Semrush (SEMR) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 08, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-40276
Entity Registrant Name	Semrush Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4053265
Entity Address, Address Line One	800 Boylston Street, Suite 2475
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02199
City Area Code	(800)
Local Phone Number	851-9959
Title of 12(b) Security	Class A Common Stock, $0.00001 par value per share
Trading Symbol	SEMR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001831840
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		43,638,756
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		97,916,005

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 246,554	$ 269,665
Accounts receivable	2,762	2,190
Deferred contract costs, current portion	7,362	6,338
Prepaid expenses and other current assets	6,340	5,345
Total current assets	263,018	283,538
Property and equipment, net	6,985	8,270
Intangible assets, net	11,254	2,925
Goodwill	6,337	1,991
Deferred contract costs, net of current portion	2,443	2,254
Other assets	3,748	1,096
Total assets	293,785	300,074
Current liabilities
Accounts payable	13,153	9,942
Accrued expenses	17,647	19,479
Deferred revenue	47,121	40,232
Other current liabilities	2,664	1,896
Total current liabilities	80,585	71,549
Long-term liabilities
Deferred revenue, net of current portion	382	237
Deferred tax liability	111	268
Other long-term liabilities	1,430	2,478
Total liabilities	82,508	74,532
Commitments and contingencies (Note 15)
Stockholders' equity
Undesignated preferred stock, $0.00001 par value - 100,000,000 shares authorized, and no shares issued or outstanding as of September 30, 2022 or December 31, 2021	0	0
Additional paid-in capital	271,783	264,871
Accumulated other comprehensive deficit	(1,460)	(230)
Accumulated deficit	(59,047)	(39,100)
Total stockholders’ equity	211,277	225,542
Total liabilities and stockholders' equity	293,785	300,074
Class A Common Stock
Stockholders' equity
Common stock	0	0
Class B Common Stock
Stockholders' equity
Common stock	$ 1	$ 1

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)		0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, issued (in shares)	43,615,053	31,841,061
Common stock, outstanding (in shares)	43,615,053	31,841,061
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	160,000,000	160,000,000
Common stock, issued (in shares)	97,918,005	108,975,216
Common stock, outstanding (in shares)	97,864,674	108,870,126

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 65,793	$ 49,252	$ 185,531	$ 134,255
Cost of revenue	12,405	11,362	36,590	30,373
Gross profit	53,388	37,890	148,941	103,882
Operating expenses
Sales and marketing	30,569	20,674	87,293	55,428
Research and development	10,134	6,174	27,943	17,497
General and administrative	17,007	11,372	45,388	29,796
Exit costs	5,932	0	9,417	0
Total operating expenses	63,642	38,220	170,041	102,721
(Loss) income from operations	(10,254)	(330)	(21,100)	1,161
Other income (expense), net	1,483	(184)	2,353	(256)
(Loss) income before income taxes	(8,771)	(514)	(18,747)	905
Provision for income taxes	321	101	1,200	328
Net (loss) income	$ (9,092)	$ (615)	$ (19,947)	$ 577
Net (loss) income per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.06)	$ 0	$ (0.14)	$ 0
Diluted (in dollars per share)	$ (0.06)	$ 0	$ (0.14)	$ 0
Weighted-average number of shares of common stock used in computing net (loss) income per share attributable to common stockholders:
Basic (in shares)	141,256	135,673	141,034	122,595
Diluted (in shares)	141,256	135,673	141,034	138,639
Other comprehensive (loss) income
Foreign currency translation adjustments	$ (109)	$ 0	$ (1,230)	$ 0
Comprehensive (loss) income	$ (9,201)	$ (615)	$ (21,177)	$ 577

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Series A	Series A-1	Series B Preferred Stock	Class A Common Stock	Class A Common Stock Common Stock	Class A Common Stock Additional Paid-in Capital	Class B Common Stock	Class B Common Stock Common Stock
Beginning balance (in shares) at Dec. 31, 2020						3,379,400	1,837,600
Beginning balance at Dec. 31, 2020						$ 7,789	$ 10,270
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of preferred stock (in shares)						(3,379,400)	(1,837,600)
Conversion of preferred stock						$ (7,789)	$ (10,270)
Ending balance (in shares) at Mar. 31, 2021						0	0
Ending balance at Mar. 31, 2021						$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2020								4,681,400
Beginning balance (in shares) at Dec. 31, 2020		95,050,041								0			0
Beginning balance at Dec. 31, 2020	$ (6,840)	$ 0	$ 4,975	$ 0	$ (35,815)			$ 24,000		$ 0			$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred and common stock (in shares)		29,695,200						(4,681,400)
Conversion of preferred stock	18,058		42,058					$ (24,000)
Issuance of Class A Common Stock in connection with the initial public offering, net of issuance costs (in shares)										10,000,000
Issuance of Class A Common Stock in connection with the initial public offering, net of issuance costs	126,622		126,622
Reclassification of Common Stock to Class B Common Stock in connection with the initial public offering (in shares)		(124,745,241)											124,745,241
Reclassification of Common Stock to Class B Common Stock in connection with the initial public offering	0		(1)										$ 1
Exercise of stock options (in shares)													3,861
Exercise of stock options	7		7
Stock-based compensation expense	593		593
Net (loss) income	1,471				1,471
Ending balance (in shares) at Mar. 31, 2021								0
Ending balance (in shares) at Mar. 31, 2021		0								10,000,000			124,749,102
Ending balance at Mar. 31, 2021	139,911	$ 0	174,254	0	(34,344)			$ 0		$ 0			$ 1
Beginning balance (in shares) at Dec. 31, 2020						3,379,400	1,837,600
Beginning balance at Dec. 31, 2020						$ 7,789	$ 10,270
Ending balance (in shares) at Sep. 30, 2021						0	0
Ending balance at Sep. 30, 2021						$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2020								4,681,400
Beginning balance (in shares) at Dec. 31, 2020		95,050,041								0			0
Beginning balance at Dec. 31, 2020	(6,840)	$ 0	4,975	0	(35,815)			$ 24,000		$ 0			$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustments	0
Net (loss) income	577
Ending balance (in shares) at Sep. 30, 2021								0
Ending balance (in shares) at Sep. 30, 2021		0								21,986,619			114,105,779
Ending balance at Sep. 30, 2021	150,055	$ 0	185,292	0	(35,238)			$ 0		$ 0			$ 1
Beginning balance (in shares) at Mar. 31, 2021						0	0
Beginning balance at Mar. 31, 2021						$ 0	$ 0
Ending balance (in shares) at Jun. 30, 2021						0	0
Ending balance at Jun. 30, 2021						$ 0	$ 0
Beginning balance (in shares) at Mar. 31, 2021								0
Beginning balance (in shares) at Mar. 31, 2021		0								10,000,000			124,749,102
Beginning balance at Mar. 31, 2021	139,911	$ 0	174,254	0	(34,344)			$ 0		$ 0			$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred and common stock (in shares)										81,102			(81,102)
Issuance of Class A Common Stock in connection with the initial public offering, net of issuance costs (in shares)										719,266
Issuance of Class A Common Stock in connection with the initial public offering, net of issuance costs	9,245		9,245
Exercise of stock options (in shares)													28,442
Exercise of stock options	19		19
Stock-based compensation expense	569		569
Net (loss) income	(279)				(279)
Ending balance (in shares) at Jun. 30, 2021								0
Ending balance (in shares) at Jun. 30, 2021		0								10,800,368			124,696,442
Ending balance at Jun. 30, 2021	149,465	$ 0	184,087	0	(34,623)			$ 0		$ 0			$ 1
Ending balance (in shares) at Sep. 30, 2021						0	0
Ending balance at Sep. 30, 2021						$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred and common stock (in shares)										11,186,251			(11,186,251)
Exercise of stock options (in shares)													543,826
Exercise of stock options	578		578
Stock-based compensation expense	627		627
Foreign currency translation adjustments	0
Vesting of Class A & B Common Stock in connection with Restricted Stock Units (in shares)													51,762
Net (loss) income	(615)				(615)
Ending balance (in shares) at Sep. 30, 2021								0
Ending balance (in shares) at Sep. 30, 2021		0								21,986,619			114,105,779
Ending balance at Sep. 30, 2021	$ 150,055	$ 0	185,292	0	(35,238)			$ 0		$ 0			$ 1
Beginning balance (in shares) at Dec. 31, 2021						0	0
Beginning balance at Dec. 31, 2021						$ 0	$ 0
Ending balance (in shares) at Mar. 31, 2022						0	0
Ending balance at Mar. 31, 2022						$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2021	0							0
Beginning balance (in shares) at Dec. 31, 2021		0							31,841,061	31,841,061		108,870,126	108,870,126
Beginning balance at Dec. 31, 2021	$ 225,542	$ 0	264,871	(230)	(39,100)			$ 0		$ 0			$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred and common stock (in shares)										10,842,862			(10,842,862)
Exercise of stock options (in shares)										197,828
Exercise of stock options	924		924
Stock-based compensation expense	932		932
Issuance of shares in connection with Employee Stock Purchase Plan (in shares)										39,516
Vesting of Class A & B Common Stock in connection with Restricted Stock Units (in shares)										14,625
Cumulative translation adjustment	(264)			(264)
Net (loss) income	(2,571)				(2,571)
Ending balance (in shares) at Mar. 31, 2022								0
Ending balance (in shares) at Mar. 31, 2022		0								42,935,892			98,027,264
Ending balance at Mar. 31, 2022	$ 224,563	$ 0	266,727	(494)	(41,671)			$ 0		$ 0			$ 1
Beginning balance (in shares) at Dec. 31, 2021						0	0
Beginning balance at Dec. 31, 2021						$ 0	$ 0
Ending balance (in shares) at Sep. 30, 2022						0	0
Ending balance at Sep. 30, 2022						$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2021	0							0
Beginning balance (in shares) at Dec. 31, 2021		0							31,841,061	31,841,061		108,870,126	108,870,126
Beginning balance at Dec. 31, 2021	$ 225,542	$ 0	264,871	(230)	(39,100)			$ 0		$ 0			$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	605,950
Foreign currency translation adjustments	$ (1,230)
Net (loss) income	(19,947)
Ending balance (in shares) at Sep. 30, 2022								0
Ending balance (in shares) at Sep. 30, 2022		0							43,615,053	43,615,053		97,864,674	97,864,674
Ending balance at Sep. 30, 2022	211,277	$ 0	271,783	(1,460)	(59,047)			$ 0		$ 0			$ 1
Beginning balance (in shares) at Mar. 31, 2022						0	0
Beginning balance at Mar. 31, 2022						$ 0	$ 0
Ending balance (in shares) at Jun. 30, 2022						0	0
Ending balance at Jun. 30, 2022						$ 0	$ 0
Beginning balance (in shares) at Mar. 31, 2022								0
Beginning balance (in shares) at Mar. 31, 2022		0								42,935,892			98,027,264
Beginning balance at Mar. 31, 2022	224,563	$ 0	266,727	(494)	(41,671)			$ 0		$ 0			$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred and common stock (in shares)										156,600			(156,600)
Exercise of stock options (in shares)										143,667
Exercise of stock options	270		270
Stock-based compensation expense	2,204		2,204
Foreign currency translation adjustments	(857)			(857)
Vesting of Class A & B Common Stock in connection with Restricted Stock Units (in shares)										25,024
Net (loss) income	(8,284)				(8,284)
Ending balance (in shares) at Jun. 30, 2022								0
Ending balance (in shares) at Jun. 30, 2022		0								43,261,183			97,870,664
Ending balance at Jun. 30, 2022	217,896	$ 0	269,201	(1,351)	(49,955)			$ 0		$ 0			$ 1
Ending balance (in shares) at Sep. 30, 2022						0	0
Ending balance at Sep. 30, 2022						$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred and common stock (in shares)										57,749			(57,749)
Exercise of stock options (in shares)										264,455
Exercise of stock options	345		345
Stock-based compensation expense	1,980		1,980
Foreign currency translation adjustments	$ (109)
Issuance of shares in connection with Employee Stock Purchase Plan (in shares)	257,000									25,240	257,000
Vesting of Class A & B Common Stock in connection with Restricted Stock Units (in shares)	103,521									6,426			51,759
Cumulative translation adjustment	$ (109)			(109)
Net (loss) income	(9,092)				(9,092)
Ending balance (in shares) at Sep. 30, 2022								0
Ending balance (in shares) at Sep. 30, 2022		0							43,615,053	43,615,053		97,864,674	97,864,674
Ending balance at Sep. 30, 2022	$ 211,277	$ 0	$ 271,783	$ (1,460)	$ (59,047)			$ 0		$ 0			$ 1

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2021
Class A Common Stock
Underwriting discounts, commissions and offering expenses	$ 825	$ 13,378

