Semrush Investor Presentation November 2024 Safe Harbor This presentation will contain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning our expected future business and financial performance and financial condition, expected growth, adoption and existing and future demand for our existing and any new products and features, our expected gro ...

Financial Data and Key Metrics Changes - The company reported revenue of $97.4 million, representing a 24% year-over-year increase [6][26] - Non-GAAP operating income was $12.1 million, with a non-GAAP operating margin of 12.4%, up from 9.5% in the prior year [7][33] - Annual recurring revenue (ARR) grew 24% year-over-year to $401 million [30] - The average ARR per paying customer exceeded $3,400, up 13% year-over-year [31] Business Line Data and Key Metrics Changes - The company has 8,000 enterprise accounts, over 17,000 mid-market accounts, and over 21,000 marketing agencies [27] - The enterprise product has secured major deals with clients such as Salesforce, HSBC, and Samsung, indicating strong demand [12][24] - The company has seen a significant increase in customers paying over $10,000 and $50,000 annually, with over 4,000 customers now in the former category [28] Market Data and Key Metrics Changes - The total addressable market (TAM) has increased from $13 billion at the time of the IPO to approximately $40 billion [9] - The company is experiencing strong demand for its enterprise SEO products, which are expected to drive future growth [12][24] Company Strategy and Development Direction - The company aims to leverage profitability to invest in new products and enhance cross-sell and upsell capabilities [15] - The acquisition of Third Door Media is part of the strategy to expand reach and provide industry-related content [18] - The company is focused on maintaining a 20% compound annual revenue growth rate over the near term [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities for 2025 and beyond, citing a strong foundation built in 2024 [7][15] - The company anticipates continued strong demand for its enterprise products, which are expected to enhance net revenue retention rates [48] Other Important Information - Cash and cash equivalents at the end of the quarter were $233 million, reflecting a slight increase from the previous quarter [34] - The company raised its full-year 2024 revenue guidance to a range of $375 million to $376 million, up from the previous range [36] Q&A Session Summary Question: Insights on AI capabilities and pricing strategy - Management discussed the positive reception of AI capabilities and various monetization strategies for core and enterprise plans [39][44] Question: Net Revenue Retention (NRR) expectations - Management confirmed NRR at 107% and highlighted the importance of segment analysis in understanding this metric [45][48] Question: Interest in SEO following Google's AI updates - Management noted increased interest from marketers in optimizing content for new search features introduced by Google [50][51] Question: Enterprise product penetration and migration - Management reported that over 90 enterprise accounts have migrated to the new SEO solution, with expectations for continued growth [63] Question: Consolidation of SEO tools for enterprises - Management explained the goal of providing an integrated solution to replace disparate tools used by enterprises [70][72]

