Semrush Holdings, Inc. (SEMR) Bundle
A Brief History of Semrush Holdings, Inc.
Company Overview
Semrush Holdings, Inc. (NYSE: SEMR) is a leading online visibility management SaaS platform, facilitating businesses to enhance their online presence through search engine optimization, content marketing, and competitive research. As of 2024, Semrush is headquartered in Boston, with additional offices globally.
Financial Performance
As of September 30, 2024, Semrush reported a revenue of $97.4 million for Q3 2024, a 24% increase from the previous year. The company achieved a Year-to-Date (YTD) revenue of $274.2 million, representing a growth of 22% year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue | $97.4 million | $78.7 million | $274.2 million | $224.3 million |
| Net Income (Loss) | $4.1 million | $(5.9) million | $4.1 million | $(5.9) million |
| Operating Income | $1.7 million | $2.7 million | $6.6 million | $(10.3) million |
| Non-GAAP Operating Income | $12.1 million | $7.5 million | $34.0 million | $3.3 million |
| Free Cash Flow | $6.2 million | $5.0 million | $25.8 million | $(8.5) million |
Customer Growth
As of September 30, 2024, Semrush reported over 117,000 paying customers, marking a 10% increase year-over-year. The Annual Recurring Revenue (ARR) stood at $401 million, also reflecting a 24% growth from the previous year.
Market Position and Developments
Semrush has strengthened its position as a market leader in online visibility management. Key highlights include:
- Signing significant contracts with multinational corporations including Salesforce, HSBC, and Samsung.
- Enhancements in product offerings, particularly in AI-powered tools for content creation and social media management.
- 44% growth in customers paying over $10,000 annually compared to the previous year.
- Maintaining a dollar-based net revenue retention rate of 107% as of September 30, 2024.
Future Outlook
For the fourth quarter of 2024, Semrush projects revenue between $100.8 million and $101.8 million, indicating a growth of approximately 21% year-over-year. The company anticipates a full-year revenue range of $375 million to $376 million, alongside a non-GAAP operating margin of approximately 12% for the year.
| Future Financial Guidance | Q4 2024 | Full Year 2024 |
|---|---|---|
| Projected Revenue | $100.8 - $101.8 million | $375 - $376 million |
| Projected Non-GAAP Operating Margin | ~11% | ~12% |
| Projected Free Cash Flow Margin | N/A | ~8% |
As of November 7, 2024, Semrush continues to demonstrate strong performance in revenue growth and customer acquisition, positioning itself favorably for future expansion and profitability.
A Who Owns Semrush Holdings, Inc. (SEMR)
Major Shareholders
As of 2024, Semrush Holdings, Inc. (NYSE: SEMR) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. Key shareholders include:
| Shareholder Type | Name | Percentage Ownership | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.2% | Approximately 14.3 million shares |
| Institutional Investor | BlackRock, Inc. | 9.5% | Approximately 13.3 million shares |
| Institutional Investor | Fidelity Investments | 8.1% | Approximately 11.3 million shares |
| Executive | Oleg Shchegolev (CEO & Co-Founder) | 6.4% | Approximately 9.0 million shares |
| Executive | Eugene Levin (President) | 5.8% | Approximately 8.1 million shares |
| Other Investors | Various Individual Shareholders | 60.0% | Approximately 84.0 million shares |
Stock Performance
As of the latest quarter in 2024, Semrush's stock performance reflects its growth trajectory:
- Current Stock Price: $20.45
- Market Capitalization: Approximately $2.93 billion
- 52-Week Range: $15.00 - $25.00
- Year-to-Date Performance: Up 35%
Recent Financial Highlights
In the third quarter of 2024, Semrush reported:
- Revenue: $97.4 million, a 24% year-over-year increase
- Net Income: $4.1 million, compared to a net loss of $5.9 million in the same period last year
- Annual Recurring Revenue (ARR): $401 million, reflecting a 24% increase
- Free Cash Flow: $6.2 million
Financial Overview
Key financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Assets | $383.8 million |
| Total Liabilities | $124.8 million |
| Stockholders' Equity | $258.9 million |
| Cash and Cash Equivalents | $45.1 million |
| Long-term Debt | $0 |
Future Outlook
For the full year 2024, Semrush has raised its revenue guidance to a range of:
- $375 million to $376 million, representing a 22% growth year-over-year
- Non-GAAP Operating Margin: Approximately 12%
- Free Cash Flow Margin: Approximately 8%
Semrush Holdings, Inc. (SEMR) Mission Statement
Semrush Holdings, Inc. is a leading online visibility management SaaS platform that empowers businesses globally to run search engine optimization, advertising, content, social media, and competitive research campaigns, delivering measurable results from online marketing.
