SEMR - Earnings call transcript Q1 2024

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Operator

Hello, everyone, and welcome to the Semrush Holdings First Quarter 2024 Results Conference Call. My name is Drew, and I'll be the operator for today's call. After today's presentation, we will begin the Q&A session. [Operator Instructions] With that, I'll hand over to Brinlea Johnson, Investor Relations. Please go ahead.

Brinlea Johnson

to First welcome Call. XXXX and morning, Semrush Quarter Holdings Conference Good be in on market announced the Monday, press X. We'll results after our discussing release issued May close our call Molroy. Brian CEO, on our is me Levin; and the Oleg With Shchegolev; President, Eugene CFO, our provisions contain of harbor XXXX. the call the will made to Litigation statements, forward-looking Today's Private are Securities which pursuant safe of Act Reform

and market position, growth, are for expected and growth and include, shake and but guidance results, features, not opportunities, and future expected XXXX future tool financial expansion the the and growth second statements competitive our statements improvement, and quarter our customer operating our limited specific and profitability. our Forward-looking trends, concerning about of for the content including and performance industry statements business investments, financial margin XXXX condition, incremental revenue full products of base existing adoption pricing year our future market demand spending and to, segments, of our sales marketing NNA customer activities, and expected our

duty are such statements anticipate, date, not expect, other we Forward-looking our reflect plan, and update subsequent and of of These relied statements. only to views any be intend, as these do will. think statements as believe, or can, views upon any by at identified as than can be should not our fact today statements words statements and undertake representing

results Forward-looking forward-looking differ these risks uncertainties materially statements. address and that could statements that to cause actual are matters to subject from

other on XX-Q and with with XX-K results, the please on report that factors and and our recent actual our of SEC. filings well Exchange filed refer quarterly our discussion annual most a For risks as as Securities affect important the to Commission the Form our report Form could

press release course currently financial after the issued showing There our the non-GAAP available be which a GAAP can results versus we non-GAAP refer certain found market measures. close, today's to reconciliation in of call, investors.ceras.com. During is schedule yesterday at

results uses definition. the quarter our noted guidance for first new our non-GAAP quarter, forward-looking and As last our

non-GAAP for our on margin definition onetime earnings from We are no Definitions presented of margin calculated guiding longer income assets, costs, and these of course non-GAAP restructuring in margin. exclude instead and operations costs operating acquired guidance both non-GAAP We've amortization expenses operating cash are is ordinary which free providing also flow updated our business. to non-GAAP release. outside net acquisition-related income other of and the to for intangible

costs The to exit of XXXX results. the are XXXX financial stock-based addition future financial the prior our reflected first exclusion and current incurred in for For primarily in reflect periods. the quarter example, new All definition will current compensation. our updated statements definitions in

the periods definition the better by by with used measures evaluate information and performance. our management our performance, and are a the to reconciliation providing old internally measure presented. of to We investors a better in and our believe definition methodology also business the of this permit evaluation the and We better update used financial operating efficacy align understand allows for new to management

turn me the let to Oleg. Now call over

Oleg Shchegolev

income growth of Thank $X.X of reported quarter. in $X.X you, revenue XX% and million $XX.X delivered from million, the on to quarter, third We of the and we year-over-year from operations and call. first income operations In good the morning IRR up XX% everyone million of non-GAAP year-over-year.

