Semrush Holdings (SEMR) FY Conference August 12, 2025 08:30 AM ET Speaker0Ready. Alright. I'm DJ Hines. I'm the senior software analyst here at Canaccord. Thanks everyone for being here.This is the forty fifth year that Canaccord hosted this conference. We couldn't do it without the participation of the companies who come and bring all the great content, the investors that show up and support us. So thank you. With that, I think we'll get right into it. Delighted to have the SunRush team here.We have Eugene ...

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, 2025 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) (State or Other Jurisdiction of Incorporation or Organi ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $108.9 million, representing a 20% year-over-year growth [4][13] - Non-GAAP operating margin was 11%, down approximately 240 basis points year-over-year due to a weaker U.S. Dollar [16][22] - Annual recurring revenue (ARR) grew 15.3% year-over-year to $435.3 million, with average ARR per paying customer increasing to $3,756, marking over 15% growth compared to the same quarter last year [17][18] Business Line Data and Key Metrics Changes - The Enterprise segment is now the largest contributor to overall company growth, with enterprise SEO solutions growing to 260 customers and an average ARR of approximately $60,000 [4][5] - The AI Toolkit, launched at the end of Q1, became the fastest-growing product in the company's history, achieving $3 million in ARR within a few months [6][8] - ARR from enterprise and AI products is expected to approach $50 million by the end of the year [8][19] Market Data and Key Metrics Changes - Approximately 116,000 paying customers were reported, down sequentially from the prior quarter, primarily due to softness among freelancers and less sophisticated customer segments [14] - Dollar-based net revenue retention was 105%, with strong retention in the Enterprise segment consistently above 120% [14][19] Company Strategy and Development Direction - The company is focusing on high-growth areas, specifically enterprise and AI search, reallocating resources away from lower-value customer segments [9][20] - A strategic decision was made to not increase marketing spend in response to rising customer acquisition costs in the lower end of the market, instead prioritizing investments in enterprise and AI products [9][20] - The company announced a $150 million share repurchase program, reflecting confidence in its business and valuation [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the enterprise and AI segments, despite experiencing softness in the lower end of the market [10][12] - The company believes that the shift to AI and LLMs (Large Language Models) presents significant opportunities for growth [11][12] - Management anticipates that the current pressures in the lower end of the market are temporary and expects stabilization in the future [36][64] Other Important Information - The company adjusted its full-year 2025 revenue guidance to a range of $443 million to $446 million, reflecting approximately 18% growth at the midpoint [21] - The non-GAAP operating margin guidance remains at 12%, despite the reduced revenue outlook and foreign exchange headwinds [21][24] Q&A Session Summary Question: Pressures in the low-end customer segment - Management indicated that the pressures are fairly contained to freelancers and less sophisticated customers, primarily impacted by rising cost per click [28][29] Question: Liquidity of the stock and buyback program - The share repurchase program is seen as a way to express confidence in the company's future potential and momentum in enterprise and AI [30][32] Question: Down market weakness and macro factors - Management believes the weakness is contained to the low-end segment and not reflective of broader macroeconomic conditions [36][38] Question: Customer acquisition costs and market dynamics - The increase in customer acquisition costs is primarily affecting the low-end segment, while other segments continue to perform well [51][56] Question: Future trajectory of the low-end customer base - Management expects stabilization in the low-end segment, with ongoing strength in the SMB and enterprise segments [62][64]

Core Viewpoint - SEMrush Holdings, Inc. reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.08 per share, representing a -37.50% earnings surprise [1][2] Financial Performance - SEMrush posted revenues of $108.89 million for the quarter ended June 2025, in line with the Zacks Consensus Estimate, compared to $90.95 million in the same quarter last year [2] - The company has topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - SEMrush shares have declined approximately 28.5% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The current Zacks Rank for SEMrush is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $114.98 million, and $0.35 on revenues of $449.65 million for the current fiscal year [7] - The estimate revisions trend for SEMrush was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Internet - Software industry, to which SEMrush belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Exhibit 99.1 Semrush Announces Second Quarter 2025 Financial Results August 4, 2025 – BOSTON – (BUSINESS WIRE) – Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the second quarter ended June 30, 2025. "We posted strong revenue growth in the second quarter and were especially pleased by the accelerated adoption of our AI and Enterprise products," said Bill Wagner, CEO. "We are very excited about our leadership position in the mar ...

