately 12%. We expect the full year free cash flow margin to be approximately 12%. Reconciliations of non-GAAP operating margin and free cash flow margin guidance to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Conference Call and Webcast Details Semrush will host a conference call and webcast to discuss its financial results, business highlights, outlook and other matters, the details for which are provided below. Date: Tuesday, August 5th, 2025 Time: 8:30 a.m. ET Hosts: Bill Wagner, CEO, and Brian Mulroy, CFO Conference ID: 978610 Participant Toll Free Dial-In Number: +1 833 470 1428 Participant International Dial-In Number: +1 929 526 1599 The live webcast of the conference call as well as the replay can be accessed for a limited time from the Semrush investor relations website at About Semrush Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'shall,' 'should,' 'expects,' 'plans,' 'positioning,' 'anticipates,' 'could,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, guidance on financial results for the third quarter and full fiscal year of 2025 (including revenue, non-GAAP operating margin, and free cash flow margin); statements regarding the expectations of demand for our products and cash flow generation; statements about improvements to and expansion of our products and platform, and launching new products; statements about future operating results, including revenue, growth opportunities, variability of expenses, ability to realize efficiencies, future spending and incremental investments, business trends, our ability to deliver profits, and growth and value for shareholders; assumptions regarding foreign exchange rates; and plans, expectations and statements regarding our share repurchase program. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ('SEC'), including in the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations'' in our filings with the SEC, including our most recent annual report on form 10-K, and our subsequently filed quarterly reports and other SEC filings. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Additional information regarding these and other factors that could affect our results is included in our SEC filings, which may be obtained by visiting our Investor Relations page on its website at or the SEC's website at Non-GAAP Financial Measures & Definitions of Key Metrics We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but also to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. We also believe that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. We also believe free cash flow margin is useful to investors as we monitor it as a measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allows us to better understand the cash needs of our business. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release. Annual Recurring Revenue (ARR) is defined as the total subscription revenue as of a given date that we expect to contractually receive over the subsequent 12 months from customers on an annualized basis, assuming no increases, reductions or cancellations. This ARR definition was updated in our Annual Report on Form 10-K for the period ended December 31, 2024 to simplify the explanation of our calculation around the treatment of monthly and longer-term contracts, and to be more consistent with other SaaS businesses, which we believe improves the ability for investors to compare our metric against other businesses. Additionally, our definition was updated to note that we do not assume there will be any increases, reductions, or cancellations. Given our efforts to retain and win back customers, and our belief that we will be successful in many of those retention efforts, we believe the updated definition is more accurate. We did not recast ARR results to conform ARR under the prior definition to the updated definition as there is no variance between the two definitions for the periods presented. Dollar-based net revenue retention is defined as (a) the revenue from our customers during the twelve-month period ending one year prior to such period as the denominator and (b) the revenue from those same customers during the twelve months ending as of the end of such period as the numerator. This calculation excludes revenue from new customers and any non-recurring revenue. Free cash flow and free cash flow margin. We define free cash flow, a non-GAAP financial measure, as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. We define free cash flow margin as free cash flow