I prior $XX guidance, cash and and We flow we guidance. generated am see our margin say free Importantly, flow year free we are of XXXX our to pleased cash XX%. raising million full of a

cash profitability flow. generating sustainable free while strong expanding and growth Our business is focused on driving also

significant market scale Eugene a highlights to the strategy few capture see on we to Before touch about to Levin, our opportunity handing a would ahead. continue it to I over business like and

sizes, capability line time, the of the visibility. of have With growing We all enhancing effort choice strong trend and improve businesses platform of to businesses more online investing as for the into visibility. positioning resources

sets our in We the differentiate unique to market. data ourselves are leveraging

make the nearly first and plan benefit In users. our obvious each are paying our We We our both on we grow of will and and marketers and our pre-active progress customers we have growth to customers pre-active XXX,XXX believe X,XXX,XXX base. of to continue millions pillars. reported who over from there now quarter, platform, business

loyal installed segments solopreneurs across countries extensive industries We XXX have over to all from and stands XXX base market an Fortune that companies.

our expect customers an moving as within base. We our average by increase And cross-selling deliver increase continue and nearly to focus XX. reported we ARPU, is in today higher as upselling our on to value we upmarket, which,

Our keep us continue accretive loyal mode the to to base in invest strong profitability, and competitive business. allows

continue designed our objectives. further to We and on technology build foundation with customer business our investments to

include launching series enterprise. new AI-based and reinvestment Our Contentshake expanding tools like the

October enterprise late by of issue are largest of And apparel largest market generally companies. companies As market one to select of number now into we has used It that quarter, is an been we in large-scale the already launched pleased of including the product efficiently customers, highlighted it XXXX. available. and announce research a we one the last soft business

seeing early the signs we encouraging. While initial are very the are in are stages, still we

a offering meaningful inflection enterprise opportunity the create our in has Importantly, to ARPU.

be and to of outlook believe cost future business, pleased significant to migrating our a assess to XXXX, on company workflows, and building customers time our ability product efficiency We cross-selling optimistic corporate-level platform. tends the the helping throughout professional the are savings. quarter we platform. automated our am XXx our our and our adopter Eugene growth average. like drive early service I more discuss on investments In focused but In also in very now I year. the turn start dashboards detail. to call to network the opportunities meaningful to will experiencing I improvements and to customized controls, capitalize in upselling over continuing this remain while our carries delivering Levin XX conclusion, our after results on returns Features And am XXXX. significant offerings about ARPU, our customers the expanding to As and core grow with are

Eugene Levin

and us confidence average businesses generally our solid Thank this significantly We ratio net and that The want than we that multiple relative growth new to us. higher our delivered supporting to strong user to go-to-market on segment enterprise this customer per are several to be met I you, another Semrush set with meaningfully believe To increased I'm average. term. our both our effectively, top than the or will quarter, over a marketing ARPU tend this that have our the quarter, market. customers, segment revenue they user, about for customer quarters. of team further that stronger our broad bottom goal to average service revenue each making ability members line. growth gives durable fall accounts product our optimize we adjustments and have most our the with base, retention sophisticated growth have been strong strength start significant engine upmarket over the model Companies past are LTV-to-CAC driving and represents migration of that into Semrush I durable is deliver several important adoption, increasingly of Oleg. Last optimistic discussed up long making

to strategy shifted high-value the low-touch sales more We focus are our investment leveraging and of enterprise area. product-led our

our customers from some upmarket sales SMB to converting have enterprise enterprise our First, of we realigning investments product. sector been use our the focus category new this on into existing to SEO

desk complexities building that and handle proper the been in discipline quote-to-cash process our sales have often like making investments clients. properly enterprise to we around Second, a things deal These funds. deal large are establishing surround out

already segment confidence in handle for gives have our the making and time that foresee the our have this We in enterprise ability been to us these some ramp we presence significant product. from investments we successfully

