SEMrush (SEMR) - 2025 Q2 - Quarterly Report

FORM 10-Q Filing Information Filing Details This document is a Quarterly Report on Form 10-Q for Semrush Holdings, Inc. for the quarterly period ended June 30, 2025, with the company classified as a large accelerated filer - The report is a Quarterly Report on Form 10-Q for the period ended June 30, 2025[2] - Semrush Holdings, Inc. is a Delaware corporation with its principal executive offices in Boston, MA[2][3] - The registrant is classified as a 'Large accelerated filer' and has submitted all required Interactive Data Files[5][6] Outstanding Common Stock as of July 31, 2025 | Class of Stock | Shares Outstanding | | :--------------- | :----------------- | | Class A Common Stock | 127,685,802 | | Class B Common Stock | 21,019,818 | Table of Contents Report Structure The Table of Contents outlines the structure of the 10-Q report, dividing it into Part I (Financial Information) and Part II (Other Information), covering financial statements, management's discussion, market risk, controls, legal proceedings, risk factors, equity sales, and exhibits - The report is structured into two main parts: Part I. Financial Information and Part II. Other Information[9] - Part I includes financial statements, management's discussion and analysis, quantitative and qualitative disclosures about market risk, and controls and procedures[9] - Part II covers legal proceedings, risk factors, unregistered sales of equity securities, other information, and exhibits[9] Special Note Regarding Forward-Looking Statements Forward-Looking Statements Disclaimer This section advises readers that the report contains forward-looking statements subject to substantial risks and uncertainties, based on management's current expectations and assumptions, which may differ materially from actual future results - All statements in the report, other than historical facts, are forward-looking and involve substantial risks and uncertainties[11] - Forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently difficult to predict[11] - Readers should not rely on these statements as predictions of future events, as actual results could differ materially due to factors described in the 'Risk Factors' section of the Annual Report on Form 10-K[12] - The company does not undertake to update any forward-looking statements unless required by law, and they do not reflect the potential impact of future acquisitions, mergers, or investments[13] Part I. Financial Information Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Semrush Holdings, Inc., including the balance sheets, statements of operations and comprehensive (loss) income, statements of stockholders' equity, and statements of cash flows, along with detailed notes explaining the accounting policies and specific financial items Unaudited Condensed Consolidated Balance Sheets The balance sheets show an increase in total assets from $390.9 million at December 31, 2024, to $424.9 million at June 30, 2025, primarily driven by increases in cash, short-term investments, and accounts receivable Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | Change | | :--------------------------------- | :------------------ | :---------------------- | :----- | | Total Assets | $424,949 | $390,943 | $34,006 | | Total Liabilities | $136,782 | $124,591 | $12,191 | | Total Stockholders' Equity | $288,167 | $266,352 | $21,815 | | Cash and cash equivalents | $54,322 | $48,875 | $5,447 | | Short-term investments | $204,225 | $186,693 | $17,532 | | Accounts receivable | $14,243 | $8,955 | $5,288 | | Deferred revenue | $81,730 | $71,827 | $9,903 | Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income For the three and six months ended June 30, 2025, Semrush reported a net loss of $6.8 million and $6.1 million, respectively, a significant decline from net income in the prior year periods Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (Amount) | YoY Change (%) | | :------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :------------- | | Revenue | $108,892 | $90,951 | $17,941 | 19.7% | | Cost of revenue | $21,110 | $14,957 | $6,153 | 41.1% | | Gross profit | $87,782 | $75,994 | $11,788 | 15.5% | | Operating expenses | $92,127 | $72,600 | $19,527 | 26.9% | | (Loss) income from operations | $(4,345) | $3,394 | $(7,739) | -227.9% | | Net (loss) income | $(6,777) | $1,361 | $(8,138) | -597.9% | | Net (loss) income per share—basic | $(0.04) | $0.01 | $(0.05) | -500.0% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (Amount) | YoY Change (%) | | :------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :------------- | | Revenue | $213,910 | $176,763 | $37,147 | 21.0% | | Cost of revenue | $40,981 | $29,602 | $11,379 | 38.4% | | Gross profit | $172,929 | $147,161 | $25,768 | 17.5% | | Operating expenses | $177,348 | $142,299 | $35,049 | 24.6% | | (Loss) income from operations | $(4,419) | $4,862 | $(9,281) | -190.9% | | Net (loss) income | $(6,122) | $3,364 | $(9,486) | -282.0% | | Net (loss) income per share—basic | $(0.04) | $0.03 | $(0.07) | -233.3% | - Comprehensive (loss) income for the three months ended June 30, 2025, was $(3,604) thousand, compared to $1,058 thousand in the prior year, primarily due to foreign currency translation adjustments[21] Unaudited Condensed Consolidated Statements of Stockholders' Equity For the six months ended June 30, 2025, total stockholders' equity attributable to Semrush Holdings, Inc. increased to $279.0 million from $256.6 million at December 31, 2024, primarily due to stock-based compensation expense and positive foreign currency translation adjustments, despite a net loss Stockholders' Equity Highlights (in thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | Change | | :------------------------------------------ | :------------------ | :---------------------- | :----- | | Total Stockholders' Equity Attributable to Semrush Holdings, Inc. | $279,047 | $256,604 | $22,443 | | Additional Paid-in Capital | $345,664 | $322,586 | $23,078 | | Accumulated Other Comprehensive Income (Loss) | $2,862 | $(2,221) | $5,083 | | Accumulated Deficit | $(69