So is SEO “dead” as many say, in the age of Generative AI? SaaStr’s own SEO is down a bit, but we’ll see how much by the end of the year. SEMRush itself says our SEO is doing fine:
But SEO is clearly down at HubSpot, G2 etc. and Google is pushing snippets hard. Are the best days of SEO behind us? Maybe, but SEM Rush says otherwise. It’s the quiet, bootstrapped public leader in SEO and SEM, and the financials are impressive:
- $425m ARR
- Growing 22%
- 118,000 customers, up 5.1% from a year ago
- 18% Free Cash Flow margins
- NRR of 106%
- $1.6B market cap, so 4x ARR, although more like 3x net of cash
So not the world’s best ARR multiple. But .. but … it was bootstrapped. No VCs, nothing.
5 Interesting Learnings:
#1. 32% CAGR — Sustained Long-Term Growth
Semrush has maintained a remarkable 32% CAGR from Q1’2019 through Q1’2025, growing ARR from $103M to $424.7M. This consistent growth over a six-year period shows their ability to execute through different market conditions while maintaining strong double-digit expansion. But … growth is now slowing at $400m+ ARR:
#2. Customer Count Has More Than Doubled to 118,000 Since 2019, But Now Flattening
Their customer base has grown from 54,000 in 2019 to 118,000 as of Q1’2025, representing ~2x growth. More importantly, they’ve expanded their enterprise customer segment to 8,500+ accounts, creating a foundation for larger contract values and improved retention.
#3. 90% Increase in Average ARR Per Customer — But Also Now Flattening
Average ARR per customer has expanded from $1,894 in 2019 to $3,608 in Q1’2025 – a 90% increase. Semrush’s has both expanded existing accounts and attracted higher-value customers, driving efficient growth without solely relying on new customer acquisition.
#4. Enterprise The Biggest Growth Vector. 200+ Customers.
- Semrush customers who pay more than $10,000 annually grew by 39% year-over-year.
- Semrush customers who pay over $50,000 increased 86% year-over-year to 388.
#5. But Freemium Still Working. 1m Free Users
#6. Strong International Presence with 50% Revenue Outside US/Canada
Like many B2B companies without fintech or regulatory limitations, Semrush generates approximately 50% of ARR from customers outside the US and Canada as of Q1’2025. This global diversification provides resilience and validates their platform’s universal appeal across different markets and languages.
So SEO isn’t dead, and SEM Rush is still growing at $400m+ ARR.
But is has matured, with new customer growth now slow and pricing increases slowing down.
That’s a 4x ARR story in today’s world.