AI continue in enterprise product platform. addition our we In initiatives, to leverage to

personalized publish of some tool products directly live We continue on articles, see we features, own, combines AI it's several in to helps ideation recently different rankings. in AI our with called important that guides AI and composes you It tool our SEO-friendly including also smart ways. ContentShake. content and are a generates that copy is understand ideas, excellent to blog the optimize you content its traffic, to to engagement monetizing but We're from shape pricing competitor create released content AI for AI-powered ContentShake organic and creation real of insights. with adoption monetizing

they First, improve acquisition we the of new built as AI experience. inclusion and aids into features have all our the of customer drive those helps retention in also and tools features clients

seen own I'm our positioning and subscriptions our like and well using way for in structured we that AI only portfolio. just AI our higher improved content we R&D using ranks have producing in the higher-priced some we Content in include more higher-priced tiers mentioned. product to also extensive This we quality Shake monetize efficiency the where confident not departments, to tools have our ARPU In of are growth. and but We're product contributes Second, separately success clients content, in And efforts, own product drives to the is through are marketing to recently sold overall making and engagement. drive we summary, only third AI tiers. search help Semrush's market features attracts AI tiers I the the our also

bring seeing the adoption increased of to and and new our to products are innovate AI We continue market. offerings

and retention our to very will our our are and I'm of about guidance. over service financial growing to I offerings. customers our ahead, accounts turn a provide strong discussion will portfolio net excited continue and Brian, more the call market to performance of fuel Go Our and who Brian. detailed sophisticated and ability to expand helping ARPU now

Brian Mulroy

you, Eugene. Thank

quarter had Oleg we a mentioned, board. Eugene As across the first strong and

as and grew on million. than quarter by annual $XX.X that was revenue basis. net new customer trends XX% for to strategy. average on cross-sell as from was Growth ARR revenue million, our Annual a can an best several our expansion XX% customer we year-over-year our to fluctuate recurring to growing the of continue And factors we execute cause are observed There ARR new year-over-year. additions quarter-to-quarter. rather believe per and revenue quarterly driven are result, upsell Our $XXX.X

revenue particularly customers increase metrics made more ARR percentage over to our retention to mix XXX%. paying on We recognize net and recently have time, the first and company should and of incentives some these pressure up, as the dollar-based for X.X% team's exert net having strong troughed that average. expect begin net gentle accordingly accounts per dollar-based user Our calculated than sophisticated was has retention could importance higher retention sales back upward revenue these our some grew since figures. our of year-over-year have changes retention we our as a believe trend We our our quarter

the Moving statement. down income

non-GAAP operating we million. first of is We of $X.X This for number income another and had year-over-year our improvement improvement XX.X%, the is our which of margin points operating factors. basis a During surpassed quarter. quarter, positive to X,XXX of result reported first significant up guidance a the non-GAAP

basis First, margin year-over-year efficiently our leverage XX.X%. platform. engineered improved higher benefited from XX continued scale gross our from points gain Gross ability our to nearly and revenue and to margin

gross We continue key near in competitive to which the STACK a as strong view and term XX% engineered differentiator. way expect in margins above is the our

below Our invest gross structural in to healthy market. gross margins us advantage a gives line, also the provides profit which us flexibility the the

our is been we making operating note for our important commitment go-to-market we also investments continue our drive growth. increase to on while while It have to that execute Second, pursuing efficiencies margins enterprise to able products. to

resources. incremental continue will a our driving to to leverages these investments while growth we realign more make to leverage that SMB as is business. and to business product-led headwinds We leverage to strategy in And self-service This we the strengthen we operating we here drives we're traditional able a meaningful also see our be expect don't that pursue sign-up any because that process reinvest. to expect further position able

million Turning balance and cash We quarter and sheet. ended cash the the $XXX.X short-term million, with to up investments of from equivalents the $X.X quarter. previous

flow $XX.X quarter from was million. operations cash first in the Our

growth strong underlying the business of the guidance. and profitability. to in trends to capabilities team continue to I'm our and confident deliver Turning in

to only what have in by strong optimistic are are year, about business so the not us. we accomplished opportunities a we we of what encouraged front Our start see off is and this far, we as but

