EverCommerce (EVCM) Q3 Earnings call transcript Nov 12, 2024

Daily EarningsWednesday, Nov 13, 2024 9:24 am ET

1min read

EverCommerce, a leading provider of Software-as-a-Service (SaaS) solutions for small and medium-sized businesses (SMBs), held its Q3 2024 earnings call, highlighting the company's financial performance and strategic initiatives. The call, led by CEO Eric Remer and CFO Ryan Siurek, provided insights into the company's transformation and optimization efforts, growth strategies, and financial results.

Financial Performance and Growth

EverCommerce reported a GAAP revenue increase of 0.9% year-over-year, reaching $176.3 million, with adjusted EBITDA of $44.5 million, representing a 25.3% margin. The company's pro forma growth, which adjusts for the sale of its fitness solutions, showed a 4.3% year-over-year increase, demonstrating a solid financial foundation. The company's focus on payments revenue, which grew 6.7% year-over-year on an LTM pro forma basis, contributed significantly to the overall performance.

Transformation and Optimization

EverCommerce's transformation and optimization efforts were a key focus of the call. The company has been making significant strides in enhancing its EverPro vertical, including the hiring of a seasoned leader, Josh McCarter, to spearhead the division. McCarter's extensive experience in technology, e-commerce, and vertical SaaS will be instrumental in capitalizing on market opportunities and accelerating growth in the EverPro vertical.

The company also discussed its optimization initiatives, which include cost savings measures and a focus on selling business management software that includes embedded payments. This strategy is expected to enhance the value received by customers while driving additional revenue and margin expansion. The company reported that approximately 212,000 customers were enabled for more than one solution, reflecting 25% year-over-year growth.

Investment in Growth

EverCommerce remains committed to investing in its growing business while maintaining a focus on free cash flow generation. The company reported significant free cash flow generation and has approximately $39.4 million remaining in its repurchase authorization that runs through year-end 2025. This financial strength positions EverCommerce well for strategic acquisitions and investments in the future.

Looking Ahead

EverCommerce's Q3 earnings call provided a comprehensive update on the company's financial performance and strategic initiatives. The company's focus on transformation and optimization, coupled with its solid financial foundation, positions it well for continued growth in the future. Investors and stakeholders should closely monitor EverCommerce's progress in its key verticals, particularly EverPro, as the company continues to optimize its offerings and capitalize on market opportunities.

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