SEMrush Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SEMrush Holdings, Inc. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

SEMrush Holdings, Inc. (SEMR) filed a Annual Report (10-K) with the SEC on March 7, 2024. SEMrush Holdings, Inc. filed its 2023 Form 10-K on March 7, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 800 Boylston Street, Suite 2475, Boston, MA 02199. The filing includes financial data for the fiscal years 2023, 2022, and 2021. SEMrush Holdings, Inc. is classified under SIC code 7372 (Services-Prepackaged Software).

Why It Matters

For investors and stakeholders tracking SEMrush Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of SEMrush's financial performance and business operations for the past fiscal year, crucial for investors to assess the company's health and future prospects. The detailed financial data and risk factors disclosed in the 10-K are essential for investors and analysts to understand the company's financial position, profitability, and potential challenges.

Risk Assessment

Risk Level: medium — SEMrush Holdings, Inc. shows moderate risk based on this filing. The company's business is subject to risks associated with the software and technology industry, including competition and rapid technological changes, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand SEMrush's performance and strategic positioning.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-07 — Filing Date (Date of submission)
• 001-40276 — SEC File Number (SEC filing identifier)
• 7372 — SIC Code (Industry classification)

Key Players & Entities

• SEMrush Holdings, Inc. (company) — Filer name
• 0001831840 (company) — Central Index Key
• 800 Boylston Street, Suite 2475 (company) — Business Address
• Boston, MA (company) — Business Address City/State
• 02199 (company) — Business Address ZIP
• 7372 (company) — Standard Industrial Classification
• DE (company) — State of Incorporation
• 2023-12-31 (date) — Fiscal Year End

FAQ

Industry Context

SEMrush Holdings operates in the software industry, specifically focusing on prepackaged software solutions, as indicated by its SIC code 7372.

Regulatory Implications

The company is subject to SEC regulations governing public company filings, including the requirement to submit a Form 10-K annually.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-K for revenue, expenses, and profitability trends.
2. Review the risk factors section to understand potential challenges and their impact on SEMrush's operations.
3. Compare the 2023 financial results with previous years to identify growth or decline patterns.

Key Dates

• 2024-03-07: 10-K Filing — Submission of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.00001 — which registered Class A Common Stock, $0.00001 par value per share SEMR The New York
• $9.57 — pproximately $ 314.1 million based upon $9.57 per share, the closing price on June, 3
• $2,868 — o grow our ARR per paying customer from $2,868 as of December 31, 2022 to $3,125 as of
• $3,125 — from $2,868 as of December 31, 2022 to $3,125 as of December 31, 2023. We define ARR
• $337.1 million — ficient model has enabled us to grow to $337.1 million in ARR as of December 31, 2023 from $27
• $275.1 million — ion in ARR as of December 31, 2023 from $275.1 million in ARR as of December 31, 2022. For the
• $307.7 m — , 2023, 2022, and 2021, our revenue was $307.7 million, $254.3 million, and $188.0 milli
• $254.3 m — d 2021, our revenue was $307.7 million, $254.3 million, and $188.0 million, respectively
• $188.0 m — was $307.7 million, $254.3 million, and $188.0 million, respectively, representing growt
• $1.0 m — 22, and 2021, our net income (loss) was $1.0 million, $(33.8) million, and $(3.3) mill

Filing Documents

• semr-20231231.htm (10-K) — 2137KB
• exhibit21112312023.htm (EX-21.1) — 8KB
• exhibit23112312023.htm (EX-23.1) — 3KB
• exhibit31112312023.htm (EX-31.1) — 10KB
• exhibit31212312023.htm (EX-31.2) — 10KB
• exhibit32112312023.htm (EX-32.1) — 10KB
• semrushholdingsinccompen.htm (EX-97.1) — 13KB
• semr-20231231_g1.jpg (GRAPHIC) — 132KB
• semrushholdingsinccompen001.jpg (GRAPHIC) — 212KB
• semrushholdingsinccompen002.jpg (GRAPHIC) — 233KB
• semrushholdingsinccompen003.jpg (GRAPHIC) — 212KB
• semrushholdingsinccompen004.jpg (GRAPHIC) — 239KB
• semrushholdingsinccompen005.jpg (GRAPHIC) — 43KB
• 0001628280-24-009657.txt (&nbsp;) — 12809KB
• semr-20231231.xsd (EX-101.SCH) — 67KB
• semr-20231231_cal.xml (EX-101.CAL) — 145KB
• semr-20231231_def.xml (EX-101.DEF) — 420KB
• semr-20231231_lab.xml (EX-101.LAB) — 959KB
• semr-20231231_pre.xml (EX-101.PRE) — 693KB
• semr-20231231_htm.xml (XML) — 1602KB

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 44

Cybersecurity

Item 1C. Cybersecurity 44

Properties

Item 2. Properties 45

Legal Proceedings

Item 3. Legal Proceedings 46

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 46 Part II

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 47

Reserved

Item 6. Reserved 48

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 66

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 68

Changes in and Disagreements With Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 121

Controls and Procedures

Item 9A. Controls and Procedures 121

Other Information

Item 9B. Other Information 122

Disclosure Regarding Foreign Jurisdiction that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections 123 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 124

Executive Compensation

Item 11. Executive Compensation 124

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 124

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 124

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 124 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 125

Form 10-K Summary

Item 16. Form 10-K Summary 127

Signatures

Signatures 128 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our future results of operations, financial condition, business strategy, plans and objectives of management for future operations, our market opportunity and the potential growth of that market, our liquidity and capital needs and other similar matters, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements concerning the following: our future financial performance, including our revenue, annual recurring revenue ("ARR"), dollar-based net revenue retention rate, costs of revenue, gross profit or gross margin and operating expenses; the sufficiency of our cash and cash equivalents to meet our liquidity needs; anticipated trends and growth rates in our business and in the markets in which we operate; our ability to maintain the security and availability of our internal networks and platform; our ability to attract new paying customers and convert free customers into paying customers; our ability to retain and expand sales to our existing paying customers, i

Business

Item 1. Business Overview We are a leading online visibility management software-as-a-service ("SaaS") platform. We enable companies globally to identify and reach the right audience for their content, in the right context, and through the right channels. Online visibility represents how effectively companies connect with consumers across a variety of digital channels, including search, social and digital media, digital public relations, and review websites. The evolving online landscape and information overload from online content have made it increasingly difficult for companies to understand and manage their online visibility. Our proprietary SaaS platform enables us to aggregate and enrich trillions of data points collected from more than 808 million unique domains. Our platform enables our customers to understand trends and act upon unique insights to improve their online visibility, drive high-quality traffic to their websites and social media pages, as well as online listings, distribute highly targeted content to their customers, and measure the effectiveness of their digital marketing campaigns. As of December 31, 2023 and 2022, our differentiated platform empowered more than 1,041,000 and 803,000 active free customers, respectively, and nearly 108,000 and over 95,000 paying customers, respectively, in over 155 and 157 countries, respectively. As interactions between companies and their customers continue to shift online, managing a company's online visibility has become critical. With over 5.4 billion internet users in the second quarter of 2022, according to Internet World Stats, and consumers worldwide spending an average of over six and a half hours per day online, according to GlobalWebIndex, digital channels are essential for customer engagement. While these digital channels have made it easier for companies to have an online presence, with so many different sources of media competing for customers' attention, it has become increasingly difficult f

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View this 10-K filing on SEC EDGAR