divided by GAAP revenue. Non-GAAP income (loss) from operations, and non-GAAP operating margin. We define non-GAAP income (loss) from operations as GAAP income (loss) from operations, excluding Stock Based Compensation, Amortization of Acquired Intangible Assets, Acquisition Related Costs, Restructuring Costs and other one-time expenses outside the ordinary course of business (for example, our Exit Costs incurred primarily in 2022). We define non-GAAP operating margin as non-GAAP income (loss) from operations divided by GAAP revenue. We believe investors may want to consider our results with and without the effects of these items in order to compare our financial performance with that of other companies that exclude such items and to compare our results to prior periods. Stock-based compensation. Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. We believe that the exclusion of stock-based compensation expense allows for financial results that are more indicative of our operational performance and provide for a useful comparison of our operating results to prior periods and to our peer companies because stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies, timing of awards and changes in stock price. Amortization of acquired intangible assets. Excluding amortization of acquired intangible assets from non-GAAP expense and income measures allows management and investors to evaluate results 'as-if' the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Restructuring and other costs. Restructuring and other costs include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business. Restructuring expenses consist of employee severance costs, charges for the closure of excess facilities and other contract termination costs. Other costs include litigation contingency reserves, asset impairment charges, relocation expenses associated with the migration of employees in 2022 that occurred throughout 2022 and early 2023, and gains or losses on the sale or disposition of certain non-strategic assets or product lines. Acquisition-related costs. In recent years, we have completed a number of acquisitions, which result in transition, integration and other acquisition-related expense which would not otherwise have been incurred, are unpredictable and dependent on a significant number of factors that are deal-specific or outside of our control, are not indicative of our operational performance (or that of the acquired businesses or assets) and are likely to fluctuate as our acquisition activity increases or decreases in future periods. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us. ¹ includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of revenue $ 116 $ 59 $ 160 $ 98 Sales and marketing 2,260 1,209 3,887 1,979 Research and development 3,917 1,371 6,383 2,007 General and administrative 7,143 4,527 12,118 8,197 Total stock-based compensation $ 13,436 $ 7,166 $ 22,548 $ 12,281 Expand The following table sets forth a reconciliation of our (loss) income from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin, respectively (percentage amounts may not sum due to rounding): The following table sets forth a reconciliation of our net cash provided by operating activities and net cash provided by operating activities (as a percentage of revenue) to free cash flow and free cash flow margin, respectively (percentage amounts may not sum due to rounding): Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) As of December 31, 2024 Assets Current assets Cash and cash equivalents $ 54,322 $ 48,875 Short-term investments 204,225 186,693 Accounts receivable 14,243 8,955 Deferred contract costs, current portion 10,178 10,044 Prepaid expenses and other current assets 18,138 21,617 Total current assets 301,106 276,184 Property and equipment, net 6,673 6,534 Operating lease right-of-use assets 11,551 11,126 Intangible assets, net 35,317 32,055 Goodwill 59,924 56,139 Deferred contract costs, net of current portion 3,495 3,080 Other long-term assets 6,883 5,825 Total assets $ 424,949 $ 390,943 Liabilities, noncontrolling interest, and stockholders' equity Current liabilities Accounts payable $ 13,505 $ 10,463 Accrued expenses 20,627 20,216 Deferred revenue 81,730 71,827 Current portion of operating lease liabilities 4,966 4,669 Other current liabilities 4,853 6,913 Total current liabilities 125,681 114,088 Deferred revenue, net of current portion 235 235 Deferred tax liability 1,798 1,621 Operating lease liabilities, net of current portion 7,852 7,602 