As of September 30, 2024, Semrush Holdings, Inc. reported significant financial growth, with total revenue reaching $97.4 million for the third quarter, a 24% increase from $78.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $274.2 million, up 22% from $224.3 million year-over-year. The company attributes this growth primarily to its subscription-based SaaS model, which continues to dominate its revenue streams.

Gross profit for the third quarter was $80.3 million, reflecting a 22% increase from $65.7 million in Q3 2023. However, total operating expenses also rose, amounting to $78.6 million for the quarter, compared to $62.9 million in the prior year. This increase in expenses was driven by higher personnel costs, particularly in sales and marketing, which saw a $5.6 million rise due to increased wages and contractor costs.

Despite the revenue growth, Semrush reported a net income of $718,000 for Q3 2024, down from $4.2 million in Q3 2023. For the nine-month period, net income was $4.1 million, a significant recovery from a net loss of $5.9 million in the same period of 2023. The company’s income from operations for the third quarter was $1.7 million, a decrease from $2.7 million in the previous year.

Strategically, Semrush has been active in expanding its portfolio through acquisitions. Notably, the company completed the acquisition of Backlinko, LLC (doing business as Exploding Topics) in August 2024 for $2.95 million, and Ryte GmbH in July 2024 for $10.5 million. Additionally, the company acquired Brand 24 S.A. in April 2024, further enhancing its market position. These acquisitions have contributed to a significant increase in goodwill, which rose to $54.3 million as of September 30, 2024, from $24.9 million at the end of 2023.

Cash and cash equivalents decreased to $45.1 million from $58.8 million at the end of 2023, while total assets increased to $383.8 million, up from $331.5 million. The company reported a dollar-based net revenue retention rate of approximately 107% as of September 30, 2024, indicating strong customer loyalty and expansion within existing accounts.

Overall, Semrush's financial performance reflects a robust growth trajectory, bolstered by strategic acquisitions and a solid subscription revenue model, despite facing increased operating expenses and a decline in net income for the latest quarter.