Semrush Announces Second Quarter 2021 Financial Results

-More than 76,000 Customers as of June 30, 2021

-Second Quarter Revenue of $45 million

Semrush Holdings, Inc. , a leading online visibility management SaaS platform, 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.

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“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%”

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.

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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.

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