Core Insights - SEMrush Holdings, Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.07 per share, representing an earnings surprise of -14.29% [1] - The company posted revenues of $97.41 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.95%, compared to year-ago revenues of $78.72 million [2] - SEMrush shares have increased about 1% since the beginning of the year, underperforming the S&P 500's gain of 24.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $100.93 million, and for the current fiscal year, it is $0.25 on revenues of $374.19 million [7] - The estimate revisions trend for SEMrush is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which SEMrush belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Growth - Q3 2024 revenue reached $97.4 million, up 24% year-over-year[1][3] - Revenue for Q3 2024 increased to $97.41 million, up 23.8% from $78.72 million in Q3 2023[27] - Total revenue for the first nine months of 2024 reached $274.17 million, a 22.2% increase from $224.28 million in the same period of 2023[27] - Q4 2024 revenue guidance is $100.8 to $101.8 million, representing approximately 21% year-over-year growth at the midpoint[8] - Full-year 2024 revenue guidance raised to $375 to $376 million, representing 22% year-over-year growth[9] Annual Recurring Revenue (ARR) and Customer Growth - ARR as of September 30, 2024, was $401 million, up 24% year-over-year[1][4] - Paying customers grew to over 117,000, up 10% year-over-year[4] - Dollar-based net revenue retention was 107% as of September 30, 2024[4] - Customers paying more than $10,000 annually grew by 44% year-over-year[6] Profitability and Operating Income - Q3 2024 non-GAAP operating income was $12.1 million, with a non-GAAP operating margin of 12.4%, up nearly 300 basis points year-over-year[4][8] - Non-GAAP income from operations for Q3 2024 was $12.06 million, representing 12.4% of revenue, up from $7.51 million (9.5% of revenue) in Q3 2023[29] - Net income for Q3 2024 was $1.09 million, compared to $4.22 million in Q3 2023[27] - Net income for the nine months ended September 30, 2024, was $4,082 thousand, compared to a net loss of $(5,924) thousand in the same period in 2023[32] Cash Flow and Financial Position - Q3 2024 free cash flow was $6.2 million, with a free cash flow margin of 6.3%[4] - Free cash flow for Q3 2024 was $6.16 million, compared to $4.97 million in Q3 2023[30] - Net cash provided by operating activities was $35,063 thousand for the nine months ended September 30, 2024, compared to $(3,567) thousand used in the same period in 2023[32] - Total assets as of September 30, 2024, increased to $383.80 million from $331.49 million as of December 31, 2023[31] - Deferred revenue as of September 30, 2024, was $68.99 million, up from $58.31 million as of December 31, 2023[31] - Total stockholders' equity attributable to Semrush Holdings, Inc. increased to $248.52 million as of September 30, 2024, from $219.15 million as of December 31, 2023[31] Expenses and Investments - Research and development expenses for Q3 2024 were $22.18 million, a 57.6% increase from $14.08 million in Q3 2023[27] - Stock-based compensation expense for Q3 2024 was $7.58 million, up from $4.20 million in Q3 2023[28] - Stock-based compensation expense increased to $19,856 thousand in 2024 from $10,764 thousand in 2023[32] - Purchases of short-term investments totaled $(136,768) thousand in 2024, compared to $(182,381) thousand in 2023[32] - Proceeds from sales and maturities of short-term investments were $132,500 thousand in 2024, down from $154,741 thousand in 2023[32] - Cash paid for acquisition of businesses, net of cash acquired, was $(21,082) thousand in 2024, significantly higher than $(1,232) thousand in 2023[32] - Cash, cash equivalents, and restricted cash decreased by $(13,580) thousand in 2024, compared to a decrease of $(38,576) thousand in 2023[32] - Depreciation and amortization expense increased to $7,094 thousand in 2024 from $4,807 thousand in 2023[32] - Amortization of deferred contract costs rose to $9,163 thousand in 2024 from $7,510 thousand in 2023[32] - Net cash used in investing activities was $(51,076) thousand in 2024, compared to $(34,319) thousand in 2023[32] Enterprise Customer Growth - Semrush Enterprise SEO Platform signed new deals with large multinational corporations including Salesforce, HSBC, LG, Samsung, Alibaba, Sony, DoorDash, TikTok, and Square[6]

MRUSH D GE New York | --- | --- | |--------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | | | | Break SEMRUSH ANALYST DAY 2024 | Andrew Warden — CMO → Go To Market Strat Andrew Warden & Tommie O'B - CMO & CSO → Financial Strategy Brian Mulroy — CFO → Q&A | | --- | |----------------------------------------------------------------------------------------------------------------------------------------- ...

Semrush (NYSE: SEMR ) is a search engine marketing platform with a slant to small and medium sized businesses. The company provides a wide variety of tools for optimizing your business which is essential to most companies. The freemium model I am focused on Canadian stocks, Technology and growth stocks. The key to long term returns are disruptive companies that change the landscape of their industry. I also focus on Mid-Cap companies with strong management and high growth to attain alpha. I buy swing positi ...

