SEMrush (US:SEMR)2025-08-04 20:34Financial Performance - Second quarter revenue reached $108.9 million, representing a 20% year-over-year growth[5] - Annual Recurring Revenue (ARR) as of June 30, 2025, was $435.3 million, up 15% year-over-year[6] - Customers paying more than $50,000 annually increased by 83% year-over-year[5] - Non-GAAP income from operations for the second quarter was $12.0 million, with a non-GAAP operating margin of 11.0%[6] - Revenue for Q2 2025 was $108,892,000, a 19.7% increase from $90,951,000 in Q2 2024[29] - Gross profit for Q2 2025 reached $87,782,000, up from $75,994,000 in Q2 2024, reflecting a gross margin of 80.6%[29] - Operating expenses increased to $92,127,000 in Q2 2025, compared to $72,600,000 in Q2 2024, primarily driven by higher sales and marketing costs[29] - Net loss attributable to Semrush Holdings, Inc. was $6,567,000 in Q2 2025, compared to a net income of $1,659,000 in Q2 2024[29] - Non-GAAP income from operations for Q2 2025 was $11,957,000, representing an 11.0% operating margin, down from 13.4% in Q2 2024[30] - Free cash flow for Q2 2025 was negative $3,573,000, compared to positive $7,642,000 in Q2 2024[30] - Semrush Holdings, Inc. reported a net loss of $6,122,000 for the six months ended June 30, 2025, compared to a net income of $3,364,000 in the same period of 2024[33] Future Outlook - For the third quarter, revenue is expected to be in the range of $111.1 million to $112.1 million, indicating approximately 15% year-over-year growth[10] - Full-year revenue outlook is revised to a range of $443.0 million to $446.0 million, reflecting an 18% year-over-year growth at the midpoint[8] - Non-GAAP operating margin for the full year is expected to be approximately 12%[15] Shareholder Value - The company announced a $150 million share repurchase program to enhance shareholder value[2] Cash Flow and Assets - The company generated $22,793,000 in net cash provided by operating activities, a decrease from $26,922,000 in the prior year[33] - Total assets as of June 30, 2025, were $424,949,000, an increase from $390,943,000 as of December 31, 2024[32] - Cash and cash equivalents increased to $54,322,000 as of June 30, 2025, from $48,875,000 at the end of 2024[32] - Cash, cash equivalents, and restricted cash at the end of the period totaled $54,507,000, down from $81,529,000 at the end of the same period in 2024[33] Expenses and Investments - Total depreciation and amortization expense increased to $6,313,000 in 2025 from $4,269,000 in 2024, reflecting a year-over-year increase of approximately 48%[33] - Cash paid for the acquisition of assets and businesses was $1,097,000, down from $10,026,000 in the previous year[33] - The company experienced a net cash used in investing activities of $17,029,000, compared to $6,187,000 in the prior year, indicating a significant increase in cash outflow[33] - Proceeds from sales and maturities of short-term investments amounted to $46,000,000, a decrease from $102,500,000 in the previous year[33] - Stock-based compensation expense rose to $22,548,000 in 2025, compared to $12,281,000 in 2024, marking an increase of approximately 84%[33] Revenue Recognition - Dollar-based net revenue retention stood at 105% as of June 30, 2025[6] - Deferred revenue increased to $9,358,000, up from $7,353,000 in the prior year, indicating growth in future revenue recognition[33] New Products - The company launched several new AI-driven products, including AI Optimization and Toolkits, to enhance its service offerings[9] Other Financial Metrics - The company reported a change in fair value included in other income, net, of $(1,271,000), reflecting a negative adjustment compared to the previous year[33] - The reported weighted-average number of shares used in computing net loss per share was 148,311,000 for Q2 2025, compared to 145,678,000 for Q2 2024[29]