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating Activities
Net (loss) income	$ (19,947)	$ 577
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization expense	6,626	2,438
Amortization of deferred contract costs	7,145	4,578
Amortization of deferred financing and debt issuance costs	53	0
Loss on disposal of subsidiary	1,738	0
Stock-based compensation expense	5,116	1,789
Non-cash interest expense	96	158
Change in fair value of convertible debt securities	(889)	0
Deferred taxes	290	(83)
Deposit on letter of credit	0	88
Changes in operating assets and liabilities
Accounts receivable	(344)	(741)
Deferred contract costs	(8,358)	(6,964)
Prepaid expenses and other current assets	(1,395)	(3,924)
Other current liabilities	1,562	0
Accounts payable	4,824	(3,219)
Accrued expenses	(2,772)	14,419
Deferred revenue	6,299	9,634
Other long-term liabilities	(38)	0
Net cash provided by operating activities	6	18,750
Investing Activities
Purchases of property and equipment	(4,016)	(1,558)
Purchases of convertible debt securities	(2,000)	(500)
Capitalization of internal-use software development costs	(1,273)	(433)
Cash paid for acquisition of assets and businesses, net of cash acquired	(13,993)	(350)
Net cash used in investing activities	(21,282)	(2,841)
Financing Activities
Proceeds from exercise of stock options	1,539	604
Issuance of shares in connection with Employee Stock Purchase Plan	257	0
Payment of capital leases	(1,967)	(913)
Net proceeds from completing initial public offering	0	137,467
Net cash (used in) provided by financing activities	(171)	137,158
Effect of exchange rate changes on cash and cash equivalents	(1,664)	0
(Decrease) increase in cash, cash equivalents and restricted cash	(23,111)	153,067
Cash, cash equivalents and restricted cash, at beginning of period	269,665	35,619
Cash, cash equivalents and restricted cash, at end of period	246,554	188,686
Supplemental cash flow disclosures
Cash paid for interest	66	193
Cash paid for income taxes	627	201
Acquisition of fixed assets under capital lease	$ 212	$ 5,750

Overview and Basis of Presentat

Overview and Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Overview and Basis of Presentation	Overview and Basis of Presentation Description of Business Semrush Holdings, Inc. (“Semrush Holdings”) and its subsidiaries (together the “Company”, or “Semrush”) provide an online visibility management software-as-a-service (“SaaS”) platform. The Company’s platform enables its subscribers to improve their online visibility and drive traffic, including on their websites and social media pages, and distribute highly relevant content to their customers on a targeted basis across various channels to drive high-quality traffic and measure the effectiveness of their digital marketing campaigns. The Company is headquartered in Boston, Massachusetts, and has wholly owned subsidiaries in Armenia, Canada, Cyprus, the Czech Republic, Germany, the Netherlands, Poland, Spain, Serbia, and the United States. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development that could affect future operations and financial performance. These risks include, but are not limited to, rapid technological change, competitive pressure from substitute products or larger companies, protection of proprietary technology, management of international activities, the need to obtain additional financing to support growth, and dependence on third parties and key individuals. Public Offerings On March 29, 2021, the Company closed its initial public offering (“IPO”) in which it sold 10,000,000 shares of its Class A common stock at a price to the public of $14.00 per share. The Company received $126.6 million in net proceeds after deducting approximately $13.4 million for underwriting discounts, commissions and offering expenses. Immediately prior to the completion of the IPO, all shares of common stock then outstanding were reclassified as Class B common stock, and all shares of redeemable convertible preferred stock and convertible preferred stock then outstanding were converted into shares of common stock on a one-to-one basis and then reclassified into Class B common stock. On April 20, 2021, the underwriters of the Company’s IPO partially exercised their option to purchase additional shares of Class A common stock. In connection with the closing of the partial exercise on April 23, 2021, the underwriters purchased 719,266 shares of the Company’s Class A common stock for net proceeds to the Company of $9.2 million after deducting approximately $0.8 million for underwriting discounts, commissions, and offering expenses. On November 23, 2021, the Company closed a follow-on offering (the “Follow-On Offering”) in which it sold 4,000,000 shares of its Class A common stock at a price to the public of $20.50 per share. The Company received $77.9 million in net proceeds after deducting approximately $4.1 million for underwriting discounts, commissions and offering expenses. Selling stockholders sold an aggregate of 1,000,000 shares of Class A common stock in the Follow-On Offering. Effects of the Russian Military Action in Ukraine Economic, civil, military, and political uncertainty exists and may increase in many of the regions where the Company operates and derives its revenue. Several countries in which the Company operates are experiencing and may continue to experience military action and civil and political unrest as a result of such action. The Company has significant development operations in the emerging market economies of Eastern Europe and more than half of the Company’s full-time employees have historically been located in Russia. In late February 2022, Russian military forces launched significant military action against Ukraine, and sustained conflict and disruption in the region has been ongoing and is likely to continue. The impact to Ukraine and Russia, as well as actions taken by other countries, including new and stricter sanctions by Canada, the United Kingdom, the European Union, the U.S. and other countries and organizations against officials, individuals, regions, and industries in Russia, Ukraine and Belarus, and each country’s potential response to such sanctions, tensions, and military actions could have a material adverse effect on the Company’s operations. Any such material adverse effect from the conflict, enhanced sanctions activity, and subsequent responses may disrupt the Company’s relationships with its vendors, disrupt its delivery of services, cause the Company to shift all or portions of its work occurring in the region to other countries, and may restrict the Company’s ability to engage in certain projects in the region. For more information on the risks of regional instability to our operations, see Item 1A. Risk Factors under the header "Instability in geographies where we have significant operations and personnel could have a material adverse effect on our business, customers, and financial results”. During the second quarter of 2022, the Company began a large-scale relocation effort of its Russia-based workforce to other jurisdictions. The Company’s exit from Russia was substantially completed by September 30, 2022 and, as of August 2022, the Company no longer had operating subsidiaries in Russia. See Note 9 “Exit Costs” for additional information on the costs associated with such relocation efforts and information on the sale of the Company’s Russian subsidiaries. Sale of the Company’s Russian Subsidiaries On August 3, 2022, the Company completed the sale of its two Russian subsidiaries, Semrush RU Ltd. and Semrush SM Ltd., in connection with the winding down of its operations in Russia. The Company received an insignificant amount of consideration in connection with the sale of these two subsidiaries. See Note 9 “Exit Costs” for further detail. Effects of COVID-19 The Company considered the potential effects of the COVID-19 pandemic on the Company. In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, and numerous new strains of COVID-19 have subsequently spread throughout the world. COVID-19 has continued to impact market and economic conditions globally. In an attempt to limit the spread of the virus, various governmental restrictions have been implemented, including restrictions with respect to business activities and travel restrictions, and “shelter–at–home” orders, that have had and may continue to have an adverse impact on the Company’s business and operations. In light of the evolving nature of COVID-19 and the uncertainty it has produced around the world, it is not possible to predict the COVID-19 pandemic’s cumulative and ultimate impact on the Company’s future business operations, results of operations, financial position, liquidity, and cash flows. The extent of the impact of the pandemic on the Company’s business and financial results will depend largely on future developments, including the duration of the spread of the outbreak both globally and within the U.S., the impact on capital, foreign currencies exchange and financial markets, and governmental or regulatory orders that impact the Company’s business, all of which are highly uncertain and cannot be predicted. As of September 30, 2022, the Company has experienced long lead times for hardware affected by a semiconductor shortage attributed to the COVID-19 pandemic which may affect its ability to timely furnish the infrastructure within its data centers. The Company will continue to actively monitor the current international and domestic impacts of and responses to COVID-19 and its related risks. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited annual consolidated financial statements as of and for the year ended December 31, 2021, and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2022, and the results of its operations and its cash flows for the three and nine months ended September 30, 2022 and 2021. The consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, any other interim periods, or any future year or period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 18, 2022. The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. As of September 30, 2022, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the Annual Report on Form 10-K, except as discussed below.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates relied upon in preparing these unaudited condensed consolidated financial statements include, but are not limited to, revenue recognition, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, expensing and capitalization of research and development costs for internal-use software, the average period of benefit associated with costs capitalized to obtain revenue contracts, the determination of the fair value of stock-based awards issued, stock-based compensation expense, the determination of the estimated fair value of the convertible notes held by the Company, the valuations of the intangible assets acquired through acquisitions, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the consolidated financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Quarterly Report on Form 10-Q. Emerging Growth Company Status The Company is an "emerging growth company" (“EGC”), as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies." The Company may take advantage of these exemptions until the Company is no longer an "emerging growth company." Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards and, as a result of this election, its consolidated financial statements may not be comparable to companies that comply with public company effective dates. The Company may take advantage of these exemptions up until the last day of the year following the fifth anniversary of an offering or such earlier time that it is no longer an emerging growth company. The Company would cease to be an emerging growth company if it has more than $1.07 billion in annual revenue, has more than $700.0 million in market value of its stock held by non-affiliates (and it has been a public company for at least 12 months, and has filed one annual report on Form 10-K), or it issues more than $1.0 billion of non-convertible debt securities over a three-year period. Revenue Recognition The Company derives revenue from two sources: (1) subscription revenues via the Semrush Online Visibility Management Platform and the Prowly Public Relations Platform, which are comprised of subscription fees from customers accessing the Company’s SaaS services and related customer support; and (2) the Semrush Marketplace, which allows customers to pay a set fee for services or products offered through the marketplace. The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration it expects to receive in exchange for those products or services. There were no changes to the Company’s revenue recognition policies since the filing of its Annual Report on Form 10-K with the SEC on March 18, 2022. For the three and nine months ended September 30, 2022 and 2021, subscription revenue accounted for nearly all of the Company’s revenue. Revenue related to the Semrush Marketplace was not material for the three and nine months ended September 30, 2022 and 2021. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. The Company primarily invoices and collects payments from customers for its services in advance on a monthly or annual basis. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. Deferred revenue increased by $7,034 as of September 30, 2022 compared to December 31, 2021. During the three months ended September 30, 2022 and 2021, $24,123 and $18,504 of revenue was recognized that was included in deferred revenue at the beginning of each respective period. During the nine months ended September 30, 2022 and 2021, $37,188 and $22,874 of revenue was recognized that was included in deferred revenue at the beginning of each respective period. The Company has elected to exclude amounts charged to customers for sales tax from the transaction price. Accordingly, revenue is presented net of any sales tax collected from customers. Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of the balance sheet dates reported. For contracts with an original expected duration greater than one year, the aggregate amount of the transaction price allocated to the performance obligations that were unsatisfied as of September 30, 2022 was $1,438, which the Company expects to recognize over the next 12 months. For contracts with an original expected duration of one year or less, the Company has applied the practical expedient available under ASC 606 to not disclose the amount of transaction price allocated to unsatisfied performance obligations as of September 30, 2022. For performance obligations not satisfied as of September 30, 2022, and to which this expedient applies, the nature of the performance obligations is consistent with performance obligations satisfied as of December 31, 2021. The remaining durations are less than one year. Costs to Obtain a Contract The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and recorded as deferred contract costs in the consolidated balance sheet and are amortized over a period of approximately 24 months on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. The 24-month period represents the estimated benefit period of the customer relationship and has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period based on historical experience and future expectations. Sales commissions for renewals and upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred contract costs that will be recorded as expense during the succeeding 12-month period are recorded as current deferred contract costs, and the remaining portion is recorded as deferred contract costs, net of current portion. Amortization of deferred contract costs is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive income (loss). Concentrations of Credit Risk and Significant Customers The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other hedging arrangements. Credit losses historically have not been significant and the Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company's accounts receivable. Credit risk with respect to accounts receivable is dispersed due to the large number of customers of the Company. The Company routinely assesses the creditworthiness of its customers and generally does not require its customers to provide collateral or other security to support accounts receivable. Credit losses historically have not been significant and the Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company's accounts receivable. As of September 30, 2022 and December 31, 2021, no individual customer represented more than 10% of the Company’s accounts receivable. During the three and nine months ended September 30, 2022 and 2021, no individual customer represented more than 10% of the Company’s revenue. Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximated their fair values at September 30, 2022 and December 31, 2021, due to the short-term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. See below for further discussion. Foreign Currency Translation The Company operates in a multi-currency environment having transactions in such currencies as the U.S. dollar, Russian ruble, Czech koruna, euro, and others. The reporting currency of the Company is the U.S. dollar. For all periods up to and including the year ended December 31, 2021, the functional currency of the Company’s foreign subsidiaries was the U.S. dollar, with the exception of Prowly, where the functional currency is the local currency, the Zloty. For all other entities, foreign currency transactions were measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date. At each subsequent balance sheet date, foreign currency denominated assets and liabilities of these international subsidiaries were remeasured into U.S. dollars using the exchange rates in effect at the balance sheet date or historical rates, as appropriate. Any differences resulting from the remeasurement of foreign denominated assets and liabilities of the international subsidiaries to the U.S. dollar functional currency were recorded within other income (expense) in the consolidated statement of operations and comprehensive loss. Beginning on January 1, 2022, as a result of changes in the economic facts and circumstances of its business environment, the Company reassessed its functional currency determinations for all foreign subsidiaries and determined that the functional currencies of the Company’s foreign subsidiaries is the local currency at each of its subsidiary locations, with the exception of its Russian subsidiaries where the U.S. dollar remains the functional currency. As of August 10, 2022, we no longer have operating subsidiaries in Russia. See Note 19 “Subsequent Events ” for more information on the sale of our Russian subsidiaries. Accordingly, beginning January 1, 2022, assets and liabilities of the Company’s foreign subsidiaries that maintain local currencies as functional currencies are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The Company includes the effects of these foreign currency translation adjustments in accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The foreign currency exchange gain (loss) included in other income, net for the three months ended September 30, 2022 and 2021 was $410 and $(57), respectively, and $(206) and $(66) for the nine months ended September 30, 2022 and 2021, respectively. Comprehensive income (loss) Comprehensive income (loss) is comprised of two components: net income (loss) and other comprehensive income (loss), which includes other changes in stockholders’ deficit that result from transactions and economic events other than those with stockholders. For the three and nine months ended September 30, 2022, comprehensive loss consists of net loss and the change in the cumulative foreign currency translation adjustment. The tax effect of the cumulative foreign currency translation adjustment is not significant for the three and nine months ended September 30, 2022 . Comprehensive loss equaled total net loss for the three and nine months ended September 30, 2021. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize most leases on the balance sheet but recognize expenses on the income statement in a manner similar to current practice. The update states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying assets for the lease term. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement, and presentation of expenses and cash flows arising from a lease. As an EGC, ASU 2016-02 is effective for fiscal years beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted. The Company has begun implementing ASU 2016-02 and plans to adopt through a cumulative adjustment to retained earnings on the date of adoption of January 1, 2022. Significant implementation matters being addressed by the Company include documenting the new lease accounting process, determining incremental borrowing rate, and completing the population of the leases for evaluation. The standard includes a number of practical expedients that the Company is evaluating and may elect to apply. The Company expects this new leasing standard to result in the recognition of material right-of-use assets and corresponding lease liabilities on the consolidated balance sheets, primarily related to its office leases, but it does not expect it to have a material impact on its results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 requires that credit losses be reported as an allowance using an expected losses model, representing the entity's current estimate of credit losses expected to be incurred. The accounting guidance currently in effect is based on an incurred loss model. ASU 2016-13 affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for public entities for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. For non-public companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company plans to adopt this guidance in the year ending December 31, 2023. This ASU is currently not expected to have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes . The new guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. For public companies, the

