Semrush Holdings, Inc. (NYSE:SEMR) Q1 2023 Earnings Conference Call May 9, 2023 8:30 AM ET Company Participants Brinlea Johnson - Investor Relations, Blueshirt Group Oleg Shchegolev - Chairman & Chief Executive Officer Eugene Levin - President Brian Mulroy - Chief Financial Officer Andrew Warden - Chief Marketing Officer Conference Call Participants Rob Morelli - Needham Matthew Kikkert - Stifel Michael Vidovic - KeyBanc Elizabeth Porter - Morgan Stanley James Heaney - Jefferies Operator Good morning. My na ...

Part I. Financial Information [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The company reported increased revenue but a wider net loss and negative operating cash flow for Q1 2023, with slight asset reduction [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased as of March 31, 2023, primarily due to reduced cash, while liabilities and deferred revenue increased Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $56,889 | $79,765 | | Short-term investments | $175,416 | $157,774 | | Total current assets | $255,131 | $257,379 | | Total assets | $295,500 | $298,690 | | **Liabilities & Equity** | | | | Deferred revenue | $56,255 | $49,354 | | Total current liabilities | $92,996 | $88,701 | | Total liabilities | $102,047 | $98,786 | | Total stockholders' equity | $193,453 | $199,904 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue increased 24% year-over-year, but a significant rise in operating expenses led to a wider operating and net loss for the quarter Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Revenue | $70,870 | $57,128 | | Gross Profit | $58,231 | $45,541 | | Total Operating Expenses | $68,999 | $48,131 | | Loss from Operations | $(10,768) | $(2,590) | | Net Loss | $(9,860) | $(2,571) | | Net Loss Per Share (Basic & Diluted) | $(0.07) | $(0.02) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced negative cash flow from operations in Q1 2023, a reversal from the prior year, leading to a significant decrease in cash and equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,609) | $8,026 | | Net cash used in investing activities | $(18,889) | $(16,656) | | Net cash used in financing activities | $(451) | $(13) | | Decrease in cash, cash equivalents and restricted cash | $(22,876) | $(9,902) | | Cash, cash equivalents and restricted cash, end of period | $56,889 | $259,939 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, recent acquisition, Russia exit costs, increased stock-based compensation, and the discontinuation of the ESPP - On February 23, 2023, the Company acquired certain assets of Traffic Think Tank for total cash consideration of **$1.8 million**. The acquisition's primary purpose was to acquire valuable brand and content related to its SEO community and courses[89](index=89&type=chunk) - During Q1 2023, the company incurred **$1.0 million** in exit costs related to its efforts to exit operations in Russia and relocate employees, which began in March 2022[102](index=102&type=chunk)[103](index=103&type=chunk) - The Employee Stock Purchase Plan (ESPP) was discontinued after the last purchase on February 28, 2023[130](index=130&type=chunk) - Revenue is primarily derived from monthly or annual subscriptions to the company's SaaS platform. For Q1 2023, subscription revenue accounted for nearly all of the company's revenue[40](index=40&type=chunk)[41](index=41&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue growth driven by customer acquisition, widening operating loss due to strategic investments, and assesses liquidity as sufficient for the next 12 months [Key Factors Affecting Our Performance](index=35&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Performance is driven by customer acquisition and retention, with key metrics showing growth in paying customers and ARR, despite a slight decrease in retention rate Key Performance Indicators | Metric | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Paying Customers | >100,000 | 87,000 | | Annual Recurring Revenue (ARR) | $293.0 million | $238.4 million | | ARR per Paying Customer | $2.9 thousand | $2.7 thousand | - The dollar-based net revenue retention rate was approximately **116%** as of March 31, 2023, compared to **118%** as of December 31, 2022[149](index=149&type=chunk) [Results of Operations Comparison](index=42&type=section&id=Results%20of%20Operations%20Comparison) Q1 2023 revenue increased 24% year-over-year, but significant increases in operating expenses, particularly Sales & Marketing and R&D, led to higher overall costs Revenue by Geography (in thousands) | Region | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | United States | $34,747 | $25,820 | | United Kingdom | $7,007 | $5,870 | | Other | $29,116 | $25,420 | | **Total Revenue** | **$70,870** | **$57,120** | Year-over-Year Change in Operating Expenses (in thousands) | Expense Category | Q1 2023 | Q1 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales and marketing | $35,496 | $25,830 | +$9,666 | +37% | | Research and development | $13,880 | $8,138 | +$5,742 | +71% | | General and administrative | $18,640 | $14,163 | +$4,477 | +32% | | Exit costs | $983 | $0 | +$983 | N/A | [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with cash and investments, supplemented by an undrawn credit facility, despite negative operating cash flow in Q1 2023 - As of March 31, 2023, the company had cash and cash equivalents of **$56.9 million** and short-term investments of **$175.4 million**[189](index=189&type=chunk) - The company has a **$45.0 million** senior secured revolving credit facility that matures on January 12, 2024. As of March 31, 2023, no amount had been drawn on this facility[192](index=192&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk) - Net cash used in operating activities was **$3.6 million** in Q1 