Investment Overview - Semrush Holdings (NYSE: SEMR) reported strong 2Q24 results, with total revenue of $91 million, slightly above consensus estimates of $89.7 million, and a year-over-year growth of 21.8% [3][4] - The company maintains a hold rating due to the near-term upside being largely priced in, despite positive growth indicators [2][44] Financial Performance - Adjusted gross margin expanded by 60 basis points year-over-year, contributing to adjusted EBIT growth from 3.1% in 2Q23 to 13.4% in 2Q24 [3] - Annual recurring revenue (ARR) grew by 23% in 2Q24, with a notable organic growth acceleration of 200 basis points from 1Q24 [3][4] Customer Growth and Strategy - The number of net new paying customers increased by 12% year-over-year, indicating a strong up-sell and cross-sell potential, with average revenue per paying customer (ARPC) growing by approximately 12% [4][37] - The company is optimistic about future growth from its Enterprise GO product, with a 37% increase in customers with over $10k ARR, marking the third consecutive quarter of acceleration [39] Acquisition Impact - The acquisitions of Brand24 and Ryte are expected to enhance SEMR's capabilities, particularly in social media, brand marketing, and technical SEO, potentially driving significant ARPC uplift in the long term [37][38] - However, the benefits from these acquisitions are not expected to materialize in the near term as cross-selling efforts are still in the early stages [41][43] Valuation Metrics - The forward revenue multiple is currently at 4.0, with a target share price of $13.90, indicating limited near-term upside based on current growth expectations [40][41] - The market is likely to reassess SEMR's valuation as growth accelerates in the medium term, potentially allowing for a higher multiple [42][44]

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, 2024 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) Delaware 84-4053265 (State or Other Jurisdiction of Inc ...

You don't have to spend a lot of money to buy a share in a successful company. Some stocks are priced below $50 per share and present a respectable upside for long-term investors. However, these stocks don't present an upside just because they have low prices. Rising revenue and earnings are two components of high-potential companies. These stocks check off both items, but they also have growth catalysts that suggest more gains are on the way. Some of these stocks also have low valuations that present a res ...

Financial Data and Key Metrics Changes - The company reported revenue of $91 million for Q2 2024, representing a 22% year-over-year increase [5] - Annual Recurring Revenue (ARR) grew by 25% year-over-year to $377.7 million [16] - Non-GAAP operating income was $12.2 million, with a non-GAAP operating margin of 13.4%, up from 3.1% in the prior year [5][17] - Cash flow from operations was $12.1 million [17] - The company ended the quarter with cash and cash equivalents of $231.5 million [18] Business Line Data and Key Metrics Changes - The acquisition of Brand24 contributed approximately 2% to the reported ARR [16] - The average ARR per paying customer grew by 12% year-over-year and is up over 50% since the beginning of 2021 [16] - Approximately 4,100 net new paying customers were added in Q2, with three-quarters coming from the Brand24 acquisition [17] Market Data and Key Metrics Changes - The company has over 116,000 paying customers and approximately 1.1 million free active users across more than 150 countries [8] - The enterprise product launched in May has already attracted 8,000 enterprise accounts, indicating strong market demand [9] Company Strategy and Development Direction - The company is focused on expanding its leadership position in online visibility and enhancing profitability and free cash flow generation [6] - Recent acquisitions, including Brand24 and Ryte, are aimed at extending capabilities in social media, brand marketing, and technical SEO [10][12] - The company plans to leverage profitability to invest in new products and solidify its position as the marketing platform of choice across various industries [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong start to 2024 and the foundation built for future growth [10] - The company raised its full-year 2024 revenue guidance, expecting revenue in the range of $373 million to $375 million [19] - Management noted that the combination of Brand24 and Ryte is expected to contribute approximately 200 basis points of growth [19] Other Important Information - The company is maintaining its non-GAAP operating margin guidance for the full year at 10.5% to 11.5% [20] - The company anticipates higher general and administrative expenses due to changes in its affiliate ownership structure [21] Q&A Session Summary Question: Demand environment and enterprise solution pricing - Management confirmed that they have increased prices for the enterprise product after initial feedback indicated they were underpriced, maintaining a pricing range of 10x to 15x the core product [24] Question: Impact of pricing increase on growth rates - Management noted that a price increase in Q3 2023 contributed approximately $4 million of ARR in the second half of last year, with continued impacts expected [26] Question: Features of the new enterprise product - Key features include deep customization, automated AI workflows, and connections to leading experts for services [30] Question: Opportunities with Brand24 and Ryte - Management highlighted strong bundling opportunities with Brand24 and Ryte, particularly for larger customers [34][35] Question: Generative AI and its impact on SEO - Management discussed how new search elements, including AI overviews, are expected to increase total traffic and outgoing clicks over time [43]

Datos' integration significantly enhances Semrush's portfolio of competitive intelligence products and the new Enterprise SEO platform. The Enterprise SEO platform harnesses an extensive database of more than 25.7 billion keywords and 43 trillion backlinks, providing users with unparalleled insights and competitive advantages. The enhanced data analytics capabilities empower users to better understand the consumer journey and the path to purchase. This comprehensive understanding allows businesses to refine ...

Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) both soared after announcing 10-for-1 stock splits. Chipotle (NYSE:CMG) also rocketed to all-time highs after announcing a 50-for-1 stock split. People want to own entire shares of their favorite companies and have a large quantity of shares. Stock splits make that possible for corporations with high stock prices, but you can find plenty of companies with market prices below $50/share. Source: shutterstock.com/CC7 Many businesses will continue to use Semrush t ...