Cash, Cash Equivalents, and Res

Cash, Cash Equivalents, and Restricted Cash	9 Months Ended
	Sep. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash on deposit with banks and amounts held in interest-bearing money market funds. Cash equivalents are carried at cost, which approximates their fair market value. At December 31, 2021, restricted cash was $176 and related to the contractual provisions for a letter of credit for one of the Company’s building leases. As of September 30, 2022 this cash was returned to the Company and a corresponding reduction was made to the Company’s line of credit. See Note 11 “Revolving Credit Facility” for detail on this credit facility. Prior to September 30, 2022, this cash was held at a separate financial institution in an interest-bearing cash account as collateral for the letter of credit related to the Company’s building leases. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021. As of September 30, 2022 September 30, 2021 Cash and cash equivalents $ 246,554 $ 188,510 Restricted cash included in “other assets” — 176 Total cash, cash equivalents and restricted cash, at end of period $ 246,554 $ 188,686

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Cash equivalents include money market funds with original maturities of 90 days or less from the date of purchase. The fair value measurement of these assets is based on quoted market prices in active markets for identical assets and, therefore, these assets are recorded at fair value on a recurring basis and classified as Level 1 in the fair value hierarchy. As of September 30, 2022 and December 31, 2021, cash equivalents held in money market funds totaled $58,526 and $21,366, respectively. The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The Company generally determines the fair value of the contingent consideration using the Monte Carlo simulation model. Each reporting period thereafter, these obligations are revalued and increases or decreases in their fair values are recorded as an adjustment to operating expenses within the consolidated statements of operations and comprehensive loss. Changes in the fair value of the contingent consideration can result from changes in assumed discount periods and rates, and from changes pertaining to the estimated or actual achievement of the defined milestones. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the amount of contingent consideration expense the Company records in any given period. The total estimated fair value of the contingent consideration payable was $346 and $824 as of September 30, 2022 and December 31, 2021, respectively. The following table represents the key inputs used in the fair value calculation: As of September 30, 2022 December 31, 2021 Risk free interest rate 3.50 % 0.45 % Projected year of payment 2023 2022 – 2023 Revenue volatility 20.8 % 22.3 % Discount rate 9.07 % 5.87 % The Company records its convertible note investments at fair value on the purchase date. The Company determines the fair value of these investments using the Black-Scholes Merton model. Each reporting period thereafter, these investments are revalued and increases or decreases in their fair values are recorded as adjustments to other income, net within the consolidated statements of operations and comprehensive loss to reflects the gains and losses. Changes in the fair value of these investments can result from changes in the estimated enterprise value of the issuers, the likelihoods and methods of such conversions, and other market factors. Significant judgment is employed in determining the appropriateness of these assumptions as of the purchase date and for each subsequent period. Accordingly, changes in any of the assumptions described above can materially impact the amount of gain or loss the Company records in any given period. As of September 30, 2022 and December 31, 2021, the Company measured its investments in convertible notes (see Note 6 “Other Assets”) and its contingent consideration associated with the acquisition of Prowly.com sp. z o.o (“Prowly”) on a recurring basis using significant unobservable inputs (Level 3) and did not have any assets or liabilities measured at fair value on a recurring basis using significant other observable inputs (Level 2). The changes in fair value of the contingent consideration associated with the Prowly acquisition were insignificant for each of the three and nine months ended September 30, 2022 and 2021. A rollforward of the fair value measurements of the convertible notes for the nine months ended September 30, 2022, is as follows: Balance as of December 31, 2021 $ 500 Additional investment in convertible notes 2,000 Change in fair value included in other income, net 661 Balance as of March 31, 2022 3,161 Change in fair value included in other income, net 367 Balance as of June 30, 2022 3,528 Change in fair value included in other income, net (139) Balance as of September 30, 2022 $ 3,389 The net increase in the fair value of the convertible notes as of September 30, 2022 compared to December 31, 2021 is primarily driven by additional convertible note purchases of $2,000, along with a $889 increase in fair value. Changes in the estimated fair value of the contingent consideration payable are recognized (reversed) over the three-year service period. A rollforward of the fair value measurements of the contingent consideration liability for the nine months ended September 30, 2022 is as follows: Balance as of December 31, 2021 $ 424 Expense recognized (reversed) related to service period rendered 106 Balance as of March 31, 2022 530 Expense recognized (reversed) related to service period rendered (141) Balance as of June 30, 2022 389 Expense recognized (reversed) related to service period rendered (149) Balance as of September 30, 2022 $ 240

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consists of the following (in thousands): As of September 30, December 31, Computer equipment $ 10,234 $ 10,045 Furniture and office equipment 1,325 948 Leasehold improvements 446 1,737 Total property and equipment 12,005 12,730 Less: accumulated depreciation and amortization (5,020) (4,460) Property and equipment, net $ 6,985 $ 8,270 Depreciation and amortization expense related to property and equipment was $1,712 and $3,366 for the three and nine months ended September 30, 2022, respectively, and was $813 and $1,947 for the three and nine months ended September 30, 2021, respectively.

Other Assets

Other Assets	9 Months Ended
	Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Investments in Convertible Debt In January 2021, the Company purchased two convertible debt securities (the “January 2021 Notes”) for a total aggregate investment of $500. Both investments mature on January 1, 2023 and receive interest at an annual rate of 6%. In January 2022, the Company purchased an additional convertible debt security (the “January 2022 Note”) in the amount of $2,000 that will mature on January 1, 2024 and receives interest at an annual rate of 6%. Interest accrues on each note and becomes payable upon conversion of each convertible note, or will be paid in connection with the repayment in full of the principal amount of such convertible notes. These convertible note investments are classified as available-for-sale securities. The January 2021 Notes and January 2022 Note are included in other assets in the accompanying unaudited condensed consolidated balance sheets based on the maturity dates. The Company accounts for these investments, along with the embedded derivatives associated with their conversion features, by utilizing the fair value option within ASC 825, Financial Instruments , and accounting for the entire hybrid instrument at fair value through other income (loss). The Company recorded a (decrease) increase in the fair value of the convertible notes of $(139) and $889 for the three and nine months ended September 30, 2022, respectively. Changes in the fair value of the convertible notes were not material for the three and nine months ended September 30, 2021. With respect to its investments in these convertible debt securities, the Company has a variable interest in an issuer of these securities, which is a variable interest entity. After evaluation of the

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share In March 2021, the Company amended its certificate of incorporation to create two classes of common stock outstanding: Class A common stock and Class B common stock. As more fully described in Note 13 “Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)”, the rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one (1) vote per share and each share of Class B common stock is entitled to ten (10) votes per share. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. Shares of Class B common stock are automatically converted into Class A common stock upon sale or transfer, subject to certain limited exceptions. Shares of Class A common stock are not convertible. See Note 13 “Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)” for additional information regarding the current conversion and transfer terms of the Company’s common stock. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one-to-one basis when computing net income (loss) per share. As a result, basic and diluted net income (loss) per share of Class A common stock and share of Class B common stock are equivalent. Diluted net income (loss) per share gives effect to all potentially dilutive securities. Potential dilutive securities consist of shares of common stock issuable upon the exercise of stock options, shares of common stock issuable upon the conversion of the outstanding shares of Preferred Stock, and shares of common stock issuable upon the vesting of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock unit (“PSUs”). For the three and nine months ended September 30, 2022, and for the three months ended September 30, 2021, the net loss attributable to common stockholders is divided by the weighted-average number of shares of common stock outstanding during the period to calculate diluted earnings per share. The dilutive effect of common stock equivalents has been excluded from the calculation of diluted net loss per share as its effect would have been anti-dilutive due to the net loss incurred for the period. For the nine months ended September 30, 2021, dilutive net income per share was calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period, the dilutive impact of stock options and shares of common stock issuable upon the vesting of RSUs, RSAs, and the dilutive effect of shares issuable upon the conversion of the Company’s preferred stock. The following table presents a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted net income (loss) per share: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Weighted-average shares outstanding: Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders—basic 141,256,000 135,673,000 141,034,000 122,595,000 Dilutive effect of share equivalents resulting from stock options — — — 6,417,000 Dilutive effect of share equivalents resulting from RSAs and RSUs — — — 164,000 Dilutive effect of shares issuable upon conversion of preferred stock — — — 9,463,000 Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders—diluted 141,256,000 135,673,000 141,034,000 138,639,000 The following potentially dilutive common stock equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Stock options outstanding 6,797,943 6,500,908 6,797,943 19,503 Unvested RSAs, RSUs, and PSUs 1,249,624 140,793 1,249,624 23,723 8,047,567 6,641,701 8,047,567 43,226

Acquisitions, Acquired Intangib

Acquisitions, Acquired Intangible Assets, and Goodwill	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions, Acquired Intangible Assets, and Goodwill	Acquisitions, Acquired Intangible Assets, and Goodwill Acquisitions Backlinko On January 13, 2022, the Company completed an asset purchase agreement with Backlinko, LLC (“Backlinko”), acquiring certain of Backlinko’s assets for cash consideration of $4,000. The purpose of this asset acquisition was to acquire valuable content and to access an existing revenue stream in Backlinko’s SEO courses. The Company accounted for this transaction as an asset acquisition and allocated the cost of the asset acquisition to the individual assets acquired. The Company allocated $3,915 to the acquired intangible assets and the remaining cost of the acquisition was allocated to the other assets acquired, which were not material. The identifiable intangible assets consisted of trade names and intellectual property, which the Company amortizes over the assets useful lives using a straight-line amortization method. The Company assigned useful lives to the acquired trade name and content of five years and four years, respectively. Kompyte On March 14, 2022, the Company completed a purchase agreement with Intellikom, Inc., which does business under the name Kompyte (“Kompyte”) to acquire 100% of Kompyte’s assets for cash consideration of $10,000. The purpose of the acquisition of Kompyte was to acquire Kompyte’s assets, including its competitive intelligence automation platform. Aggregate acquisition-related costs associated with this business combination were not material for the nine months ended September 30, 2022, and were included in general and administrative expenses in the consolidated statement of operations and comprehensive loss. Upon the completion of the acquisition, Kompyte became a wholly owned subsidiary of the Company. The results of operations of Kompyte have been included in the Company’s consolidated financial statements from the date of acquisition. The Company has accounted for this transaction as a business combination under the acquisition method. The total purchase price was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values. The Company recorded the excess of the purchase price over those fair values as goodwill. The following table presents the purchase price allocation recorded in the Company’s consolidated balance sheet as of the acquisition date, which was final as of June 30, 2022: Purchase Price Assets acquired Allocation Fair value of tangible assets: Other assets $ 328 Goodwill 4,928 Identifiable intangible assets 5,500 Total assets acquired $ 10,756 Liabilities assumed Current and non-current liabilities $ 756 Total liabilities assumed $ 756 Net assets acquired $ 10,000 The Company allocated $5,500 of the purchase price to identifiable intangible assets consisting of developed technology, trade names, and customer relationships, which it amortizes over the assets useful lives using a straight-line amortization method. The Company assigned useful lives to the acquired developed technology, trade names, and customer relationships of six years, six years, and three years, respectively. This business combination did not have a material impact on the Company’s consolidated financial statements. Therefore, actual results of operations subsequent to the acquisition date and pro forma results of operations have not been presented. Intangible Assets Intangible assets consisted of intangible assets resulting from the Company’s acquisitions and its capitalized internal-use software development costs. Intangible assets consists of the following: As of September 30, 2022 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Developed technology $ 4,294 $ (695) $ 3,599 Trade name 3,826 (489) 3,337 Content 1,958 (347) 1,611 Customer relationships 600 (109) 491 Capitalized internal-use software 3,748 (1,532) 2,216 Total as of September 30, 2022 $ 14,426 $ (3,172) $ 11,254 As of December 31, 2021 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Developed technology $ 1,194 $ (266) $ 928 Trade name 68 (30) 38 Capitalized internal-use software 2,964 (1,005) 1,959 Total as of December 31, 2021 $ 4,226 $ (1,301) $ 2,925 During the three and nine months ended September 30, 2022, the Company capitalized $491 and $1,005, respectively, of software development costs, which are classified as intangible assets on the accompanying consolidated balance sheets, and recorded amortization expense associated with its capitalized software development costs of $193 and $527, respectively. During the three and nine months ended September 30, 2021, the Company capitalized $170 and $441, respectively, of software development costs, and recorded amortization expense associated with its capitalized software development costs of $123 and $382, respectively. Amortization expense for acquired intangible assets was $528 and $1,345 for the three and nine months ended September 30, 2022, respectively, and $55 and $171 for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, future amortization expense is expected to be as follows: Amount Remainder of 2022 $ 733 2023 2,804 2024 2,582 2025 2,077 2026 and thereafter 3,058 Total $ 11,254 Goodwill The changes in the carrying value of goodwill during the six months ended September 30, 2022 were as follows: Amount Balance as of January 1, 2022 $ 1,991 Kompyte acquisition 4,928 Foreign currency translation adjustment (582) Balance as of September 30, 2022 $ 6,337

