More than 72,000 Customers as of March 31,
2021
First Quarter Revenue of $40 million
Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility
management SaaS platform, today reported first quarter 2021
financial results for the quarter ended March 31, 2021.
“I am pleased with our execution during the first quarter. The
company completed a successful listing on the New York Stock
Exchange while also delivering strong growth in paying customers,
many of whom took their first step into online marketing with
Semrush,” said Oleg Shchegolev, CEO and Founder of Semrush.
“Clearly this was a solid start to the year, and looking ahead,
I see a strong demand environment for our products as customers of
all sizes focus on growing their online presence. We remain laser
focused on delivering innovative solutions that enable successful
and productive marketers,” added Mr. Shchegolev.
First Quarter 2021 Financial Highlights
- Total revenue of $40 million, up 44% year over year
- ARR of $168 million as of March 31, 2021, up 53% year over
year
- Dollar based net revenue retention of 116%
- Net Income of $1.5 million, an improvement from a loss of $1.9
million a year ago
- Non-GAAP Net Income, which excludes stock-based compensation
expense, of $2.1 million, an improvement from a loss of $1.7
million a year ago
- Over 72K customers as of March 31, 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 non-GAAP
net income (loss) to its closest comparable GAAP measure.
Business Highlights
- Launched App Center, a marketplace for third party developers
to innovate on the Semrush platform.
- Launched Core Web Vitals report within our Site Audit tool.
This helps users measure user experience according to Google Core
Web Vitals
- Relaunched Social Media Poster as a free product with native
support for Instagram. We now natively support all leading social
media sites.
- Semrush has been included in G2’s annual list of Best Global
Software Sellers for 2021, ranking #26 alongside companies such as
Microsoft, Google, Zoom, Slack and others.
- Semrush’s Backlinks database now contains more than 41.2
trillion links, up +52% from the previous year.
Business Outlook
Based on information as of today, May 11, 2021, we are issuing
the following financial guidance:
Second Quarter 2021 Financial Outlook
- Revenue is expected to be in a range of $42.2 million to $42.7
million, up 49% year over year
- Non-GAAP net loss is expected to be in a range of $4.4 to $4.1
million
Full Year 2021 Financial Outlook
- Revenue is expected to be in a range of $175 million to $177
million, up 40-42% 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 4:30 p.m.
Eastern Time, today, May 11, 2021, to discuss its financial
results, business highlights, and outlook. 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
8891105. 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 72,000 paying customers, is headquartered in Boston and has
offices in Pennsylvania, Texas, Czech Republic, Cyprus, Poland and
Russia.
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 second quarter and full
year of 2021; statements about future operating results; the
expectations of demand for our products and growth of our business;
the growth rates in the markets in which we compete; our
investments in technology and infrastructure; our ability to
deliver innovative solutions; and our 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 the final prospectus for
our initial public offering filed on March 25, 2021 and in our
Quarterly Report on Form 10-Q that will be filed following this
earnings release. 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
Statements of Operations (Unaudited) (in thousands, except per
share data)
Three Months Ended March
31,
2021
2020
Revenue
$
39,998
$
27,787
Cost of revenue
8,773
6,611
Gross profit
31,225
21,176
Operating expenses
Sales and marketing
16,457
12,877
Research and development
5,358
4,237
General and administrative
7,904
5,933
Total operating expenses
29,719
23,047
Income (loss) from operations
1,506
(1,871)
Other income, net
51
56
Income (loss) before income taxes
1,557
(1,815)
Provision for income taxes
86
116
Net income (loss) and comprehensive income
(loss)
$
1,471
$
(1,931)
