EverCommerce Surpasses Q2 2024 Revenue Expectations

EverCommerce Reports Strong Q2 2024 Results

EverCommerce (EVCM), a prominent provider of business software solutions, has announced a revenue of $177.4 million for the second quarter of 2024, which represents a 4.3% year-over-year increase, exceeding expectations. Adjusting for the sale of fitness assets, pro forma revenue growth was recorded at 6%. The company reported an adjusted EBITDA of $41.2 million, yielding a margin of 23.2%.

In the payments segment—excluding fitness solutions—revenue grew by 8% year-over-year, supported by an 8.4% increase in total payment volume (TPV). Notably, Ryan Siurek has been appointed as the new CFO, effective September 6. Additionally, the company has seen substantial growth in cross-selling efforts, with 199,000 customers utilizing more than one solution, marking a 25% increase from the previous year.

Key Takeaways:

• Q2 2024 revenue reached $177.4 million, up 4.3% from the prior year.
• Adjusted EBITDA totaled $41.2 million, with a margin of 23.2%.
• Payments revenue increased by 8% year-over-year, with TPV growth at 8.4%.
• Ryan Siurek was appointed as CFO.
• Customer cross-selling rose by 25% YoY, with 199,000 customers using multiple solutions.

Company Outlook:

• For Q3, EverCommerce anticipates total revenue between $172 million and $176 million.
• Adjusted EBITDA for Q3 is expected to range from $39 million to $42 million.
• The company is prioritizing profitability and substantial free cash flow generation.

Bearish Insights:

• Payments revenue growth has aligned more closely with TPV growth, contrasting previous quarters where payments growth exceeded TPV growth.
• The company is concentrating on expanding take rates and optimizing costs, which may affect short-term revenue growth.

Bullish Insights:

• Subscription and transaction revenue saw a 5.2% increase, while marketing technology solutions revenue rose by 1.6%.
• EverCommerce is gaining traction with its point-of-sale solutions and plans to expand this technology across the business.

Q&A Highlights:

• The transition to a new CFO is not expected to alter timelines or resource allocation for optimization initiatives.
• There has been no observed increase in price sensitivity among small business customers, and the company plans to continue using pricing as a growth strategy.
• EverCommerce has not experienced any degradation in vendor management programs and anticipates stable sales and marketing expenses.

Overall, EverCommerce’s performance in the second quarter of 2024 indicates a company undergoing transformation, as it consolidates operations and optimizes resources. With a new CFO at the helm and steady growth in critical areas, EverCommerce appears well-positioned for ongoing expansion while maintaining a focus on profitability and cash flow.

Final Summary:
EverCommerce reported robust results for Q2 2024, showcasing revenue growth and an emphasis on profitability amidst a transformational phase. The ongoing development of point-of-sale solutions and a strategic focus on customer utilization are expected to drive continued success.

This document summarizes key elements of EverCommerce’s earnings call and outlines important financial indicators and strategic directions for the company.