Exit Costs

Exit Costs	9 Months Ended
	Sep. 30, 2022
Restructuring and Related Activities [Abstract]
Exit Costs	Exit Costs On February 24, 2022, Russian forces launched significant military action against Ukraine. As a result of this conflict and the sanctions imposed by the European Union, United Kingdom, United States and Canada, among others, the Company began to exit its operations in Russia during March 2022, and is winding down its operations in Russia and relocating its employees. As of August 2022, the Company no longer had operating subsidiaries in Russia, and as of September 30, 2022, the Company has relocated substantially all of its employees outside of Russia. All costs associated with its exit activities from Russia are included in the unaudited condensed consolidated statements of operations in its income from continuing operations under the line item, Exit Costs . Exit costs in connection with the winding down of operations in Russia include employee severance and fringe benefit costs, the loss on the sales of the Company’s Russian subsidiaries, and other associated relocation costs. For employee severance and fringe benefit costs, the Company incurred costs of $1,244 during the nine months ended September 30, 2022. These costs were insignificant for the three months ended September 30, 2022. The Company does not expect to incur additional employee severance and fringe benefit costs related to the winding down of its operations in Russia that would be significant to its results of operations. For other associated relocation costs, the Company incurred $4,194 and $6,435 in the three and nine months ended September 30, 2022. The Company expects to incur an additional $1,600 in other associated costs during the quarter ending December 31, 2022. During the three months ended September 30, 2022, the Company completed its sale of its two Russia-based subsidiaries. The Company recorded a loss on the sale of its Russian subsidiaries of approximately $1,738, primarily consisting of the disposal of fixed assets which was included in exit costs in the unaudited condensed consolidated statement of operations.

Accrued expenses

Accrued expenses	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued expenses	Accrued expenses Accrued expenses consist of the following: As of September 30, December 31, Employee compensation $ 4,121 $ 10,580 Income taxes payable 1,546 2,375 Other taxes payable 8,800 3,264 Vacation reserves 1,607 1,988 Other 1,573 1,272 Total accrued expenses $ 17,647 $ 19,479

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility Senior Secured Revolving Credit Facility On January 12, 2021, the Company executed a credit agreement with JPMorgan Chase Bank, N.A., in the form of a revolving credit facility, that consists of a $45.0 million revolving credit facility and a letter of credit sub-facility with an aggregate limit equal to the lesser of $5.0 million and the aggregate unused amount of the revolving commitments then in effect. The availability of the credit facility is subject to the borrowing base based on an advance rate of 400% multiplied by annualized retention applied to monthly recurring revenue. The credit facility has a maturity of three years and will mature on January 12, 2024. Borrowings under the credit facility bear interest at the Company’s option at (i) LIBOR, subject to a 0.50% floor, plus a margin, or (ii) the alternate base rate, subject to a 3.25% floor (or 1.50% prior to positive consolidated adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) for the twelve months most recently ended), plus a margin. For LIBOR borrowings, the applicable rate margin is 2.75% (or 3.50% prior to positive consolidated adjusted EBITDA as of the twelve months most recently ended). For base rate borrowings, the applicable margin is 0.00% (or 2.50% prior to positive consolidated adjusted EBITDA as of the twelve months most recently ended). The Company is also required to pay a 0.25% per annum fee on undrawn amounts under the Company’s revolving credit facility, payable quarterly in arrears. As of September 30, 2022, the Company had not drawn on this revolving credit facility, however, the Company reduced its available balance on this revolving credit facility by $176 to replace its letter of credit and associated restricted cash in conformance with the contractual provisions with one of its office leases. For the three and nine months ended September 30, 2022, the Company incurred $30 and $88 in interest expense, respectively, relating to this credit facility. For the three and nine months ended September 30, 2021, the Company incurred $28 and $81 in interest expense, respectively, relating to this credit facility.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company is subject to U.S. federal, state, and foreign income taxes. For the three and nine months ended September 30, 2022 the Company recorded provisions for income taxes of $321 and $1,200, respectively. For the three and nine months ended September 30, 2021, the Company recorded provisions for income taxes of $101 and $328, respectively. The Company’s effective tax rate for the nine months ended September 30, 2022 differs from the U.S. statutory rate primarily due to the jurisdictional mix of earnings and the requirement to capitalize and amortize certain research and development costs in fiscal 2022 which results in a current tax provision but no deferred tax benefit as a result of the valuation allowance maintained against the Company’s net deferred tax assets. The Company’s effective tax rate for the nine months ended September 30, 2021 differs from the U.S. statutory rate primarily due to the jurisdictional mix of earnings and the valuation allowance maintained against its net deferred tax assets. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to be in effect for the years in which differences are expected to reverse. On a periodic basis, the Company’s reassess any valuation allowances that we maintain on its deferred tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. The Company maintains a valuation allowance on certain federal, state, and foreign tax attributes that are not more-likely-than-not realizable.

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)	Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) Prior to the IPO, the authorized capital stock of the Company included 9,898,400 shares of preferred stock, of which 3,379,400 shares have been designated as Series A Redeemable Convertible Preferred Stock, 1,837,600 shares have been designated as Series A-1 Redeemable Convertible Preferred Stock and 4,681,400 shares have been designated as Series B Convertible Preferred Stock (collectively the “Preferred Stock”). Immediately prior to the closing of the IPO, the outstanding shares of Preferred Stock were converted on a three-for-one basis into 29,695,200 shares of common stock. The holders of the Company’s Preferred Stock had certain voting, dividend, and redemption rights, as well as liquidation preferences and conversion privileges. All rights, preferences, and privileges associated with the preferred stock were terminated at the time of the Company’s IPO in conjunction with the conversion of all outstanding shares of Preferred Stock into shares of common stock. As of September 30, 2022, the total number of shares of all classes of stock which the Company shall have authority to issue was (i) 1,000,000,000 shares of Class A common stock, par value $0.00001 per share, and (ii) 160,000,000 shares of Class B common stock, par value $0.00001 per share, and (iii) 100,000,000 undesignated shares of Preferred Stock, par value $0.00001 per share. Each share of Class A common stock entitles the holder to one vote for each share on all matters submitted to a vote of the Company's stockholders at all meetings of stockholders and written actions in lieu of meetings. Each share of Class B common stock entitles the holder to ten votes for each share on all matters submitted to a vote of the Company's stockholders at all meetings of stockholders and written actions in lieu of meetings. Holders of Class A common stock and Class B common stock are entitled to receive dividends, when and if declared by the board of directors (the “Board”). Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. Automatic conversion shall occur upon the occurrence of (i) a Transfer, as defined in the amended and restated certificate of incorporation, of such share of Class B common stock, (ii) the affirmative vote of at least two-thirds of the outstanding shares of Class B common stock, voting as a single class, or (iii) on or after the earlier to occur of (a) the seven Stock Split On March 15, 2021, the Board approved a 3-for-1 stock-split of the Company’s common stock. The stock split was approved by the stockholders on March 15, 2021 and became effective on March 15, 2021. Upon the effectiveness of the stock split, (i) every one share of common stock outstanding was increased to 3 shares of common stock, (ii) the number of shares of common stock into which each outstanding option to purchase common stock is exercisable was proportionally increased on a 3-for-1 basis, and (iii) the exercise price of each outstanding option to purchase common stock was proportionately decreased on a 3-for-1 basis. Additionally, shares of common stock reserved for issuance upon the conversion of the Company’s Preferred Stock were proportionately increased on a 3-for-1 basis and the respective conversion prices of the Preferred Stock were proportionately reduced. All share and per share data shown in the accompanying unaudited condensed consolidated financial statements and related notes have been retroactively revised to reflect the stock split. Common Stock Reserved for Future Issuance As of September 30, 2022, the Company had reserved the following shares of common stock for future issuance: Options outstanding 6,797,943 Options reserved for future issuance 9,666,082 Restricted stock outstanding 53,331 Restricted stock units 1,182,705 Performance stock units 1,377,216 Total authorized shares of common stock reserved for future issuance 19,077,277