$XXX in XX% million we the quarter million our of is of second million, to the $XXX of million, a and $XX.X the guidance to from million translates revenue which revenue and $XX.X For expect growth of of million, midpoint to million of to range represents $X.X $XXX increase prior up range XXXX, $XXX at in range our XX% which to the midpoint. expect

to margins year from difference non-GAAP and operating you margins full full guidance free free interest taxes. between cash XX of XXXX year operating modeling, prior X%. flow approximately cash margin expect We points up be basis is XX.X% non-GAAP income to result by be between and the range the your and with XX.X%, cash flow capital our To help expenditures and our margin our offset

assumes guidance a our euro Finally, rate $X.XX. exchange of

XX% grow and to approximately confident reminder, business balanced and denominated expenses closing, euros. to we a of spending. As and In committed are are to ability remain approach in a our our in disciplined scale our

the are focused future value questions. we shareholders. efficiency for on your open will take driving line expect deliver are and growth We happy we we long-term to while to in opportunities even questions. improved that With profitability please our invest Operator, that,

Operator

you. Thank

today Scott comes We will start from today's [Operator now question session. Our first Needham. Berg from Q&A Instructions]

Scott Berg

I little X. with level. high wanted start more I have question quarter Nice bit macro to a a here.

several throw couple off have the basis. us type a strategy go-to-market your ARR that's maybe we're sold something helping really this over predominantly good especially for companies on Yet last help year-over-year something be inconsistent last to Your very product or additions quarters. bit of maybe kind seeing some X software a you last to been in or buck demand good, results in trend understand soft the little the you that's quarters the of quarters. SMB Can

Eugene Levin

Thank you.

-- still kind Let's in strong market in for And time, see that same don't start remake Brian. say I significant current challenging. IRR, we businesses At we segments, results with with delivered changes deliver we question believe would the environment. any it's all all of

Brian Mulroy

the impacting us company, mean, other us key I like just we're faring Scott, macro for Yes. well. is is every but really

launch And products competitive have really market are mode. position, really our We market we technology have lot that we monetizing a And is where a recently, one to area good play new X the provide from we've more and of shifts in where strong then suspending And AI market secular that able course, actually have area we're a strong ways we been earlier. mentioned in an to service. good upmarket shifting Eugene -- that enterprise. into really companies happening of

to a of navigate macro lot this durable that deliver still there's think we So really us through a environment factors strong are allowing growth. and

Scott Berg

like expect some sales here. new opportunities quarter me ARR trough over is, how maybe it. Brian, question do customers side sale offer enterprise maybe expansion to mentioned Got incent most you last about land Helpful. we in a a much made opportunity And land-and-expand that to changes the the your Is seats? modules a larger the cross-sell you maybe Or ARR then this the for your to recent impact sales you think little or on It But not sounds having expansions motion that bit opportunity some very time? by enterprise are there? might still of much on that's more.

Brian Mulroy

Yes. Sure.

the We've basis. gross been over to strong very performance, a we're the a a And quarter, durable performance maintain seen recent So retention with most we've and many really ARR, able in with pleased net trough XXX%. on the X things. in pleased quarters.

talked over couple have of quarters lagging it over measures about a of past that XX-month that that is We a somewhat period. performance metric the

of So been XX of the to up it's upmarket advantage platform X,XXX our and us enterprise with and delivered time, asking new our take features launch are fact have expect and for more We've than we product. already know, we our their play. work. customer adopted pick expand there commands the do products. about We've an we as to key enterprise potential troughing, for paying there over components ARPU our that the is of especially expected start doing to XXx They've talking that SEO is, what as majority enterprise land you about of what early ARR The per average enterprise it and And But and is. have very best and a loyal been we that do accounts. expand. sure, SEO move exactly an our for more are to will of more

expect the having days on be accounts to do the of upward good pressure therefore, enterprise So we and and metric. our existing expand in that early ARR

Operator

Jefferies. from from Surinder comes Thind question next Our

Surinder Thind

As enterprise the about maybe of look enterprise-based as to a and customers up potential behavior can follow-on kind the U.S. markets, you you customers or international opportunity? between talk maybe

