More than 76,000 Customers as of June 30,
2021
Second Quarter Revenue of $45 million
Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility
management SaaS platform, today reported second quarter 2021
financial results for the quarter ended June 30, 2021.
“Semrush entered April with strong momentum, and we sustained
that momentum through the second quarter as we grew revenue 13%
sequentially and 58% year over year. The year over year increase
was driven by a 29% growth in paid users and average check growth
of 19%,” said Oleg Shchegolev, CEO and Founder of Semrush.
“We continued to add new capabilities to our platform in the
second quarter. Our Social Media Marketing toolkit ended the
quarter with more than 30 thousand active users, up 25%
sequentially. We also saw rapid growth for our Local Listing
Management add-on, as revenue more than doubled from the previous
year. I believe these examples illustrate how enhancements to the
Semrush platform further extend our advantage over point solution
providers,” added Mr. Shchegolev.
Second Quarter 2021 Financial Highlights
- Total revenue of $45 million, up 58% year over year and up 13%
sequentially
- ARR of $188 million as of June 30, 2021, up 57% year over
year
- Dollar based net revenue retention of 121%, up 500 basis points
sequentially
- Net loss of $279 thousand, an improvement from a loss of $2.1
million a year ago
- Non-GAAP net income, which excludes stock-based compensation
expense, of $290 thousand, an improvement from a loss of $1.9
million a year ago
- Over 76,000 customers as of June 30, 2021, up 29% compared to a
year ago (excludes Prowly customers)
See “Non-GAAP Financial Measures & Definitions of Key
Metrics” below for how Semrush defines ARR, dollar based net
revenue retention, non-GAAP net income (loss), and the financial
tables that accompany this release for reconciliations of each
non-GAAP financial measure to its closest comparable GAAP financial
measure.
Business Highlights
- Total add-on revenue growth of more than 75% from the previous
year with particular strength in Local Listings Management, which
more than doubled.
- Strong user response to Semrush’s Core Web Vitals, which upon
launch has become one of the most popular reports within our Site
Audit product. This report helps customers optimize their website
user experience and improve organic search rankings.
- Semrush Social Media Marketing toolkit surpassed 30,000 active
users, up approximately 25% sequentially.
- Semrush launched a new Keyword Difficulty score which
incorporates many additional metrics that help users rule out
ineffective keywords for best in class SEO performance
marketing.
Business Outlook
Based on information as of today, August 9, 2021, we are issuing
the following financial guidance:
Third Quarter 2021 Financial Outlook
- Revenue is expected to be in a range of $47.3 million to $47.7
million, up 47-48% year over year
- Non-GAAP net loss is expected to be in a range of $4.5 to $4.0
million
Full Year 2021 Financial Outlook
- Revenue is expected to be in a range of $182 million to $184
million, up 46-47% year over year
- Non-GAAP net loss is expected to be in a range of $7.9 to $6.3
million
Reconciliation of non-GAAP net loss guidance to the most
directly comparable GAAP measure is 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 this non-GAAP measure, 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 Information
Semrush will host a conference call and webcast at 8:30 a.m.
Eastern Time, tomorrow, August 10, 2021, to discuss its financial
results, business highlights, outlook and other matters. The
conference call can be accessed by dialing (833) 329-1691 from the
United States and Canada or (236) 714-3944 internationally with
conference ID 7178568. 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
http://investors.semrush.com.
About Semrush
Semrush is a leading online visibility management SaaS platform
that enables businesses globally to run search engine optimization,
pay-per-click, 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, with
over 76,000 paying customers, is headquartered in Boston and has
offices in Philadelphia, Dallas, Prague, St. Petersburg, Warsaw,
and Limassol.
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,”
“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
year of 2021; statements about future operating results; statements
regarding the expectations of demand for our products, including
adoption of and demand for new products and features, and growth of
our business; statements about the growth rates in the markets in
which we compete and our competitive advantages; and statements
about our investments in technology and infrastructure, ability to
deliver innovative solutions and ability to attract new paying
customers.
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
Securities and Exchange Commission ("SEC"), including the final
prospectus for our initial public offering filed with the SEC on
March 25, 2021, as updated by 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
Semrush as of the date hereof, and Semrush disclaims any obligation
to update any forward-looking statements, except as required by
law. These forward-looking statements should not be relied upon as
representing Semrush’s views as of any date subsequent to the date
of this press release.