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation In 2019, the Board adopted the Semrush Holdings, Inc. 2019 Stock Option and Grant Plan (the “2019 Plan”), which provides for the grant of qualified incentive stock options and nonqualified stock options or other awards, including restricted stock unit awards, to the Company’s employees, officers, directors, advisors, and outside consultants for the purchase of up to 8,682,600 shares of the Company’s common stock. In July 2020, the 2019 Plan was amended to provide for the grant of qualified incentive stock options and nonqualified stock options or other awards to the Company’s employees, officers, directors, advisors, and outside consultants for the purchase of up to 10,163,772 shares of the Company’s common stock. Stock options generally vest over a 4 year period and expire 10 years from the date of grant. Certain options provide for accelerated vesting if there is a change in control (as defined in the 2019 Plan). The Semrush Holdings, Inc. 2021 Stock Option and Incentive Plan (the “2021 Plan”) was adopted by the Board on March 3, 2021 and approved by stockholders on March 15, 2021 and became effective immediately prior to the effectiveness of the Company’s registration statement in connection with its IPO. The 2021 Plan replaced the 2019 Plan as the Board determined not to make additional awards under the 2019 Plan following the pricing of the Company’s IPO. The 2021 Plan allows the compensation committee of the Board to make equity-based and cash-based incentive awards to the Company’s officers, employees, directors and other key persons (including consultants). The Company initially reserved 13,503,001 shares of Class A common stock for the issuance of awards under the 2021 Plan. The 2021 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2022, by the lesser of 5% of the outstanding number of shares of Class A and Class B common stock on the immediately preceding December 31, or such lesser number of shares as determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation, which requires the recognition of expense related to the fair value of stock-based compensation awards in the statements of operations. For stock-based awards issued under the Company’s stock-based compensation plans to employees and members of the Board for their services on the Board, the fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model as discussed further below. For RSUs granted subject to service-based vesting conditions, the fair value is determined based on the closing price of the Company’s Class A common stock, as reported on the New York Stock Exchange on the date of grant. RSUs granted subject to service-based vesting conditions generally vest over a four-year requisite service period. For all other service-based awards, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award with actual forfeitures recognized as they occur. Given the absence of an active market for the Company’s common stock prior to the completion of the IPO, the Board, the members of which the Company believes have extensive business, finance, and venture capital experience, were required to estimate the fair value of the Company’s common stock at the time of each grant of a stock-based award. The Company and the Board utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, to estimate the fair value of its common stock. Each valuation methodology included estimates and assumptions that require the Company’s judgment. These estimates and assumptions include a number of objective and subjective factors, in determining the value of the Company’s common stock at each grant date, including the following factors: (1) prices paid for the Company’s Preferred Stock, which the Company had sold to outside investors in arm’s-length transactions, and the rights, preferences, and privileges of the Company’s Preferred Stock and common stock; (2) valuations performed by an independent valuation specialist; (3) the Company’s stage of development and revenue growth; (4) the fact that the grants of stock-based awards involved illiquid securities in a private company; and (5) the likelihood of achieving a liquidity event for the common stock underlying the stock-based awards, such as an initial public offering or sale of the Company, given prevailing market conditions. The Company believes this methodology to be reasonable based upon the Company’s internal peer company analyses, and further supported by several arm’s-length transactions involving the Company’s Preferred Stock. As the Company’s common stock is not actively traded, the determination of fair value involves assumptions, judgments, and estimates. If different assumptions were made, stock-based compensation expense, consolidated net income (loss) and consolidated net income (loss) per share could have been significantly different. The Company has recorded stock-based compensation expense of $1,980 and $5,116 during the three and nine months ended September 30, 2022, respectively and recorded $627 and $1,789 during the three and nine months ended September 30, 2021, respectively. The following table shows stock- based compensation expense by where the stock-based compensation expense is recorded in the Company’s unaudited condensed consolidated statement of operations: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of revenue $ 20 $ 7 $ 52 $ 22 Sales and marketing 189 100 599 245 Research and development 329 68 836 204 General and administrative 1,442 452 3,629 1,318 Total stock-based compensation $ 1,980 $ 627 $ 5,116 $ 1,789 As of September 30, 2022, there was $10,337 and $1,626 of unrecognized compensation cost related to unvested common stock option arrangements granted under the 2021 Plan and 2019 Plan, respectively, which is expected to be recognized over a weighted-average period of 3.37 years and 1.76 years, respectively. As of September 30, 2022, there was $12,527 and $81 of unrecognized compensation cost related to unvested restricted stock unit awards, which are expected to be recognized over a weighted-average period of 3.36 years and 0.91 years, respectively. For unvested performance stock units, these awards were granted with four year vesting terms for which the probability of vesting achievement is assessed at each reporting period. The fair value of each option award was estimated on the date of grant using the Black-Scholes option-pricing model. As there was no public market for its common stock prior to March 25, 2021, which was the first day of trading, and as the trading history of the Company’s common stock was limited through March 31, 2021, the Company determined the expected volatility for options granted based on an analysis of reported data for a peer group of companies that issued options with substantially similar terms. The expected volatility of options granted has been determined using an average of the historical volatility measures of this peer group of companies. The expected life of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the share option. The Company has not paid, nor anticipates paying, cash dividends on its ordinary shares; therefore, the expected dividend yield is assumed to be zero. The weighted-average assumptions utilized to determine the fair value of options granted to employees are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Expected volatility 53.7 % N/A 52.9 % 52.0 % Weighted-average risk-free interest rate 2.65 % N/A 2.52 % 1.04 % Expected dividend yield — N/A — — Expected life – in years 6 N/A 6 6 A summary of the Company’s option activity as of September 30, 2022, which all occurred under the 2019 Plan and the 2021 Plan, and changes during the nine months then ended are as follows: Number of Options Weighted-Average Exercise Price (per share) Weighted-Average Remaining Contractual Term (in years) Outstanding at December 31, 2021 6,329,822 $ 2.32 8.14 Granted 1,605,595 12.05 Exercised (605,950) 1.45 Forfeited (531,524) 3.96 Outstanding at September 30, 2022 6,797,943 4.57 7.85 Options exercisable at September 30, 2022 4,049,724 1.65 7.26 The weighted-average grant-date fair value of options granted during the three and nine months ended September 30, 2022 was $6.53 and $6.32 per share, respectively. There were no options granted during the three months ended September 30, 2021. The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2021 was $6.13 per share. No tax benefits were realized from options during the three and nine months ended September 30, 2022 or 2021. The aggregate intrinsic value of options outstanding as of September 30, 2022 and December 31, 2021 was $48,665 and $117,734, respectively. The aggregate intrinsic value for options exercised during the three and nine months ended September 30, 2022 was $2,734 and $6,120, respectively. The aggregate intrinsic value for options exercised during the three and nine months ended September 30, 2021 was $11,918 and $12,410, respectively. The aggregate intrinsic value for options exercisable as of September 30, 2022 was $39,385. The aggregate intrinsic value was calculated based on the positive difference, if any, between the estimated fair value of the Company’s common stock on September 30, 2022 and December 31, 2021, respectively, or the date of exercise, as appropriate, and the exercise price of the underlying options. On July 28, 2020, the Company issued 156,852 shares of its restricted common stock (“Restricted Stock Issuance”) to the founders of Prowly for a total fair value of $291 under the 2019 Plan. This Restricted Stock Issuance vests over a three-year service period, applicable to both founders. As of September 30, 2022, 103,521 shares have vested in connection with this Restricted Stock Issuance. During the three and nine months ended September 30, 2022, the Company granted to employees RSU awards for 55,729 and 1,045,658 shares of Class A common stock under the 2021 Plan, respectively. During the three and nine months ended September 30, 2021, the Company granted to employees RSU awards for 9,462 and 164,487 shares of Class A common stock under the 2021 Plan, respectively. During the three and nine months ended September 30, 2022, the Company recorded stock-based compensation expense related to the RSU grants of $934 and $2,125, respectively. During the three and nine months ended September 30, 2021, the Company recorded stock-based compensation expense related to the RSU grants of $139 and $284, respectively. A summary of RSU activity under the Company’s 2021 Plan for the nine months ended September 30, 2022 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2022 239,936 $ 17.21 $ 4,129 Granted 1,045,658 11.71 12,245 Vested (46,075) 13.81 636 Forfeited (56,814) 13.48 766 Unvested balance as of September 30, 2022 1,182,705 $ 12.20 $ 14,429 During the nine months ended September 30, 2022, the Company granted to employees PSU awards for 1,395,596 shares of Class A common stock under the 2021 Plan. The Company did not grant PSU awards during the three months ended September 30, 2022. During the three and nine months ended September 30, 2022, the Company recorded stock-based compensation expense related to the PSU grants of $32 and $172, respectively. As of September 30, 2022, there was $59 of unrecognized compensation cost related to unvested performance stock units granted under the 2021 Plan, which is expected to be recognized over a weighted-average period of 3.46 years. The Company records stock-based compensation expense related to the PSU grants when it is probable that the underlying performance conditions will be recognized. During the nine months ended September 30, 2022 the Company granted two sets of PSU grants; executives and acquisition-related. The acquisition-related PSUs contained a market component. These awards were deemed probable of partial achievement by the Company during the nine months ended September 30, 2022. The executive grants were not probable of achievement as of September 30, 2022. This expense attributable to acquisition-related PSUs was immaterial during the three and nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, an immaterial amount of expense has been recognized in connection with executive PSU awards, however, the remaining executive PSU awards were not probable of achievement as of September 30, 2022. For PSU grants that have only service and performance conditions, the Company measures these awards at the fair value of its common stock on the grant dates. For PSU grants that incorporate a market condition, only the market condition is reflected in the estimated fair value on the grant dates. The Company determined the fair value of the PSU awards using a binomial valuation method. A summary of PSU activity under the Company’s 2021 Plan for the nine months ended September 30, 2022 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2022 — $ — $ — Granted 1,395,596 11.18 15,603 Vested — — — Forfeited (68,421) 11.68 799 Unvested balance at June 30, 2022 1,327,175 $ 11.18 $ 14,838 Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition. The compensation expense attributable to the acquisition-based PSU awards was estimated based on a Monte Carlo simulation model, which applied the following key assumptions: Nine Months Ended September 30, 2022 Risk-free interest rate 2.07 % Volatility 70.00 % Dividend Yield — % Term (years) 4.13 No PSUs were granted during the three or nine months ended September 30, 2021. 2021 Employee Stock Purchase Plan The Semrush Holdings, Inc. 2021 Employee Stock Purchase Plan (the “ESPP”) was adopted by the Board on March 3, 2021 and approved by stockholders on March 15, 2021 and became effective immediately prior to the effectiveness of the Company’s registration statement in connection with its IPO. The ESPP initially reserves and authorizes the issuance of up to a total of 3,000,667 shares of Class A common stock to participating employees. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2022 and each January 1 thereafter through January 1, 2031, by the least of (i) 1% of the outstanding number of shares of Class A and Class B common stock on the immediately preceding December 31; (ii) 3,000,667 shares or (iii) such lesser number of shares of Class A common stock as determined by the ESPP administrator. The number of shares reserved under the ESPP is subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. The Company will continue to offer, sell and issue shares of common stock under the ESPP from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under the ESPP. The first service period of the ESPP began on September 1, 2021, the second service period of the ESPP began on March 1, 2022, and the third service period of the ESPP began on September 1, 2022. The Company recognized $44 and $166 in stock-based compensation expense related to these service periods for the three and nine months ended September 30, 2022, respectively. On February 28, 2022, the Company issued 39,516 shares of its Class A common stock to its employees under its ESPP for the service period then ended. On August 31, 2022, the Company issued 25,240 shares of its Class A common stock to its employees under its ESPP for the service period then ended.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases The Company leases office facilities under noncancelable operating leases that expire at various dates through 2028. In addition, the Company has multi-year, non-cancelable commitments with its data centers. Some of these lease agreements contain escalating rent payments. Rent expense is recorded on a straight-line basis. Rent expense was $1,594 and $4,037 for the three and nine months ended September 30, 2022, respectively, and $994 and $2,875 for the three and nine months ended September 30, 2021, respectively. Future minimum amounts payable as of September 30, 2022, under the office facilities operating leases are as follows: Operating Leases Remainder of 2022 $ 837 2023 2,959 2024 2,219 2025 1,755 2026 1,663 2027 and thereafter 634 Total minimum lease payments $ 10,067 Capital Leases During the nine months ended September 30, 2022 and 2021, the Company entered into leases for certain data center equipment under non-cancelable capital leases. The lease arrangements have terms of 36 months beginning on the date the Company accepts the installation of the equipment subject to the lease. During the year ended December 31, 2021 and the nine months ended September 30, 2022, a portion of the equipment was installed and their related leases commenced. The Company is required to make total payments of $7,178 over the term of the leases and has a remaining obligation of $3,871 as of September 30, 2022, which is excluded from the table above. Future minimum amounts payable as of September 30, 2022, under non-cancelable capital leases related to the data center equipment are as follows: Capital Leases Remainder of 2022 $ 578 2023 2,393 2024 726 2025 174 2026 — 2027 and thereafter — Total future lease payments 3,871 Less: imputed interest (424) Total $ 3,447 Other In addition to the lease commitments above, the Company also has multi-year commitments with certain data providers through March 31, 2026. The Company is committed to spend approximately $2,862, $8,108, and $8,500 for the remainder of the year ending December 31, 2022, and for the years ending December 31, 2023 and 2024, respectively, for data services. Litigation The Company, from time to time, may be party to litigation arising in the ordinary course of its business. The Company was not subject to any material legal proceedings during the three or nine months ended September 30, 2022, and, to the best of its knowledge, no material legal proceedings were pending or threatened during that period. Indemnification The Company typically enters into indemnification agreements with customers in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses suffered or incurred as a result of claims of intellectual property infringement. These indemnification agreements are provisions of the applicable customer agreement. Based on when clients first sign an agreement for the Company’s service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited. Based on historical experience and information known as of September 30, 2022, the Company has not incurred any costs for the above guarantees and indemnities.

Components of Other Income (Exp

Components of Other Income (Expense), Net	9 Months Ended
	Sep. 30, 2022
Other Income and Expenses [Abstract]
Components of Other Income (Expense), Net	Components of Other Income (Expense), Net The components of other income (expense), net, are as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Foreign currency exchange gain (loss) 410 (57) (206) (66) Other income (expense), net 1,073 (127) 2,559 (190) Total other income (expense), net $ 1,483 $ (184) $ 2,353 $ (256)

Employee Benefit Plan

Employee Benefit Plan	9 Months Ended
	Sep. 30, 2022
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit PlanThe Company maintains a defined contribution savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) covering all U.S. employees who satisfy certain eligibility requirements. The 401(k) Plan allows each participant to defer a percentage of their eligible compensation subject to applicable annual limits pursuant to the limits established by the Internal Revenue Service. The Company may, at the discretion of the Board, make contributions in the form of matching contributions or profit-sharing contributions. For the three and nine months ended September 30, 2022, the Company made matching contributions of $259 and $697, respectively, to the 401(k) Plan. For the three and nine months ended September 30, 2021, the Company made matching contributions of $160 and $384, respectively, to the 401(k) Plan.

Segment and Geographic Informat

Segment and Geographic Information	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment and Geographic Information	Segment and Geographic InformationDisclosure requirements about segments of an enterprise and related information establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in interim financial reports issued to shareholders. Operating segments are defined as components of an enterprise about which separate discrete financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one operating segment. Geographic Data The Company allocates, for the purpose of geographic data reporting, its revenue based upon the location of the customer. Total revenue by geographic area was as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue: United States $ 31,309 $ 22,317 $ 85,961 $ 61,038 United Kingdom 6,565 5,164 18,798 14,064 Other 27,919 21,771 80,772 59,153 Total revenue $ 65,793 $ 49,252 $ 185,531 $ 134,255 Property and equipment, net by geographic location consists of the following: As of September 30, December 31, Property and equipment, net: United States $ 5,757 $ 6,409 Russia — 1,406 Czech Republic 353 408 Other 875 47 Total assets $ 6,985 $ 8,270