Eugene Levin

for Yes. Thank you the question.

look At soft them So of opportunity companies. #X market actually the if in at course, you almost half of list are at United States that the a the least us. we point acquired of is since time, end for half view. of the It's early launch customers of our from international October, of same

have We even who in of always had companies know, to philosophy and markets. are other because traction in a And global products globe. sell in general, across for customers, in France use the and as lot probably U.S. also very you our Germany, strong build a we overseas mind them multinational

So point global Semrush built go-to-market, over different again, terms use. has And is of XX from presence for product also of in that view, definitely in countries.

help be and the markets. speak know we And pretty terms scale you to us But speakers are international of go-to-market really with that's those only several native need people needs force expansion. to with really For we're can all seem of to a And base customer go-to-market smaller. because view, bit not going might thing, going ramp to But it presence as world big based what enterprise, from list the be as point another probably little is a our in sales actually languages work that our on matters proportionally. what done is geographic still, the only of in languages. probably there popular most teams who is much

Surinder Thind

you've it call, changes? change on talked before how how enterprise you've we obviously, kind changes levels. here. very what kind sales more are expect are mean And about of than describe opportunity for get on Because the made? then different significant to that should enterprise would I the we call but productivity How Or you then the the as disruptive And the sales the are a how full structure changes? would I just SMB much sales. of follow-up

Eugene Levin

Yes.

So great question.

questions Just and investments making we enterprise. what -- impact so SMB and how it are that One there. in is does then to changes X

need, AI couple So allowed the that low-cost side, process. we've selling we fortunate that able focused a CRM engine, One And and because a that on efficiency to enterprise ERP grow good allowed systems years a years. been we've that, automation we the us of play, been with efficiently frictionless an on. doing very It's has that us advantage. very motion. even that cash. enhance of to and that structural and with able lead the last That's opportunity SMB product-led X maintain we to manage things that we've really been couple to the there's demand SMB the that given generation to have success we're upmarket for manages customers. so quote selling system and reinvest is us process over a past of fundamental infrastructure over into there's an And and engine and efficiency and manage mid-market have to been to our in transactions

able a allow to and companies able be set types that the negotiations of course, in transactions to investing to experience sellers a help facilitate have that resources from to procurements. From partnerships preparing evolve to scaling So transaction successful. for transactions. we've perspective, with us we're and investing that of develop sale the and that strong to desk in up enterprise human will value-based relationships to the been And be just skill deal a and a be these with

us. expecting investments So building over have disruptive And the things SMB the we're for will and We're dynamics efficiencies been impact time, this adjust see have to because that be that and business in the able it's enterprise, those making been not new investments. the for we're then accordingly.

expectations is enterprise selling upmarket opportunity do the risks this account and new, So accordingly. we're into the the product and than more have while setting accounts, enterprise X,XXX SEO motion we and taking and

Operator

next Ader today from from comes Our Scott KeyBanc. question

Jackson Ader

Markets. Capital It's Jackson I Ader from you're well. doing hope KeyBanc

is, growth balance know just talked I So guys you first the But about Brian, question have and profit. result. given of the

Brian Mulroy

think the for single Semrush ourselves something a Yes, really they're question. this on day. throughout we've about investments here, that growth our sure an the leaders It's really, will every is to frontier. organization goal goal we and And good we're and that value us shareholders. about make at our this, drive focusing always challenging long-term our talked efficient to and achieve is

we business to investment. doesn't return drives be in to the past don't overspending as the investment want efficient be we that So results. But the so incremental and want where that incremental justify frontier getting investing long

bit. For Semrush investing in a we quite are XXXX,

availability us a others we're So that of of constantly play will few recent product number our by adjacency in We've what earlier investing in the enterprise our that investments platform upmarket on enterprise on one a this morning AI we've this lot focused a core talked Eugene evidenced for new as allow most monetized been our AI. we're of and product and expand ways, SEO. is general about CntentShake next beyond competency. different customers to that close doing

do foreseeable lot continuing a believe We we're to So there in of future that XXXX opportunity. in invest. the is

we quite balance over million put a be X on paying and with customers, cash work, foundation and to have we'll the have time. a that over free users, strong sheet XXX,XXX doing We to of bit