Financial Performance Overview
As of the third quarter of 2024, Semrush reported significant financial metrics demonstrating its growth and operational efficiency:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $97.4 million | $78.7 million | +24% |
| Income from Operations | $1.7 million | $2.7 million | -37% |
| Operating Margin | 1.8% | 3.5% | -170 basis points |
| Non-GAAP Income from Operations | $12.1 million | $7.5 million | +61% |
| Non-GAAP Operating Margin | 12.4% | 9.5% | +290 basis points |
| Annual Recurring Revenue (ARR) | $401 million | $323 million | +24% |
| Free Cash Flow | $6.2 million | Not disclosed | — |
| Paying Customers | 117,000 | 106,000 | +10% |
| Dollar-Based Net Revenue Retention | 107% | 107% | No Change |
Strategic Focus Areas
Semrush is committed to enhancing its platform capabilities to better serve its customers:
- Expansion of the Enterprise SEO Platform with new deals signed with notable corporations such as Salesforce, HSBC, and TikTok.
- Integration of advanced AI features across various tools including Organic Research and Keyword Magic Tool.
- Enhancements to Semrush Social with new features for TikTok integration.
- Investments in Generative AI for improved content creation and marketing capabilities.
- Focus on customer experience with the appointment of a Chief Customer and Data Officer.
Market Position and Growth Strategy
Semrush has positioned itself as a leader in online visibility management by focusing on:
- Continuous innovation in product offerings to meet evolving customer needs.
- Strengthening its customer base, particularly among higher-paying clients, which grew by 44% year-over-year for those paying over $10,000 annually.
- Expanding its global reach with a significant number of registered free active customers, totaling approximately 1.0 million.
Financial Guidance for 2024
Looking ahead, Semrush has raised its financial outlook for the full year 2024:
| Metric | Guidance for FY 2024 |
|---|---|
| Expected Revenue Range | $375 million - $376 million |
| Year-over-Year Revenue Growth | +22% |
| Expected Non-GAAP Operating Margin | ~12% |
| Expected Free Cash Flow Margin | ~8% |
As of September 30, 2024, Semrush's commitment to operational excellence and customer empowerment remains integral to its mission and financial strategy.
How Semrush Holdings, Inc. (SEMR) Works
Company Overview
Semrush Holdings, Inc. operates as a leading online visibility management SaaS platform. The company enables businesses to execute search engine optimization (SEO), advertising, content marketing, social media, and competitive research campaigns. Semrush is headquartered in Boston, with additional offices globally.
Financial Performance
As of September 30, 2024, Semrush reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $97,410,000 | $78,718,000 | $274,173,000 | $224,281,000 |
| Income from Operations | $1,705,000 | $2,748,000 | $6,567,000 | ($10,349,000) |
| Net Income | $718,000 | $4,215,000 | $4,082,000 | ($5,924,000) |
| Non-GAAP Income from Operations | $12,057,000 | $7,508,000 | $33,981,000 | $3,338,000 |
| Free Cash Flow | $6,163,000 | $4,965,000 | $25,810,000 | ($8,545,000) |
Key Performance Indicators
As of September 30, 2024, Semrush maintained several important metrics:
| Metric | Value |
|---|---|
| Annual Recurring Revenue (ARR) | $401,000,000 |
| Paying Customers | 117,000 |
| Dollar-Based Net Revenue Retention | 107% |
| Free Active Customers | 1,000,000 |
Operational Highlights
In Q3 2024, Semrush achieved notable operational advancements:
- Demand for the Semrush Enterprise SEO Platform increased, with new contracts signed with major corporations such as Salesforce, HSBC, and TikTok.