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company has completed an evaluation of all subsequent events after the balance sheet date of September 30, 2022 through November 14, 2022, the date this Quarterly Report on Form 10-Q was filed with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the unaudited condensed consolidated financial statements as of September 30, 2022, and events which occurred subsequently but were not recognized in the unaudited condensed consolidated financial statements. The Company has concluded that no subsequent events have occurred that require disclosure, except as disclosed within these unaudited condensed consolidated financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited annual consolidated financial statements as of and for the year ended December 31, 2021, and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2022, and the results of its operations and its cash flows for the three and nine months ended September 30, 2022 and 2021. The consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, any other interim periods, or any future year or period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 18, 2022. The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. As of September 30, 2022, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the Annual Report on Form 10-K, except as discussed below.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates relied upon in preparing these unaudited condensed consolidated financial statements include, but are not limited to, revenue recognition, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, expensing and capitalization of research and development costs for internal-use software, the average period of benefit associated with costs capitalized to obtain revenue contracts, the determination of the fair value of stock-based awards issued, stock-based compensation expense, the determination of the estimated fair value of the convertible notes held by the Company, the valuations of the intangible assets acquired through acquisitions, and the recoverability of the Company’s net deferred tax assets and related valuation allowance.
Subsequent Events Considerations	Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the consolidated financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Quarterly Report on Form 10-Q.
Revenue Recognition	Revenue Recognition The Company derives revenue from two sources: (1) subscription revenues via the Semrush Online Visibility Management Platform and the Prowly Public Relations Platform, which are comprised of subscription fees from customers accessing the Company’s SaaS services and related customer support; and (2) the Semrush Marketplace, which allows customers to pay a set fee for services or products offered through the marketplace. The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration it expects to receive in exchange for those products or services. There were no changes to the Company’s revenue recognition policies since the filing of its Annual Report on Form 10-K with the SEC on March 18, 2022. For the three and nine months ended September 30, 2022 and 2021, subscription revenue accounted for nearly all of the Company’s revenue. Revenue related to the Semrush Marketplace was not material for the three and nine months ended September 30, 2022 and 2021. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. The Company primarily invoices and collects payments from customers for its services in advance on a monthly or annual basis. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. Deferred revenue increased by $7,034 as of September 30, 2022 compared to December 31, 2021. During the three months ended September 30, 2022 and 2021, $24,123 and $18,504 of revenue was recognized that was included in deferred revenue at the beginning of each respective period. During the nine months ended September 30, 2022 and 2021, $37,188 and $22,874 of revenue was recognized that was included in deferred revenue at the beginning of each respective period. The Company has elected to exclude amounts charged to customers for sales tax from the transaction price. Accordingly, revenue is presented net of any sales tax collected from customers. Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of the balance sheet dates reported. For contracts with an original expected duration greater than one year, the aggregate amount of the transaction price allocated to the performance obligations that were unsatisfied as of September 30, 2022 was $1,438, which the Company expects to recognize over the next 12 months. For contracts with an original expected duration of one year or less, the Company has applied the practical expedient available under ASC 606 to not disclose the amount of transaction price allocated to unsatisfied performance obligations as of September 30, 2022. For performance obligations not satisfied as of September 30, 2022, and to which this expedient applies, the nature of the performance obligations is consistent with performance obligations satisfied as of December 31, 2021. The remaining durations are less than one year. Costs to Obtain a Contract The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and recorded as deferred contract costs in the consolidated balance sheet and are amortized over a period of approximately 24 months on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. The 24-month period represents the estimated benefit period of the customer relationship and has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period based on historical experience and future expectations. Sales commissions for renewals and upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred contract costs that will be recorded as expense during the succeeding 12-month period are recorded as current deferred contract costs, and the remaining portion is recorded as deferred contract costs, net of current portion. Amortization of deferred contract costs is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive income (loss).
Concentrations of Credit Risk and Significant Customers	Concentrations of Credit Risk and Significant Customers The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other hedging arrangements. Credit losses historically have not been significant and the Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company's accounts receivable. Credit risk with respect to accounts receivable is dispersed due to the large number of customers of the Company. The Company routinely assesses the creditworthiness of its customers and generally does not require its customers to provide collateral or other security to support accounts receivable. Credit losses historically have not been significant and the Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company's accounts receivable.
Disclosure of Fair Value of Financial Instruments	Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximated their fair values at September 30, 2022 and December 31, 2021, due to the short-term nature of these instruments. Cash equivalents include money market funds with original maturities of 90 days or less from the date of purchase. The fair value measurement of these assets is based on quoted market prices in active markets for identical assets and, therefore, these assets are recorded at fair value on a recurring basis and classified as Level 1 in the fair value hierarchy. As of September 30, 2022 and December 31, 2021, cash equivalents held in money market funds totaled $58,526 and $21,366, respectively. The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The Company generally determines the fair value of the contingent consideration using the Monte Carlo simulation model. Each reporting period thereafter, these obligations are revalued and increases or decreases in their fair values are recorded as an adjustment to operating expenses within the consolidated statements of operations and comprehensive loss. Changes in the fair value of the contingent consideration can result from changes in assumed discount periods and rates, and from changes pertaining to the estimated or actual achievement of the defined milestones. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the amount of contingent consideration expense the Company records in any given period. The total estimated fair value of the contingent consideration payable was $346 and $824 as of September 30, 2022 and December 31, 2021, respectively. The following table represents the key inputs used in the fair value calculation: As of September 30, 2022 December 31, 2021 Risk free interest rate 3.50 % 0.45 % Projected year of payment 2023 2022 – 2023 Revenue volatility 20.8 % 22.3 % Discount rate 9.07 % 5.87 % The Company records its convertible note investments at fair value on the purchase date. The Company determines the fair value of these investments using the Black-Scholes Merton model. Each reporting period thereafter, these investments are revalued and increases or decreases in their fair values are recorded as adjustments to other income, net within the consolidated statements of operations and comprehensive loss to reflects the gains and losses. Changes in the fair value of these investments can result from changes in the estimated enterprise value of the issuers, the likelihoods and methods of such conversions, and other market factors. Significant judgment is employed in determining the appropriateness of these assumptions as of the purchase date and for each subsequent period. Accordingly, changes in any of the assumptions described above can materially impact the amount of gain or loss the Company records in any given period.
Foreign Currency Translation	Foreign Currency Translation The Company operates in a multi-currency environment having transactions in such currencies as the U.S. dollar, Russian ruble, Czech koruna, euro, and others. The reporting currency of the Company is the U.S. dollar. For all periods up to and including the year ended December 31, 2021, the functional currency of the Company’s foreign subsidiaries was the U.S. dollar, with the exception of Prowly, where the functional currency is the local currency, the Zloty. For all other entities, foreign currency transactions were measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date. At each subsequent balance sheet date, foreign currency denominated assets and liabilities of these international subsidiaries were remeasured into U.S. dollars using the exchange rates in effect at the balance sheet date or historical rates, as appropriate. Any differences resulting from the remeasurement of foreign denominated assets and liabilities of the international subsidiaries to the U.S. dollar functional currency were recorded within other income (expense) in the consolidated statement of operations and comprehensive loss. Beginning on January 1, 2022, as a result of changes in the economic facts and circumstances of its business environment, the Company reassessed its functional currency determinations for all foreign subsidiaries and determined that the functional currencies of the Company’s foreign subsidiaries is the local currency at each of its subsidiary locations, with the exception of its Russian subsidiaries where the U.S. dollar remains the functional currency. As of August 10, 2022, we no longer have operating subsidiaries in Russia. See Note 19 “Subsequent Events ” for more information on the sale of our Russian subsidiaries. Accordingly, beginning January 1, 2022, assets and liabilities of the Company’s foreign subsidiaries that maintain local currencies as functional currencies are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The Company includes the effects of these foreign currency
Comprehensive income (loss)	Comprehensive income (loss) Comprehensive income (loss) is comprised of two components: net income (loss) and other comprehensive income (loss), which includes other changes in stockholders’ deficit that result from transactions and economic events other than those with stockholders. For the three and nine months ended September 30, 2022, comprehensive loss consists of net loss and the change in the cumulative foreign currency translation adjustment. The tax effect of the cumulative foreign currency translation adjustment is not significant for the three and nine months ended September 30, 2022 . Comprehensive loss equaled total net loss for the three and nine months ended September 30, 2021.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize most leases on the balance sheet but recognize expenses on the income statement in a manner similar to current practice. The update states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying assets for the lease term. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement, and presentation of expenses and cash flows arising from a lease. As an EGC, ASU 2016-02 is effective for fiscal years beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted. The Company has begun implementing ASU 2016-02 and plans to adopt through a cumulative adjustment to retained earnings on the date of adoption of January 1, 2022. Significant implementation matters being addressed by the Company include documenting the new lease accounting process, determining incremental borrowing rate, and completing the population of the leases for evaluation. The standard includes a number of practical expedients that the Company is evaluating and may elect to apply. The Company expects this new leasing standard to result in the recognition of material right-of-use assets and corresponding lease liabilities on the consolidated balance sheets, primarily related to its office leases, but it does not expect it to have a material impact on its results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 requires that credit losses be reported as an allowance using an expected losses model, representing the entity's current estimate of credit losses expected to be incurred. The accounting guidance currently in effect is based on an incurred loss model. ASU 2016-13 affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for public entities for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. For non-public companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company plans to adopt this guidance in the year ending December 31, 2023. This ASU is currently not expected to have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes . The new guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. For public companies, the
Cash, Cash Equivalents, and Restricted Cash	Cash and cash equivalents consist of cash on deposit with banks and amounts held in interest-bearing money market funds. Cash equivalents are carried at cost, which approximates their fair market value
Variable Interests	With respect to its investments in these convertible debt securities, the Company has a variable interest in an issuer of these securities, which is a variable interest entity. After evaluation of the relationship between the Company and this variable interest entity, the Company determined not to consolidate this variable interest entity’s results for the three and nine months ended September 30, 2022 or 2021. Significant judgments included the determination that this variable interest entity lacked sufficient equity at risk to finance its activities without additional subordinated support, and that the Company was not the primary beneficiary of the variable interest entity given the Company’s variable interests do not constitute a controlling financial interest.
Net Income (Loss) Per Share	In March 2021, the Company amended its certificate of incorporation to create two classes of common stock outstanding: Class A common stock and Class B common stock. As more fully described in Note 13 “Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)”, the rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one (1) vote per share and each share of Class B common stock is entitled to ten (10) votes per share. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. Shares of Class B common stock are automatically converted into Class A common stock upon sale or transfer, subject to certain limited exceptions. Shares of Class A common stock are not convertible. See Note 13 “Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)” for additional information regarding the current conversion and transfer terms of the Company’s common stock. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one-to-one basis when computing net income (loss) per share. As a result, basic and diluted net income (loss) per share of Class A common stock and share of Class B common stock are equivalent. Diluted net income (loss) per share gives effect to all potentially dilutive securities. Potential dilutive securities consist of shares of common stock issuable upon the exercise of stock options, shares of common stock issuable upon the conversion of the outstanding shares of Preferred Stock, and shares of common stock issuable upon the vesting of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock unit (“PSUs”).

Cash, Cash Equivalents, and R_2

Cash, Cash Equivalents, and Restricted Cash (Tables)	9 Months Ended
	Sep. 30, 2022
Cash and Cash Equivalents [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021. As of September 30, 2022 September 30, 2021 Cash and cash equivalents $ 246,554 $ 188,510 Restricted cash included in “other assets” — 176 Total cash, cash equivalents and restricted cash, at end of period $ 246,554 $ 188,686

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value Measurement Inputs and Valuation Techniques	The following table represents the key inputs used in the fair value calculation: As of September 30, 2022 December 31, 2021 Risk free interest rate 3.50 % 0.45 % Projected year of payment 2023 2022 – 2023 Revenue volatility 20.8 % 22.3 % Discount rate 9.07 % 5.87 %
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	A rollforward of the fair value measurements of the convertible notes for the nine months ended September 30, 2022, is as follows: Balance as of December 31, 2021 $ 500 Additional investment in convertible notes 2,000 Change in fair value included in other income, net 661 Balance as of March 31, 2022 3,161 Change in fair value included in other income, net 367 Balance as of June 30, 2022 3,528 Change in fair value included in other income, net (139) Balance as of September 30, 2022 $ 3,389 Balance as of December 31, 2021 $ 424 Expense recognized (reversed) related to service period rendered 106 Balance as of March 31, 2022 530 Expense recognized (reversed) related to service period rendered (141) Balance as of June 30, 2022 389 Expense recognized (reversed) related to service period rendered (149) Balance as of September 30, 2022 $ 240

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following (in thousands): As of September 30, December 31, Computer equipment $ 10,234 $ 10,045 Furniture and office equipment 1,325 948 Leasehold improvements 446 1,737 Total property and equipment 12,005 12,730 Less: accumulated depreciation and amortization (5,020) (4,460) Property and equipment, net $ 6,985 $ 8,270

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted net income (loss) per share: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Weighted-average shares outstanding: Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders—basic 141,256,000 135,673,000 141,034,000 122,595,000 Dilutive effect of share equivalents resulting from stock options — — — 6,417,000 Dilutive effect of share equivalents resulting from RSAs and RSUs — — — 164,000 Dilutive effect of shares issuable upon conversion of preferred stock — — — 9,463,000 Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders—diluted 141,256,000 135,673,000 141,034,000 138,639,000
Schedule of Potentially Dilutive Common Stock Equivalents	The following potentially dilutive common stock equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Stock options outstanding 6,797,943 6,500,908 6,797,943 19,503 Unvested RSAs, RSUs, and PSUs 1,249,624 140,793 1,249,624 23,723 8,047,567 6,641,701 8,047,567 43,226

Acquisitions, Acquired Intang_2

Acquisitions, Acquired Intangible Assets, and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table presents the purchase price allocation recorded in the Company’s consolidated balance sheet as of the acquisition date, which was final as of June 30, 2022: Purchase Price Assets acquired Allocation Fair value of tangible assets: Other assets $ 328 Goodwill 4,928 Identifiable intangible assets 5,500 Total assets acquired $ 10,756 Liabilities assumed Current and non-current liabilities $ 756 Total liabilities assumed $ 756 Net assets acquired $ 10,000
Schedule of Intangible Assets	Intangible assets consists of the following: As of September 30, 2022 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Developed technology $ 4,294 $ (695) $ 3,599 Trade name 3,826 (489) 3,337 Content 1,958 (347) 1,611 Customer relationships 600 (109) 491 Capitalized internal-use software 3,748 (1,532) 2,216 Total as of September 30, 2022 $ 14,426 $ (3,172) $ 11,254 As of December 31, 2021 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Developed technology $ 1,194 $ (266) $ 928 Trade name 68 (30) 38 Capitalized internal-use software 2,964 (1,005) 1,959 Total as of December 31, 2021 $ 4,226 $ (1,301) $ 2,925
Schedule of Future Amortization Expense	As of September 30, 2022, future amortization expense is expected to be as follows: Amount Remainder of 2022 $ 733 2023 2,804 2024 2,582 2025 2,077 2026 and thereafter 3,058 Total $ 11,254
Schedule of Goodwill	The changes in the carrying value of goodwill during the six months ended September 30, 2022 were as follows: Amount Balance as of January 1, 2022 $ 1,991 Kompyte acquisition 4,928 Foreign currency translation adjustment (582) Balance as of September 30, 2022 $ 6,337

