EverCommerce Inc. ("EverCommerce" or the "Company") (NASDAQ: EVCM),
a leading service commerce platform, today announced financial
results for the quarter ended September 30, 2023.
Third Quarter
2023 Financial Highlights
-
Revenue of $174.7 million, an increase of 10.5%
compared to $158.1 million for the quarter ended September 30,
2022.
-
Subscription and transaction fee Revenue of $132.6
million, an increase of 10.5% compared to $120.1 million for the
quarter ended September 30, 2022.
- Net
loss was $0.6 million, or $(0.00) per basic and diluted
share, for the quarter ended September 30, 2023, compared to
net loss of $15.9 million, or $(0.08) per basic and diluted share,
for the quarter ended September 30, 2022.
- Adjusted
EBITDA was $41.8 million for the quarter ended
September 30, 2023, compared to $30.2 million for the quarter
ended September 30, 2022.
“EverCommerce continues to advance its goal of
being the leading provider of vertical software for service SMBs,”
said Eric Remer, EverCommerce’s Founder and CEO. “Despite modest
macroeconomic pressures in the more transactional aspects of our
business, we delivered revenue growth that was within our target
range and Adjusted EBITDA that exceeded the top end of guidance.
Third quarter Adjusted EBITDA grew 38.6% year-over-year,
representing 485 basis points of margin expansion.”
A reconciliation of GAAP to Non-GAAP measures
has been provided in the financial statement tables included at the
end of this press release. An explanation of these measures is also
included below under the heading “Non-GAAP Financial Measures.”
Share Repurchases
On November 5, 2023, our Board of Directors
approved a $50.0 million increase in the previously announced stock
repurchase authorization and extended the authorization through
December 31, 2024. The total authorization since the repurchase
program began allows for the purchase up to $150.0 million in
shares of the Company’s common stock.
The Company repurchased and retired 160,000
shares of common stock for approximately $1.6 million during the
three months ended September 30, 2023. As of September 30,
2023, $16.0 million remained available under the Repurchase
Program.
Repurchases under the program may be made from
time to time in the open market at prevailing market prices or in
negotiated transactions off the market. Open market repurchases
will be structured to occur within the pricing and volume
requirements of Rule 10b-18. The Company may also, from time to
time, enter into Rule 10b5-1 plans to facilitate repurchases of its
shares under this authorization. This program does not obligate the
Company to acquire any particular amount of common stock and the
program may be extended, modified, suspended or discontinued at any
time at the Company’s discretion. The Company expects to fund
repurchases with cash on hand.
Business Outlook
Based on information as of today,
November 6, 2023, the Company is issuing the following
financial guidance for the fourth quarter and full year 2023.
Fourth Quarter 2023:
-
Revenue is expected to be in the range of $170
million to $174 million.
- Adjusted
EBITDA is expected to be in the range of $35.5 million to
$39.5 million.
Full Year 2023:
-
Revenue is expected to be in the range of
$676 million to $680 million.
-
Adjusted EBITDA is expected to be in the range of
$148 million to $152 million.
A reconciliation of Adjusted EBITDA to net
income, the most directly comparable GAAP measure, is not available
without unreasonable efforts on a forward-looking basis due to the
high variability, complexity and low visibility with respect to
certain charges excluded from this non-GAAP measure; in particular,
the measures and efforts of stock-based compensation expense
specific to equity compensation awards that are directly impacted
by unpredictable fluctuations in our stock price. It is important
to note that these charges could be material to EverCommerce's
results computed in accordance with GAAP.
Conference Call Information
EverCommerce’s management team will hold a conference call to
discuss our third quarter 2023 results and outlook today,
November 6, 2023, at 5:00 p.m. ET. Please visit the "Investor
Relations" page of the Company's website
(https://investors.evercomerce.com) for both telephonic and webcast
access to this call as well as a copy of the presentation materials
used on the call. An archive replay will be available following the
conclusion of the call.
