semrush SaaS platform specialized in content marketing and online visibility, today presented the financial results for the fourth quarter and the full year ended December 31, 2022. The company’s annual revenues in 2022 have increased by 35% year-on-year compared to 2021 , and closes the year with more than 95,000 clients in the portfolio.
«2022 has been a year of strong execution despite challenging macroeconomic conditions. We increased revenue by more than 35% year-on-year, while significantly strengthening our European presence by relocating approximately 600 employees to our new offices in Barcelona. We want to thank our customers, our employees and our shareholders who have shown tremendous support for our business in 2022.«, says Oleg Shchegolev, CEO and co-founder of Semrush.
«Looking ahead to 2023, I am optimistic about our future growth based on strong demand for our products and a track record of returning customers to the platform. We continue to see record levels of new customer signups and trials as we cross over 800,000 free active users on the platform. Expanding the reach of our platform remains our priority, but at the same time we are focused on improving margins with the goal of achieving non-GAAP profitability in 2023«, adds Shchegolev.
Fourth Quarter and Full Year 2022 Financial Highlights
- Fourth-quarter revenue was $68.8 million, up 28% from the same period last year, and full-year 2022 revenue was $254.3 million, up 35% than in the same period of the previous year.
- ARR of $275 million as of December 31, 2022, up 28% YoY
- Retention of net income in dollars of 118% as of December 31, 2022, below the 122% of the previous quarter.
- More than 95,000 paying customers as of December 31, 2022, approximately 16% more than a year ago
- Net loss of $13.9 million in the fourth quarter and net loss of $33.8 million in full year 2022
- Non-GAAP net loss of $11.6 million for the fourth quarter and non-GAAP net loss of $26.5 million for full year 2022
*Please see “Non-GAAP Financial Measures and Definitions of Key Metrics” below for how Semrush defines ARR, Dollar-Based Net Income Withholding, Non-GAAP Net Loss, and the financial tables accompanying this release for reconciliations of each financial measure. non-GAAP to its closest comparable GAAP financial measure.
Fourth Quarter 2022 Business Highlights
Semrush is committed to providing its clients with the best tools and services needed to boost their online presence and gain a competitive advantage in the marketplace. In the fourth quarter, Semrush advanced and expanded many of our offerings:
- Launched FindThatLead Domain Searcher, an app that helps companies discover B2B leads in a matter of seconds. Users can proactively search for leads, start conversations, and convert them before their competitors just by entering their target company or website.
- Launch of the latest SEO Writing Assistant (SWA) feature, which allows users to scale content production more easily. The upgrade allows companies to distribute workloads among different team members, share documents with specific people, and significantly streamline their content optimization workflow.
- We applied our machine learning algorithm to improve the accuracy and reliability of Semrush search volume data beyond the US, now including the UK, France, Canada, Australia, Spain and Italy.
- App Center ended the year with 37 apps, including a total of 17 from third parties.
- Semrush customers paying more than $10,000 a year grew more than 50% year-over-year.
- More than 800,000 registered free active customers, with a year-on-year increase of more than 50%, in more than 157 countries.
- We substantially concluded our relocation program, having relocated approximately 600 employees and ending 2022 with more than 1,300 employees and more than 200 contractors.
business prospects
financial perspectives for the first quarter of 2023
- Revenues are expected to be between $70.3 and $70.7 million, up 23% from a year earlier.
- Non-GAAP net loss is expected to be in the range of $8 million to $7 million, which includes approximately $1.3 million of exit costs.
financial perspectives for the whole year 2023
- Revenue is expected to be in the range of $306.0-309.0 million, which is a year-over-year increase of 20-22
- Non-GAAP net income will be between breakeven and $3.0 million, including approximately $1.3 million of exit costs.
- Reconciliation of non-GAAP net loss forecasts to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to high variability, complexity, and low visibility regarding charges excluded from this non-GAAP measure. , particularly the measures and effects of stock-based compensation expenses, employer taxes, and specific tax deductions from equity compensation awards that are directly impacted by future hiring, turnover, and retention needs. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