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following: As of September 30, December 31, Employee compensation $ 4,121 $ 10,580 Income taxes payable 1,546 2,375 Other taxes payable 8,800 3,264 Vacation reserves 1,607 1,988 Other 1,573 1,272 Total accrued expenses $ 17,647 $ 19,479

Redeemable Convertible Prefer_2

Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of Common Stock Reserved For Future Issuance	As of September 30, 2022, the Company had reserved the following shares of common stock for future issuance: Options outstanding 6,797,943 Options reserved for future issuance 9,666,082 Restricted stock outstanding 53,331 Restricted stock units 1,182,705 Performance stock units 1,377,216 Total authorized shares of common stock reserved for future issuance 19,077,277

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-based Compensation Expense	The following table shows stock- based compensation expense by where the stock-based compensation expense is recorded in the Company’s unaudited condensed consolidated statement of operations: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of revenue $ 20 $ 7 $ 52 $ 22 Sales and marketing 189 100 599 245 Research and development 329 68 836 204 General and administrative 1,442 452 3,629 1,318 Total stock-based compensation $ 1,980 $ 627 $ 5,116 $ 1,789
Schedule of Weighted-Average Assumptions to Determine Fair Value	The weighted-average assumptions utilized to determine the fair value of options granted to employees are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Expected volatility 53.7 % N/A 52.9 % 52.0 % Weighted-average risk-free interest rate 2.65 % N/A 2.52 % 1.04 % Expected dividend yield — N/A — — Expected life – in years 6 N/A 6 6 Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition. The compensation expense attributable to the acquisition-based PSU awards was estimated based on a Monte Carlo simulation model, which applied the following key assumptions: Nine Months Ended September 30, 2022 Risk-free interest rate 2.07 % Volatility 70.00 % Dividend Yield — % Term (years) 4.13
Summary of Option Activity	A summary of the Company’s option activity as of September 30, 2022, which all occurred under the 2019 Plan and the 2021 Plan, and changes during the nine months then ended are as follows: Number of Options Weighted-Average Exercise Price (per share) Weighted-Average Remaining Contractual Term (in years) Outstanding at December 31, 2021 6,329,822 $ 2.32 8.14 Granted 1,605,595 12.05 Exercised (605,950) 1.45 Forfeited (531,524) 3.96 Outstanding at September 30, 2022 6,797,943 4.57 7.85 Options exercisable at September 30, 2022 4,049,724 1.65 7.26
Summary of Restricted Stock Unit Activity	A summary of RSU activity under the Company’s 2021 Plan for the nine months ended September 30, 2022 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2022 239,936 $ 17.21 $ 4,129 Granted 1,045,658 11.71 12,245 Vested (46,075) 13.81 636 Forfeited (56,814) 13.48 766 Unvested balance as of September 30, 2022 1,182,705 $ 12.20 $ 14,429 Number of Shares Weighted-Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2022 — $ — $ — Granted 1,395,596 11.18 15,603 Vested — — — Forfeited (68,421) 11.68 799 Unvested balance at June 30, 2022 1,327,175 $ 11.18 $ 14,838

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum amounts payable as of September 30, 2022, under the office facilities operating leases are as follows: Operating Leases Remainder of 2022 $ 837 2023 2,959 2024 2,219 2025 1,755 2026 1,663 2027 and thereafter 634 Total minimum lease payments $ 10,067
Schedule of Future Minimum Amounts Payable Under Non-cancelable Capital Leases	Future minimum amounts payable as of September 30, 2022, under non-cancelable capital leases related to the data center equipment are as follows: Capital Leases Remainder of 2022 $ 578 2023 2,393 2024 726 2025 174 2026 — 2027 and thereafter — Total future lease payments 3,871 Less: imputed interest (424) Total $ 3,447

Components of Other Income (E_2

Components of Other Income (Expense), Net (Tables)	9 Months Ended
	Sep. 30, 2022
Other Income and Expenses [Abstract]
Schedule of Components of Other Expense, Net	The components of other income (expense), net, are as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Foreign currency exchange gain (loss) 410 (57) (206) (66) Other income (expense), net 1,073 (127) 2,559 (190) Total other income (expense), net $ 1,483 $ (184) $ 2,353 $ (256)

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of Total Revenue by Geographic Area	Total revenue by geographic area was as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue: United States $ 31,309 $ 22,317 $ 85,961 $ 61,038 United Kingdom 6,565 5,164 18,798 14,064 Other 27,919 21,771 80,772 59,153 Total revenue $ 65,793 $ 49,252 $ 185,531 $ 134,255
Schedule of Property and Equipment, Net by Geographic Location	Property and equipment, net by geographic location consists of the following: As of September 30, December 31, Property and equipment, net: United States $ 5,757 $ 6,409 Russia — 1,406 Czech Republic 353 408 Other 875 47 Total assets $ 6,985 $ 8,270

Overview and Basis of Present_2

Overview and Basis of Presentation (Details) $ / shares in Units, $ in Thousands					3 Months Ended
	Aug. 03, 2022 subsidiary	Nov. 23, 2021 USD ($) $ / shares shares	Apr. 23, 2021 USD ($) shares	Mar. 29, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 28, 2021
Sale of Stock [Line Items]
Preferred stock, conversion ratio							3
Russia
Sale of Stock [Line Items]
Number of entities sold | subsidiary	2
Class A Common Stock
Sale of Stock [Line Items]
Issuance costs					$ 825	$ 13,378
Class B Common Stock
Sale of Stock [Line Items]
Preferred stock, conversion ratio				1
IPO | Class A Common Stock
Sale of Stock [Line Items]
Stock sold (in shares) | shares				10,000,000
Price per share (in dollars per share) | $ / shares				$ 14
Net proceeds				$ 126,600
Issuance costs				$ 13,400
Underwriters' option | Class A Common Stock
Sale of Stock [Line Items]
Stock sold (in shares) | shares			719,266
Net proceeds			$ 9,200
Issuance costs			$ 800
Follow-On Offering | Class A Common Stock
Sale of Stock [Line Items]
Stock sold (in shares) | shares		4,000,000
Price per share (in dollars per share) | $ / shares		$ 20.50
Net proceeds		$ 77,900
Issuance costs		$ 4,100
Follow-On Offering | Class A Common Stock | Co-founders, Executive Officers and Officers
Sale of Stock [Line Items]
Stock sold (in shares) | shares		1,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Increase (decrease) in deferred revenue			$ 7,034
Revenue recognized that was included in deferred revenue at the beginning of each period	$ 24,123	$ 18,504	$ 37,188	$ 22,874
Amortization period of deferred contract costs	24 months		24 months
Foreign currency exchange gain (loss)	$ 410	$ (57)	$ (206)	$ (66)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Aggregate amount of transaction price	$ 1,438		$ 1,438
Remaining performance obligation, expected timing of satisfaction	12 months		12 months

Cash, Cash Equivalents, and R_3

Cash, Cash Equivalents, and Restricted Cash - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Cash and Cash Equivalents [Abstract]
Restricted cash included in “other assets”	$ 0	$ 176	$ 176

Cash, Cash Equivalents, and R_4

Cash, Cash Equivalents, and Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents			$ 188,510
Restricted cash included in “other assets”	$ 0	$ 176	176
Total cash, cash equivalents and restricted cash, at end of period	$ 246,554	$ 269,665	$ 188,686	$ 35,619

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds			$ 58,526		$ 58,526		$ 21,366
Investment in convertible debt securities	$ 2,000	$ 500			2,000	$ 500
Fair value of the convertible notes gain (loss)			(139)	$ 0	889	$ 0
Prowly
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration			$ 346		$ 346		$ 824

Fair Value Measurements -Schedu

Fair Value Measurements -Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details) - Market approach	Sep. 30, 2022	Dec. 31, 2021
Risk free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0350	0.0045
Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.208	0.223
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0907	0.0587

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 3,528	$ 3,161	$ 500
Additional investment in convertible notes			2,000
Change in fair value included in other income, net	(139)	367	661
Ending balance	$ 3,389	$ 3,528	$ 3,161

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Fair Value of Contingent Consideration Liability [Roll Forward]
Beginning balance	$ 3,528	$ 3,161	$ 500
Expense recognized (reversed) related to service period rendered	(139)	367	661
Ending balance	3,389	3,528	3,161
Prowly | Contingent Consideration Liability
Fair Value of Contingent Consideration Liability [Roll Forward]
Beginning balance	389	530	424
Expense recognized (reversed) related to service period rendered	(149)	(141)	106
Ending balance	$ 240	$ 389	$ 530

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment	$ 12,005	$ 12,730
Less: accumulated depreciation and amortization	(5,020)	(4,460)
Property and equipment, net	6,985	8,270
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	10,234	10,045
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	1,325	948
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 446	$ 1,737

Property and Equipment, Net - N

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1,712	$ 813	$ 3,366	$ 1,947

Other Assets - Investments in C

Other Assets - Investments in Convertible Debt (Details) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Jan. 31, 2022 USD ($)	Jan. 31, 2021 USD ($) investment	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Number of convertible debt securities purchased | investment		2
Investment in convertible debt securities	$ 2,000	$ 500			$ 2,000	$ 500
Investment interest rate	6%	6%
Fair value of the convertible notes gain (loss)			$ (139)	$ 0	$ 889	$ 0

Net Income (Loss) Per Share - N

Net Income (Loss) Per Share - Narrative (Details)	9 Months Ended
	Sep. 30, 2022 vote
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Allocable basis to compute net income (loss) per share	1
Class A Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Number of votes per share of common stock held	1
Common stock, convertible, conversion ratio	1
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Number of votes per share of common stock held	10

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Weighted-average shares outstanding:
Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders—basic (in shares)	141,256	135,673	141,034	122,595
Dilutive effect of shares issuable upon conversion of preferred stock (in shares)	0	0	0	9,463
Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders—diluted (in shares)	141,256	135,673	141,034	138,639
Options outstanding
Weighted-average shares outstanding:
Dilutive effect of share equivalents (in shares)	0	0	0	6,417
RSAs, RSUs, and PSUs
Weighted-average shares outstanding:
Dilutive effect of share equivalents (in shares)	0	0	0	164

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Schedule of Potentially Dilutive Common Stock Equivalents (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2021
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents (in shares)		6,500,908	19,503
RSAs, RSUs, and PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents (in shares)	1,249,624	140,793	23,723

Acquisitions, Acquired Intang_3

Acquisitions, Acquired Intangible Assets, and Goodwill - Acquisitions Narrative (Details) - USD ($) $ in Thousands	Mar. 14, 2022	Jan. 13, 2022	Jun. 30, 2022
Backlinko
Business Acquisition [Line Items]
Cash consideration for acquisition		$ 4,000
Identifiable intangible assets		$ 3,915
Backlinko | Trade name
Business Acquisition [Line Items]
Useful life		5 years
Backlinko | Content
Business Acquisition [Line Items]
Useful life		4 years
Kompyte
Business Acquisition [Line Items]
Cash consideration for acquisition	$ 10,000
Identifiable intangible assets	$ 5,500		$ 5,500
Outstanding capital acquired (as percent)	100%
Kompyte | Trade name
Business Acquisition [Line Items]
Useful life	6 years
Kompyte | Developed technology
Business Acquisition [Line Items]
Useful life	6 years
Kompyte | Customer relationships
Business Acquisition [Line Items]
Useful life	3 years

Acquisitions, Acquired Intang_4

Acquisitions, Acquired Intangible Assets, and Goodwill - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Mar. 14, 2022	Dec. 31, 2021
Fair value of tangible assets:
Goodwill	$ 6,337			$ 1,991
Kompyte
Fair value of tangible assets:
Other assets		$ 328
Goodwill		4,928
Identifiable intangible assets		5,500	$ 5,500
Total assets acquired		10,756
Liabilities assumed
Current and non-current liabilities		756
Total liabilities assumed		756
Net assets acquired		$ 10,000

Acquisitions, Acquired Intang_5

Acquisitions, Acquired Intangible Assets, and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 14,426	$ 4,226
Accumulated amortization	(3,172)	(1,301)
Net carrying amount	11,254	2,925
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	4,294	1,194
Accumulated amortization	(695)	(266)
Net carrying amount	3,599	928
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	3,826	68
Accumulated amortization	(489)	(30)
Net carrying amount	3,337	38
Content
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,958
Accumulated amortization	(347)
Net carrying amount	1,611
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600
Accumulated amortization	(109)
Net carrying amount	491
Capitalized internal-use software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	3,748	2,964
Accumulated amortization	(1,532)	(1,005)
Net carrying amount	$ 2,216	$ 1,959

