NYSE$SEMR

Semrush Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Experienced steady growth with double-digit gains in revenue and paying customers year-over-year.

Semrush reported a revenue of $74.7 million, a 19% increase year-over-year. ARR reached $302.4 million, up 20% year-over-year, and the company had over 104,000 paying customers, a 14% increase year-over-year. The company is raising its full year 2023 guidance.

  • Second quarter revenue reached $74.7 million, up 19% year-over-year.
  • ARR reached $302.4 million as of June 30, 2023, up 20% year-over-year.
  • Dollar-based net revenue retention was 112% as of June 30, 2023.
  • Over 104,000 paying customers as of June 30, 2023, up approximately 14% year-over-year.

Headline financials

Total Revenue

$74.7M

Previous: $62.6M+19.3%
EPS (adj)

$0.03

Previous: -$0.04+175.0%
Annual Recurring Revenue

$302M

Previous: $252M+20.0%
Dollar-Based Net Retention

112.0%

No prior period
Capital Expenditures

-$957K

Previous: -$2.8M+65.8%
Free Cash Flow

-$10.9M

Previous: -$2.21M-392.5%
Net Income

-$279K

Previous: -$8.28M+96.6%
Operating Income

-$2.33M

Previous: -$8.26M+71.8%
Gross Profit

$61.7M

Previous: $50M+23.4%

Revenue & EPS history

Semrush · Revenue · Quarterly

$74.7M

Q2 2023+19.3%vs Q2 2022
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Semrush expects revenue growth to reaccelerate with increasing adoption of its expanding product portfolio, tools, and add-ons. The company is committed to maintaining a disciplined and balanced approach to optimizing costs and improving efficiency and profitability while continuing to invest in future growth opportunities.

Tailwinds

  • Expects revenue in a range of $78.0 to $79.0 million for Q3 2023.
  • Mid-point of Q3 revenue guidance would represent growth of approximately 19% year-over-year.
  • Expects third quarter non-GAAP net income of $3.0 to $4.0 million.
  • Raising prior full-year revenue guidance to $307.0 to $309.0 million.
  • Mid-point of full-year revenue guidance would represent growth of approximately 21% year-over-year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-3.7%

Avg return

Earnings day

-2.0%

Avg return

5 days after

+2.4%

Avg return

30 days after

20%

5 / 25 earnings

Positive

+16.9%

Q1 2024

Best reaction

-21.3%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+1.0%+1.1%+1.3%
Q3 2025+6.1%+3.8%+67.2%
Q2 2025-20.7%-22.7%-16.6%
Q1 2025-2.2%+6.1%+1.2%
Q4 2024-21.3%-26.8%-36.6%
Q3 2024-3.9%+1.4%+2.4%
Q2 2024-1.3%+2.3%-0.5%
Q1 2024+16.9%+21.8%+24.3%
Q4 2023-13.3%-9.2%+4.9%
Q3 2023-5.3%+2.7%+38.2%
Q2 2023+2.8%-4.0%-9.3%
Q1 2023-14.0%-12.8%-21.7%
Q4 2022+11.2%+9.7%+26.9%
Q3 2022-16.4%-22.7%-28.9%
Q2 2022-3.3%+4.2%-10.4%
Q1 2022-4.4%+3.8%+23.6%
Q4 2019-1.7%-0.9%-3.1%
Q4 2021-4.6%-20.0%-15.4%
Q3 2020-1.5%-5.9%-24.4%
Q3 2021-4.8%+3.8%-21.8%
Q2 2020-2.3%+3.9%+33.3%
Q2 2021-3.3%+7.2%+28.8%
Q1 2021-2.1%+1.2%-1.4%
Q4 2020-2.1%+1.2%-1.4%
Q1 2020-2.1%+1.2%-1.4%

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