SEMrush Holdings, Inc.

Good morning. My name is Audra and I will be your conference operator today. At this time, I would like to welcome everyone to the SEMrush Q1 2023 earnings call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I would like to turn the conference over to Brinley Johnson with the Blue Shirt Group. Please go ahead.

Good morning, and welcome to SEMrush Holdings' first quarter 2023 conference call. We will be discussing the results announced in our press release issued after market close on Monday, May 8th. With me on the call is our CEO, Oleg Shlegolov, our CFO, Brian Mulroy, our President, Eugene Levin, and our CMO, Andrew Gordon. Today's call will contain forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning our expected future business and financial performance and financial condition, expected growth, adoption and demand for our existing and any new products and features, investments and acquisitions and their anticipated benefits, industry and market trends, our competitive position, our market strategies, market opportunities, our guidance for the second quarter of 2023 and the full year 2023, and statements about future operating results, including margin improvements, profitability, and free cash flow goals that can be identified by words such as expect, anticipate, intend, plan, believe, seek, or will. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements. Forward-looking statements address matters that are subject to risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. For discussion of the risks and important factors that could affect our actual results, please refer to our most recent quarterly report on Form 10-Q and our annual report on Form 10-K, filed with the Securities and Exchange Commission, as well as other filings with the FCC. Also, during the course of today's call, we referred to certain non-GAAP financial measures. There is a reconciliation schedule showing the GAAP versus non-GAAP results currently available in our press release issued yesterday after market closed, which can be found at investors.samrush.com. And with that, let me turn the call over to Oleg.

Thank you, and good morning to everyone on the call. I want to provide a few highlights on the quarter before Eugene talks about our 2023 strategic initiatives, and then Brian will discuss our financial results. Firstly, I am pleased to report first quarter revenue of $70.9 million up 24% year-over-year. I am also pleased with our strong customer growth, reaching the significant milestone this quarter of 100,000 paying customers. I believe that we have a very long runway for growth, fueled by product expansion, record net new customer additions, as well as sustained demand environment, particularly surrounding interest in organic marketing. This quarter, we achieved record net new customer additions and registrations, and trials continue to hit new peak levels. We are seeing the success of our targeted personalized promotions, and we are optimistic about our future growth based primarily on the record net new customer ads and our long history of customers returning to our platform. We are very global, serving customers in 150 countries across industries and market segments ranging from small businesses and startups to Fortune 500 companies and global agencies. Our digital marketing platform features 55 plus tools that enable us to cater to a wide range of customer needs and positions us as a leading solution in the digital marketing landscape. We continue to win because we are uniquely positioned and offer products and solutions that create value for our customers. SEMrush is a unique software platform that enables marketing professionals to build, manage, and measure campaigns across all channels to improve their online visibility. We have a comprehensive SEO toolkit and offer a wide array of tools and features that cover search engine optimization, including keyword research, rank-taking, backlink analysis, site audits, and on-page optimization. Our sticky products can generate tremendous ROI for our customers, which translates into a very loyal user base. To demonstrate the steepness of our platform, it is not unusual for us to see customers return to us following an initial pause or cancellation. We also see examples of individual users leaving their employment only to later sign up as a new customer with their new employer. We believe our user dedication and dependency demonstrates the value of our product and its necessity to thousands of marketing professionals and organizations of all sizes. In closing, we are executing on our strategy of balancing revenue growth with a focus on profitability and remain dedicated to delivering shareholder value. With this in mind, we have made a number of improvements to our operating model, including adjusting our spending and I am confident in our market position. Before I turn it over to Eugene, I wanted to welcome our new Chief Financial Officer, Brian Mulroy, to his first SEMrush earnings call. Brian started early April and brings his exceptional background to SEMrush. He has over 23 years of experience in finance and technology. He has already impressed us with his strong financial acumen and ability to get up to speed so quickly on our business. Brian, we are really excited to have you on board. With that, I'll hand the call over to Eugene.