2023, compared to net cash provided by operating activities of **$8.0 million** in Q1 2022[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from foreign currency fluctuations, primarily the euro, and interest rate changes on its short-term investment portfolio - The company is exposed to foreign currency risk as it incurs significant expenses in foreign currencies, primarily the euro. A hypothetical **10%** increase or decrease in the relative value of the U.S. dollar to the euro would result in a **$3.9 million** gain or loss[210](index=210&type=chunk) - Interest rate risk exists for the company's portfolio of cash, cash equivalents, and short-term investments (**$232.3 million** as of March 31, 2023). However, due to the short-term nature of the portfolio, a **10%** change in interest rates is not expected to have a material effect[209](index=209&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to material weaknesses in financial reporting, despite ongoing remediation efforts - Management concluded that disclosure controls and procedures were not effective as of March 31, 2023[212](index=212&type=chunk) - The ineffectiveness is due to material weaknesses in internal control over financial reporting related to deficiencies in controls over the financial statement close process and the cash disbursement process[213](index=213&type=chunk) - Remediation efforts are underway, including hiring additional qualified accounting personnel, engaging a professional accounting services firm, and enhancing the ERP system. However, the material weaknesses were not fully remediated as of March 31, 2023[215](index=215&type=chunk)[218](index=218&type=chunk) Part II. Other Information [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - The company currently believes that the ultimate costs to resolve any pending ordinary course legal matters will not have a material adverse effect on its business, operating results, financial condition, or cash flows[221](index=221&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including customer retention, intense competition, reliance on third-party data, evolving data privacy laws, and internal control weaknesses - **Business Risks:** The business is harmed if paying customers do not renew or upgrade subscriptions. The market is intensely competitive, and the company has a history of net losses[224](index=224&type=chunk)[229](index=229&type=chunk)[233](index=233&type=chunk) - **Data & Technology Risks:** Products depend on access to third-party data sources, which could be lost or become less favorable. Failures in third-party data centers or infrastructure could adversely affect business[234](index=234&type=chunk)[248](index=248&type=chunk) - **Security & Privacy Risks:** A security breach of confidential customer information could harm reputation and lead to significant liability. The company must comply with complex and evolving data protection laws like GDPR and CCPA[252](index=252&type=chunk)[292](index=292&type=chunk) - **Financial Control & Ownership Risks:** The company has identified material weaknesses in its internal control over financial reporting. The dual-class stock structure concentrates **81%** of voting power with pre-IPO stockholders, limiting the influence of new investors[325](index=325&type=chunk)[329](index=329&type=chunk)[360](index=360&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and no material change in IPO proceeds usage during the quarter - There were no unregistered sales of equity securities in the period[372](index=372&type=chunk) - There has been no material change in the use of proceeds from the company's IPO[373](index=373&type=chunk) [Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Quarterly Report, including CFO employment agreements and required certifications - The report includes exhibits such as the offer letter for new CFO Brian Mulroy, the separation agreement for former CFO Evgeny Fetisov, and CEO/CFO certifications[376](index=376&type=chunk)

Part I [Business](index=8&type=section&id=Item%201.%20Business) Semrush operates a leading SaaS platform for online visibility management, serving over 95,000 paying customers globally with subscription-based services and strategic acquisitions - Semrush is an online visibility management SaaS platform aiding companies in enhancing their digital presence across various channels[38](index=38&type=chunk) Key Customer and Financial Metrics (as of Dec 31, 2022) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Paying Customers | >95,000 | >82,000 | | Active Free Customers | >803,000 | >537,000 | | Countries Served | >157 | >145 | | Annual Recurring Revenue (ARR) | $275.1 million | $215.7 million | | Revenue | $254.3 million | $188.0 million | | Net Loss | $33.8 million | $3.3 million | - The company's growth strategy emphasizes new customer acquisition, existing customer expansion, continuous product innovation, and opportunistic M&A[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The platform leverages over 14 years of proprietary technology, analyzing **770 million domains**, **23 billion keywords**, and **43 trillion backlinks**[47](index=47&type=chunk)[57](index=57&type=chunk) Subscription Plan Pricing (as of Dec 31, 2022) | Plan | Monthly Price | | :--- | :--- | | Pro | $119.95 | | Guru | $229.95 | | Business | $449.95 | [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including customer retention, intense competition, reliance on third-party data, geopolitical instability, and evolving data privacy regulations - Business performance heavily relies on retaining paying customers and their subscription renewals and upgrades[92](index=92&type=chunk)[93](index=93&type=chunk) - The company operates in a highly competitive market, facing pressure from specialized point solutions and