Net income (loss) per share attributable
to common stockholders:
Basic:
$
0.02
$
(0.02)
Diluted:
$
0.01
$
(0.02)
Weighted-average number of shares of
common stock used in computing net income (loss) per share
applicable to common stockholders:
Basic:
96,376
94,593
Diluted:
131,356
94,593
Three Months Ended March
31,
2021
2020
Cost of revenue
$
7
$
5
Sales and marketing
190
27
Research and development
67
29
General and administrative
329
144
Total stock-based compensation
$
593
$
205
Three Months Ended March
31,
2021
2020
Reconciliation of Non-GAAP net
income/(loss)
Net income/(loss) and comprehensive
income/(loss)
$
1,471
$
(1,931)
Stock-based compensation expense
593
205
Non-GAAP net income/(loss)
$
2,064
$
(1,726)
Semrush Holdings Inc. Consolidated Balance
Sheets (Unaudited) (in thousands, except per share data)
As of
March 31, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
171,867
$
35,531
Accounts receivable
2,383
1,399
Deferred contract costs, current
portion
4,817
4,049
Prepaid expenses and other current
assets
3,626
2,649
Total current assets
182,693
43,628
Property and equipment, net
3,876
2,968
Intangible assets, net
2,176
2,231
Goodwill
1,991
1,991
Deferred contract costs, net of current
portion
2,000
1,670
Other long-term assets
1,130
2,470
Total assets
$
193,866
$
54,958
Liabilities, Redeemable Convertible
Preferred Stock and Stockholders’ Deficit
Current liabilities
Accounts payable
$
10,233
$
8,654
Accrued expenses
10,286
7,719
Deferred revenue
32,078
26,537
Total current liabilities
52,597
42,910
Long-term liabilities
Deferred revenue, net of current
portion
181
123
Deferred tax liability
153
209
Other long-term liabilities
1,024
497
Total liabilities
$
53,955
$
43,739
Commitments and contingencies (Note
11)
Series A redeemable convertible preferred
stock, $0.00001 par value - no shares authorized, issued or
outstanding as of March 31, 2021; 3,379,400 shares authorized,
issued and outstanding as of December 31, 2020 (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 March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 2021; no shares authorized,
issued or outstanding as of December 31, 2020
1
Additional paid-in capital
174,254
4,975
Accumulated deficit
(34,344)
(35,815)
Total stockholders’ equity (deficit)
139,911
(6,840)
Total liabilities, redeemable convertible
preferred stock, and stockholders' deficit
$
193,866
$
54,958
Semrush Holdings Inc. Consolidated
Statements of Cash Flows (Unaudited) (in thousands)
Three Months Ended
March 31,
2021
2020
Operating Activities
Net income (loss)
$
1,471
$
(1,931)
Adjustments to reconcile net loss to net
cash provided by
operating activities
Depreciation and amortization expense
460
232
Amortization of deferred contract
costs
1,322
1,104
Stock-based compensation expense
593
205
Deferred taxes
(56)
(57)
Changes in operating assets and
liabilities
Accounts receivable
(985)
745
Deferred contract costs
(2,420)
(1,704)
Prepaid expenses and other current
assets
(976)
(747)
Accounts payable
1,579
58
Accrued expenses
2,420
1,002
Deferred revenue
5,599
1,654
Net cash provided by operating
activities
9,007
561
Investing Activities
Purchases of property and equipment
(166)
(1,084)
Purchases of convertible debt
securities
(500)
—
Capitalization of internal-use software
development costs
(123)
(297)
Cash paid for acquisition of business, net
of cash acquired
(350)
—
Net cash used in investing activities
(1,139)
(1,381)
Financing Activities
Proceeds from exercise of stock
options
7
—
Net proceeds from completing initial
public offering
128,461
—
Payment of deferred offering costs
—
(16)
Net cash provided by (used in) financing
activities
128,468
(16)
Increase in cash, cash equivalents, and
restricted cash
136,336
(836)
Cash, cash equivalents, and restricted
cash, at beginning of period
35,619
31,523
Cash, cash equivalents, and restricted
cash, at end of period
$
171,955
$
30,687
Supplemental cash flow
disclosures
Cash paid for income taxes
$
158
$
154
Deferred offering cost incurred and not
paid
$
1,839
$
—
Acquisition of fixed asset under capital
lease
$
1,024
$
—
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210511006138/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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