BOSTON – Semrush Holdings, Inc. (NYSE: SEMR), a leading SaaS platform for online visibility management, reported revenue increased 21% in the first quarter, reaching $85.8 million and beating analysts’ expectations.
The company’s adjusted earnings per share (EPS) for the quarter were $0.01, below the consensus estimate of $0.05. Despite the EPS decline, revenue topped analysts’ estimates of $85.04 million.
The company’s annual recurring revenue (ARR) also increased by 21%, indicating a strong growth trajectory for its financial performance. Semrush’s first-quarter results reflected a significant improvement in profitability, with operating income of $1.5 million compared to a loss of $10.8 million in the same quarter last year.
Adjusted operating margin rose sharply to 11.3% from negative margins in the prior year.
Semrush CEO Oleg Shchegolev attributed the strong quarter to the company’s focus on customer acquisition, expanding offerings and leveraging artificial intelligence in its platform. He expressed optimism about the future, especially with the general availability of their new Enterprise SEO product, which is expected to attract more customers.
Looking ahead, Semrash provided guidance for the second quarter, with revenue expected to be between $89.1 million and $90.1 million, up approximately 20% year-over-year. The midpoint of this range is slightly above the analyst consensus of $88.95 million.
For full-year 2024, the company expects revenue to be between $366 million and $369 million, with the midpoint of that forecast slightly above the consensus estimate of $366.2 million.
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Semrush CFO Brian Mulroy highlighted strong first-quarter results and raised full-year guidance for 2024. The company’s strategy to attract new customers and increase average revenue per customer supported growth, as well as continued improvements in cost efficiencies and improved profitability.
The company’s stock market movement following the earnings release was not provided, nor was it stated what caused the movement. However, financial results and forward-looking statements indicate a positive outlook for the company’s growth and profitability.
In summary, Semrush’s first quarter results showed strong revenue growth and significant improvement in profitability. The company’s outlook remains positive, with forecasts for the coming quarter and full year raised.
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