larger, better-resourced competitors[97](index=97&type=chunk)[99](index=99&type=chunk) - Platform functionality depends on access to third-party data sources; loss of access or unfavorable terms could adversely impact the business[103](index=103&type=chunk)[104](index=104&type=chunk) - The company has a history of net losses, including **$33.8 million in 2022**, and may not achieve or sustain future profitability[101](index=101&type=chunk) - Geopolitical instability, particularly the conflict in Ukraine, resulted in significant expenses for employee relocation and the sale of Russian subsidiaries[108](index=108&type=chunk)[109](index=109&type=chunk) - Evolving data privacy laws like GDPR and CCPA, along with tracking technology regulations, could impair marketing and product functionality, potentially leading to significant fines[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) - The dual-class stock structure concentrates **89% of voting power** with pre-IPO stockholders, limiting Class A stockholder influence on corporate matters[36](index=36&type=chunk)[241](index=241&type=chunk) - Material weaknesses in internal control over financial reporting, specifically in the financial statement close and cash disbursement processes, rendered disclosure controls ineffective as of December 31, 2022[211](index=211&type=chunk)[578](index=578&type=chunk)[584](index=584&type=chunk) [Unresolved Staff Comments](index=53&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[252](index=252&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) Semrush maintains its headquarters in Boston, leases various global offices, operates data centers in Virginia and Georgia, and terminated its St Petersburg lease in 2022 - Corporate headquarters are located at 800 Boylston Street, Boston, MA, with a lease for **16,467 sq. ft.** expiring in 2027[254](index=254&type=chunk) - The company operates two data centers in Ashburn, Virginia, one in Atlanta, Georgia, and two Google Cloud locations in Virginia and South Carolina[255](index=255&type=chunk) - The lease for **122,031 sq. ft.** of office space in Saint Petersburg, Russia, was terminated in August 2022 due to the company's exit from the country[254](index=254&type=chunk) [Legal Proceedings](index=55&type=section&id=Item%203.%20Legal%20Proceedings) The company anticipates no material adverse effect on its financial condition or operations from any current legal proceedings - The company is not currently involved in any legal proceedings expected to have a material adverse effect on the business[257](index=257&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[258](index=258&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=56&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Semrush's Class A common stock trades on the NYSE under "SEMR", with no dividends paid or planned, and no issuer equity purchases - Class A common stock trades on the NYSE under the symbol **"SEMR"**, while Class B common stock is neither listed nor traded[261](index=261&type=chunk)[262](index=262&type=chunk) - The company has never declared or paid cash dividends and does not anticipate doing so in the foreseeable future[264](index=264&type=chunk) - Net proceeds from the March 2021 IPO and subsequent underwriter option exercise totaled **$135.9 million**[265](index=265&type=chunk) [Reserved](index=57&type=section&id=Item%206.%20%5BReserved%5D) This item is not applicable - Not applicable[269](index=269&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, Semrush's revenue grew **35% to $254.3 million**, but net loss widened to **$33.8 million** due to increased operating expenses and **$11.3 million** in Russia exit costs, while maintaining strong liquidity [Results of Operations](index=66&type=section&id=Results%20of%20Operations) In 2022, revenue grew **35% to $254.3 million**, but operating expenses surged **63% to $242.1 million**, leading to a net loss of **$33.8 million** from **$3.3 million** in 2021 Comparison of Results of Operations (2022 vs. 2021) | Metric (in thousands) | 2022 | 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $254,316 | $188,001 | $66,315 | 35% | | Gross Profit | $205,763 | $146,067 | $59,696 | 41% | | Total Operating Expenses | $242,136 | $148,560 | $93,576 | 63% | | Sales and marketing | $126,889 | $81,122 | $45,767 | 56% | | Research and development | $41,204 | $24,322 | $16,882 | 69% | | General and administrative | $62,779 | $43,116 | $19,663 | 46% | | Exit costs | $11,264 | $0 | $11,264 | N/A | | Loss from operations | ($36,373) | ($2,493) | ($33,880) | 1359% | | Net loss | ($33,848) | ($3,285) | ($30,563) | 930% | - Revenue growth was primarily driven by an increase in paying customers from **over 82,000 to over 95,000**, alongside growth in user licenses and add-on purchases[313](index=313&type=chunk) - Sales and marketing expenses increased by **$45.8 million**, primarily due to a **$23.6 million** rise in marketing and advertising spend and a **$20.1 million** increase in personnel costs from **38% headcount growth**[316](index=316&type=chunk) - Research and development costs increased by **$16.9 million**, mainly due to a **40% increase in headcount** for product development teams[317](index=317&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2022, liquidity included **$79.8 million** cash and **$157.8 million** short-term investments, with **$9.6 million** net cash used in operations, a shift from **$23.8 million** provided in 2021 Key Liquidity Metrics (as of Dec 31, 2022) | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $79.8 | | Short-term investments | $157.8 | | Accounts receivable | $3.6 | - The company holds an undrawn **$45.0 million** revolving credit facility maturing in January 2024[326](index=326&type=chunk)[327](index=327&type=chunk) Cash