Semrush Holdings, Inc. has recently released its 10-Q report, providing a comprehensive overview of its financial condition and performance. The company, headquartered in Boston, Massachusetts, operates as a leading online visibility management software-as-a-service (SaaS) platform, catering to a diverse customer base across various industries. Semrush's platform enables companies to enhance their online visibility, drive traffic to their websites and social media pages, and distribute targeted content to their customers.
In the 10-Q report, Semrush highlighted key factors that have impacted its performance. The company reported an increase in the number of paying customers, with over 116,000 paying customers accounting for $377.7 million in Annual Recurring Revenue (ARR) as of June 30, 2024, compared to more than 104,000 paying customers accounting for $302.4 million in ARR as of June 30, 2023.
Additionally, Semrush emphasized its focus on retaining and expanding sales to its existing customer base. The dollar-based net revenue retention rate as of June 30, 2024, was approximately 107%, indicating the company's ability to retain and expand subscription revenue generated from existing customers.
The report also delved into the company's non-GAAP financial measures, including non-GAAP income (loss) from operations, non-GAAP income (loss) from operations margin, free cash flow, and free cash flow margin. Semrush provided a reconciliation of these measures, offering insights into its overall business performance and liquidity.
Furthermore, the report shed light on Semrush's revenue generation, primarily derived from subscriptions to its online visibility management platform under a SaaS model. The company's revenue is not concentrated with any single customer or industry, with no single customer accounting for more than 10% of its revenue for the three and six months ended June 30, 2024.
Semrush also discussed its cost of revenue, which consists of expenses related to hosting the platform, acquiring data, merchant account fees, and providing customer support. The company expects its cost of revenue to increase in absolute dollars due to expenditures related to the purchase of hardware, data, and the expansion and support of its data center operations and customer support/success teams.
Today the company's shares have moved 0.7% to a price of $13.66. For more information, read the company's full 10-Q submission here.