Investor ContactBrad KorchSVP
and Head of Investor Relations720-796-7664IR@evercommerce.com
Media ContactJeanne TroganVP of
Communications737-465-2897Press@evercommerce.com
About EverCommerce
EverCommerce (Nasdaq: EVCM) is a leading service
commerce platform, providing vertically-tailored, integrated SaaS
solutions that help more than 685,000 global service-based
businesses accelerate growth, streamline operations, and increase
retention. Its modern digital and mobile applications create
predictable, informed, and convenient experiences between customers
and their service professionals. With its EverPro, EverHealth, and
EverWell brands specializing in Home, Health, and Fitness &
Wellness service industries, EverCommerce provides end-to-end
business management software, embedded payment acceptance,
marketing technology, and customer experience applications. Learn
more at EverCommerce.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking statements, including without limitation
statements regarding our future operations and financial results,
the underlying trends in our business and the macroeconomic
environment, our market opportunity, our potential for growth and
our strategy. These statements are neither promises nor guarantees,
but involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to, our
limited operating history and evolving business; our recent growth
rates may not be sustainable or indicative of future growth; we may
not achieve profitability in the future; we may continue to
experience significant quarterly and annual fluctuations in our
operating results due to a number of factors, which makes our
future operating results difficult to predict; we may reduce our
rate of acquisitions and may be unsuccessful in achieving continued
growth through acquisitions; revenues and profits generated through
acquisitions may be less than anticipated, and we may fail to
uncover all liabilities of acquisition targets; we may need to
incur additional indebtedness or seek capital through new equity or
debt financings, which may not be available to us on acceptable
terms or at all; we may not be able to continue to expand our share
of our existing vertical markets or expand into new vertical
markets; we face intense competition in each of the industries in
which we operate; the industries in which we operate are rapidly
evolving and the market for technology-enabled services that
empower SMBs is relatively immature and unproven; we are dependent
on payment card networks and payment processors and if we fail to
comply with the applicable requirements of our payment network or
payment processors, they can seek to fine us, suspend us or
terminate our registrations through our bank sponsors; the
inability to keep pace with rapid developments and changes in the
electronic payments market or are unable to introduce, develop and
market new and enhanced versions of our software solutions; real or
perceived errors, failures or bugs in our solutions; unauthorized
disclosure, destruction or modification of data, disruption of our
software or services or cyber breaches; our estimated total
addressable market is subject to inherent challenges and
uncertainties; actual or perceived inaccuracies in our operational
metrics may harm our reputation; failure to effectively develop and
expand our sales and marketing capabilities; failure to maintain
and enhance our reputation and brand recognition; inability to
retain current customers or to sell additional functionality and
services to them may adversely affect our revenue growth; our
systems and our third-party providers’ systems may fail or our
third-party providers may discontinue providing their services or
technology or to us specifically; faster growth of lower margin
solutions and services than higher margin solutions and services;
risks related to COVID-19; economic and political risks, including
the business cycles of our clients and changes in the overall level
of consumer and commercial spending; our ability to retain and hire
skilled personnel; risks related to our indebtedness; risks related
to our material weakness and internal control over financial
reporting; risks related to the increasing focus on environmental
sustainability and social initiatives; our ability to adequately
protect or enforce our intellectual property and other proprietary
rights; risk of patent, trademark and other intellectual property
infringement claims; risks related to governmental regulation;
risks related to our sponsor stockholders agreement and qualifying
as a “controlled company” under the rules of The Nasdaq Stock
Market; as well as the other factors described in our Annual Report
on Form 10-K for the year ended December 31, 2022 and updated
by our other filings with the SEC. These factors could cause actual
results to differ materially from those indicated by the
forward-looking statements made in this press release. Any such
forward-looking statements represent management’s estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim
any obligation to do so, even if subsequent events cause our views
to change.
Non-GAAP Financial Measures
EverCommerce has provided in this press release
financial information that has not been prepared in accordance with
generally accepted accounting principles in the United States
(“GAAP”). EverCommerce uses these non-GAAP financial measures
internally in analyzing its financial results and believes that use
of these non-GAAP financial measures is useful to investors as an
additional tool to evaluate ongoing operating results and trends
and in comparing EverCommerce’s financial results with other
companies in its industry, many of which present similar non-GAAP
financial measures.
Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
financial measures and should be read only in conjunction with
EverCommerce’s consolidated financial statements prepared in
accordance with GAAP. A reconciliation of EverCommerce’s historical
non-GAAP financial measures to the most directly comparable GAAP
measures has been provided in the financial statement tables
included in this press release, and investors are encouraged to
review the reconciliation.
Adjusted Gross Profit. Adjusted Gross Profit is
a key performance measure that our management uses to assess our
operational performance, as it represents the results of revenues
and direct costs, which are key components of our operations. We
believe that this non-GAAP financial measure is useful to investors
and other interested parties in analyzing our financial performance
because it reflects the gross profitability of our operations, and
excludes the indirect costs associated with our sales and
marketing, product development, general and administrative
activities, and depreciation and amortization, and the impact of
our financing methods and income taxes.
