Semrush on public sale of shares on the New York Inventory Trade
- Semrush by the numbers
- Semrush growth strategies
- SEO community thoughts
Semrush announces an initial public offering (IPO) of company shares, filed on Monday, in which the SEO software company will sell shares on the New York Stock Exchange (NYSE).
A registration statement for the proposed IPO states that Semrush intends to list its Class A common stock under the ticker symbol “SEMR.”
The number of shares offered and the price range for the proposed offer have not yet been determined.
Semrush is listed as an “emerging growth company” enabling customers to understand trends with actionable insights that can lead to improved online visibility.
Semrush’s premium features are popular with SEOs, but the software also offers solutions for PPC, content marketing, social media marketing, and competitive research.
Semrush offers a total of over 50 products, tools and add-ons and serves over 67,000 paying customers.
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Here you will find other important details about the company that Semrush announced in its filing with the US Securities and Exchange Commission.
Semrush by the numbers
Semrush includes the following details in its IPO registration statement:
- Offers more than 50 tools in total
- Serves 143 counties
- In business for 12 years
- Has 980+ employees in 5 countries
- Generates $ 144 million in annual sales
- Over 67,000 paying customers
- 76% gross margin
- Raised US $ 37 million in capital
- 94.9% of customers are in the small and medium category
- 54% of sales are generated outside of the United States
Semrush paying customers can access actionable insights through:
- 200 million domains
- 20 billion keywords
- 33 trillion backlinks
- 17 billion URLs
- 310 million banner ads on the Google Display Network
- Analyzes 1 billion events per day
Semrush growth strategies
What is Semrush planning after the IPO?
The company names the following as key elements of its growth strategy:
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- Acquire new paying customers
- Extend the use of the platform through the existing paying customer base
- Keep innovating and developing new products and features
- Tracking opportunistic mergers and acquisitions
Why invest in Semrush?
What does Semrush intend to do with the proceeds from this IPO?
The company says all net proceeds will be reinvested in the further development of Semrush:
“We currently intend to use the net proceeds of this offering primarily to continue investing in our sales and marketing activities to grow our customer base, fund our research and development efforts to improve our technology platform and product functionality, and to bear general and administrative expenses to fund our other growth strategies described elsewhere in this prospectus.
We may also use a portion of the net proceeds to purchase complementary businesses, technology, or other assets, although we do not currently have any agreements, commitments, or understandings in relation to any such transaction. “
Risks of Investing in Semrush
Semrush describes the risks associated with its business, as is common practice with IPO filings, so that investors can make an informed decision.
I’m not going to list them all here, but it’s worth mentioning one that we can all relate to.
According to Semrush, changes to search engine algorithms are among the biggest risks for the company:
“Changes to search engine algorithms could affect the effectiveness of certain of our products, tools and add-ons and could make them out of date. For example, if a particular search engine no longer uses backlinks in its ranking algorithm, our customers’ perception of our backlink analysis tool, which customers can use to analyze and monitor the backlink profile of their own and other websites, may be adversely affected.
When a search engine stops manually penalizing or taking action against websites for unnatural backlinks, our customers may find that their backlinks do not need to be checked, which can lead them to devalue our backlink audit tool with the company Check to see if there are any malicious websites that have links to their websites or are no longer using them. “
In the event any of these changes should occur, Semrush says it will “recalibrate” its product.
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SEO community thoughts
It’s not every day that an SEO software company gets listed on the NYSE. We reached out to the SEO community for their thoughts on this news and future expectations for the company.
Navah Hopkins, Director of Paid Media at Justuno, says:
“Semrush was my first SEO tool when I discovered my career in digital marketing, and I’m excited about your next chapter. Her commitment to first-class tools and accessible training in digital marketing paved the way for a better understanding and more transparency in the areas of SEO and content marketing. I expect that with this IPO they will double the simplification of tools / workflows as they mirror the digital channels they serve (i.e. smart campaigns). “
Adam Riemer, President at Adam Riemer Marketing, says:
“Semrush uses its data and knowledge to develop new tools before the game. They were the first to bring a comprehensive keyword planner and topic mapping tool to market. They also build up a lot of bugs, but at least they create new tools and functions that have practical uses. These tools can take them to new markets like social media, website search, conversion optimization, and more. “
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If you have any thoughts you would like to share, please reach out to us on social media.
Sources: businesswire, sec.gov