Flow Summary (2022 vs. 2021) | Cash Flow Activity (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | ($9.6) | $23.8 | | Net cash used in investing activities | ($179.8) | ($4.6) | | Net cash (used in)/provided by financing activities | ($0.3) | $215.3 | [Critical Accounting Policies and Estimates](index=73&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies include revenue recognition for subscriptions, capitalization of sales commissions over 24 months, and stock-based compensation valuation using Black-Scholes - Revenue from SaaS subscriptions is recognized ratably over the contract term, treating subscription and support as a single performance obligation[342](index=342&type=chunk) - Incremental costs to obtain a contract, mainly sales commissions, are capitalized and amortized over an estimated **24-month** customer relationship period[346](index=346&type=chunk) - Stock-based compensation is valued using the Black-Scholes model, with key assumptions including **53.3% volatility in 2022** and a **6-year expected life**[348](index=348&type=chunk)[353](index=353&type=chunk) - As an "emerging growth company," Semrush has elected to use the extended transition period for adopting new or revised accounting standards[354](index=354&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, particularly the euro, and interest rate changes on its short-term investment portfolio - The primary market risks are foreign currency exchange rates and interest rates[356](index=356&type=chunk) - Foreign currency risk primarily stems from operating expenses in foreign currencies, mainly the euro; a **10% change in USD/EUR** would impact operations by **$3.5 million**[359](index=359&type=chunk) - Interest rate risk relates to the company's **$237.5 million** in cash and investments, but its short-term nature limits material impact from rate changes[357](index=357&type=chunk) [Financial Statements and Supplementary Data](index=78&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Semrush's audited consolidated financial statements for 2022, including balance sheets, income statements, cash flows, and detailed accounting notes [Consolidated Balance Sheets](index=80&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2022, total assets were **$298.7 million**, with cash decreasing to **$79.8 million** offset by **$157.8 million** in short-term investments, while liabilities increased to **$98.8 million** Consolidated Balance Sheet Summary (in thousands) | | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $79,765 | $269,665 | | Short-term investments | $157,774 | $0 | | Total current assets | $257,379 | $283,538 | | Total assets | $298,690 | $300,074 | | **Liabilities & Equity** | | | | Total current liabilities | $88,701 | $71,549 | | Total liabilities | $98,786 | $74,532 | | Total stockholders' equity | $199,904 | $225,542 | | Total liabilities and stockholders' equity | $298,690 | $300,074 | [Consolidated Statements of Operations and Comprehensive Loss](index=81&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) In 2022, revenue increased **35% to $254.3 million**, but operating expenses, including **$11.3 million** in Russia exit costs, led to a net loss of **$33.8 million** or **($0.24)** per share Consolidated Statement of Operations (in thousands) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Revenue | $254,316 | $188,001 | $124,875 | | Gross profit | $205,763 | $146,067 | $94,945 | | Total operating expenses | $242,136 | $148,560 | $101,090 | | Loss from operations | ($36,373) | ($2,493) | ($6,145) | | Net loss | ($33,848) | ($3,285) | ($7,012) | | Net loss per share | ($0.24) | ($0.03) | ($0.07) | [Consolidated Statements of Cash Flows](index=82&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2022, net cash used in operations was **$9.6 million**, a reversal from 2021, with **$179.8 million** used in investing, resulting in **$79.8 million** cash at year-end Consolidated Statement of Cash Flows (in thousands) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($9,624) | $23,761 | $5,852 | | Net cash used in investing activities | ($179,832) | ($4,633) | ($6,084) | | Net cash (used in) provided by financing activities | ($345) | $215,324 | ($1,672) | | Net (decrease) increase in cash | ($190,076) | $234,222 | ($1,904) | | Cash, cash equivalents and restricted cash, end of year | $79,765 | $269,841 | $35,619 | [Notes to Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the impact of Russia exit costs, 2022 acquisitions, credit facility terms, tax provisions, and stock-based compensation expenses - The company completed the sale of its two Russian subsidiaries on August 3, 2022, incurring total exit costs of **$11.3 million** in 2022, including a **$1.7 million** loss on the sale[388](index=388&type=chunk)[512](index=512&type=chunk)[516](index=516&type=chunk) - In 2022, the company acquired Backlinko for **$4.0 million** and Kompyte for **$10.0 million**, adding **$4.9 million** to goodwill[504](index=504&type=chunk)[506](index=506&type=chunk)[507](index=507&type=chunk) - The company maintains a full valuation allowance against its worldwide net deferred tax assets due to a history of cumulative net losses[525](index=525&type=chunk) - Total stock-based compensation expense was **$7.4 million** in 2022, an increase from **$2.7 million** in 2021[562](index=562&type=chunk) - The company has multi-year commitments with data providers totaling **$33.2 million** through 2026[565](index=565&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=123&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with its accountants regarding accounting principles or financial disclosure - None[576](index=576&type=chunk) [Controls and Procedures](index=123&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of December 31, 