Evercommerce, Inc. ((EVCM)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Evercommerce, Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong financial performance. The company reported revenue and EBITDA figures that exceeded expectations, alongside notable growth in payments revenue and increased customer utilization of multiple solutions. However, this optimism was somewhat tempered by concerns over flat gross margins and cautious revenue guidance.
Revenue and EBITDA Exceed Guidance
Evercommerce reported that its second-quarter revenue exceeded the top end of the guidance range, showcasing a year-over-year increase of 5.3% and 7.4% on a pro forma basis. The company also achieved an adjusted EBITDA of $45 million, surpassing expectations with a 30.4% margin and a 230 basis point expansion compared to the previous year.
Strong Payments Revenue Growth
The earnings call highlighted a robust growth in payments revenue, excluding fitness solutions, which grew 6.8% year-over-year. This segment now accounts for approximately 21% of the overall revenue. The annualized total payment volume expanded to about $12.9 billion, marking nearly 7% growth from the previous year.
Customer Multi-Solution Utilization Growth
Evercommerce saw significant growth in customer engagement with its solutions. By the end of the second quarter, 261,000 customers were enabled for more than one solution, reflecting a 32% year-over-year growth. Additionally, approximately 112,000 customers were actively utilizing more than one solution, showing a 29% increase from the previous year.
Financial Flexibility and Interest Savings
The company successfully repriced and extended its credit facility, resulting in approximately $1.3 million in annual interest savings. Evercommerce ended the quarter with $151 million in cash and cash equivalents, along with $155 million of undrawn capacity on its revolver, indicating strong financial flexibility.
Flat Gross Margin
Despite the positive financial performance, Evercommerce reported that its adjusted gross margin remained relatively flat year-over-year at 77.4%, compared to 77.5% in Q2 2024. This aspect was a point of concern during the earnings call.
Limited Revenue Guidance Increase
Despite exceeding revenue expectations for two consecutive quarters, Evercommerce maintained its revenue guidance for the full year. This decision was attributed to a prudent approach and a cautious macroeconomic outlook, reflecting the company’s careful stance in navigating future uncertainties.
Forward-Looking Guidance
During the earnings call, Evercommerce provided forward-looking guidance that underscored its strong financial performance and growth metrics. The company anticipates third-quarter revenue between $146.5 million and $149.5 million, with adjusted EBITDA between $41 million and $43 million. For the full year 2025, Evercommerce has set its revenue guidance at $581 million to $601 million, with an increased adjusted EBITDA guidance of $171 million to $177 million.
In summary, Evercommerce’s earnings call painted a picture of robust financial health, with revenue and EBITDA surpassing expectations and notable growth in payments revenue and customer engagement. However, the flat gross margin and cautious revenue guidance suggest a balanced approach to future growth. Investors and market watchers will be keen to see how the company navigates these dynamics in the coming quarters.