NYSE$SEMR

Semrush Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong execution despite challenging macroeconomic conditions, with revenue up 28% year-over-year and ARR reaching $275 million.

Semrush reported Q4 2022 financial results with revenue of $68.8 million, a 28% increase year-over-year. The company's ARR reached $275 million, also up 28% year-over-year. Semrush is focused on improving margins with the goal of non-GAAP profitability in 2023.

  • Q4 revenue increased by 28% year-over-year, reaching $68.8 million.
  • ARR grew by 28% year-over-year, totaling $275 million as of December 31, 2022.
  • Dollar-based net revenue retention rate was 118% as of December 31, 2022.
  • The company had over 95,000 paying customers as of December 31, 2022, an increase of approximately 16% year-over-year.

Headline financials

Total Revenue

$68.8M

Previous: $53.7M+28.0%
EPS (adj)

-$0.10

Previous: -$0.03-233.3%
Annual Recurring Revenue

$275M

Previous: $213M+29.1%
Dollar-Based Net Retention

118.0%

Previous: 126.0%-6.3%
Capital Expenditures

$218K

Previous: $822K-73.5%
Free Cash Flow

-$9.85M

Previous: $4.19M-335.1%
Net Income

-$13.9M

Previous: -$3.9M-256.4%
Operating Income

-$15.3M

Previous: -$3.65M-318.0%
Gross Profit

$56.8M

Previous: $42.2M+34.7%
Cash & Equivalents

$79.8M

Previous: $270M-70.4%
Total Assets

$299M

Previous: $300M-0.5%
Stock-Based Comp

$2.28M

Previous: $953K+138.9%

Revenue & EPS history

Semrush · Revenue · Quarterly

$68.8M

Q4 2022+28%vs Q4 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Semrush provided financial guidance for Q1 2023 and full year 2023.

Tailwinds

  • Q1 2023 revenue is expected to be in the range of $70.3 million to $70.7 million, representing a 23% year-over-year growth.
  • Full year 2023 revenue is projected to be between $306.0 million and $309.0 million, indicating a 20% to 22% year-over-year increase.
  • Semrush anticipates achieving non-GAAP net income between breakeven and $3.0 million for the full year 2023.
  • Strong demand for products.
  • History of customers returning to the platform.

Headwinds

  • Q1 2023 non-GAAP net loss is expected to be in the range of $8.0 million to $7.0 million, including approximately $1.3 million of exit costs.
  • Unpredictable impact on future GAAP financial results.
  • Challenging macroeconomic conditions.
  • Variability of share-based compensation expense.
  • Employer taxes and tax deductions specific to equity compensation awards.

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 Q4 2022

Historical avgQ4 2022

-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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