Additional information regarding these and other factors that
could affect Semrush's results is included in Semrush’s SEC
filings, which may be obtained by visiting Semrush’s Investor
Relations page on its website at investors.semrush.com or the SEC's
website at www.sec.gov.
Non-GAAP Financial Measures & Definitions of Key
Metrics
Semrush has provided in this release the non-GAAP financial
measure of non-GAAP net income (loss). Semrush uses this non-GAAP
financial measure internally in analyzing its financial results and
believes it is useful to investors, as a supplement to GAAP
measures, in evaluating Semrush’s ongoing operational performance.
Semrush believes that the use of this non-GAAP financial measure
provides an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing its financial
results with other companies in Semrush’s industry, many of which
present similar non-GAAP financial measures to investors.
Non-GAAP financial measures have limitations as an analytical
tool and should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Investors are encouraged to review the reconciliation of
non-GAAP measures to their most directly comparable GAAP financial
measures. A reconciliation of our non-GAAP financial measures to
their most directly comparable GAAP measures has been provided in
the financial statement tables included below in this press
release.
ARR is defined as the daily revenue of all paid
subscription agreements that are actively generating revenue as of
the last day of the reporting period multiplied by 365. Semrush
includes both monthly recurring paid subscriptions, which renew
automatically unless cancelled, as well as the annual recurring
paid subscriptions so long as Semrush does not have any indication
that a customer has cancelled or intends to cancel its subscription
and Semrush continues to generate revenue from them.
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.
Non-GAAP net income (loss). We define non-GAAP net income
(loss) as GAAP income (loss), excluding stock-based compensation
expense. We believe non-GAAP net income (loss) provides our
management and investors consistency and comparability with our
past financial performance and facilitates period-to-period
comparisons of operations, as it eliminates the effect of
stock-based compensation, which is often unrelated to overall
operating performance.
Semrush Holdings Inc.
Condensed Consolidated
Statement of Operations (Unaudited)
(in thousands, except per
share data)
Three Months Ended June 30,
2021
2020
Revenue
$
45,005
$
28,452
Cost of revenue (1)
10,238
7,055
Gross profit
34,767
21,397
Operating expenses Sales and marketing (1)
18,298
12,704
Research and development (1)
5,964
4,001
General and administrative (1)
10,520
6,570
Total operating expenses
34,782
23,275
Income (loss) from operations
(15
)
(1,878
)
Other income (expense), net
(123
)
(138
)
Income (loss) before income taxes
(138
)
(2,016
)
Provision for income taxes
141
92
Net income (loss)
$
(279
)
$
(2,108
)
Net income (loss) per share attributable to common
stockholders: Basic and diluted:
$
(0.00
)
$
(0.02
)
Weighted-average number of shares of common stock used in computing
net income (loss) per share applicable to common stockholders:
Basic:
135,312
94,738
Diluted:
135,312
94,738
(1) Includes stock-based compensation expense as follows
Three Months Ended June 30,
2021
2020
Cost of Revenue
$
7
$
5
Sales and Marketing
52
27
Research and Development
68
29
General and Administrative
442
148
Total stock-based compensation
$
569
$
209
Reconciliation of non-GAAP Financial Measures
Net income/(loss) and comprehensive income/(loss)
$
(279
)
$
(2,108
)
Stock-based compensation expense
569
209
Non-GAAP net income/(loss)
$
290
$
(1,899
)
Semrush Holdings Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except per
share data)
As of June 30, 2021 December 31, 2020
Assets Current assets Cash and cash equivalents
$
180,759
$
35,531
Accounts receivable
2,722
1,399
Deferred contract costs, current portion
5,418
4,049
Prepaid expenses and other current assets
7,180
2,649
Total current assets
196,079
43,628
Property and equipment, net
8,396
2,968
Intangible assets, net
2,127
2,231
Goodwill
1,991
1,991
Deferred contract costs, net of current portion
2,140
1,670
Other long-term assets
1,026
2,470
Total assets
$