Other long-term liabilities 1,216 1,045 Total liabilities 136,782 124,591 Commitments and contingencies Stockholders' equity Class A common stock 1 1 Class B common stock — — Additional paid-in capital 345,664 322,586 Accumulated other comprehensive income (loss) 2,862 (2,221 ) Accumulated deficit (69,480 ) (63,762 ) Total stockholders' equity attributable to Semrush Holdings, Inc. 279,047 256,604 Noncontrolling interest in consolidated subsidiaries 9,120 9,748 Total stockholders' equity 288,167 266,352 Total liabilities, noncontrolling interest and stockholders' equity $ 424,949 $ 390,943 Expand Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2025 2024 Operating Activities Net (loss) income $ (6,122 ) $ 3,364 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation and amortization expense 6,313 4,269 Amortization of deferred contract costs 7,043 6,054 Amortization (accretion) of premiums and discounts on investments (1,400 ) (2,023 ) Non-cash lease expense 2,451 2,233 Stock-based compensation expense 22,548 12,281 Change in fair value included in other income, net (1,271 ) — Deferred taxes 39 (217 ) Other non-cash items 1,255 1,400 Changes in operating assets and liabilities Accounts receivable (5,427 ) (774 ) Deferred contract costs (7,591 ) (6,129 ) Prepaid expenses and other current assets (4,166 ) (4,017 ) Accounts payable 2,630 1,906 Accrued expenses 104 2,917 Other current liabilities (233 ) 360 Deferred revenue 9,358 7,353 Other long-term liabilities 162 92 Change in operating lease liability (2,900 ) (2,147 ) Net cash provided by operating activities 22,793 26,922 Investing Activities Purchases of property and equipment (1,329 ) (2,906 ) Capitalization of internal-use software costs (6,532 ) (4,369 ) Purchases of short-term investments (61,524 ) (83,605 ) Proceeds from sales and maturities of short-term investments 46,000 102,500 Purchases of convertible debt securities — (650 ) Funding of investment loan receivables — (7,000 ) Proceeds from repayment of investment loan receivables 7,676 — Cash paid for acquisition of assets and businesses, net of cash acquired (1,097 ) (10,026 ) Purchases of noncontrolling interest (223 ) — Purchases of other investments — (131 ) Net cash used in investing activities (17,029 ) (6,187 ) Financing Activities Proceeds from exercise of stock options 648 3,053 Taxes paid related to net share settlement of equity awards (426 ) — Repayment of acquired debt (1,088 ) — Payment of finance leases (211 ) (493 ) Net cash (used in) provided by financing activities (1,077 ) 2,560 Effect of exchange rate changes on cash and cash equivalents 760 (614 ) Increase (decrease) in cash, cash equivalents and restricted cash 5,447 22,681 Cash, cash equivalents and restricted cash, beginning of period 49,060 58,848 Cash, cash equivalents and restricted cash, end of period $ 54,507 $ 81,529 Expand
Yahoo
27-07-2025
- Business
- Yahoo
3 Stocks Estimated To Be Up To 49.9% Below Their Intrinsic Value
In the last week, the United States market has been flat, yet it has seen an 18% increase over the past year with earnings projected to grow by 15% annually. In this context, identifying stocks that are potentially undervalued can be a strategic move for investors seeking opportunities where current prices may not fully reflect intrinsic value. Top 10 Undervalued Stocks Based On Cash Flows In The United States Name Current Price Fair Value (Est) Discount (Est) Sotera Health (SHC) $12.11 $24.19 49.9% Semrush Holdings (SEMR) $9.58 $19.08 49.8% Roku (ROKU) $90.05 $174.73 48.5% Rapid7 (RPD) $22.53 $43.87 48.6% Hims & Hers Health (HIMS) $57.32 $114.17 49.8% FB Financial (FBK) $48.09 $93.90 48.8% Definitive Healthcare (DH) $4.00 $7.90 49.4% Ategrity Specialty Insurance Company Holdings (ASIC) $21.74 $43.44 50% ACNB (ACNB) $42.67 $84.73 49.6% Acadia Realty Trust (AKR) $18.95 $36.77 48.5% Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener. Let's review some notable picks from our screened stocks. Celsius Holdings Overview: Celsius Holdings, Inc. is involved in the development, processing, manufacturing, marketing, selling, and distribution of functional energy drinks across various regions including the United States, North America, Europe, and the Asia Pacific with a market cap of $11.95 billion. Operations: The company's revenue primarily comes from its non-alcoholic beverages segment, generating $1.33 billion. Estimated Discount To Fair Value: 10.3% Celsius Holdings, trading at US$46.31, is undervalued relative to its estimated