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GitHub CEO delivers stark message to developers: Embrace AI or get out.

GitHub CEO delivers stark message to developers: Embrace AI or get out.

Business Insider2 hours ago
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In an unambiguous message to the global developer community, GitHub CEO Thomas Dohmke warned that software engineers should either embrace AI or leave the profession.
His candid statement, part of a blog post titled "Developers, Reinvented," underscores the dramatic transformation underway in software development, a shift not just in how code is written, but in the very nature of what it means to be a developer.
The blog drew from interviews with 22 developers already deeply integrating AI into their workflows. Their experiences paint a clear picture: AI isn't a distant future, it's a present necessity.
"Either you have to embrace the Al, or you get out of your career," Dohmke wrote, citing one of the developers who GitHub interviewed.
This is the latest example of a strange marketing strategy by AI companies. Instead of selling products based on helpful features and letting users decide, executives often deploy scare tactics that essentially warn people they will become obsolete if they don't get on the AI bandwagon. For instance, Julia Liuson, another executive at Microsoft, which owns GitHub, recently warned employees that "using AI is no longer optional."
From skeptics to strategists
Dohmke said developers who initially dismissed tools such as GitHub Copilot as gimmicks now see them as indispensable collaborators. Through trial and error, these people have evolved from skeptics to AI strategists, learning to delegate coding tasks to AI agents and focusing their efforts on context design, prompt engineering, and verification, the CEO added.
This is no marginal change. Developers at the leading edge of this transition report that their roles have shifted from writing code to architecting and auditing the code generated by AI. They speak of themselves not as coders, but as "code enablers" or even "creative directors of code," Dohmke wrote in his blog.
Redefining developer value
The CEO argued that this transformation does not diminish developers' value, but redefines it. Those who adopt AI tools early gain leverage, not redundancy. The blog highlights a major mindset shift: instead of optimizing solely for speed or efficiency, developers are using AI to raise the ambition of what's possible, Dohmke wrote, while noting that complex, large-scale refactoring tasks or multi-agent feature builds that once seemed out of reach are now achievable.
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This reframing comes with a career challenge: adapt or risk becoming obsolete. As AI rapidly advances toward automating up to 90% of code writing — a timeline developers estimate could arrive within just two to five years — the skills that will matter most include system design, AI fluency, delegation, and quality assurance, he predicted.
"The software developer role is set on a path of significant change. Not everyone will want to make the change," the CEO wrote. "Managing agents to achieve outcomes may sound unfulfilling to many, although we argue that's what developers have been doing on a lower level of abstraction, managing their computers via programming languages to achieve outcomes."
Humans are often reluctant to change, and Dohmke ended his blog by saying "that's okay."
What's clear is that the CEO thinks these humans should seek another profession.
Maybe plumbing?
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Semrush Announces Second Quarter 2025 Financial Results
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Business Wire

time29 minutes ago

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Semrush Announces Second Quarter 2025 Financial Results

