On August 5, 2024, SEMrush Holdings Inc (SEMR, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial results that exceeded analyst expectations. SEMrush Holdings Inc is a leading provider of an online visibility management software-as-a-service platform, enabling subscribers to enhance their online presence and drive high-quality traffic across various digital channels.
Q2 2024 Financial Performance
SEMrush Holdings Inc reported a revenue of $91.0 million for Q2 2024, marking a 22% year-over-year increase and surpassing the analyst estimate of $89.78 million. The company also reported an income from operations of $3.4 million, a significant improvement from the loss of $2.3 million in the same period last year. The operating margin improved to 3.7% from -3.1% year-over-year.
Key Financial Metrics
SEMrush Holdings Inc's Annual Recurring Revenue (ARR) reached $377.7 million, up 25% year-over-year, reflecting the company's successful upselling and cross-selling strategies. The company also reported a net cash provided by operating activities of $12.1 million for the quarter.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $91.0 million | $74.7 million |
| Income from Operations | $3.4 million | $(2.3) million |
| Operating Margin | 3.7% | (3.1)% |
| Non-GAAP Income from Operations | $12.2 million | $2.3 million |
| ARR | $377.7 million | $302.2 million |
Business Highlights and Strategic Initiatives
SEMrush Holdings Inc continues to expand its platform and product offerings. The company launched the AI Keyword Inspector for App Store Optimization and upgraded its ContentShake AI with an AI Images feature. Additionally, SEMrush acquired a majority stake in Brand24, further enhancing its capabilities.
CEO Oleg Shchegolev commented,
“We delivered a strong second quarter, exceeding our guidance and positioning us to raise our full year 2024 revenue guidance. Revenue increased 22% year-over-year and ARR grew 25% year-over-year as we focused on continuing to grow our core business, upselling and cross selling our offerings, and expanding our platform.”
Financial Outlook
For the third quarter of 2024, SEMrush Holdings Inc expects revenue in the range of $96.0 to $97.0 million, representing approximately 23% year-over-year growth. The company also anticipates a non-GAAP operating margin of around 11.0% for the quarter.
For the full year 2024, SEMrush Holdings Inc has raised its revenue guidance to a range of $373.0 to $375.0 million, reflecting growth of 21% to 22% year-over-year. The company expects a full-year non-GAAP operating margin of 10.5% to 11.5% and a free cash flow margin of approximately 8.0%.
SEMrush Holdings Inc's strong financial performance and strategic initiatives position the company well for continued growth and profitability in the competitive online visibility management industry. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from SEMrush Holdings Inc for further details.
