Semrush Announces First Quarter 2024 Financial Results
Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the first quarter ended March 31, 2024.
May 6, 2024
Three months ended June 30, | Six months ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Revenue | $ 62,610 | $ 45,005 | $ 119,738 | $ 85,003 | |||
Cost of revenue ¹ | 12,598 | 10,238 | 24,185 | 19,011 | |||
Gross profit | 50,012 | 34,767 | 95,553 | 65,992 | |||
Operating expenses | |||||||
Sales and marketing ¹ | 30,894 | 18,298 | 56,724 | 34,755 | |||
Research and development ¹ | 9,671 | 5,964 | 17,809 | 11,322 | |||
General and administrative ¹ | 14,218 | 10,520 | 28,381 | 18,424 | |||
Exit costs | 3,485 | — | 3,485 | — | |||
Total operating expenses | 58,268 | 34,782 | 106,399 | 64,501 | |||
(Loss) income from operations | (8,256) | (15) | (10,846) | 1,491 | |||
Other income (expense), net | 711 | (123) | 870 | (72) | |||
(Loss) income before income taxes | (7,545) | (138) | (9,976) | 1,419 | |||
Provision for income taxes | 739 | 141 | 879 | 227 | |||
Net (loss) income | $ (8,284) | $ (279) | $ (10,855) | $ 1,192 | |||
Net (loss) income per share attributable to common stockholders: | |||||||
Basic | $ (0.06) | $ — | $ (0.08) | $ 0.01 | |||
Diluted | $ (0.06) | $ — | $ (0.08) | $ 0.01 | |||
Weighted-average number of shares of common stock used in computing net (loss) income per share attributable to common stockholders: | |||||||
Basic | 141,042 | 135,312 | 140,921 | 115,951 | |||
Diluted | 141,042 | 135,312 | 140,921 | 137,263 | |||
¹ includes stock-based compensation expense as follows: |
Three months ended June 30, | Six months ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Cost of revenue | $ 21 | $ 7 | $ 32 | $ 14 | |||
Sales and marketing | 277 | 52 | 410 | 242 | |||
Research and development | 358 | 68 | 507 | 135 | |||
General and administrative | 1,548 | 442 | 2,187 | 771 | |||
Total stock-based compensation | $ 2,204 | $ 569 | $ 3,136 | $ 1,162 | |||
Three months ended June 30, | Six months ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Reconciliation of Non-GAAP net (loss) income | |||||||
Net (loss) income | $ (8,284) | $ (279) | $ (10,855) | $ 1,192 | |||
Stock-based compensation expense | 2,204 | 569 | 3,136 | 1,162 | |||
Non-GAAP net (loss) income | $ (6,080) | $ 290 | $ (7,719) | $ 2,354 |
As of | |||
June 30, 2022 | December 31, 2021 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 248,917 | $ 269,665 | |
Accounts receivable | 2,346 | 2,190 | |
Deferred contract costs, current portion | 7,276 | 6,338 | |
Prepaid expenses and other current assets | 10,484 | 5,345 | |
Total current assets | 269,023 | 283,538 | |
Property and equipment, net | 8,632 | 8,270 | |
Intangible assets, net | 11,344 | 2,925 | |
Goodwill | 6,740 | 1,991 | |
Deferred contract costs, net of current portion | 2,586 | 2,254 | |
Other assets | 3,921 | 1,096 | |
Total assets | $ 302,246 | $ 300,074 | |
Liabilities and stockholders’ equity | |||
Current liabilities | |||
Accounts payable | $ 5,729 | $ 9,942 | |
Accrued expenses | 25,309 | 19,479 | |
Deferred revenue | 48,303 | 40,232 | |
Other current liabilities | 2,621 | 1,896 | |
Total current liabilities | 81,962 | 71,549 | |
Long-term liabilities | |||
Deferred revenue, net of current portion | 185 | 237 | |
Deferred tax liability | 24 | 268 | |
Other long-term liabilities | 2,179 | 2,478 | |
Total liabilities | 84,350 | 74,532 | |
Stockholders' equity | |||
Class A common stock, $0.00001 par value - 1,000,000,000 shares authorized, and 43,261,183 shares issued and outstanding as of June 30, 2022; 31,841,861 shares issued and outstanding as of December 31, 2021 | — | — | |
Class B common stock, $0.00001 par value - 160,000,000 shares authorized, and 97,975,754 shares issued and 97,870,664 outstanding as of June 30, 2022; 108,975,216 shares issued and 108,870,126 outstanding as of December 31, 2021 | 1 | 1 | |
Additional paid-in capital | 269,201 | 264,871 | |
Accumulated other comprehensive deficit | (1,351) | (230) | |
Accumulated deficit | (49,955) | (39,100) | |
Total stockholders’ equity | 217,896 | 225,542 | |
Total liabilities and stockholders' equity | $ 302,246 | $ 300,074 |
Six Months Ended | |||
June 30, | |||
2022 | 2021 | ||
Operating Activities | |||
Net (loss) income | $ (10,855) | $ 1,192 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | |||
Depreciation and amortization expense | 4,221 | 1,447 | |
Amortization of deferred contract costs | 4,763 | 2,950 | |
Stock-based compensation expense | 3,136 | 1,162 | |
Non-cash interest expense | 53 | 104 | |
Change in fair value of convertible debt securities | (1,028) | — | |
Deferred taxes | 202 | (83) | |
Changes in operating assets and liabilities | |||
Accounts receivable | 109 | (1,324) | |
Deferred contract costs | (6,033) | (4,789) | |
Prepaid expenses and other current assets | (4,874) | (4,530) | |
Other current liabilities | 1,589 | — | |
Accounts payable | (2,714) | 720 | |
Accrued expenses | 4,818 | 4,981 | |
Deferred revenue | 7,240 | 8,229 | |
Other long-term liabilities | (38) | — | |
Net cash provided by operating activities | 589 | 10,059 | |
Investing Activities | |||
Purchases of property and equipment | (2,798) | (750) | |
Purchases of convertible debt securities | (2,000) | (500) | |
Capitalization of internal-use software development costs | (782) | (271) | |
Cash paid for acquisition of assets and businesses, net of cash acquired | (13,993) | (350) | |
Net cash used in investing activities | (19,573) | (1,871) | |
Financing Activities | |||
Proceeds from exercise of stock options | 1,194 | 26 | |
Net proceeds from completing initial public offering | — | 137,467 | |
Payment of capital leases | (1,445) | (453) | |
Net cash (used in) provided by financing activities | (251) | 137,040 | |
Effect of exchange rate changes on cash and cash equivalents | (1,513) | — | |
(Decrease) increase in cash, cash equivalents and restricted cash | (20,748) | 145,228 | |
Cash, cash equivalents and restricted cash, at beginning of period | 269,841 | 35,619 | |
Cash, cash equivalents and restricted cash, at end of period | $ 249,093 | $ 180,847 |