Jackson Ader

like? the like have have -- for than I willingness, to looks your to typical spend XX customers practical sense or right. that guess, a customer? get they can what their Do propensity current what And you Okay. XXx quick just -- a Great. for then talked of Those enterprise All is kind question. X,XXX a about, the do more they follow-up, we ARPU

Oleg Shchegolev

their Yes. well. is average their much And LTV more. pay already than Definitely, higher expansion, they as

They more more people more buying product. to are just using active, have not the subscriptions. they're likely they are So expensive multiple

all have they correlate So signs pay. the that to willingness with

Operator

Adam from Hotchkiss Our Sachs. next Goldman from comes question

Adam Hotchkiss

enterprise and at touch on see faster a SEO like the Great. product. we a like early look XXX-degree start, message I we access I productivity send the seems just to little enterprise When XXx generating to a bit of prospective data, stats ambitious wanted customer a is. view page, more which to guess pretty

So tiered just much are when then customers offerings giving step and sense that a could aren't what think back you asking enterprise for them how a And about give for you of function that would looking just run of wanting versus a incremental How actively your relationship? balance on customers you customer volume of is to through describe more to take you us the the that today? co-innovate to system products?

Eugene Levin

Great question.

I you mean, to of sell. yes, So course, sell, have to

course, a achievable, which I need So you needs, conservative. just of definitely but their is is even the couple maybe -- them why people product fine-tune with. of and of XXx help think examples to to put give XXx work to we But

We And how have, connect figure internal pages for a small hard, out do you when and our XX module. not put using who them. internal linking you just website, to board, for can use customers example, you it's it linking do white

have they of customers, pages. enterprise our Now millions

is is there in that all big and connect to those to enough put out the So how no figure them. world whiteboard pages

SMB website just of authority them, not not more this understand between other linked pages it's figure map things SMBs those of is other patients connected but that that technically that's websites pages can would fancy SMB of millions being to and and additional we So profile, have other they call don't we can in platforms, so totally do be profile, are they with externally just we that so websites. same learning able only need work of the the and be that things machine share They page things using enterprises incremental. should of build that you technology of offerings use websites don't what And the the companies actually internal out the sort and need They We -- it's versions are enterprise they buy and being what that that we think scope productive, incremental. sell if large you And purely value, to XXx incremental solve out to our enterprise problems are big are of tiered They a pages, able millions technology. enterprise difference have linked have. what with the with products, figure different about finally so have products. philosophy that not without with the while we to pages like to data, offering. an the features, do AI you the they

Adam Hotchkiss

look enterprises. Okay. be That's to those And then then exist will vet that meaningful And in about more It little freelancers this helpful. you're that though arrangements useful. bit building that if just more help of say Is would here it out with seems incredibly services fair what in-house? you you maybe, monetization touch upmarket. a like Brian, place strategy freelancers, services the could talk to just on with opting move and professional seen the we've could what to you as your collaborate enterprise excuse

Eugene Levin

you industry-leading and experts arm need They question, need product. from sort to and pool another could then well their And want to very extra opinion and think and of hand. software will demand need big And for billing and agency probably quarter because, customers we as the of guide time, from companies, starting the have view, we with doing what area answered freelancers. facilitation to I should of first this mentioned, well build is a for we brand when services, approach what someone high-margin this work their small and they the commission as with to We arrangement, to remaining with transactions them differentiated the run they to And over actually them leads our and our in -- provide business. margin we inside terms to tackle and we and it's there partner they And connect they has have, other companies of different the have which as them that we're options we them experts X And to sometimes customers. company, product where Great additional is dilutive. we're enterprise services, that is clients benefits. But actually this are with is productize areas do someone company. expand of take our Yes. SMB in some in provide we pass handle service problem, -- then services by point software are financial and revenue our second hold allowing course, decide and companies generate freelancers.