Gross profit is calculated as total revenue less
cost of revenue (exclusive of depreciation and amortization),
amortization of developed technology, amortization of capitalized
software and depreciation expense (allocated to cost of revenues).
We calculate Adjusted Gross Profit as gross profit adjusted to
exclude depreciation and amortization allocated to cost of
revenues. Adjusted Gross Profit should be viewed as a measure of
operating performance that is a supplement to, and not a substitute
for, operating income or loss, net earnings or loss and other GAAP
measures of income (loss) or profitability.
Adjusted EBITDA. Adjusted EBITDA is a key
performance measure that our management uses to assess our
financial performance and is also used for internal planning and
forecasting purposes. We believe that this non-GAAP financial
measure is useful to investors and other interested parties in
analyzing our financial performance because it provides a
comparable overview of our operations across historical periods. In
addition, we believe that providing Adjusted EBITDA, together with
a reconciliation of net income (loss) to Adjusted EBITDA, helps
investors make comparisons between our company and other companies
that may have different capital structures, different tax rates,
and/or different forms of employee compensation.
Adjusted EBITDA is used by our management team
as an additional measure of our performance for purposes of
business decision-making, including managing expenditures, and
evaluating potential acquisitions. Period-to-period comparisons of
Adjusted EBITDA help our management identify additional trends in
our financial results that may not be shown solely by
period-to-period comparisons of net income or income from
continuing operations. In addition, we may use Adjusted EBITDA in
the incentive compensation programs applicable to some of our
employees. Our Management recognizes that Adjusted EBITDA has
inherent limitations because of the excluded items, and may not be
directly comparable to similarly titled metrics used by other
companies.
We calculate Adjusted EBITDA as net loss
adjusted to exclude interest and other expense, net, income tax
expense (benefit), depreciation and amortization, other
amortization, acquisition related costs and non-recurring costs,
and stock-based compensation. Other amortization includes
amortization for capitalized contract acquisition costs.
Acquisition related costs and non-recurring costs are specific
deal-related costs such as legal fees, financial and tax due
diligence, consulting and escrow fees as well as expenses such as
system implementation costs and severance related to planned
restructuring activities. Acquisition related and non-recurring
costs are excluded as they are not representative of our underlying
operating performance. Adjusted EBITDA should be viewed as a
measure of operating performance that is a supplement to, and not a
substitute for, operating income or loss, net earnings or loss and
other GAAP measures of income (loss).
EverCommerce Inc.Condensed Consolidated
Balance Sheets(in thousands, except per share and
share amounts)(unaudited) |
|
September 30, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
87,335 |
|
|
$ |
92,625 |
|
Restricted cash |
|
3,488 |
|
|
|
3,199 |
|
Accounts receivable, net of allowance for expected credit losses of
$6.3 million and $4.7 million at September 30, 2023 and
December 31, 2022, respectively |
|
50,725 |
|
|
|
48,032 |
|
Contract assets |
|
13,233 |
|
|
|
12,971 |
|
Prepaid expenses and other current assets |
|
24,480 |
|
|
|
23,760 |
|
Total current assets |
|
179,261 |
|
|
|
180,587 |
|
Property and equipment, net |
|
10,261 |
|
|
|
11,930 |
|
Capitalized software, net |
|
40,607 |
|
|
|
32,554 |
|
Other non-current assets |
|
