NYSE$SEMR

Semrush Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Semrush reported strong fourth quarter and full year 2024 financial results, with significant revenue growth and improved profitability, and announced a CEO transition.

Semrush Holdings, Inc. announced robust financial results for the fourth quarter and full year ended December 31, 2024, with Q4 revenue up 23% year-over-year to $102.6 million and full year revenue up 22% to $376.8 million. The company also reported a significant increase in non-GAAP operating income and free cash flow, alongside a leadership transition with William R. Wagner named as the new CEO and co-founder Oleg Shchegolev transitioning to CTO.

  • Fourth quarter revenue increased by 23% year-over-year to $102.6 million.
  • Non-GAAP income from operations for Q4 was $11.8 million, up from $8.3 million in the prior year period.
  • Achieved an Annual Recurring Revenue (ARR) of $411.6 million, representing a 22% year-over-year increase.
  • William R. Wagner was appointed as the new CEO, effective March 10, 2025, with co-founder Oleg Shchegolev transitioning to Chief Technology Officer.

Headline financials

Total Revenue

$103M

Previous: $83.4M+23.1%
EPS (adj)

$0.02

Previous: $0.05-60.0%
Annual Recurring Revenue

$410M

No prior period
Capital Expenditures

-$2.41M

Previous: -$2.67M+9.8%
Net Income

$3.29M

Previous: $6.9M-52.3%
Operating Income

$1.74M

Previous: $2.68M-35.1%
Gross Profit

$83.8M

Previous: $69.7M+20.3%
R&D Expense

$21.3M

Previous: $15.4M+38.6%

Revenue & EPS history

Semrush · Revenue · Quarterly

$103M

Q4 2024+23.1%vs Q4 2023
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Semrush provided optimistic financial guidance for the first quarter and full year 2025, anticipating continued revenue growth and stable non-GAAP operating margins.

Tailwinds

  • Expected Q1 2025 revenue in the range of $103.9 million to $104.7 million, representing approximately 22% year-over-year growth at the mid-point.
  • Expected full year 2025 revenue in the range of $448 million to $453 million, representing approximately 20% year-over-year growth at the mid-point.
  • Expected first quarter non-GAAP operating margin to be approximately 11%.
  • Expected full year non-GAAP operating margin to be approximately 12%.
  • Expected full year free cash flow margin to be approximately 12%.

Headwinds

  • Reconciliations of non-GAAP operating margin and free cash flow margin guidance to GAAP measures are not available without unreasonable efforts due to high variability and complexity.
  • The variability of excluded charges, such as share-based compensation expense and employer taxes, is expected to have a significant and potentially unpredictable impact on future GAAP financial results.
  • Future hiring, turnover, and retention needs directly impact employer taxes and tax deductions specific to equity compensation awards, contributing to unpredictability.
  • The company disclaims any obligation to update forward-looking statements, except as required by law.
  • Forward-looking statements are subject to substantial risks and uncertainties, as detailed in SEC filings.

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 2024

Historical avgQ4 2024

-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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