2022, due to material weaknesses in financial statement close and cash disbursement processes - The CEO and CFO concluded that disclosure controls and procedures were not effective as of December 31, 2022[578](index=578&type=chunk) - Material weaknesses were identified in internal control over the financial statement close and cash disbursement processes, specifically regarding period-end recognition and expense cutoff[584](index=584&type=chunk) - Remediation efforts are underway, including new hires and external firm engagement, but material weaknesses were not fully remediated by year-end[585](index=585&type=chunk)[589](index=589&type=chunk) [Other Information](index=125&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[590](index=590&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=125&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[591](index=591&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=126&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[594](index=594&type=chunk) [Executive Compensation](index=126&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation details are incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[595](index=595&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=126&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information for beneficial owners and management is incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[596](index=596&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=126&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Details on related party transactions and director independence are incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[597](index=597&type=chunk) [Principal Accounting Fees and Services](index=126&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[598](index=598&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=127&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists documents filed with the 10-K, confirms financial statement inclusion in Item 8, and provides a detailed exhibit index - This section contains the financial statements (Item 8), confirms the omission of financial statement schedules, and provides an index of all exhibits filed with the report[601](index=601&type=chunk)[602](index=602&type=chunk)[603](index=603&type=chunk) [Form 10-K Summary](index=129&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for this item - None[610](index=610&type=chunk)

Semrush Holdings, Inc. (NYSE:SEMR) Q4 2022 Results Conference Call March 14, 2023 8:30 AM ET Company Participants Bob Gujavarty - Vice President, Investor Relations Oleg Shchegolev - Chairman and Chief Executive Officer Eugene Levin - President Evgeny Fetisov - Chief Financial Officer Andrew Warden - Chief Marketing Officer Conference Call Participants Elizabeth Porter - Morgan Stanley Parker Lane - Stifel Scott Berg - Needham & Company Michael Turits - KeyBanc Capital Markets Operator Good morning. My name ...

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $65.8 million, representing a 34% year-over-year increase and a 5% increase from the previous quarter [9][21] - The company had approximately 94,000 paying customers at the end of September, with customer growth of over 17% consistent with the previous quarter [9][21] - Non-GAAP gross margin was 81.2%, up over 400 basis points year-over-year and up 160 basis points from the previous quarter [21][22] - Non-GAAP net loss was $7.1 million, compared to a non-GAAP net income of $12,000 a year ago [24] Business Line Data and Key Metrics Changes - The product mix remained largely unchanged, with growth slightly favoring the entry-level pro plan [21] - The dollar-based net revenue retention for Q3 was down to 122%, impacted by lower expansion from existing customers [21] Market Data and Key Metrics Changes - The company noted a more uncertain demand environment compared to the previous year, particularly affecting larger accounts [12][31] - The small business segment showed resilience, with strong performance despite macroeconomic pressures [31] Company Strategy and Development Direction - The company is focused on user growth and plans to introduce new features in late 2023, including enhancements to the App Center [10][11] - The App Center strategy aims to address market fragmentation by offering third-party applications to meet diverse customer needs [16][19] - The company is optimistic about long-term growth, emphasizing efficiency and solid unit economics [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q4, acknowledging potential challenges in the economic environment but highlighting positive demand signals [26][37] - The company expects Q4 revenue in the range of $67.25 million to $67.75 million, representing approximately 26% year-over-year growth at the midpoint [26] Other Important Information - Total non-GAAP operating expenses were $55.8 million, up 48% year-over-year, primarily due to increased investment in sales and marketing [22][24] - The company entered the quarter with $247 million in cash, with cash flow from operations being negative $500,000 [25] Q&A Session Summary Question: Changes in macroeconomic conditions and their impact - Management noted that larger accounts are experiencing scrutiny in spending, but the small business segment remains stable [31] Question: Sales leadership changes and their effects - Management indicated that while changes in sales leadership can cause concerns, they did not see a significant impact on current results [33] Question: Q4 guidance assumptions - Management expressed cautious optimism for Q4, noting that while demand signals are positive, they are being careful due to potential seasonality effects [37] Question: Demand environment comparison between Q3 and Q4 - Management observed that demand was strong in August but showed variability in September and October, leading to a cautious outlook [42] Question: Monetization of free users through the App Center - The company aims to convert free users into paying customers by offering lower-priced apps through the App Center, which could increase overall revenue [53][54] Question: Cost structure and future modeling - Management indicated that Q4 will serve as a proper baseline for modeling next year's costs, as most relocated employees will be settled by then [57]

