SEMR

• Strong quarter with revenue of $112.1M, non-GAAP operating margin of 12.6%, and cash flow from operations of $21.9M.
• Double-digit revenue growth across the portfolio, including strong organic net new annual recurring revenue.
• Enterprise segment growth accelerated to 33% YoY in Q3, with 3 new products introduced for enterprise customers in the last 15 months.
• AI products like AI Toolkit and AI Optimization added $10M in ARR in Q3, doubling from Q2. Average ARR per customer increased 17% YoY.
• Launched Semrush One, a new product offering marketers a way to win in every search, making AI visibility accessible to all company sizes.
• Enterprise segment progress: Average revenue per user above $10,000, and 72% YoY increase in customers paying over $50,000 per year.

• Fourth quarter 2025 revenue expected $117.5M-$119.5M (midpoint ~15.5% YoY growth), non-GAAP operating margin ~12.5%.
• Full year 2025 revenue $443.5M-$445.5M (~18% growth).
• Non-GAAP operating margin and free cash flow margin guidance at ~12%, affected by ~$10M incremental expense headwind from recent exchange rate movements.
• Full year free cash flow margin expected ~12%, driven by improved profitability and Enterprise segment growth.

Semrush reported revenue of $112.1 million in Q3 2025. Demand across the portfolio delivered double-digit revenue growth. The Enterprise segment saw 33% year-over-year growth. AI products, including the AI Toolkit and AI Optimization, added $10 million in ARR in Q3, more than doubling from Q2. Average ARR per customer increased 17% year-over-year. The Enterprise segment's average revenue per user is now above $10,000, and the number of customers paying over $50,000 per year increased by 72% year-over-year. Revenue contribution details: The Enterprise segment's growth accelerated to 33% YoY, and AI products contributed $10M ARR in Q3, doubling from Q2.

Q: Scott Berg from Needham Bank asked about Semrush One, what's different about it compared to traditional product sets.

A: William Wagner responded that Semrush One is a different product with integrated workflows leveraging data, providing a holistic view of how AI and classic search work together.

Q: Elizabeth Porter from Morgan Stanley asked about the inflection point into fiscal '26.

A: Brian Mulroy replied that factors like lapping acquisitions, launching new products, and go-to-market efforts are driving growth into 2026.

Q: Luke Horton from Northland Capital Markets asked about pricing of new products and capital allocation.

A: William Wagner said pricing is a hybrid model, and Brian Mulroy mentioned capital will be allocated to organic investment, M&A, and share repurchase.

Q: Jackson Ader from KeyBanc Capital Markets asked about seasonality and AI ARR.

A: Brian Mulroy said the back half is stronger for Enterprise, and William Wagner noted AI and SEO are increasingly linked.

Q: Adam Hotchkiss from Goldman Sachs asked about competition and new inbound interest.

A: William Wagner stated Semrush has a competitive edge with its foundation in SEO, data set, and brand recognition, and there's opportunity in both new and existing customers.