211,759
$
54,958
Liabilities, Redeemable Convertible Preferred Stock
and Stockholders’ Deficit Current liabilities Accounts
payable
$
9,135
$
8,654
Accrued expenses
12,847
7,719
Deferred revenue
34,652
26,537
Other current liabilities
1,859
Total current liabilities
58,493
42,910
Long-term liabilities Deferred revenue, net of current portion
237
123
Deferred tax liability
126
209
Other long-term liabilities
3,438
497
Total liabilities
62,294
43,739
Series A redeemable convertible preferred stock,
$0.00001 par value - no shares authorized, issued or outstanding as
of June 30, 2021; 3,379,400 shares authorized, issued and
outstanding as of December 31, 2020; no shares issued or
outstanding as of June 30, 2021 (liquidation value of $8,000 at
December 31, 2020)
-
7,789
Series A-1 redeemable convertible preferred stock, $0.00001 par
value - no shares authorized, issued or outstanding as of June 30,
2021; 1,837,600 shares authorized, issued and outstanding as of
December 31, 2020; (liquidation value of $5,000 at December 31,
2020)
-
10,270
Stockholders' equity (deficit) Series B convertible preferred
stock, $0.00001 par value - no shares authorized, issued or
outstanding as of June 30, 2021; 4,681,400 shares authorized,
issued and outstanding as of December 31, 2020; (liquidation value
of $24,000 at December 31, 2020)
-
24,000
Undesignated preferred stock, $0.00001 par value - 100,000,000
shares authorized, no shares issued or outstanding as of June 30,
2021; no shares authorized, issued, or outstanding as of December
31, 2020
-
-
Common stock, $0.00001 par value - no shares authorized, issued, or
outstanding as of June 30, 2021; 300,000,000 shares authorized;
95,206,893 shares issued at December 31, 2020, and 95,050,041
shares outstanding at December 31, 2020
-
-
Class A common stock, $0.00001 par value; 1,000,000,000 shares
authorized, and 10,000,000 shares issued and outstanding as of June
30, 2021; no shares authorized, issued or outstanding as of
December 31, 2020
-
Class B common stock, $0.00001 par value; 160,000,000 shares
authorized, and 124,905,954 shares issued and 124,749,102
outstanding as of June 30, 2021; no shares authorized, issued or
outstanding as of December 31, 2020
1
Additional paid-in capital
184,087
4,975
Accumulated deficit
(34,623
)
(35,815
)
Total stockholders’ equity (deficit)
149,465
(6,840
)
Total liabilities, redeemable convertible preferred stock, and
stockholders' deficit
$
211,759
$
54,958
Semrush Holdings Inc.
Consolidated Statements of
Cash Flows (Unaudited)
(in thousands)
Six Months Ended June 30,
2021
2020
Operating Activities Net income (loss)
$
1,192
$
(4,039
)
Adjustments to reconcile net loss to net cash provided by operating
activities Depreciation and amortization expense
1,447
474
Amortization of deferred contract costs
2,950
2,259
Stock-based compensation expense
1,162
414
Non-cash interest expense
104
-
Deferred tax
(83
)
(108
)
Changes in operating assets and liabilities Accounts receivable
(1,324
)
603
Deferred contract costs
(4,789
)
(3,114
)
Prepaid expenses and other current assets
(4,530
)
(788
)
Accounts payable
720
438
Accrued expenses
4,981
2,589
Deferred revenue
8,229
2,233
Net cash provided by operating activities
10,059
961
Investing Activities Purchases of property and equipment
(750
)
(1,792
)
Purchases of convertible debt securities
(500
)
-
Capitalization of internal-use software development costs
(271
)
(700
)
Cash paid for acquisition of business, net of cash acquired
(350
)
-
Net cash used in investing activities
(1,871
)
(2,492
)
Financing Activities Proceeds from exercise of stock options
26
-
Net proceeds from completing initial public offering
137,467
-
Payment of capital leases
(453
)
Payment of deferred offering costs
-
(38
)
Net cash (used in) provided by financing activities
137,040
(38
)
Increase in cash, cash equivalents, and restricted cash
145,228
(1,569
)
Cash, cash equivalents, and restricted cash, at beginning of period
35,619
37,523
Cash, cash equivalents, and restricted cash, at end of period
$
180,847
$
35,954
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210809005814/en/
MEDIA: Vincent Schiano Semrush Holdings, Inc.
Vincent.Schiano@semrush.com INVESTOR: Bob Gujavarty Semrush
Holdings, Inc Bobby.Gujavarty@semrush.com
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