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Did SEMrush Holdings beat or miss consensus estimates last quarter?

What does SEMrush Holdings do and what are its main business segments?

- **Revenue Growth**: 15.5% YoY to $112.1M, driven by AI and Enterprise segments.
- **AI Expansion**: $30M ARR in AI products, 10%+ customer adoption.
- **Enterprise Momentum**: 33% YoY growth, targeting $100k+ ARR per customer.
- **Cash Position**: $275M with 12% free cash flow margin.
- **Strategic Focus**: Unified SEO/AI platform (Semrush One), data-driven AI solutions.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $112.1 million, up 15.5% YoY, driven by AI and Enterprise segments. 
- **AI Momentum**: AI products (e.g., Semrush One) added $10 million ARR, with 10%+ of customers adopting AI solutions.
- **Enterprise Expansion**: Enterprise ARR grew 33% YoY, with average customer spend rising to $10,000+.
- **Data Differentiation**: Largest search data set (27B keywords, 43T backlinks) powers AI/SEO convergence.
- **Product Innovation**: Launched Semrush One, combining SEO & AI search into single platform.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Q3 GAAP revenue: $112.1M (12.6% non-GAAP margin)
  - Free cash flow: $17M (15.2% margin)
  - Cash balance: $275.7M
- **ARR Growth**: 
  - Total ARR: $455.4M (+14% YoY)
  - Net new ARR: $20M (highest in 13 quarters)
  - AI ARR: $30M (doubled QoQ)
- **Guidance**: 
  - Q4 revenue: $117.5-119.5M (15.5% YoY)
  - Full year ARR: $443.5-445.5M (18% YoY)
  - Free cash flow margin: 12%
- **Currency Impact**: €/USD exchange rate headwind of $10M, but 72% YoY growth in >$50k customers.

**【Q&A Key Highlights】**
- **Semrush One Pricing**: Introductory pricing for unified SEO/AI platform, monitoring demand.
- **Enterprise Go-To-Market**: 72% YoY growth in >$50k customers, targeting $100k+ ARR.
- **AI Adoption**: 10%+ of customers using AI products, 17% ARR growth per customer.
- **Competitive Position**: Largest data set, 9,000+ enterprise customers, 100%+ net retention in AI segment.
- **Capital Allocation**: $275M cash, prioritizing AI/Enterprise R&D, M&A, and buybacks.

Semrush Holdings, Inc. (SEMR) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue up 20% YoY to $108.9 million, driven by enterprise SEO and AI products.
- **AI and Enterprise Momentum**: AI Toolkit ARR grew to $3 million in months; enterprise and AI products expected to reach $50 million ARR by year-end.
- **Strategic Shift**: Reduced marketing spend on low-end customers, reallocating to high-value segments with 83% YoY growth in >$50k ARR customers.
- **Financial Adjustments**: Full-year revenue guidance revised to $443-446 million, maintaining 12% non-GAAP margin despite $9 million FX headwind.
- **Share Repurchase**: $150 million program announced, signaling confidence in long-term growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue of $108.9 million, up 20% YoY, driven by enterprise SEO and AI products. Enterprise SEO ARR reached $25 million, with 260 customers averaging $60,000 ARR. AI Optimization and AI Toolkit contributed nearly $1 million ARR within weeks of launch.
- **AI and Enterprise Focus**: AI Toolkit grew from $0 to $3 million ARR in months. Enterprise and AI products expected to reach $50 million ARR by year-end. Strategic shift to high-value customers (83% YoY growth in >$50k ARR customers).
- **Market Trends**: AI-powered search (e.g., ChatGPT) expands marketing opportunities. Semrush's SEO tools help brands appear in both traditional and AI-generated search results, with 4x higher conversion rates in AI answers.
- **Resource Allocation**: Reduced marketing spend on low-end customers (freelancers) due to declining unit economics, reallocating to enterprise and AI initiatives.

**【CFO Financial Commentary】**
- **Q2 Results**: Non-GAAP operating margin of 11%, ARR growth of 15.3% to $435.3 million. Free cash flow margin expected to remain 12% for the year, supported by enterprise deals with annual commitments.
- **Guidance Adjustments**: Full-year revenue revised to $443-446 million (18% YoY growth), down from $448-453 million due to lower-end market softness. Non-GAAP operating margin maintained at 12%, absorbing $9 million FX headwind (weaker USD vs. EUR).
- **Share Repurchase**: $150 million program announced, reflecting confidence in long-term growth and attractive valuation.

**【Q&A Highlights】**
- **Customer Segment Dynamics**: Low-end freelancers face macro challenges, with paid search CPC increases. Enterprise and mid-market segments remain strong, with 60% of enterprise growth from upgrades vs. new customers.
- **Competitive Landscape**: No significant changes; Semrush's focus on AI and enterprise maintains competitive edge.
- **Geographic Balance**: 50-50 split between US and ROW, with consistent performance across regions.
- **Customer Acquisition Costs**: Rising CPCs impact low-end segments, but AI and enterprise products offer better unit economics. Brands investing in AI search (e.g., via Semrush) see higher ROI in AI-generated results.

