SEMrush Holdings, Inc.

Good morning and thank you all for attending the SEMrush Holdings third quarter 2024 results conference call. My name is Brika and I will be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to our host Brynlee Johnson, Investor Relations at SEMrush Holdings to begin. Thank you, you may proceed Brynlee.

Good morning, and welcome to SEMrush Holdings' third quarter 2024 conference call. We'll be discussing the results announced in our press release issued after market close on Thursday, November 7th. With me on the call is our CEO, Oleg Shlegelov, our President, Eugene Levin, and our CFO, Brian Mulway. Today's call will contain forward-looking statements which are made pursuant to the Safe Harbour provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning our expected future business and financial performance and financial condition, expected growth, adoption and existing and future demand for our existing and any new products and features, our expected growth of our customer base and specific customer segments, the continued development of our product, industry and market trends, our competitive position, market opportunities, sales and marketing activities, acquisition activity, integration and results of recent acquisition, future spending and incremental investment, our guidance for the fourth quarter of 2024 and the full year 2024, and statements about future pricing and operating results, including margin improvements, revenue growth and profitability, and assumptions regarding foreign exchange rates. Foregoing statements are statements other than statements of fact and can be identified by words such as expect, can, anticipate, could, plan, believe, speak, or will. These statements reflect our views as of today only and should not be relied upon 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 reports 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. During the course of today's call, we referred to certain non-GAAP financial measures. There's a reconciliation schedule showing the GAAP versus non-GAAP results currently available in our press release issued yesterday after market close, which can be found at investors.samrush.com. Now, let me turn the call over to Oleg.

Good morning to everyone on the call. I am pleased with our results this quarter, delivering revenue of $97.4 million, up 24% year-over-year, and our growth of 24% year-over-year. We reported income from operations of 1.7 million and non-GAAP income from operations of 12.1 million in the third quarter. Non-GAAP operating margin increased to 12.4% compared to non-GAAP operating margin of 9.5% in the prior year period. We exceeded our guidance and I am pleased to say we are raising our full-year 2024 guidance and are very excited about our growth opportunities in 2025. We continue to expand our leadership position in online visibility and are succeeding in combining strong durable growth with profitability and free cash flow generation. We recently hosted our first Analyze Day in New York, which was very exciting for us. so we will keep my remarks today brief in case you could not attend in person a webcast along with the slides and is available on the investor relations section of our website one of the highlights from our anniversary was the discussion around our total addressable markets we have more than tripled our term from 13 billion at the time of our ipo to roughly 40 billion today. What is really exciting about this time is that it provides an opportunity to gain share within an existing fragmented market, and more importantly, to capture new white space created by the ever-evolving digital marketing landscape. Our platform solves marketers' increasingly complex and critical problems. The volume of diversity of available content is immense. The amount of time we spend online is maxed out. The algorithm keeps changing, and it is getting more expensive to navigate through all this. This is where we come in. Our SEMrush digital marketing platform utilizes data and intelligence at its core and it is surrounded by AI-powered interconnected hubs focused on search engine optimization, paid advertising, social media management, local marketing, brand marketing, and content marketing. We continue to innovate on our platform to help marketers to find opportunities to deliver efficient results across numerous marketing channels. I'm especially excited about the early momentum we are experiencing from our new enterprise product. Prior to the Enterprise SEO product launch, we successfully acquired 8,000 enterprise-sized accounts, our term for companies with over 500 employees. And we believe these 8,000 enterprise-sized accounts are ideally suited to migrate to our Enterprise SEO products. We close new deals with Salesforce, HLVC, LG, Samsung, Alibaba, Sony, DoorDash, TikTok, Square, and many more. We believe the demand for our innovative enterprise SEO product is strong, and we have a long runway for growth ahead. Simrush's edge over the competition comes from our strong culture and history of leveraging our differentiated data to elevate the digital marketing activities of our customers. And as we add more customers and data to our platform, our competitive mode increases. This data generates a flywheel effect as it strengthens the quality of our algorithms and enhances the effectiveness of our recommendations we give to our customers. In summary, Q3 was another solid quarter for us. which is a testament to our integrated and complete platform approach to serve companies of all sizes. With our continued revenue growth acceleration, I'm confident that we have built a strong foundation for the future. We plan to leverage our profitability to invest in new products that extend our reach and drive cross-sell and up-sell capabilities. We have a strong balance sheet and disciplined capital allocation approach around M&A opportunities. I look forward to keeping you updated on our progress. I will now turn the call over to Eugene and Brian to discuss the results of the quarter and our outlook in more detail.