BOSTON – Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, reported a 21% increase in first-quarter revenue, reaching $85.8 million and surpassing analyst expectations.
The company’s adjusted earnings per share (EPS) for the quarter was $0.01, falling short of the $0.05 consensus estimate. Despite the EPS miss, the revenue figure exceeded the $85.04 million analyst projection.
The company’s annual recurring revenue (ARR) also saw a 21% increase, indicating a consistent upward trajectory in its financial performance. Semrush’s first-quarter results reflect a significant turnaround in profitability, with income from operations recorded at $1.5 million compared to a loss of $10.8 million in the same quarter last year.
The adjusted operating margin improved dramatically to 11.3%, up from a negative margin in the prior year period.
Semrush’s CEO, Oleg Shchegolev, attributed the strong quarter to the company’s focus on customer acquisition, enhanced offerings, and the use of AI in their platform. He expressed optimism about the future, particularly with the general availability of their new Enterprise SEO product, which is expected to attract larger accounts.
Looking ahead, Semrush provided guidance for the second quarter with revenue expected to be between $89.1 million and $90.1 million, which would represent approximately a 20% increase YoY. The midpoint of this range is slightly above the analyst consensus of $88.95 million.
For the full year 2024, the company anticipates revenue to be in the range of $366 to $369 million, with the midpoint of this guidance slightly exceeding the consensus estimate of $366.2 million.
remove ads
.
Semrush’s CFO, Brian Mulroy, highlighted the strong first quarter performance and raised the full-year guidance for 2024. The company’s strategy of new customer additions and increased average revenue per customer contributed to the growth, along with continued cost efficiencies and profitability expansion.
The company’s stock market movement following the earnings release was not provided, nor was the driver of the move. However, the financial results and forward-looking statements indicate a positive outlook for the company’s growth and profitability.
In summary, Semrush’s first-quarter performance demonstrated solid growth in revenue and a significant improvement in profitability. The company’s outlook remains positive, with raised guidance for the upcoming quarter and the full year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