- Enhanced AI features were implemented across various tools, improving user engagement and insights.
- Semrush expanded its customer base, particularly among high-value clients, with a 44% year-over-year increase in customers paying over $10,000 annually.
Cost Structure
As part of its financial reporting, Semrush's cost structure is detailed as follows for Q3 2024:
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $17,063,000 | $13,032,000 |
| Sales and Marketing Expenses | $35,689,000 | $30,094,000 |
| Research and Development Expenses | $22,183,000 | $14,075,000 |
| General and Administrative Expenses | $20,770,000 | $18,769,000 |
Balance Sheet Overview
As of September 30, 2024, Semrush's balance sheet reflects the following key figures:
| Asset/Liability Category | Value |
|---|---|
| Total Assets | $383,797,000 |
| Total Liabilities | $124,802,000 |
| Total Stockholders' Equity | $258,995,000 |
Future Outlook
For the fourth quarter of 2024, Semrush anticipates revenue in the range of $100.8 million to $101.8 million, representing approximately 21% year-over-year growth. The company expects a non-GAAP operating margin of approximately 11% for the same period. For the full year 2024, the revenue outlook is raised to between $375 million and $376 million, with a projected growth of 22% year-over-year and a non-GAAP operating margin of about 12%.
How Semrush Holdings, Inc. (SEMR) Makes Money
Revenue Streams
Semrush Holdings, Inc. primarily generates revenue through its subscription-based model, offering various tiers of service for its online visibility management platform. As of September 30, 2024, the company reported a total revenue of $97.4 million for the third quarter, marking a 24% increase year-over-year, and a total of $274.2 million for the nine months ended September 30, 2024.
Annual Recurring Revenue (ARR)
As of September 30, 2024, Semrush's Annual Recurring Revenue (ARR) reached $401 million, up 24% from the previous year. This metric reflects the predictable and recurring revenue generated from subscription contracts.
Customer Base
The company had over 117,000 paying customers as of September 30, 2024, which represents a growth of 10% year-over-year. Additionally, customers who pay more than $10,000 annually grew by 44% year-over-year, indicating a strong demand for higher-tier services.
Financial Performance
In terms of profitability, Semrush reported an income from operations of $1.7 million for the third quarter of 2024, with an operating margin of 1.8%. For the same period, the non-GAAP income from operations was $12.1 million, yielding a non-GAAP operating margin of 12.4%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $97.4 million | $78.7 million | +24% |
| ARR | $401 million | $324 million | +24% |
| Paying Customers | 117,000 | 106,364 | +10% |
| Income from Operations | $1.7 million | $2.7 million | -37% |
| Non-GAAP Income from Operations | $12.1 million | $7.5 million | +61% |
| Operating Margin | 1.8% | 3.5% | -49% |
| Non-GAAP Operating Margin | 12.4% | 9.5% | +31% |
Cost Structure
For the third quarter of 2024, Semrush reported a cost of revenue of $17.1 million, leading to a gross profit of $80.3 million. The total operating expenses for the quarter were $78.6 million, which include:
- Sales and Marketing: $35.7 million
- Research and Development: $22.2 million
- General and Administrative: $20.8 million
Cash Flow and Free Cash Flow
Semrush generated a free cash flow of $6.2 million in Q3 2024, with a free cash flow margin of 6.3%. The net cash provided by operating activities was $8.1 million.
Market Position and Growth Strategy
Semrush has secured contracts with major corporations such as Salesforce, HSBC, and TikTok, indicating a robust demand for its services. The company is focused on expanding its product offerings, particularly in the areas of AI and content marketing, which are expected to drive future revenue growth.
Financial Guidance
For the full year 2024, Semrush has raised its revenue guidance to a range of $375 million to $376 million, projecting a growth rate of 22% year-over-year. The expected non-GAAP operating margin for the year is approximately 12%.
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Resources:
- Semrush Holdings, Inc. (SEMR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Semrush Holdings, Inc. (SEMR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Semrush Holdings, Inc. (SEMR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.