1. Financial Health Check
- Revenue: $376.81M
- Net Income: $8.24M
- Net Margin: 2.19%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2024 | 376.81M | 8.24M | 311.34M | 47.00M |
| 2023 | 307.68M | 950000.00 | 255.35M | 7.99M |
| 2022 | 254.32M | -33.85M | 205.76M | -9.62M |
| 2021 | 188.00M | -3.29M | 146.07M | 23.76M |
| 2020 | 124.88M | -7.01M | 94.94M | 5.85M |
4. Competitive Advantage (Moat)
- Type of Moat: Data (Proprietary and Industry)
- Strength: Wide
- Description: Semrush possesses a rich and extensive data set, including 27 billion keywords, 43 trillion backlinks, and over 800 million domains, which is augmented with LLM data. This comprehensive data combined with proprietary algorithms provides unmatched insights and differentiates Semrush from competitors, especially in the emerging AI search landscape.
5. Management Quality
- CEO: Bill Wagner
- Capital Allocation: Focus on organic investment in AI and Enterprise, selective M&A, and share repurchases. Prioritizes reinvestment into the business, especially in AI and Enterprise product development and go-to-market strategies.
- Tone: Optimistic
- Key Quotes:
6. Growth Prospects
- Total Addressable Market (TAM): [Size and Growth Rate]
- Market Share: [Current share and potential to gain]
- New Products/Services: [Pipeline]
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1: Currency exchange rate fluctuations impacting margins due to a significant portion of expenses being denominated in euros.]
- [Risk 2: Potential litigation impacting the ability to execute share repurchases.]
- [Risk 3: Competition in the AI optimization space from numerous start-ups, although management believes Semrush's SEO foundation, data, and brand provide a strong competitive advantage.] ```
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?