fair value of US$51.6. Despite a recent decline in profit margins and net income, the company anticipates significant earnings growth of 31.8% annually over the next three years, surpassing market averages. Recent amendments to increase authorized shares and shelf registration filings indicate potential capital raising efforts, which could impact future valuations but may also support growth initiatives. Our expertly prepared growth report on Celsius Holdings implies its future financial outlook may be stronger than recent results. Click here to discover the nuances of Celsius Holdings with our detailed financial health report. Sotera Health Overview: Sotera Health Company offers sterilization, lab testing, and advisory services to the healthcare industry across the United States, Canada, Europe, and internationally with a market cap of $3.36 billion. Operations: The company's revenue is derived from three segments: Nordion ($181.91 million), Nelson Labs ($223.84 million), and Sterigenics ($701.04 million). Estimated Discount To Fair Value: 49.9% Sotera Health is trading at US$12.11, significantly below its estimated fair value of US$24.19, suggesting it may be undervalued based on cash flows. Despite a net loss in the recent quarter and lower profit margins compared to last year, earnings are forecast to grow significantly at 49.2% annually over the next three years. Recent additions to multiple Russell growth indices highlight increased market visibility, potentially enhancing investor interest despite current financial challenges. Upon reviewing our latest growth report, Sotera Health's projected financial performance appears quite optimistic. Click to explore a detailed breakdown of our findings in Sotera Health's balance sheet health report. MINISO Group Holding Overview: MINISO Group Holding Limited is an investment holding company involved in the retail and wholesale of lifestyle and pop toy products across China, Asia, the Americas, Europe, Indonesia, and globally with a market cap of approximately $5.37 billion. Operations: The company generates revenue from its MINISO Brand, excluding Africa and Germany, amounting to CN¥16.60 billion, and from its TOP TOY Brand at CN¥1.12 billion. Estimated Discount To Fair Value: 41.4% MINISO Group Holding, trading at US$18.95, is valued 41.4% below its estimated fair value of US$32.34, indicating potential undervaluation based on cash flows. Earnings are projected to grow significantly by 21.2% annually over the next three years, outpacing the broader U.S. market's growth rate of 14.9%. However, its dividend yield of 3.45% isn't well-supported by free cash flows, which may warrant investor caution despite robust profit forecasts and strategic expansions in Canada and planned IPOs for Top Toy in Hong Kong. In light of our recent growth report, it seems possible that MINISO Group Holding's financial performance will exceed current levels. Get an in-depth perspective on MINISO Group Holding's balance sheet by reading our health report here. Next Steps Delve into our full catalog of 169 Undervalued US Stocks Based On Cash Flows here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Curious About Other Options? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. 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. Companies discussed in this article include CELH SHC and MNSO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Business Wire
15-07-2025
- Business
- Business Wire
Semrush Holdings, Inc. Announces Investor Conference Call to Review Second Quarter 2025 Financial Results
BOSTON--(BUSINESS WIRE)--Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, will release its financial results for the second quarter ended June 30, 2025, after the close of the US markets on Monday, August 4, 2025. Semrush will host a corresponding conference call to discuss the results on Tuesday, August 5, 2025 at 8:30 a.m. Eastern Time. Conference Call Details Time: 8:30 a.m. ET Hosts: Bill Wagner, CEO, and Brian Mulroy, CFO Conference ID: 978610 Participant Toll Free Dial-In Number: +1 833 470 1428 Participant International Dial-In Number: +1 929 526 1599 Participants should dial in at least ten minutes before the start of the conference call. A live webcast of the conference call and financial results will be accessible at An archived replay of the webcast will be available on this website for a limited time after the call. About Semrush Holdings, Inc. Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan.
