Marketing analytics software Semrush (NYSE:SEMR) reported results in line with analysts' expectations in Q4 FY2023, with revenue up 21.2% year on year to $83.39 million. On the other hand, next quarter's revenue guidance of $85 million was less impressive, coming in 1.3% below analysts' estimates. It made a GAAP profit of $0.05 per share, improving from its loss of $0.10 per share in the same quarter last year.

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SEMrush (SEMR) Q4 FY2023 Highlights:

• Revenue: $83.39 million vs analyst estimates of $83.13 million (small beat)

• EPS: $0.05 vs analyst estimates of $0.01 ($0.04 beat)

• Revenue Guidance for Q1 2024 is $85 million at the midpoint, below analyst estimates of $86.09 million

• Management's revenue guidance for the upcoming financial year 2024 is $366 million at the midpoint, missing analyst estimates by 0.8% and implying 19% growth (vs 21.1% in FY2023)

• Free Cash Flow of $8.88 million, up 78.9% from the previous quarter

• Net Revenue Retention Rate: 107%, in line with the previous quarter

• Customers: 108,000, up from 106,800 in the previous quarter

• Gross Margin (GAAP): 83.6%, up from 82.6% in the same quarter last year

• Market Capitalization: $1.80 billion

“In 2023, we accelerated revenue growth throughout the year, delivering ARR growth of 23%, and strong profitability. In Q4, we reported revenue growth of 21% year-over-year, increased paying customers to nearly 108,000, and our number of free, active customers surpassed one million for the first time. Looking ahead, we remain focused on our three main growth pillars: increasing new user growth, driving expansion by delivering higher value to our customers, and adding new products and monetization to our portfolio to address client needs and market trends. I want to express my sincere gratitude to our growing number of customers, talented employees, and shareholders who showed incredible support and loyalty across our business,” said Oleg Shchegolev, CEO and Co-Founder of Semrush.

Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software as a service platform that helps companies optimize their search engine and content marketing efforts.

Listing Management Software

As the number of places that keep business listings (such as addresses, opening hours and contact details) increases, the task of keeping all listings up-to-date becomes more difficult and that drives demand for centralized solutions that update all touchpoints.

Sales Growth

As you can see below, SEMrush's revenue growth has been strong over the last two years, growing from $53.75 million in Q4 FY2021 to $83.39 million this quarter.