Semrush Holdings, Inc. (SEMR) Q2 2025 Earnings Call Transcript

- **Revenue beat**: $105M (+22% YoY) driven by enterprise SEO ($11M ARR) and AI ($4M ARR)
- **AI leadership**: Fastest-growing product (AI Toolkit) at $99/month, enterprise AI optimization in beta
- **Enterprise growth**: SEO ARR target $30M by year-end (vs. $11M Q1), 86% YoY increase in >$50k customers
- **Risk**: 8% margin headwind from euro/USD exchange rate (1.13 vs. 1.05 assumption)
- **Cash flow**: $18.5M free cash flow (17.6% margin), $261.8M cash on hand

**【CEO Summary Section】**
- Q1 2025 revenue of $105 million, up 22% YoY, driven by Enterprise SEO (ARR of $11 million) and AI products ($4 million ARR). 
- Key priorities: 
  1. Double down on AI with fastest-growing product (AI Toolkit at $99/month) and enterprise AI optimization in open beta
  2. Accelerate enterprise growth with AI Optimization GA in Q2 and 200+ customers at $60k ARR (vs. $50k target)
  3. Simplify customer experience with Q2 launch of guided onboarding and AI Assistant
  4. Strengthen data platform as competitive moat
- Enterprise SEO expected to reach $30 million ARR by year-end, up from $11 million Q1

**【CFO Financial Commentary】**
- Q1 GAAP revenue $105M (+22% YoY), non-GAAP operating margin 11.6%, free cash flow $18.5M (17.6% margin)
- ARR $424.7M (+20% YoY), NRR 106%, paying customers 118k
- 2025 guidance: $448-453M revenue (20% growth), 12% operating margin (impacted by 30% euro-denominated expenses)
- Risk: 8% headwind from euro/USD exchange rate (1.13 vs. 1.05 assumption)

**【Q&A Highlights】**
- AI impact: Customers demand tools to monitor/shape presence in AI search engines; AI Toolkit fastest-growing product
- Enterprise growth: 86% YoY increase in >$50k customers (388 total), 40% growth in >$10k customers (5,000+)
- NRR dynamics: 106% reflects long-term calculation; enterprise mix shift driving higher future retention
- FX risk: 30% of expenses in euros, no hedging for 2025 guidance
- Sales cycles: No macro impact seen yet; enterprise deals take 6-12 months to close

Semrush Holdings, Inc. (SEMR) Q1 2025 Earnings Call Transcript

- **Record Growth**: Q4 2024 revenue up 23% YoY, full-year growth 22%, fueled by enterprise SEO deals (+82% YoY in >$50k customers).
- **Profit Margin Expansion**: Non-GAAP operating margin 12.2% for 2024, free cash flow margin 9.4%, with 2025 targets of 12% operating and 12% free cash flow margin.
- **AI-Driven Innovation**: Launching AIO solution in H1 2025 to optimize visibility in AI-powered search engines, complementing existing enterprise SEO success.
- **Leadership Transition**: Oleg becomes CTO to focus on product, while new CEO Bill Wagner prioritizes scaling enterprise and AI initiatives.
- **Key Metrics**: 144 enterprise SEO customers (ARR $9M), 4,300+ customers paying >$10k (40% YoY growth), and 106% DNR retention rate.


**【CEO Summary Section】**
- **Revenue Growth**: Q4 2024 revenue increased 23% YoY to $102.6 million, driven by enterprise SEO adoption. Full-year revenue rose 22% to $376.8 million.
- **Profitability**: Non-GAAP operating margin expanded to 11.5% in Q4 (12.2% full-year), with free cash flow margin at 9.3% for the quarter and 9.4% annually.
- **Enterprise Momentum**: Closed 40+ enterprise SEO deals in Q4, ending 2024 with 144 enterprise customers generating $9 million ARR. 60% of new enterprise customers were existing Semrush users.
- **AI Strategy**: Launching AI Optimization (AIO) solution in H1 2025, targeting visibility in AI-powered search engines.

**【CFO Financial Commentary】**
- **Q4 Financials**: GAAP net income of $1.7 million, non-GAAP operating income of $11.8 million. Full-year non-GAAP operating income was $45.8 million.
- **Cash Flow**: Generated $47 million in operating cash flow annually, ending with $235.6 million in cash and investments.
- **2025 Guidance**: Revenue $448-$453 million (20% YoY growth), non-GAAP operating margin ~12%, free cash flow margin ~12%.

**【Q&A Highlights】**
- **AIO Pricing**: Initial $99/month for SMBs, enterprise version launching H1 2025. Pricing will evolve based on customer feedback.
- **Macroeconomic Impact**: Softness in SMB segment persists, but enterprise growth offsets macro challenges.
- **CEO Transition**: Oleg shifting to CTO to focus on product innovation, with Bill Wagner emphasizing enterprise scaling.
- **NRR Trends**: DNR retention rate 106% (Q4), enterprise customers driving >120% NRR. ARR per customer grew 13% YoY to $3,500.


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