Acquisitions, Acquired Intang_6

Acquisitions, Acquired Intangible Assets, and Goodwill - Intangible Assets Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 528	$ 55	$ 1,345	$ 171
Software development
Acquired Finite-Lived Intangible Assets [Line Items]
Capitalized software development costs	491	170	1,005	441
Amortization expense associated with capitalized development costs	$ 193	$ 123	$ 527	$ 382

Acquisitions, Acquired Intang_7

Acquisitions, Acquired Intangible Assets, and Goodwill - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2022	$ 733
2023	2,804
2024	2,582
2025	2,077
2026 and thereafter	3,058
Net carrying amount	$ 11,254	$ 2,925

Acquisitions, Acquired Intang_8

Acquisitions, Acquired Intangible Assets, and Goodwill - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill [Roll Forward]
Balance as of January 1, 2022	$ 1,991
Kompyte acquisition	4,928
Foreign currency translation adjustment	(582)
Balance as of September 30, 2022	$ 6,337

Exit Costs (Details)

Exit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Exit costs	$ 5,932	$ 0	$ 9,417	$ 0
Loss on disposal of subsidiary			1,738	$ 0
Russia
Restructuring Cost and Reserve [Line Items]
Loss on disposal of subsidiary	1,738
One-time Termination Benefits
Restructuring Cost and Reserve [Line Items]
Exit costs			1,244
Restructuring and related costs	0		0
Employee Relocation
Restructuring Cost and Reserve [Line Items]
Exit costs	$ 4,194		$ 6,435
Other Restructuring | Forecast
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs					$ 1,600

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Employee compensation	$ 4,121	$ 10,580
Income taxes payable	1,546	2,375
Other taxes payable	8,800	3,264
Vacation reserves	1,607	1,988
Other	1,573	1,272
Total accrued expenses	$ 17,647	$ 19,479

Revolving Credit Facility - Nar

Revolving Credit Facility - Narrative (Details) - JPMorgan Chase Bank, N.A. - USD ($)		3 Months Ended		9 Months Ended
	Jan. 12, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revolving credit facility
Line of Credit Facility [Line Items]
Fee on undrawn amounts	0.25%
Line of credit facility, increase (decrease), net				$ 176,000
Interest expense		$ 30,000	$ 28,000	$ 88,000	$ 81,000
Revolving credit facility | LIBOR
Line of Credit Facility [Line Items]
Variable interest rate floor	0.50%
Margin on variable interest rate	2.75%
Margin on variable interest rate, prior to initial public offering or positive adjusted EBITDA	3.50%
Revolving credit facility | Base Rate
Line of Credit Facility [Line Items]
Variable interest rate floor	3.25%
Variable interest rate floor, prior to initial public offering or positive adjusted EBITDA	1.50%
Margin on variable interest rate	0%
Margin on variable interest rate, prior to initial public offering or positive adjusted EBITDA	2.50%
Revolving credit facility | JP Morgan Chase Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 45,000,000
Advance rate	400%
Term	3 years
Letter of credit sub-facility | JP Morgan Chase Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 5,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 321	$ 101	$ 1,200	$ 328

Redeemable Convertible Prefer_3

Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - Narrative (Details)			9 Months Ended
	Mar. 28, 2021 shares	Mar. 15, 2021	Sep. 30, 2022 vote $ / shares shares	Dec. 31, 2021 $ / shares shares	Mar. 29, 2021
Class of Stock [Line Items]
Redeemable convertible preferred stock, authorized (in shares)	9,898,400
Preferred stock, conversion ratio	3
Conversion of preferred stock (in shares)	29,695,200
Preferred stock, authorized (in shares)			100,000,000	100,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.00001	$ 0.00001
Anniversary of effectiveness			7 years
Percentage of outstanding shares			0.10
Conversion ratio		3
Percentage of votes required			0.6666
Series A redeemable convertible preferred stock
Class of Stock [Line Items]
Redeemable convertible preferred stock, authorized (in shares)	3,379,400
Series A-1 redeemable convertible preferred stock
Class of Stock [Line Items]
Redeemable convertible preferred stock, authorized (in shares)	1,837,600
Series B
Class of Stock [Line Items]
Redeemable convertible preferred stock, authorized (in shares)	4,681,400
Class A Common Stock
Class of Stock [Line Items]
Common stock, authorized (in shares)			1,000,000,000	1,000,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.00001	$ 0.00001
Number of votes per share of common stock held | vote			1
Number of shares issued in conversion (in shares)			1
Class B Common Stock
Class of Stock [Line Items]
Preferred stock, conversion ratio					1
Common stock, authorized (in shares)			160,000,000	160,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.00001	$ 0.00001
Number of votes per share of common stock held | vote			10

Redeemable Convertible Prefer_4

Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - Schedule of Common Stock Reserved for Future Issuance (Details)	Sep. 30, 2022 shares
Class of Stock [Line Items]
Total authorized shares of common stock reserved for future issuance (in shares)	19,077,277
Options outstanding
Class of Stock [Line Items]
Total authorized shares of common stock reserved for future issuance (in shares)	6,797,943
Options reserved for future issuance
Class of Stock [Line Items]
Total authorized shares of common stock reserved for future issuance (in shares)	9,666,082
Restricted stock outstanding
Class of Stock [Line Items]
Total authorized shares of common stock reserved for future issuance (in shares)	53,331
Restricted stock units
Class of Stock [Line Items]
Total authorized shares of common stock reserved for future issuance (in shares)	1,182,705
Performance stock units
Class of Stock [Line Items]
Total authorized shares of common stock reserved for future issuance (in shares)	1,377,216

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($)				1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2022	Feb. 28, 2022	Jul. 28, 2020	Jul. 31, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation					$ 1,980,000	$ 627,000	$ 5,116,000	$ 1,789,000
Expected dividend yield					0%		0%	0%
Weighted-average grant date fair value of options granted (in dollars per share)					$ 6.53		$ 6.32	$ 6.13
Number of options granted (in shares)						0	1,605,595
Tax benefit					$ 0	$ 0	$ 0	$ 0
Aggregate intrinsic value of options outstanding					48,665,000		48,665,000		$ 117,734,000
Aggregate intrinsic value of options exercised					2,734,000	11,918,000	6,120,000	12,410,000
Aggregate intrinsic value of options exercisable					$ 39,385,000		$ 39,385,000
Vested (in shares)					103,521
Issuance of shares in connection with ESPP (in shares)					257,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period			3 years
Awards granted (in shares)			156,852
Fair value of awards granted			$ 291,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period							4 years
Stock-based compensation					$ 934,000	$ 139,000	$ 2,125,000	$ 284,000
Awards granted (in shares)					55,729	9,462	1,045,658	164,487
Vested (in shares)							46,075
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, period of recognition							4 years
Expected dividend yield							0%
Awards granted (in shares)						0	1,395,596	0
Vested (in shares)							0
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved and authorized (in shares)					3,000,667		3,000,667
Percent of outstanding shares							1%
Stock-based compensation					$ 44,000		$ 166,000
Issuance of shares in connection with ESPP (in shares)	25,240	39,516
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved and authorized (in shares)				10,163,772						8,682,600
Award vesting period				4 years
Award expiration period				10 years
Unrecognized compensation cost					1,626,000		$ 1,626,000
Unrecognized compensation cost, period of recognition							1 year 9 months 3 days
2019 Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, period of recognition							10 months 28 days
Unrecognized compensation cost, other than options					$ 81,000		$ 81,000
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved and authorized (in shares)					13,503,001		13,503,001
Percent of outstanding shares							5%
Stock-based compensation							$ 59,000
Unrecognized compensation cost					$ 10,337,000		$ 10,337,000
Unrecognized compensation cost, period of recognition							3 years 4 months 13 days
2021 Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, period of recognition							3 years 4 months 9 days
Unrecognized compensation cost, other than options					12,527,000		$ 12,527,000
2021 Plan | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation					$ 32,000		$ 172,000
Awards granted (in shares)					0		1,395,596
Weighted average period							3 years 5 months 15 days

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,980	$ 627	$ 5,116	$ 1,789
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	20	7	52	22
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	189	100	599	245
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	329	68	836	204
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,442	$ 452	$ 3,629	$ 1,318

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Weighted-Average Assumptions to Determine Fair Value (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Share-Based Payment Arrangement [Abstract]
Expected volatility	53.70%	52.90%	52%
Weighted-average risk-free interest rate	2.65%	2.52%	1.04%
Expected dividend yield	0%	0%	0%
Expected life – in years	6 years	6 years	6 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Option Activity (Details) - $ / shares	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Dec. 31, 2021
Number of Options
Outstanding (in shares)		6,329,822
Granted (in shares)	0	1,605,595
Exercised (in shares)		(605,950)
Forfeited (in shares)		(531,524)
Outstanding (in shares)		6,797,943	6,329,822
Options exercisable (in shares)		4,049,724
Weighted-Average Exercise Price (per share)
Outstanding (in dollars per share)		$ 2.32
Granted (in dollars per share)		12.05
Exercised (in dollars per share)		1.45
Forfeited (in dollars per share)		3.96
Outstanding (in dollars per share)		4.57	$ 2.32
Options exercisable (in dollars per share)		$ 1.65
Weighted-Average Remaining Contractual Term (in years)
Outstanding		7 years 10 months 6 days	8 years 1 month 20 days
Options exercisable		7 years 3 months 3 days

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Number of Shares
Vested (in shares)	(103,521)
Restricted stock units
Number of Shares
Unvested beginning balance (in shares)			239,936
Granted (in shares)	55,729	9,462	1,045,658	164,487
Vested (in shares)			(46,075)
Forfeited (in shares)			(56,814)
Unvested ending balance (in shares)	1,182,705		1,182,705
Weighted-Average Grant Date Fair Value
Unvested beginning balance (in dollars per share)			$ 17.21
Granted (in dollars per share)			11.71
Vested (in dollars per share)			13.81
Forfeited (in dollars per share)			13.48
Unvested ending balance (in dollars per share)	$ 12.20		$ 12.20
Aggregate Fair Value
Unvested balance at January 1, 2022			$ 4,129
Granted			12,245
Vested			636
Forfeited			766
Unvested balance as of September 30, 2022	$ 14,429		$ 14,429
Performance stock units
Number of Shares
Unvested beginning balance (in shares)			0
Granted (in shares)		0	1,395,596	0
Vested (in shares)			0
Forfeited (in shares)			(68,421)
Unvested ending balance (in shares)	1,327,175		1,327,175
Weighted-Average Grant Date Fair Value
Unvested beginning balance (in dollars per share)			$ 0
Granted (in dollars per share)			11.18
Vested (in dollars per share)			0
Forfeited (in dollars per share)			11.68
Unvested ending balance (in dollars per share)	$ 11.18		$ 11.18
Aggregate Fair Value
Unvested balance at January 1, 2022			$ 0
Granted			15,603
Vested			0
Forfeited			799
Unvested balance as of September 30, 2022	$ 14,838		$ 14,838

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Weighted-Average Assumptions to Determine Fair Value (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.65%	2.52%	1.04%
Volatility	53.70%	52.90%	52%
Dividend Yield	0%	0%	0%
Term (years)	6 years	6 years	6 years
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		2.07%
Volatility		70%
Dividend Yield		0%
Term (years)		4 years 1 month 17 days

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Commitments [Line Items]
Rent expense	$ 1,594	$ 994	$ 4,037	$ 2,875
Data provider
Other Commitments [Line Items]
Committed spending amount for the remainder of the year	2,862		2,862
Committed spending amount for year one	8,108		8,108
Committed spending amount for year two	$ 8,500		$ 8,500
Data center equipment
Other Commitments [Line Items]
Capital lease, term	36 months		36 months
Total future lease payments	$ 3,871		$ 3,871
Capital lease obligation	3,871		3,871
Capital lease total payments	$ 7,178		$ 7,178

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2022	$ 837
2023	2,959
2024	2,219
2025	1,755
2026	1,663
2027 and thereafter	634
Total minimum lease payments	$ 10,067

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Future Minimum Amounts Payable Under Non-cancelable Capital Leases (Details) - Data center equipment $ in Thousands	Sep. 30, 2022 USD ($)
Finance Lease, Liability, Payment, Due [Abstract]
Remainder of 2022	$ 578
2023	2,393
2024	726
2025	174
2026	0
2027 and thereafter	0
Total future lease payments	3,871
Less: imputed interest	(424)
Total	$ 3,447

Components of Other Income (E_3

Components of Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Income and Expenses [Abstract]
Foreign currency exchange gain (loss)	$ 410	$ (57)	$ (206)	$ (66)
Other income (expense), net	1,073	(127)	2,559	(190)
Total other income (expense), net	$ 1,483	$ (184)	$ 2,353	$ (256)

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Retirement Benefits [Abstract]
Matching contributions	$ 259	$ 160	$ 697	$ 384

Segment and Geographic Inform_3

Segment and Geographic Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	1

Segment and Geographic Inform_4

Segment and Geographic Information - Geographic Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 65,793	$ 49,252	$ 185,531	$ 134,255
Total assets	6,985		6,985		$ 8,270
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	31,309	22,317	85,961	61,038
Total assets	5,757		5,757		6,409
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	6,565	5,164	18,798	14,064
Russia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total assets	0		0		1,406
Czech Republic
Revenues from External Customers and Long-Lived Assets [Line Items]
Total assets	353		353		408
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	27,919	$ 21,771	80,772	$ 59,153
Total assets	$ 875		$ 875		$ 47