Semrush Holdings Inc · Q2 2024 earnings

Briefing

Semrush's Q2 2024 financial performance was marked by exceeding revenue guidance and a focus on core business growth, upselling, cross-selling, and platform expansion.

Semrush reported a strong second quarter with revenue of $91.0 million, a 22% year-over-year increase, and ARR of $377.7 million, a 25% year-over-year increase. The company raised its full year 2024 revenue guidance and announced an Analyst Day on October 1st, 2024.

• Revenue increased 22% year-over-year to $91.0 million.
• ARR grew 25% year-over-year to $377.7 million.
• Income from operations was $3.4 million, compared to a loss of $2.3 million in the prior year period.
• Q2 free cash flow was $7.6 million, representing a free cash flow margin of 8.4%.

Headline financials

Revenue & EPS history

For the third quarter 2024, Semrush expects revenue in a range of $96.0 to $97.0 million, which at the mid-point would represent growth of approximately 23% year-over-year. We expect third quarter non-GAAP operating margin to be approximately 11.0%. For the full year, we expect revenue in a range of $373.0 to $375.0 million, which represents growth of 21% to 22% year-over-year. We expect a full year non-GAAP operating margin of 10.5% to 11.5%. We expect the full year free cash flow margin to be approximately 8.0%.