SEMrush (US:SEMR)2024-11-07 21:34Revenue 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]