Semrush Announces First Quarter 2021 Financial Results

Rhea-AI Summary

Semrush Holdings, Inc. (NYSE: SEMR) reported strong first quarter 2021 results, with total revenue of $40 million, marking a 44% year-over-year increase. The company achieved annual recurring revenue (ARR) of $168 million, up 53%, and net income of $1.5 million, recovering from a loss a year prior. Notable business highlights include the launch of the App Center and the Core Web Vitals report. Looking ahead, Semrush anticipates second quarter revenue between $42.2 million and $42.7 million, reflecting a projected 49% growth year-over-year.

Positive

• Total revenue of $40 million, up 44% year over year
• ARR of $168 million, an increase of 53% year over year
• Net income of $1.5 million, recovering from a loss of $1.9 million a year ago
• Dollar based net revenue retention of 116%
• Over 72K customers, up 29% compared to a year ago

Negative

• Non-GAAP net loss expected for Q2 2021

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

FAQ

What were Semrush's first quarter 2021 earnings results?

Semrush reported total revenue of $40 million for Q1 2021, a 44% increase year-over-year, and net income of $1.5 million.

What is Semrush's outlook for the second quarter of 2021?

Semrush expects second quarter revenue to range from $42.2 million to $42.7 million, up 49% year over year.

How many customers does Semrush have as of March 31, 2021?

As of March 31, 2021, Semrush had over 72,000 customers, a 29% increase compared to the previous year.

What is the ARR for Semrush as of Q1 2021?

Semrush reported an annual recurring revenue (ARR) of $168 million as of March 31, 2021, a 53% increase year-over-year.

What innovations did Semrush launch recently?

Semrush launched the App Center, the Core Web Vitals report, and relaunched the Social Media Poster with support for all leading social media sites.