Business Wire
07-05-2025
- Business
- Business Wire
Semrush Announces First Quarter 2025 Financial Results
BOSTON--(BUSINESS WIRE)--Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the first quarter ended March 31, 2025. 'I am thrilled to be part of the Semrush team as we leverage our best-in-class data platform to seize the emerging marketing opportunity presented by AI and extend our reach into the enterprise market," said Bill Wagner, CEO. "We reported a strong start to the year, delivering first quarter revenue growth of 22% along with strong margins and free cash flow. We are especially pleased by the early traction of our AI products and continued momentum of our Enterprise SEO Solution.' First Quarter 2025 Financial Highlights First quarter revenue of $105.0 million, up 22% year-over-year. Loss from operations of $0.1 million for the first quarter, compared to income from operations of $1.5 million the prior year's quarter. First quarter operating margin of (0.1)%, compared to 1.7% in the prior year period. Non-GAAP income from operations of $12.2 million for the first quarter for a non-GAAP operating margin of 11.6%, compared to non-GAAP income from operations of $9.7 million in the prior year period for a non-GAAP operating margin of 11.3%. Q1 free cash flow of $18.5 million and free cash flow margin of 17.6%. ARR of $424.7 million as of March 31, 2025, up 20% year-over-year. Approximately 118,000 paying customers as of March 31, 2025, up approximately 5.1% from a year ago. Dollar-based net revenue retention of 106%, as of March 31, 2025. See 'Non-GAAP Financial Measures & Definitions of Key Metrics' below for how Semrush defines ARR, dollar-based net revenue retention, non-GAAP income from operations, non-GAAP operating margin, free cash flow, and free cash flow margin, and the financial tables that accompany this release for reconciliations of each non-GAAP financial measure to its closest comparable GAAP financial measure. First Quarter 2025 Business Highlights We remain committed to empowering our customers with a best-in-class platform designed to boost their online presence and gain an edge in the market. We advanced and expanded many of our offerings and continued investments in Generative AI to provide enhanced, more efficient content creation and marketing capabilities through Semrush's platform and App Center: Launched AI Optimization (AIO), now in open beta, a Semrush Enterprise Solution that provides businesses with the tools to track, control, and optimize brand presence across AI-powered search platforms. Released AI Toolkit, a solution that simplifies how businesses assess their visibility in AI-driven search results and guides strategic decisions to improve performance and positioning. Semrush customers who pay more than $10,000 annually grew by 39% year-over-year. Semrush customers who pay over $50,000 increased 86% year-over-year to 388. Ended the quarter with over 1.0 million registered free active customers. 'We reported a strong first quarter - overachieving on our top line growth and profitability, as we executed on our cross-sell and up-sell strategy and continued to expand our average revenue per customer,' said Brian Mulroy, CFO of Semrush. 'We saw increased adoption during the quarter of our Enterprise SEO solution and continued momentum building our enterprise cohort, delivering 86% year-over-year growth in customers paying over $50,000. Non-GAAP operating margin increased to 11.6% and cash flow from operations increased to $22.1 million. Looking ahead, we are confident about our ability to drive growth, profitability, and free cash flow generation, and we are reiterating our previous full year 2025 guidance.' Based on information as of today, May 7, 2025, we are issuing the following financial guidance: Second Quarter 2025 Financial Outlook For the second quarter, we expect revenue in a range of $108.2 million to $109.2 million, which at the mid-point would represent growth of approximately 20% year-over-year. We expect second quarter non-GAAP operating margin to be approximately 11%. Full-Year 2025 Financial Outlook For the full year, we expect revenue in a range of $448.0 to $453.0 million, which at the mid-point would represent growth of approximately 20% year-over-year. We expect full year non-GAAP operating margin to be approximately 12%. We expect the full year free cash flow margin to be approximately 12%. To note, our full year 2025 guidance now absorbs an incremental $8.0 million expense headwind due to the recent movement in exchange rates. Our previous guidance assumed a EURO to USD exchange rate of 1.05 and we are now modeling an exchange rate of 1.13. Reconciliations of non-GAAP operating margin and free cash flow margin guidance to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Conference Call and Webcast Details Semrush will host a conference call and webcast to discuss its financial results, business highlights, outlook and other matters, the details for which are provided below. Date: Thursday, May 8th, 2025 Time: 8:30 a.m. ET Hosts: Bill Wagner, CEO, and Brian Mulroy, CFO Conference ID: 923956 Participant Toll Free Dial-In Number: +1 833 470 1428 Participant International Dial-In Number: +1 929 526 1599 The live webcast of the conference call as well as the replay can be accessed