Evercommerce, Inc. ((EVCM)) has held its Q1 earnings call. Read on for the main highlights of the call.
EverCommerce, Inc., in its latest earnings call, presented a generally positive outlook, with revenue and EBITDA surpassing expectations. The company demonstrated strong growth in payments and AI integration, although there were some concerns about macroeconomic risks and the need for continued focus on payment integration and adoption.
Revenue and Growth Exceed Expectations
EverCommerce reported that its first-quarter revenue exceeded the top end of guidance, with GAAP revenue increasing by 3.2% year over year. When adjusted for the previous year’s sale of fitness solutions, revenue saw a 7.4% increase, showcasing the company’s robust growth trajectory.
Strong Adjusted EBITDA Performance
The company’s adjusted EBITDA reached $44.9 million, surpassing the top end of the guidance range. This performance represents a 31.6% margin, with an impressive expansion of nearly 360 basis points compared to the previous year.
Positive Payment Revenue Growth
Payments revenue grew by 8.4% year over year, driven by nearly 9% growth in total payment volume (TPV). Payments revenue now accounts for approximately 21% of EverCommerce’s overall revenue, highlighting the company’s successful focus on this area.
Share Repurchase Program Expansion
In a move to enhance shareholder value, EverCommerce’s board of directors approved a $50 million increase to the share repurchase program, extending its authorization through the end of 2026.
AI Integration Progress
The company reported significant progress in integrating AI into its products and internal workflows. This integration is aimed at fostering faster innovation and maintaining cost discipline, positioning EverCommerce for future advancements.
Dependence on Payment Integration
Despite the growth in payment revenue, EverCommerce emphasized the importance of further increasing payment adoption and utilization, indicating a heavy focus on payment integration as a key strategy.
Potential Macroeconomic Risks
Concerns were raised regarding the company’s resilience amidst macroeconomic volatility and potential tariff impacts. However, EverCommerce currently does not see degradation in key metrics, suggesting a cautious yet stable outlook.
Limited Outlook Change Amidst Uncertainty
EverCommerce maintained its full-year 2025 guidance, reflecting a cautious approach due to potential macroeconomic factors. This decision indicates a careful navigation of the uncertain economic landscape.
Forward-Looking Guidance
Looking ahead, EverCommerce expects second-quarter revenues between $144.5 million and $147.5 million, with adjusted EBITDA ranging from $39.5 million to $41.5 million. The company maintains its full-year guidance, demonstrating confidence in its strategic direction despite external uncertainties.
In conclusion, EverCommerce’s earnings call highlighted a positive sentiment with strong financial performance and strategic initiatives. While there are concerns about macroeconomic risks, the company’s focus on payment integration and AI innovation positions it well for future growth. Investors will be keen to see how EverCommerce navigates the challenges and opportunities in the coming quarters.