Core Insights - SEMrush Holdings, Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.07 per share, representing an earnings surprise of -14.29% [1] - The company posted revenues of $97.41 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.95%, compared to year-ago revenues of $78.72 million [2] - SEMrush shares have increased about 1% since the beginning of the year, underperforming the S&P 500's gain of 24.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $100.93 million, and for the current fiscal year, it is $0.25 on revenues of $374.19 million [7] - The estimate revisions trend for SEMrush is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which SEMrush belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Growth - Q3 2024 revenue reached $97.4 million, up 24% year-over-year[1][3] - Revenue for Q3 2024 increased to $97.41 million, up 23.8% from $78.72 million in Q3 2023[27] - Total revenue for the first nine months of 2024 reached $274.17 million, a 22.2% increase from $224.28 million in the same period of 2023[27] - Q4 2024 revenue guidance is $100.8 to $101.8 million, representing approximately 21% year-over-year growth at the midpoint[8] - Full-year 2024 revenue guidance raised to $375 to $376 million, representing 22% year-over-year growth[9] Annual Recurring Revenue (ARR) and Customer Growth - ARR as of September 30, 2024, was $401 million, up 24% year-over-year[1][4] - Paying customers grew to over 117,000, up 10% year-over-year[4] - Dollar-based net revenue retention was 107% as of September 30, 2024[4] - Customers paying more than $10,000 annually grew by 44% year-over-year[6] Profitability and Operating Income - Q3 2024 non-GAAP operating income was $12.1 million, with a non-GAAP operating margin of 12.4%, up nearly 300 basis points year-over-year[4][8] - Non-GAAP income from operations for Q3 2024 was $12.06 million, representing 12.4% of revenue, up from $7.51 million (9.5% of revenue) in Q3 2023[29] - Net income for Q3 2024 was $1.09 million, compared to $4.22 million in Q3 2023[27] - Net income for the nine months ended September 30, 2024, was $4,082 thousand, compared to a net loss of $(5,924) thousand in the same period in 2023[32] Cash Flow and Financial Position - Q3 2024 free cash flow was $6.2 million, with a free cash flow margin of 6.3%[4] - Free cash flow for Q3 2024 was $6.16 million, compared to $4.97 million in Q3 2023[30] - Net cash provided by operating activities was $35,063 thousand for the nine months ended September 30, 2024, compared to $(3,567) thousand used in the same period in 2023[32] - Total assets as of September 30, 2024, increased to $383.80 million from $331.49 million as of December 31, 2023[31] - Deferred revenue as of September 30, 2024, was $68.99 million, up from $58.31 million as of December 31, 2023[31] - Total stockholders' equity attributable to Semrush Holdings, Inc. increased to $248.52 million as of September 30, 2024, from $219.15 million as of December 31, 2023[31] Expenses and Investments - Research and development expenses for Q3 2024 were $22.18 million, a 57.6% increase from $14.08 million in Q3 2023[27] - Stock-based compensation expense for Q3 2024 was $7.58 million, up from $4.20 million in Q3 2023[28] - Stock-based compensation expense increased to $19,856 thousand in 2024 from $10,764 thousand in 2023[32] - Purchases of short-term investments totaled $(136,768) thousand in 2024, compared to $(182,381) thousand in 2023[32] - Proceeds from sales and maturities of short-term investments were $132,500 thousand in 2024, down from $154,741 thousand in 2023[32] - Cash paid for acquisition of businesses, net of cash acquired, was $(21,082) thousand in 2024, significantly higher than $(1,232) thousand in 2023[32] - Cash, cash equivalents, and restricted cash decreased by $(13,580) thousand in 2024, compared to a decrease of $(38,576) thousand in 2023[32] - Depreciation and amortization expense increased to $7,094 thousand in 2024 from $4,807 thousand in 2023[32] - Amortization of deferred contract costs rose to $9,163 thousand in 2024 from $7,510 thousand in 2023[32] - Net cash used in investing activities was $(51,076) thousand in 2024, compared to $(34,319) thousand in 2023[32] Enterprise Customer Growth - Semrush Enterprise SEO Platform signed new deals with large multinational corporations including Salesforce, HSBC, LG, Samsung, Alibaba, Sony, DoorDash, TikTok, and Square[6]

MRUSH D GE New York | --- | --- | |--------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | | | | Break SEMRUSH ANALYST DAY 2024 | Andrew Warden — CMO → Go To Market Strat Andrew Warden & Tommie O'B - CMO & CSO → Financial Strategy Brian Mulroy — CFO → Q&A | | --- | |----------------------------------------------------------------------------------------------------------------------------------------- ...

Semrush (NYSE: SEMR ) is a search engine marketing platform with a slant to small and medium sized businesses. The company provides a wide variety of tools for optimizing your business which is essential to most companies. The freemium model I am focused on Canadian stocks, Technology and growth stocks. The key to long term returns are disruptive companies that change the landscape of their industry. I also focus on Mid-Cap companies with strong management and high growth to attain alpha. I buy swing positi ...

Boy Wirat Investment overview I wrote about Semrush Holdings (NYSE:SEMR) previously (29 May 2024) with a hold rating, as I felt that the valuation was no longer attractive when compared to peers. SEMR 2Q24 results were full of positives and have made me feel more optimistic about the potential for more growth acceleration over the medium term. However, I want to see more evidence that the strategies employed today can continue to work. As such, considering that the near-term upside has been priced in, I rem ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40276 Semrush Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 84-4053265 (State or Other Jurisdiction of Inc ...

You don't have to spend a lot of money to buy a share in a successful company. Some stocks are priced below $50 per share and present a respectable upside for long-term investors. However, these stocks don't present an upside just because they have low prices. Rising revenue and earnings are two components of high-potential companies. These stocks check off both items, but they also have growth catalysts that suggest more gains are on the way. Some of these stocks also have low valuations that present a res ...

Semrush Holdings, Inc. (NYSE:SEMR) Q2 2024 Earnings Conference Call August 6, 2024 8:30 AM ET Company Participants Brinlea Johnson - Investor Relations Oleg Shchegolev - Chief Executive Officer Eugene Levin - President Brian Mulroy - Chief Financial Officer Conference Call Participants Scott Berg - Needham Jackson Ader - KeyBanc Capital Markets Elizabeth Porter - Morgan Stanley Mark Murphy - JPMorgan Adam Hotchkiss - Goldman Sachs Operator Hello everyone, and welcome to the Semrush Holdings Second Quarter 2 ...