SEMrush (US:SEMR)2025-11-05 21:32Financial Performance - Third quarter revenue reached $112.1 million, representing a 15% year-over-year increase[7] - Annual Recurring Revenue (ARR) increased by $20 million, totaling $455.4 million as of September 30, 2025, up 14% year-over-year[6][7] - Non-GAAP income from operations for the third quarter was $14.1 million, resulting in a non-GAAP operating margin of 12.6%[7] - Revenue for Q3 2025 reached $112,075,000, a 15% increase from $97,410,000 in Q3 2024[28] - Gross profit for Q3 2025 was $89,855,000, compared to $80,347,000 in Q3 2024, reflecting an increase of 11%[28] - Net loss attributable to Semrush Holdings, Inc. for Q3 2025 was $2,141,000, compared to a net income of $1,094,000 in Q3 2024[28] - Non-GAAP income from operations for Q3 2025 was $14,141,000, representing a 12.6% operating margin, compared to 12.4% in Q3 2024[29] - Free cash flow for Q3 2025 was $17,042,000, which is 15.2% of revenue, up from 6.3% in Q3 2024[29] - Semrush Holdings, Inc. reported a net loss of $8,517,000 for the nine months ended September 30, 2025, compared to a net income of $4,082,000 in the same period of 2024[32] Cash Flow and Assets - Cash flow from operations was $21.9 million, with a margin of 19.5%[6][7] - Operating cash flow increased to $44,687,000 in 2025 from $35,063,000 in 2024, representing a growth of approximately 27%[32] - Cash, cash equivalents, and restricted cash at the end of the period totaled $80,965,000, up from $45,268,000 in 2024, indicating a year-over-year increase of approximately 79%[32] - Cash and cash equivalents rose to $80,780,000 as of September 30, 2025, compared to $48,875,000 at the end of 2024[31] - Total current assets increased to $323,874,000 as of September 30, 2025, from $276,184,000 at the end of 2024[31] Liabilities and Equity - Total liabilities increased to $151,864,000 as of September 30, 2025, from $124,591,000 at the end of 2024[31] - The accumulated deficit as of September 30, 2025, was $71,621,000, compared to $63,762,000 at the end of 2024[31] - Total stockholders' equity attributable to Semrush Holdings, Inc. increased to $289,683,000 as of September 30, 2025, from $256,604,000 at the end of 2024[31] Customer Growth and Retention - Dollar-based net revenue retention stood at 105% as of September 30, 2025[7] - Customers paying more than $10,000 annually grew by 30% year-over-year, while those paying over $50,000 grew by over 72%[8] Future Guidance - For Q4 2025, the company expects revenue between $117.5 million and $119.5 million, indicating approximately 15.5% year-over-year growth at the midpoint[11] - Full-year 2025 revenue guidance is set between $443.5 million and $445.5 million, reflecting an expected growth of approximately 18% year-over-year[11] Strategic Initiatives - The company launched the Semrush Enterprise Partner Program to expand its enterprise footprint and create new growth opportunities[10] - Investments in Generative AI were advanced, including the release of Semrush One and the Semrush Enterprise AI Visibility Index[10] Investment Activities - Net cash used in investing activities decreased to $12,158,000 in 2025 from $51,076,000 in 2024, reflecting a reduction of about 76%[32] - The company reported a decrease in purchases of short-term investments to $71,331,000 in 2025 from $136,768,000 in 2024, a decline of approximately 48%[32] - Proceeds from sales and maturities of short-term investments were $66,000,000 in 2025, compared to $132,500,000 in 2024, a decrease of about 50%[32] Expenses - The company experienced a significant increase in stock-based compensation expense, rising to $35,522,000 in 2025 from $19,856,000 in 2024, an increase of about 79%[32] - The company reported a significant increase in accounts payable, which rose to $10,252,000 in 2025 from $1,939,000 in 2024, an increase of about 429%[32]