for a limited time from the Semrush investor relations website at About Semrush Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'shall,' 'should,' 'expects,' 'plans,' 'positioning,' 'anticipates,' 'could,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, guidance on financial results for the second quarter and full fiscal year of 2025 (including revenue, non-GAAP operating margin, and free cash flow margin); statements about transition and the impact of recent changes to our executive management team; statements regarding the expectations of demand for our products and cash flow generation; statements about improvements to and expansion of our products and platform, and launching new products; statements about future operating results, including revenue, growth opportunities, variability of expenses, ability to realize efficiencies, future spending and incremental investments, business trends, our ability to deliver profits, and growth and value for shareholders; and assumptions regarding foreign exchange rates. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ('SEC'), including in the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations'' in our filings with the SEC, including our most recent annual report on form 10-K, and our subsequently filed quarterly reports and other SEC filings. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Additional information regarding these and other factors that could affect our results is included in our SEC filings, which may be obtained by visiting our Investor Relations page on its website at or the SEC's website at Non-GAAP Financial Measures & Definitions of Key Metrics We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but also to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. We also believe that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. We also believe free cash flow margin is useful to investors as we monitor it as a measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allows us to better understand the cash needs of our business. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release. Annual Recurring Revenue (ARR) is defined as the total subscription revenue as of a given date that we expect to contractually receive over the subsequent 12 months from customers on an annualized basis, assuming no increases, reductions or cancellations. This ARR definition was updated in our Annual Report on Form 10-K for the period ended December 31, 2024 to simplify the explanation of our calculation around the treatment of monthly and longer-term contracts, and to be more consistent with other SaaS businesses, which we believe improves the ability for investors to compare our metric against other businesses. Additionally, our definition was updated to note that we do not assume there will be any increases, reductions, or cancellations. Given our efforts to retain and win back customers, and our belief that we will be successful in many of those retention efforts, we believe the updated definition is more accurate. We are not recasting ARR results to conform ARR under the prior definition to the updated definition as there is no variance between the two definitions for the periods presented. Dollar-based net revenue retention is defined as (a) the revenue from our customers during the twelve-month period ending one year prior to such period as the denominator and (b) the revenue from those same customers during the twelve months ending as of the end of such period as the numerator. This calculation excludes revenue from new customers and any non-recurring revenue. Free cash flow and free cash flow margin. We define free cash flow, a non-GAAP financial measure, as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. We define free cash flow margin as free cash flow divided by GAAP revenue. Non-GAAP income (loss) from operations, and non-GAAP operating margin. We define non-GAAP income (loss) from operations as GAAP income (loss) from operations, excluding Stock Based Compensation, Amortization of Acquired Intangible Assets, Acquisition Related Costs, Restructuring Costs and other one-time expenses outside the ordinary course of business (for example, our Exit Costs incurred primarily in 2022). We define non-GAAP operating margin as non-GAAP income (loss) from operations divided by GAAP revenue. We believe investors may want to consider our results with and without the effects of these items in order to compare our financial performance with that of other companies that exclude such items and to compare our results to prior periods. Stock-based compensation. Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. We believe that the exclusion of stock-based compensation expense allows for financial results that are more indicative of our operational performance and provide for a useful comparison of our operating results to prior periods and to our peer companies because stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies, timing of awards and changes in stock price. Amortization of acquired intangible assets. Excluding amortization of acquired intangible assets from non-GAAP expense and income measures allows management and investors to evaluate results 'as-if' the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Restructuring and other costs. Restructuring and other costs include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business. Restructuring expenses consist of employee severance costs, charges for the closure of excess facilities and other contract termination costs. Other costs include litigation contingency reserves, asset impairment charges, relocation expenses associated with the migration of employees in 2022 that occurred throughout 2022 and early 2023, and gains or losses on the sale or disposition of certain non-strategic assets or product lines. Acquisition-related costs. In recent years, we have completed a number of acquisitions, which result in transition, integration and other acquisition-related expense which would not otherwise have been incurred, are unpredictable and dependent on a significant number of factors that are deal-specific or outside of our control, are not indicative of our operational performance (or that of the acquired businesses or assets) and are likely to fluctuate as our acquisition activity increases or decreases in future periods. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us. The following table sets forth a reconciliation of our (loss) income from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin, respectively (percentage amounts may not sum due to rounding): The following table sets forth a reconciliation of our net cash provided by operating activities and net cash provided by operating activities (as a percentage of revenue) to free cash flow and free cash flow margin, respectively (percentage amounts may not sum due to rounding): Semrush Holdings, Inc. (in thousands) As of December 31, 2024 Assets Current assets Cash and cash equivalents $ 64,665 $ 48,875 Short-term investments 197,125 186,693 Accounts receivable 11,034 8,955 Deferred contract costs, current portion 10,161 10,044 Prepaid expenses and other current assets 14,461 21,617 Total current assets 297,446 276,184 Property and equipment, net 6,401 6,534 Operating lease right-of-use assets 12,133 11,126 Intangible assets, net 33,007 32,055 Goodwill 57,682 56,139 Deferred contract costs, net of current portion 3,379 3,080 Other long-term assets 6,453 5,825 Total assets $ 416,501 $ 390,943 Liabilities, noncontrolling interest, and stockholders' equity Current liabilities Accounts payable $ 14,218 $ 10,463 Accrued expenses 21,606 20,216 Deferred revenue 79,926 71,827 Current portion of operating lease liabilities 5,202 4,669 Other current liabilities 5,750 6,913 Total current liabilities 126,702 114,088 Deferred revenue, net of current portion 235 235 Deferred tax liability 1,634 1,621 Operating lease liabilities, net of current portion 8,569 7,602 Other long-term liabilities 1,203 1,045 Total liabilities 138,343 124,591 Commitments and contingencies Stockholders' equity Class A common stock 1 1 Class B common stock — — Additional paid-in capital 331,917 322,586 Accumulated other comprehensive loss (311 ) (2,221 ) Accumulated deficit (62,913 ) (63,762 ) Total stockholders' equity attributable to Semrush Holdings, Inc. 268,694 256,604 Noncontrolling interest in consolidated subsidiaries 9,464 9,748 Total stockholders' equity 278,158 266,352 Total liabilities, noncontrolling interest and stockholders' equity $ 416,501 $ 390,943 Expand Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 31, 2025 2024 Operating Activities Net income $ 655 $ 2,003 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization expense 3,424 2,183 Amortization of deferred contract costs 3,474 3,016 Amortization (accretion) of premiums and discounts on investments (659 ) (1,071 ) Non-cash lease expense 1,257 1,164 Stock-based compensation expense 9,112 5,115 Change in fair value included in other income, net (1,164 ) — Deferred taxes (55 ) (100 ) Other non-cash items 880 844 Changes in operating assets and liabilities Accounts receivable (2,167 ) 782 Deferred contract costs (3,891 ) (3,455 ) Prepaid expenses and other current assets (379 ) (2,275 ) Accounts payable 3,559 1,012 Accrued expenses 1,632 1,414 Other current liabilities (299 ) (390 ) Deferred revenue 7,873 5,658 Other long-term liabilities 158 — Change in operating lease liability (1,301 ) (1,121 ) Net cash provided by operating activities 22,109 14,779 Investing Activities Purchases of property and equipment (725 ) (759 ) Capitalization of internal-use software costs (2,879 ) (2,015 ) Purchases of short-term investments (27,156 ) (46,706 ) Proceeds from sales and maturities of short-term investments 18,000 25,000 Funding of investment loan receivables — (7,000 ) Proceeds from repayment of investment loan receivables 7,676 — Cash paid for acquisition of assets and businesses, net of cash acquired (512 ) (501 ) Purchase of noncontrolling interest (90 ) — Net cash used in investing activities (5,686 ) (31,981 ) Financing Activities Proceeds from exercise of stock options 365 844 Repayment of acquired debt (611 ) — Payment of finance leases (99 ) (410 ) Net cash (used in) provided by financing activities (345 ) 434 Effect of exchange rate changes on cash and cash equivalents (288 ) (507 ) Increase (decrease) in cash, cash equivalents and restricted cash 15,790 (17,275 ) Cash, cash equivalents and restricted cash, beginning of period 49,060 58,848 Cash, cash equivalents and restricted cash, end of period $ 64,850 $ 41,573 Expand