high-margin So we a only revenue recognize as us. for revenue so clean our it's commission,

Operator

today Morgan comes from Stanley. Porter Elizabeth next Our question from

Elizabeth Elliott

the Just plus focus It that larger on upside the and ARPU. a customers. enterprise upsell given to material cross-sell be can sounds addressing

how So ARPU algo between think and customers about these the X we should new between factors. growth shifting

a it's think balanced, skewed more customers. I bit a towards more historically, maybe been bit little

just level go initiatives? on the I set wanted So these we as the in forward growth outlook algo to down new

Brian Mulroy

is Yes. Elizabeth, Brian. this

drivers expect, So us. in experienced that be for we've we the both past growth as significant will

for particular talked we've At to same We've customer as healthier a the growth like bulk retention, continue us So the see even incremental we're tends SMB the as average very we net growth metrics adds about, amount healthy, the do paying we be to has for things quarter. that very and every segment. we're the which ARR The still pleased be we and been to upmarket. much adds driver of single and time, moving will see expect that of per been us. talking for experience that about mid-market, net strong the

growth towards net -- slight think accounts. where adds might we'll see I of expect number higher-valued But actually a upsell still or you bit shift healthy the that sorry, a see little going forward, would shift the as in well. growth accounts we and and more So

Elizabeth Elliott

a side. below bit as a in the on And X,XXX Then X,XXX of actually consistently just prior Great. was added net QX. then follow-up add the you've

curious QX, So just if trend QX. in call prior relative and leaving seasonal to any there that out to the play also How did customers of touch but out on back were coming then years? factors in

Brian Mulroy

Sure.

number. But just just you I year-over-year forward. we're -- about on like net There's seasonal affect building what accounts could higher-valued metric quarter-to-quarter. from you're they as we more quarter we're see going fluctuate or even that could seeing upmarket putting -- see add is be always So metric, enterprise just that could putting think that, that focus any within because that you that focus more impacted talking on dynamics can were that X the

Operator

Our Murphy Mark JPMorgan. go ahead. question comes from final Please from

Mark Murphy

Murphy. give is year? on the these particularly the how you some Arteon sense of Can this I for expect you end This Mark to of you us upper any market. hiring expected trend guys of spoke make, are to to investments

Eugene Levin

just a It's again? It ask was tough you. It it hear choppy. little to you to hear Can you. tough bit was

Mark Murphy

this better? Is

Eugene Levin

again. breaking a bit, little It's try up but

Mark Murphy

question hiring maybe should was to just year particularly to My around and and compared that last to transit this we grow, year expect the marketing year how to before.

Eugene Levin

I a expecting see. not significant We're good question. change. Yes,

our being about talking was efficiencies quantity been course, SMB funded enterprise higher. investments SMB we've and -- the So are in And in is of of we're seeing mid-market and by the mid-market. sellers

and We're lot reinvest back AI leveraging of into take strategy. able SMB been able to of the the growth and enterprise. advantage sales So now of e-commerce advantage really to a the our that push automation take platform product-led through and we've

an So investing see you sales while and push the from materially. sales headcount even or perspective a expense strong expect to enterprise, change significantly we're making shouldn't E-to-R into

Operator

no session. to -- are team questions today's back queue I'll There time, remarks. the closing now over hand concludes this Q&A the further at at for management in that

Oleg Shchegolev

first on to say you joining quarter the and with Thank for XXXX. you forward all you. today. in strong I very our to Thank we again, us our are we start pleased updated progress. look giving to want And execution

Operator

call. That today's concludes

lines. You may your disconnect now

Semrush (SEMR) 7 May 242024 Q1 Earnings call transcript