46,563 |
|
|
|
46,855 |
|
Intangible assets, net |
|
340,841 |
|
|
|
405,720 |
|
Goodwill |
|
923,766 |
|
|
|
914,082 |
|
Total assets |
|
1,541,299 |
|
|
|
1,591,728 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
8,354 |
|
|
$ |
8,373 |
|
Accrued expenses and other |
|
57,935 |
|
|
|
56,963 |
|
Deferred revenue |
|
24,639 |
|
|
|
22,885 |
|
Customer deposits |
|
12,188 |
|
|
|
11,360 |
|
Current maturities of long-term debt |
|
5,500 |
|
|
|
5,500 |
|
Total current liabilities |
|
108,616 |
|
|
|
105,081 |
|
Long-term debt, net of current maturities and deferred financing
costs |
|
527,762 |
|
|
|
530,946 |
|
Other non-current liabilities |
|
42,765 |
|
|
|
49,008 |
|
Total liabilities |
|
679,143 |
|
|
|
685,035 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.00001 par value, 50,000,000 shares authorized
and no shares issued or outstanding as of September 30, 2023
and December 31, 2022 |
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value, 2,000,000,000 shares authorized
and 188,927,445 and 191,447,237 shares issued and outstanding at
September 30, 2023 and December 31, 2022,
respectively |
|
2 |
|
|
|
2 |
|
Accumulated other comprehensive loss |
|
(12,919 |
) |
|
|
(10,198 |
) |
Additional paid-in capital |
|
1,471,713 |
|
|
|
1,489,935 |
|
Accumulated deficit |
|
(596,640 |
) |
|
|
(573,046 |
) |
Total stockholders’ equity |
|
862,156 |
|
|
|
906,693 |
|
Total liabilities and stockholders’ equity |
$ |
1,541,299 |
|
|
$ |
1,591,728 |
|
EverCommerce Inc.Condensed Consolidated
Statements of Operations and Comprehensive Loss(in
thousands, except per share and share
amounts)(unaudited) |
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Subscription and transaction fees |
$ |
132,640 |
|
|
$ |
120,085 |
|
|
$ |
386,765 |
|
|
$ |
343,734 |
|
Marketing technology solutions |
|
36,838 |
|
|
|
36,276 |
|
|
|
103,081 |
|
|
|
101,340 |
|
Other |
|
5,263 |
|
|
|
1,765 |
|
|
|
16,083 |
|
|
|
13,874 |
|
Total revenues |
|
174,741 |
|
|
|
158,126 |
|
|
|
505,929 |
|
|
|
458,948 |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenues (exclusive of depreciation and amortization
presented separately below) |
|
61,471 |
|
|
|
57,655 |
|
|
|
175,602 |
|
|
|
163,503 |
|
Sales and marketing |
|
30,086 |
|
|
|
29,440 |
|
|
|
91,660 |
|
|
|
89,531 |
|
Product development |
|
19,318 |
|
|
|
18,508 |
|
|
|
56,352 |
|
|
|
53,568 |
|
General and administrative |
|
31,538 |
|
|
|
32,164 |
|
|
|
101,553 |
|
|
|
96,748 |
|
Depreciation and amortization |
|
26,035 |
|
|
|
27,613 |
|
|
|
77,975 |
|
|
|
82,524 |
|
Total operating expenses |
|
168,448 |
|
|
|
165,380 |
|
|
|
503,142 |
|
|
|
485,874 |
|
Operating income (loss) |
|
6,293 |
|
|
|
(7,254 |
) |
|
|
2,787 |
|
|
|
(26,926 |
) |
Interest and other expense, net |
|
(6,666 |
) |
|
|
(8,890 |
) |
|
|
(26,615 |
) |
|
|
(21,070 |
) |
Net loss attributable to common stockholders before income
tax (expense) benefit |
|
(373 |
) |
|
|
(16,144 |
) |
|
|
(23,828 |
) |
|
|
(47,996 |
) |
Income tax (expense)
benefit |
|
(241 |
) |
|
|
291 |
|
|
|
1,543 |
|
|
|
5,953 |
|
Net loss attributable to common stockholders |
|
(614 |
) |
|
|
(15,853 |
) |
|
|
(22,285 |
) |
|
|
(42,043 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Foreign currency translation losses, net |
|
(1,940 |
) |
|
|
(6,978 |
) |
|
|
(2,721 |
) |
|
|
(15,811 |
) |
Comprehensive loss attributable to common
stockholders |
$ |
(2,554 |
) |
|
$ |
(22,831 |
) |
|
$ |
(25,006 |
) |
|
$ |
(57,854 |
) |
Basic and diluted net loss per share attributable to common
stockholders |
$ |
— |
|
|
$ |
(0.08 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.22 |
) |
Basic and diluted weighted-average shares of common stock
outstanding used in computing net loss per share |
|
188,805,421 |
|
|
|
194,542,764 |
|
|
|
189,039,709 |
|