[Part I. Financial Information](index=7&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The company's H1 2022 results show revenue growth but a net loss due to increased expenses and Russia exit costs [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $302.2 million while stockholders' equity declined due to the period's net loss Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$302,246** | **$300,074** | | Cash and cash equivalents | $248,917 | $269,665 | | Goodwill | $6,740 | $1,991 | | **Total Liabilities** | **$84,350** | **$74,532** | | Deferred revenue | $48,488 | $40,469 | | **Total Stockholders' Equity** | **$217,896** | **$225,542** | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) Revenue grew 41% in H1 2022, but a net loss of $10.9 million was recorded due to higher operating expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$62,610** | **$45,005** | **$119,738** | **$85,003** | | Gross Profit | $50,012 | $34,767 | $95,553 | $65,992 | | Total Operating Expenses | $58,268 | $34,782 | $106,399 | $64,501 | | *Exit Costs* | *$3,485* | *$0* | *$3,485* | *$0* | | (Loss) Income from Operations | $(8,256) | $(15) | $(10,846) | $1,491 | | **Net (Loss) Income** | **$(8,284)** | **$(279)** | **$(10,855)** | **$1,192** | | Diluted EPS | $(0.06) | $0.00 | $(0.08) | $0.01 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations fell sharply to $0.6 million in H1 2022, down from $10.1 million in the prior year Statement of Cash Flows Summary (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$589** | **$10,059** | | Net cash used in investing activities | $(19,573) | $(1,871) | | Net cash (used in) provided by financing activities | $(251) | $137,040 | | **(Decrease) increase in cash** | **$(20,748)** | **$145,228** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the financial impact of exiting Russian operations, recent acquisitions, and accounting changes - In response to the Russia-Ukraine conflict, the company began exiting its Russian operations in March 2022, which involved relocating its Russia-based workforce[46](index=46&type=chunk)[115](index=115&type=chunk) - On August 3, 2022, the company completed the sale of its two Russian subsidiaries for an insignificant amount of consideration[169](index=169&type=chunk) - The company incurred **$3.5 million in exit costs** during Q2 2022, with an additional **$8.5 million in other costs** expected by year-end 2022[118](index=118&type=chunk)[119](index=119&type=chunk) - In H1 2022, the company completed two acquisitions, Backlinko and Kompyte, for a total of **$14.0 million**[104](index=104&type=chunk)[106](index=106&type=chunk) - Beginning January 1, 2022, the functional currency for most foreign subsidiaries was changed from the U.S. dollar to their local currencies[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by more paying customers, while profitability was hit by higher costs and Russia exit charges Key Performance Indicators | Metric | June 30, 2022 | June 30, 2021 | | :--- | :--- | :--- | | Paying Customers | >91,000 | 79,000 | | Annual Recurring Revenue (ARR) | $254.7 million | $188.0 million | | Dollar-Based Net Revenue Retention | ~125% | N/A (126% at Dec 31, 2021) | | ARR per Paying Customer | $2,792 | $2,351 | - The company is winding down operations in Russia and expects to incur total costs of approximately **$17.5 million to $21.5 million** during fiscal year 2022[173](index=173&type=chunk) Revenue by Geography (in thousands) | Region | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | | United States | $54,652 | $38,840 | | United Kingdom | $12,233 | $8,870 | | Other | $52,853 | $37,293 | | **Total** | **$119,738** | **$85,003** | - The increase in sales and marketing expense for H1 2022 was primarily due to a **35% increase in headcount** and higher advertising expenses[210](index=210&type=chunk) - The company believes its existing cash of **$248.9 million** will be sufficient to meet operating and capital needs for at least the next 12 months[224](index=224&type=chunk)[226](index=226&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are foreign currency exchange rates, with minimal exposure to interest rate risk - The company does not believe it has material exposure to interest rate risk as its cash and cash equivalents are held in cash deposits and money market funds[241](index=241&type=chunk) - The company has foreign currency risk from expenses denominated in various currencies; a **10% adverse change in the USD/ruble exchange rate** would result in a **$2.3 million loss**[245](index=245&type=chunk) - The company has not engaged in hedging foreign currency transactions to date but may evaluate doing so in the future[246](index=246&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a previously identified material weakness in financial reporting - Management concluded that as of June 30, 2022, the company's disclosure controls and procedures were **not effective**[247](index=247&type=chunk) - A **material weakness** in internal control over financial reporting, first identified in 2019, persists due to deficiencies in the financial statement close process[248](index=248&type=chunk)[388](index=388&type=chunk) - The company is implementing a remediation plan which includes formalizing processes, hiring additional