Evercommerce, Inc. ((EVCM)) has held its Q4 earnings call. Read on for the main highlights of the call.
EverCommerce Inc.’s recent earnings call conveyed a generally positive sentiment, highlighting the company’s robust performance in revenue and EBITDA, alongside a notable expansion in its customer base and solid growth in payments. Strategic leadership changes and financial liquidity were also emphasized as key factors bolstering future prospects. However, challenges were acknowledged in the marketing technology segment and the impact of divestitures on revenue growth.
Exceeded Revenue and EBITDA Guidance
EverCommerce Inc. surpassed its revenue and EBITDA guidance for the fourth quarter, reporting a GAAP revenue increase of 3.3% year over year. The company achieved an adjusted EBITDA of $50.4 million, representing a 28.8% margin, showcasing its strong financial performance.
Strong Payments Revenue Growth
The company reported an impressive 8.9% year-over-year growth in payments revenue, excluding fitness solutions. This growth was driven by a 9% increase in Total Payment Volume (TPV), which expanded to over $12.6 billion, underscoring the strength of its payments segment.
Customer Base Expansion
EverCommerce Inc. experienced a significant increase in its customer base, growing by more than 7% year over year. The company now serves over 740,000 customers across its three major verticals, reflecting its successful market penetration and customer acquisition strategies.
High Adjusted EBITDA Margin
For the full year, the company achieved a 25.3% adjusted EBITDA margin, reflecting a 230 basis point expansion. This high margin indicates efficient operational management and profitability.
Cash Flow and Financial Liquidity
The company generated significant free cash flow, with cash flow from operations at $48.4 million in Q4 and levered free cash flow of $43.8 million. EverCommerce ended the quarter with $136 million in cash and cash equivalents, highlighting its strong financial liquidity.
Strategic Leadership Appointments
EverCommerce announced key leadership changes, appointing Josh McCarter as CEO of EverPro and Evan Berlin as CEO of EverHealth. These strategic appointments are aimed at driving future growth and strengthening the company’s leadership team.
Decline in Marketing Technology Solutions Revenue
The company reported a 1.6% year-over-year decrease in marketing technology solutions revenue. In response, EverCommerce is seeking strategic alternatives for this segment to address the challenges and improve performance.
Divestiture Impact on Revenue
The impact of divestitures was evident as pro forma revenue growth was 7%, influenced by the removal of prior year revenue associated with the sale of fitness solutions. This highlights the company’s strategic focus on its core operations.
Forward-Looking Guidance
Looking ahead, EverCommerce provided guidance for 2025, focusing on its continuing operations excluding marketing technology solutions. For the first quarter of 2025, the company expects total revenue between $138 million and $141 million and adjusted EBITDA between $39 million and $41 million. For the full year, revenue is anticipated to range from $581 million to $601 million, with adjusted EBITDA projected to be between $167.5 million and $175.5 million. The growth is expected to be driven by core verticals, EverPro and EverHealth, and the enhancement of its embedded payments platform.
In summary, EverCommerce Inc.’s earnings call reflected a positive outlook with strong financial performance and strategic initiatives aimed at driving future growth. Despite challenges in the marketing technology segment, the company’s robust revenue and EBITDA, coupled with strategic leadership changes and financial liquidity, position it well for continued success.