|
|
195,205,260 |
|
EverCommerce Inc.Condensed Consolidated
Statements of Cash Flows(in
thousands)(unaudited) |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Cash flows provided by
operating activities: |
|
|
|
Net loss |
$ |
(22,285 |
) |
|
$ |
(42,043 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
77,975 |
|
|
|
82,524 |
|
Stock-based compensation expense |
|
19,610 |
|
|
|
19,776 |
|
Deferred taxes |
|
(2,066 |
) |
|
|
(6,855 |
) |
Amortization of deferred financing costs and non-cash interest |
|
1,240 |
|
|
|
1,622 |
|
Bad debt expense |
|
5,285 |
|
|
|
2,362 |
|
Other non-cash items |
|
(4,807 |
) |
|
|
1,583 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
|
(9,145 |
) |
|
|
(11,722 |
) |
Prepaid expenses and other current assets |
|
(1,331 |
) |
|
|
(7,151 |
) |
Other non-current assets |
|
4,511 |
|
|
|
(1,313 |
) |
Accounts payable |
|
(62 |
) |
|
|
(1,450 |
) |
Accrued expenses and other |
|
1,436 |
|
|
|
(1,308 |
) |
Deferred revenue |
|
1,514 |
|
|
|
2,503 |
|
Other non-current liabilities |
|
(3,288 |
) |
|
|
(916 |
) |
Net cash provided by operating activities |
|
68,587 |
|
|
|
37,612 |
|
Cash flows used in
investing activities: |
|
|
|
Purchases of property and equipment |
|
(2,140 |
) |
|
|
(2,155 |
) |
Capitalization of software costs |
|
(14,727 |
) |
|
|
(11,440 |
) |
Acquisition, net of cash acquired |
|
(14,959 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(31,826 |
) |
|
|
(13,595 |
) |
Cash flows used in
financing activities: |
|
|
|
Payments on debt |
|
(4,125 |
) |
|
|
(6,125 |
) |
Exercise of stock options |
|
1,982 |
|
|
|
1,675 |
|
Proceeds from common stock issuance for Employee Stock Purchase
Plan |
|
1,765 |
|
|
|
1,754 |
|
Repurchase and retirement of common stock |
|
(41,268 |
) |
|
|
(21,863 |
) |
Net cash used in financing activities |
|
(41,646 |
) |
|
|
(24,559 |
) |
Effect of foreign currency
exchange rate changes on cash |
|
(116 |
) |
|
|
(1,796 |
) |
Net decrease in cash and cash equivalents and restricted
cash |
|
(5,001 |
) |
|
|
(2,338 |
) |
Cash and cash equivalents and
restricted cash: |
|
|
|
Beginning of period |
|
95,824 |
|
|
|
97,559 |
|
End of period |
$ |
90,823 |
|
|
$ |
95,221 |
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid for interest |
$ |
34,112 |
|
|
$ |
19,460 |
|
Cash paid for income taxes |
$ |
2,939 |
|
|
$ |
1,950 |
|
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in thousands) |
|
|
|
|
|
|
|
|
Reconciliation from Gross Profit to Adjusted Gross
Profit: |
|
|
|
|
|
|
|
Gross profit |
$ |
106,886 |
|
$ |
95,027 |
|
$ |
311,939 |
|
$ |
278,847 |
Depreciation and amortization |
|
6,384 |
|
|
5,444 |
|
|
18,388 |
|
|
16,598 |
Adjusted gross profit |
$ |
113,270 |
|
$ |
100,471 |
|
$ |
330,327 |
|
$ |
295,445 |
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Reconciliation from Net loss to Adjusted
EBITDA: |
|
|
|
|
|
|
|
Net loss |
$ |
(614 |
) |
|
$ |
(15,853 |
) |
|
$ |
(22,285 |
) |
|
$ |
(42,043 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
Interest and other expense, net |
|
6,666 |
|
|
|
8,890 |
|
|
|
26,615 |
|
|
|
21,070 |
|
Income tax expense (benefit) |
|
241 |
|
|
|
(291 |
) |
|
|
(1,543 |
) |
|
|
(5,953 |
) |
Depreciation and amortization |
|
26,035 |
|
|
|
27,613 |
|
|
|
77,975 |
|
|
|
82,524 |
|
Other amortization |
|
1,431 |
|
|
|
1,093 |
|
|
|
4,184 |
|
|
|
3,063 |
|
Stock-based compensation expense |
|
5,855 |
|
|
|
7,133 |
|
|
|
19,610 |
|
|
|
19,776 |
|
Acquisition-related and other non-recurring costs |
|
2,190 |
|
|
|
1,570 |
|
|
|
7,985 |
|
|
|
5,429 |
|
Adjusted EBITDA |
$ |
41,804 |
|
|
$ |
30,155 |
|
|
$ |
112,541 |
|
|
$ |
83,866 |
|
EverCommerce (NASDAQ:EVCM)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
EverCommerce (NASDAQ:EVCM)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024