finance personnel, and upgrading accounting systems[250](index=250&type=chunk)[389](index=389&type=chunk) [Part II. Other Information](index=54&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently party to any material legal proceedings - As of the report date, **Semrush is not involved in any material legal proceedings**[256](index=256&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) Key risks include subscription dependency, intense competition, geopolitical instability, and a persistent material weakness - The business is highly dependent on customers renewing their premium subscriptions, which constitutes **substantially all of its revenue**[259](index=259&type=chunk) - Instability in geographies with significant operations, particularly Russia, presents a material risk, with estimated exit costs of **$17.5M - $21.5M in FY2022**[268](index=268&type=chunk)[270](index=270&type=chunk) - The company's products rely on access to data from third-party sources like Google, and any loss of access could harm the business[272](index=272&type=chunk)[273](index=273&type=chunk) - A **material weakness** in internal control over financial reporting related to the financial statement close process, identified in 2019, still exists[388](index=388&type=chunk) - The dual-class stock structure concentrates **81% of voting power** with pre-IPO stockholders, limiting the influence of Class A stockholders[27](index=27&type=chunk)[420](index=420&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=96&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred, and the use of IPO proceeds remains unchanged - There were no unregistered sales of equity securities in the period[432](index=432&type=chunk) - The use of proceeds from the IPO remains consistent with what was previously disclosed[433](index=433&type=chunk) [Defaults Upon Senior Securities](index=96&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities - None[435](index=435&type=chunk) [Mine Safety Disclosures](index=96&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[436](index=436&type=chunk) [Other Information](index=96&type=section&id=Item%205.%20Other%20Information) The company reports no other material information for this period - None[437](index=437&type=chunk) [Exhibits](index=96&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and corporate documents

Semrush Holdings, Inc. (NYSE:SEMR) Q2 2022 Earnings Conference Call August 11, 2022 8:30 AM ET Company Participants Bob Gujavarty – Vice President-Investor Relations Oleg Shchegolev – Co-Founder and Chief Executive Officer Eugene Levin – President Evgeny Fetisov – Chief Financial Officer Conference Call Participants Parker Lane – Stifel Elizabeth Porter – Morgan Stanley Mark Murphy – JP Morgan Clarke Jeffries – Piper Sandler Michael Vidovic – Keybanc Capital Markets Scott Berg – Needham Operator Good morni ...

Investor Presentation May 2022 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 product development plans, and other future conditions. Words such as, but not limited to, "look forward to," "believe," "exp ...

Part I. Financial Information [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2022 revenue grew 43% year-over-year to $57.1 million, but a net loss of $2.6 million was recorded due to acquisitions and subsequent operational changes Condensed Consolidated Statements of Operations (Q1 2022 vs Q1 2021) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Revenue** | **$57,128 thousand** | **$39,998 thousand** | | Gross Profit | $45,541 thousand | $31,225 thousand | | (Loss) Income from Operations | ($2,590) thousand | $1,506 thousand | | **Net (Loss) Income** | **($2,571) thousand** | **$1,471 thousand** | | Diluted EPS | ($0.02) | $0.01 | Condensed Consolidated Balance Sheets (As of March 31, 2022 vs Dec 31, 2021) | Metric | As of March 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $259,824 thousand | $269,665 thousand | | Total Assets | $307,447 thousand | $300,074 thousand | | Deferred Revenue | $47,868 thousand | $40,469 thousand | | Total Liabilities | $82,884 thousand | $74,532 thousand | | Total Stockholders' Equity | $224,563 thousand | $225,542 thousand | Condensed Consolidated Statements of Cash Flows (Q1 2022 vs Q1 2021) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,026 thousand | $9,007 thousand | | Net cash used in investing activities | ($16,656) thousand | ($1,139) thousand | | Net cash (used in) provided by financing activities | ($13) thousand | $128,468 thousand | - In Q1 2022, the company completed two acquisitions: the asset acquisition of Backlinko for **$4.0 million** and the acquisition of Kompyte for **$10.0 million**, adding **$8.4 million** to intangible assets and **$6.1 million** to goodwill[106](index=106&type=chunk)[108](index=108&type=chunk)[110](index=110&type=chunk) - As a subsequent event, the company is winding down operations in Russia and relocating its workforce, expecting to incur costs of approximately **$24.5 million to $28.5 million** over the remainder of fiscal year 2022[168](index=168&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by customer base expansion, though increased operating expenses in sales, marketing, and administration led to an operating loss Key Performance Metrics (As of March 31, 2022 vs 2021) | Metric | As of March 31, 2022 | As of March 31, 2021 | | :--- | :--- | :--- | | Paying Customers | > 87,000 | > 72,000 | | Annual Recurring Revenue (ARR) | $235.7 million | $167.6 million | | Dollar-Based Net Revenue Retention | 127% | N/A (126% as of Dec 31, 2021) | | ARR per Paying Customer | $2,687 | N/A ($2,584 as of Dec 31, 2021) | Revenue by Geography (Q1 2022 vs Q1 2021) | Region | Q1 2022 Revenue (in thousands) | Q1 2021 Revenue (in thousands) | | :--- | :--- | :--- | | United States | $25,822 | $18,130 | | United Kingdom | $5,877 | $4,190 | | Other | $25,429 | $17,670 | | **Total** | **$57,128** | **$39,998** | - Sales and marketing expenses increased by **$9.4 million (57%)** YoY, driven by a 36% increase in headcount and a $4.3 million increase in marketing and advertising expenses to acquire new customers[210](index=210&type=chunk)[211](index=211&type=chunk) - General and administrative expenses rose by **$6.3 million (79%)** YoY, primarily due to a 16% increase in headcount, higher stock-based compensation, and increased costs for professional services and insurance associated with being a public company[213](index=213&type=chunk) - The company is actively winding down operations in Russia and relocating employees, expecting to incur costs of approximately **$24.5 million to $28.5 million** in fiscal 2022 for relocation and higher labor costs[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces minimal interest rate risk but has exposure to foreign currency fluctuations, particularly from expenses denominated in the Russian ruble - The company does not believe it has material exposure to interest rate risk as its **$259.8 million** in cash and cash equivalents are held in cash deposits and short-term money market funds[234](index=234&type=chunk) - The company is exposed to foreign currency risk, particularly from expenses denominated in the Russian ruble, where a **10% change** in the U.S. dollar to ruble exchange rate would result in a **$1.1 million** gain or loss[237](index=237&type=chunk) - The company has not engaged in hedging foreign currency transactions to date but may consider it in the future as international operations grow[238](index=238&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2022, due to a previously identified material weakness in financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **not effective** as of March 31, 2022[239](index=239&type=chunk) - The ineffectiveness is due to a **material weakness** identified in the 2019 audit related to controls over the financial statement close process, specifically the review of complex accounting issues involving significant judgment[240](index=240&type=chunk) - A remediation plan is underway, which includes implementing new accounting systems, hiring additional qualified staff, and strengthening supervisory reviews to address the material weakness[242](index=242&type=chunk)[243](index=243&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - As of the filing date, the company is not involved in any legal proceedings that would materially impact its business, financial condition, or cash flows[249](index=249&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) Key risks include reliance on customer renewals, intense competition, geopolitical instability in Russia, and dependence on third-party data sources - A most material risk is the instability in Russia, where more than half of the company's full-time employees have historically been located, with expected relocation costs of **$24.5 million to $28.5 million** in fiscal 2022[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - The business is highly dependent on retaining paying customers and encouraging them to upgrade subscriptions or purchase add-ons, with the majority on monthly plans which increases churn risk[252](index=252&type=chunk)[253](index=253&type=chunk) - The company operates in a highly competitive market against both all-in-one platforms and specialized point solutions, which may have greater resources or brand recognition[256](index=256&type=chunk)[257](index=257&type=chunk) - The platform's functionality relies on access to data from third-party sources via APIs and data providers, and loss of access could harm the business[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk) - The dual-class stock structure concentrates **81% of voting power** with pre-IPO stockholders, limiting the influence of Class A common stockholders on corporate matters[410](index=410&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=92&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred, and the use of IPO proceeds remains unchanged from previous disclosures - There were no unregistered sales of equity securities in the reported period[421](index=421&type=chunk) - The use of proceeds from the IPO remains consistent with what was previously disclosed in the company's Form 10-K filed on March 18, 2022[423](index=423&type=chunk) [Item 3. Default Upon Senior Securities](index=93&type=section&id=Item%203.%20Default%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[425](index=425&type=chunk) [Item 4. Mine Safety Disclosure](index=93&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to the company's operations - Not applicable[426](index=426&type=chunk) [Item 5. Other Information](index=93&type=section&id=Item%205.%20Other%20Information) The company reports no other material information for this period - None[427](index=427&type=chunk) [Item 6. Exhibits](index=93&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and required officer certifications - The exhibits filed include corporate governance documents, an amendment to the revolving credit agreement, and required certifications by the Principal Executive Officer and Principal Financial Officer[428](index=428&type=chunk)[429](index=429&type=chunk)

Semrush Holdings, Inc. (NYSE:SEMR) Q1 2022 Earnings Conference Call May 11, 2022 8:30 AM ET Company Participants Bob Gujavarty - VP of IR Oleg Shchegolev - CEO Evgeny Fetisov - CFO Eugene Levin - Chief Strategy Officer Conference Call Participants Michael Turits - KeyBanc Parker Lane - Stifel Scott Berg - Needham Mark Murphy - JPMorgan Clarke Jeffries - Piper Sandler David North - Due North Capital Operator Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to ...