Company Overview - SEMrush Holdings, Inc. (SEMR) shares increased by 8.2% to close at $9.8, supported by strong trading volume, significantly higher than normal [1] - The stock has shown a modest gain of 0.3% over the past four weeks [1] Financial Performance - SEMrush is projected to report quarterly earnings of $0.08 per share, reflecting a year-over-year increase of 33.3% [2] - Expected revenues for the upcoming quarter are $108.9 million, which is a 19.7% increase compared to the same quarter last year [2] Earnings Estimates and Trends - The consensus EPS estimate for SEMrush has been revised 8.3% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - The company is advised to be monitored closely for potential continued strength following the recent stock price increase [3] Industry Context - SEMrush operates within the Zacks Internet - Software industry, where another company, Reddit Inc. (RDDT), has a consensus EPS estimate of $0.19, representing a significant year-over-year change of 416.7% [4] - Reddit Inc. also holds a Zacks Rank of 3 (Hold), similar to SEMrush [4]

I'll cut to the chase: I'm nervous about where markets are currently trading. In rallying 6% since the start of the year (with most of these gains concentrated in large-cap stocks), markets are underestimating the economic fallout from tariffs asWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regu ...

Group 1 - Semrush (SEMR) shares have declined nearly 30% this year due to concerns over decelerating growth influenced by macroeconomic headwinds and competition from Google searches [1] - The company is facing challenges in maintaining its growth trajectory, which has raised investor apprehensions [1] Group 2 - The article reflects an individual investor's perspective, emphasizing a focus on undercovered companies and a diverse investment strategy across technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of experience in personal capital investment and aims to identify asymmetric investment opportunities for superior market returns [1]

August 2024 Investor Presentation Oleg Shchegolev Co-founder and CEO Eugene Levin President Former Target Global Safe harbor This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to our business, operations, and financial conditions, including but not limited to current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, our future addressable market, our product dev ...

Summary of SEMRush Conference Call Company Overview - **Company**: SEMRush - **Industry**: Digital Marketing and SEO Tools - **Key Executives**: Bill Wagner (CEO), Brian Mulroy (CFO) [1][2] Core Insights and Arguments - **Transition to Broader Marketing Platform**: SEMRush has evolved from a focus on SEO to a comprehensive digital marketing platform, integrating social media, local marketing, and search marketing [4][8]. - **Enterprise Growth**: The enterprise segment is the fastest-growing part of SEMRush's business, with 200 accounts using the new enterprise product launched less than a year ago, contributing to significant growth [5][16]. - **AI Integration**: The company is excited about the potential of artificial intelligence in marketing, positioning itself to assist marketers in understanding AI's impact on their organizations [6][7]. - **Market Demand for Consolidation**: There is a trend among customers to prefer platforms that solve multiple marketing problems rather than using multiple point solutions [13][14]. - **Unique Product Capabilities**: SEMRush offers unique insights and visualization tools that are difficult to find elsewhere, which has led to rapid adoption by large brands [18][19]. - **Revenue Growth Focus**: The enterprise product is seen as a tool for revenue growth rather than merely replacing existing tools, emphasizing efficiency in marketing spend [23][25]. - **Competitive Landscape**: SEMRush is often replacing its own lower-end products as companies upgrade to the enterprise solution, which offers a more holistic view of marketing efforts [26][27]. Financial Performance and Projections - **Annual Recurring Revenue (ARR)**: The enterprise product is projected to grow from $11 million to $30 million by the end of the year [16][31]. - **Average ARR Growth**: The average ARR per customer has doubled, with a focus on moving into the enterprise market, which has a higher average ARR of $60,000 compared to $3,600 for other segments [62][65]. - **Net Revenue Retention**: The enterprise cohort has a net revenue retention rate of over 120%, indicating strong customer loyalty and growth potential [65]. Strategic Focus Areas - **Product-Led Growth**: There is a need to reduce friction in the product-led growth platform to enhance customer acquisition and retention [51]. - **AI Product Launch**: The AI optimization product is set to launch soon, with high demand already indicated by a waitlist of 1,000 customers [19][40]. - **Headcount Growth**: The company plans to manage headcount growth carefully, focusing on efficiency and productivity, especially with the integration of AI [58][59]. Market Dynamics and Resilience - **Economic Resilience**: SEMRush believes that digital marketing, particularly through their platform, provides high returns on investment, making it resilient during economic downturns [80][84]. - **Focus on Enterprise and AI**: The strategic focus is on expanding enterprise offerings and leveraging AI to enhance product capabilities and customer insights [70][84]. Additional Insights - **Customer Feedback**: The CEO noted that customer conversations highlighted the value of SEMRush's data platform, which serves as a competitive advantage [47]. - **Long-Term Vision**: The company is committed to a sustained 20% revenue CAGR through 2026, driven by enterprise growth and AI innovations [75][76]. This summary encapsulates the key points discussed during the SEMRush conference call, highlighting the company's strategic direction, financial performance, and market positioning.