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'Our share repurchase program demonstrates our strong conviction in the business, reflects the strength of our balance sheet and free cash flow generation, highlights the attractive valuation opportunity and reinforces our commitment to delivering shareholder value.' Share Repurchase Program Today, the Company announces that a special committee composed of independent members of our Board of Directors authorized an inaugural share repurchase program. Share repurchases of our Class A common stock under the $150 million program may be made from time to time on the open market (including pursuant to Rule 10b5-1 trading plans), through privately negotiated transactions, or other legally permissible means. The share repurchase program has no time limit, does not obligate Semrush to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Based on information as of today, August 4, 2025, we are issuing the following financial guidance: Third Quarter 2025 Financial Outlook For the third quarter, we expect revenue in a range of $111.1 million to $112.1 million, which at the mid-point would represent growth of approximately 15% year-over-year. We expect third quarter non-GAAP operating margin to be approximately 11.5%. Full-Year 2025 Financial Outlook The company is revising its annual revenue outlook to reflect softer demand at the lower end of the market, impacted by an increase in paid-search cost per click. For the full year, we expect revenue in a range of $443.0 to $446.0 million, which at the mid-point would represent growth of approximately 18% year-over-year. We expect full year non-GAAP operating margin to be approximately 12%. We expect the full year free cash flow margin to be approximately 12%. Reconciliations of non-GAAP operating margin and free cash flow margin guidance to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Conference Call and Webcast Details Semrush will host a conference call and webcast to discuss its financial results, business highlights, outlook and other matters, the details for which are provided below. Date: Tuesday, August 5th, 2025 Time: 8:30 a.m. ET Hosts: Bill Wagner, CEO, and Brian Mulroy, CFO Conference ID: 978610 Participant Toll Free Dial-In Number: +1 833 470 1428 Participant International Dial-In Number: +1 929 526 1599 The live webcast of the conference call as well as the replay can be accessed for a limited time from the Semrush investor relations website at About Semrush Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'shall,' 'should,' 'expects,' 'plans,' 'positioning,' 'anticipates,' 'could,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, guidance on financial results for the third quarter and full fiscal year of 2025 (including revenue, non-GAAP operating margin, and free cash flow margin); statements regarding the expectations of demand for our products and cash flow generation; statements about improvements to and expansion of our products and platform, and launching new products; statements about future operating results, including revenue, growth opportunities, variability of expenses, ability to realize efficiencies, future spending and incremental investments, business trends, our ability to deliver profits, and growth and value for shareholders; assumptions regarding foreign exchange rates; and plans, expectations and statements regarding our share repurchase program. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ('SEC'), including in the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations'' in our filings with the SEC, including our most recent annual report on form 10-K, and our subsequently filed quarterly reports and other SEC filings. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Additional information regarding these and other factors that could affect our results is included in our SEC filings, which may be obtained by visiting our Investor Relations page on its website at or the SEC's website at Non-GAAP Financial Measures & Definitions of Key Metrics We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but also to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. We also believe that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. We also believe free cash flow margin is useful to investors as we monitor it as a measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allows us to better understand the cash needs of our business. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release. Annual Recurring Revenue (ARR) is defined as the total subscription revenue as of a given date that we expect to contractually receive over the subsequent 12 months from customers on an annualized basis, assuming no increases, reductions or cancellations. This ARR definition was updated in our Annual Report on Form 10-K for the period ended December 31, 2024 to simplify the explanation of our calculation around the treatment of monthly and longer-term contracts, and to be more consistent with other SaaS businesses, which we believe improves the ability for investors to compare our metric against other businesses. Additionally, our definition was updated to note that we do not assume there will be any increases, reductions, or cancellations. Given our efforts to retain and win back customers, and our belief that we will be successful in many of those retention efforts, we believe the updated definition is more accurate. We did not recast ARR results to conform ARR under the prior definition to the updated definition as there is no variance between the two definitions for the periods presented. Dollar-based net revenue retention is defined as (a) the revenue from our customers during the twelve-month period ending one year prior to such period as the denominator and (b) the revenue from those same customers during the twelve months ending as of the end of such period as the numerator. This calculation excludes revenue from new customers and any non-recurring revenue. Free cash flow and free cash flow margin. We define free cash flow, a non-GAAP financial measure, as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. We define free cash flow margin as free cash flow divided by GAAP revenue. Non-GAAP income (loss) from operations, and non-GAAP operating margin. We define non-GAAP income (loss) from operations as GAAP income (loss) from operations, excluding Stock Based Compensation, Amortization of Acquired Intangible Assets, Acquisition Related Costs, Restructuring Costs and other one-time expenses outside the ordinary course of business (for example, our Exit Costs incurred primarily in 2022). We define non-GAAP operating margin as non-GAAP income (loss) from operations divided by GAAP revenue. We believe investors may want to consider our results with and without the effects of these items in order to compare our financial performance with that of other companies that exclude such items and to compare our results to prior periods. Stock-based compensation. Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. We believe that the exclusion of stock-based compensation expense allows for financial results that are more indicative of our operational performance and provide for a useful comparison of our operating results to prior periods and to our peer companies because stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies, timing of awards and changes in stock price. Amortization of acquired intangible assets. Excluding amortization of acquired intangible assets from non-GAAP expense and income measures allows management and investors to evaluate results 'as-if' the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Restructuring and other costs. Restructuring and other costs include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business. Restructuring expenses consist of employee severance costs, charges for the closure of excess facilities and other contract termination costs. Other costs include litigation contingency reserves, asset impairment charges, relocation expenses associated with the migration of employees in 2022 that occurred throughout 2022 and early 2023, and gains or losses on the sale or disposition of certain non-strategic assets or product lines. Acquisition-related costs. In recent years, we have completed a number of acquisitions, which result in transition, integration and other acquisition-related expense which would not otherwise have been incurred, are unpredictable and dependent on a significant number of factors that are deal-specific or outside of our control, are not indicative of our operational performance (or that of the acquired businesses or assets) and are likely to fluctuate as our acquisition activity increases or decreases in future periods. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us. ¹ includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of revenue $ 116 $ 59 $ 160 $ 98 Sales and marketing 2,260 1,209 3,887 1,979 Research and development 3,917 1,371 6,383 2,007 General and administrative 7,143 4,527 12,118 8,197 Total stock-based compensation $ 13,436 $ 7,166 $ 22,548 $ 12,281 Expand The following table sets forth a reconciliation of our (loss) income from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin, respectively (percentage amounts may not sum due to rounding): The following table sets forth a reconciliation of our net cash provided by operating activities and net cash provided by operating activities (as a percentage of revenue) to free cash flow and free cash flow margin, respectively (percentage amounts may not sum due to rounding): Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) As of December 31, 2024 Assets Current assets Cash and cash equivalents $ 54,322 $ 48,875 Short-term investments 204,225 186,693 Accounts receivable 14,243 8,955 Deferred contract costs, current portion 10,178 10,044 Prepaid expenses and other current assets 18,138 21,617 Total current assets 301,106 276,184 Property and equipment, net 6,673 6,534 Operating lease right-of-use assets 11,551 11,126 Intangible assets, net 35,317 32,055 Goodwill 59,924 56,139 Deferred contract costs, net of current portion 3,495 3,080 Other long-term assets 6,883 5,825 Total assets $ 424,949 $ 390,943 Liabilities, noncontrolling interest, and stockholders' equity Current liabilities Accounts payable $ 13,505 $ 10,463 Accrued expenses 20,627 20,216 Deferred revenue 81,730 71,827 Current portion of operating lease liabilities 4,966 4,669 Other current liabilities 4,853 6,913 Total current liabilities 125,681 114,088 Deferred revenue, net of current portion 235 235 Deferred tax liability 1,798 1,621 Operating lease liabilities, net of current portion 7,852 7,602 Other long-term liabilities 1,216 1,045 Total liabilities 136,782 124,591 Commitments and contingencies Stockholders' equity Class A common stock 1 1 Class B common stock — — Additional paid-in capital 345,664 322,586 Accumulated other comprehensive income (loss) 2,862 (2,221 ) Accumulated deficit (69,480 ) (63,762 ) Total stockholders' equity attributable to Semrush Holdings, Inc. 279,047 256,604 Noncontrolling interest in consolidated subsidiaries 9,120 9,748 Total stockholders' equity 288,167 266,352 Total liabilities, noncontrolling interest and stockholders' equity $ 424,949 $ 390,943 Expand Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2025 2024 Operating Activities Net (loss) income $ (6,122 ) $ 3,364 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation and amortization expense 6,313 4,269 Amortization of deferred contract costs 7,043 6,054 Amortization (accretion) of premiums and discounts on investments (1,400 ) (2,023 ) Non-cash lease expense 2,451 2,233 Stock-based compensation expense 22,548 12,281 Change in fair value included in other income, net (1,271 ) — Deferred taxes 39 (217 ) Other non-cash items 1,255 1,400 Changes in operating assets and liabilities Accounts receivable (5,427 ) (774 ) Deferred contract costs (7,591 ) (6,129 ) Prepaid expenses and other current assets (4,166 ) (4,017 ) Accounts payable 2,630 1,906 Accrued expenses 104 2,917 Other current liabilities (233 ) 360 Deferred revenue 9,358 7,353 Other long-term liabilities 162 92 Change in operating lease liability (2,900 ) (2,147 ) Net cash provided by operating activities 22,793 26,922 Investing Activities Purchases of property and equipment (1,329 ) (2,906 ) Capitalization of internal-use software costs (6,532 ) (4,369 ) Purchases of short-term investments (61,524 ) (83,605 ) Proceeds from sales and maturities of short-term investments 46,000 102,500 Purchases of convertible debt securities — (650 ) Funding of investment loan receivables — (7,000 ) Proceeds from repayment of investment loan receivables 7,676 — Cash paid for acquisition of assets and businesses, net of cash acquired (1,097 ) (10,026 ) Purchases of noncontrolling interest (223 ) — Purchases of other investments — (131 ) Net cash used in investing activities (17,029 ) (6,187 ) Financing Activities Proceeds from exercise of stock options 648 3,053 Taxes paid related to net share settlement of equity awards (426 ) — Repayment of acquired debt (1,088 ) — Payment of finance leases (211 ) (493 ) Net cash (used in) provided by financing activities (1,077 ) 2,560 Effect of exchange rate changes on cash and cash equivalents 760 (614 ) Increase (decrease) in cash, cash equivalents and restricted cash 5,447 22,681 Cash, cash equivalents and restricted cash, beginning of period 49,060 58,848 Cash, cash equivalents and restricted cash, end of period $ 54,507 $ 81,529 Expand

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