SEMrush Holdings Inc (SEMR, Financial), a leading online visibility management SaaS platform, announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a 20% YoY increase in revenue, reaching $78.7 million. SEMrush's net income stood at $4.2 million, a significant improvement from a net loss of $9.1 million in the same period last year. The company's Annual Recurring Revenue (ARR) grew by 21% YoY to $322.8 million.
Financial Highlights
SEMrush's third-quarter revenue of $78.7 million represented a 20% YoY increase. The company's ARR as of September 30, 2023, stood at $322.8 million, up 21% YoY. The dollar-based net revenue retention was 109% as of September 30, 2023, compared to 112% in the previous quarter. The number of paying customers increased by nearly 14% YoY to approximately 106,800. The company's net income for the third quarter was $4.2 million, compared with a net loss of $9.1 million from a year ago. The Non-GAAP net income was $8.4 million for the third quarter, compared with a non-GAAP net loss of $7.1 million from a year ago.
Business Highlights
SEMrush continued its investments in Generative AI to enhance content creation capabilities. The company released two new ChatGPT features in the Listing Management tool and introduced the AI Social Media Post Generator. SEMrush also launched the Ecommerce Booster app that uses built-in AI tools to audit product page performance and create customized action plans. The number of SEMrush customers who pay more than $10,000 annually grew by more than 20% YoY. The company ended the quarter with more than 987,000 registered free active customers, up 25% YoY.
Business Outlook
For the fourth quarter, SEMrush expects revenue in a range of $82.7 to $83.7 million, representing approximately 21% YoY growth at the mid-point. The company expects fourth quarter non-GAAP net income of $4.1 to $6.1 million. For the full year, SEMrush is tightening its revenue guidance to $307.0 to $308.0 million, representing growth at the midpoint of approximately 21% YoY. The company is raising its non-GAAP net income guidance to $9.0 to $11.0 million, up from its prior guidance of $2.0 to $4.0 million, for the full year 2023.
Financial Statements
SEMrush's unaudited condensed consolidated statements of operations showed a net income of $4.2 million for the third quarter of 2023, compared to a net loss of $9.1 million for the same period in 2022. The company's balance sheet as of September 30, 2023, showed total assets of $301.9 million, compared to $298.6 million as of December 31, 2022. The company's cash and cash equivalents stood at $41.1 million as of September 30, 2023.
Explore the complete 8-K earnings release (here) from SEMrush Holdings Inc for further details.
