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Evercommerce, Inc. (EVCM)
:EVCM
US Market

EverCommerce (EVCM) AI Stock Analysis

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EverCommerce

(NASDAQ:EVCM)

Rating:64Neutral
Price Target:
$10.50
▲(0.00%Upside)
EverCommerce shows strong financial management, particularly in cash flow and equity positions, supported by a positive earnings call. However, profitability challenges and valuation concerns weigh down the overall score. Technical indicators are neutral, and recent corporate events offer slight optimism.
Positive Factors
Business Strategy
The divestiture of the Marketing Technology Solutions business should lead to improved visibility and growth for the core business, creating a more compelling financial picture.
Earnings
EverCommerce's revenue and EBITDA surpassed the high-end of guidance, setting a new high-water mark for the business.
Stock Valuation
EVCM shares are considered cheap, supporting a BUY rating due to the potential for a leaner, more focused business delivering reliable growth.
Negative Factors
Complexity of Business Model
An eventual sale of the MarTech assets is expected to simplify EverCommerce's complex public market story.
MarTech Segment Challenges
The MarTech segment has been associated with mixed or disappointing earnings guidance in several quarters, indicating challenges in this area.
Revenue Quality
The MarTech segment is considered lower-quality revenue due to its lower gross margin and adjusted EBITDA margin.

EverCommerce (EVCM) vs. SPDR S&P 500 ETF (SPY)

EverCommerce Business Overview & Revenue Model

Company DescriptionEverCommerce (EVCM) is a leading service commerce platform, providing vertically tailored, integrated SaaS solutions to over 500,000 service-based businesses across various industries. The company's core products and services include business management software, customer engagement solutions, and payment processing technologies designed to streamline operations, improve customer interactions, and drive growth for businesses in sectors such as healthcare, wellness, and home and field services.
How the Company Makes MoneyEverCommerce generates revenue through a subscription-based model for its suite of SaaS solutions, which includes business management, customer engagement, and payment processing tools. The company's key revenue streams are subscription fees for its software offerings and transaction fees from its payment processing services. Additionally, EverCommerce benefits from strategic partnerships and integrations with industry-leading platforms that enhance its service offerings and expand its market reach. The company's focus on delivering industry-specific solutions helps it to maintain strong customer retention and attract new clients within its target sectors.

EverCommerce Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 1.45%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with revenue and EBITDA exceeding expectations and strong growth in payments and AI integration. However, there are concerns about macroeconomic risks and the need for continued focus on payment integration and adoption.
Q1-2025 Updates
Positive Updates
Revenue and Growth Exceed Expectations
First quarter reported revenue exceeded the top end of guidance. GAAP revenue increased 3.2% year over year, and revenue adjusted for the prior year's sale of fitness solutions increased 7.4% year over year.
Strong Adjusted EBITDA Performance
Adjusted EBITDA of $44.9 million beat the top end of the guidance range, representing a 31.6% margin, with adjusted EBITDA margin expanding nearly 360 basis points year over year.
Positive Payment Revenue Growth
Payments revenue grew 8.4% year over year, driven by nearly 9% growth in total payment volume (TPV), with payments revenue accounting for approximately 21% of overall revenue.
Share Repurchase Program Expansion
The board of directors approved a $50 million increase to the share repurchase program, extending authorization to year-end 2026.
AI Integration Progress
Significant progress made in integrating AI into products and internal workflows, aimed at faster innovation and cost discipline.
Negative Updates
Dependence on Payment Integration
Heavy focus on payment integration; although revenue from payments is growing, there is a strong emphasis on further increasing payment adoption and utilization.
Potential Macroeconomic Risks
Concerns about resilience amidst macroeconomic volatility and potential tariff impacts, although currently not seeing degradation in key metrics.
Limited Outlook Change Amidst Uncertainty
No change in guidance for full year 2025, indicating cautious outlook due to potential macroeconomic factors.
Company Guidance
During EverCommerce Inc.'s first quarter 2025 earnings call, the company reported exceeding the top end of their guidance range with a GAAP revenue increase of 3.2% year over year. On a pro forma basis, revenue grew by 7.4%, and adjusted EBITDA reached $44.9 million, representing a 31.6% margin and a 360 basis point expansion year over year. Payments revenue, excluding fitness solutions, grew 8.4% with nearly 9% growth in total payment volume (TPV). The company also announced a $50 million increase in their share repurchase program, extended through year-end 2026. EverCommerce highlighted a customer base of over 725,000 across its major verticals: EverPro, EverHealth, and EverWell, with 244,000 customers enabled for more than one solution, reflecting a 28% year over year growth. The annualized TPV expanded to over $12.7 billion, representing nearly 9% year over year growth. For the second quarter, EverCommerce expects revenues between $144.5 million and $147.5 million and adjusted EBITDA between $39.5 million and $41.5 million, maintaining the full-year guidance provided in March.

EverCommerce Financial Statement Overview

Summary
EverCommerce demonstrates strong revenue growth and effective cash flow management, with a robust balance sheet characterized by low leverage. However, consistent profitability remains a challenge, with negative net margins and return on equity.
Income Statement
65
Positive
EverCommerce has shown a consistent revenue growth trajectory with a TTM total revenue of $670.93 million from $620.75 million in 2022, reflecting a growth rate of approximately 8.07%. The gross profit margin for the TTM period stands at 69.8%, indicating strong cost management. However, the company is struggling with profitability issues, as evidenced by the negative net income margin of -4.84% and net losses over several years. The EBIT margin of 2.84% and EBITDA margin of 11.9% for the TTM period indicate limited operating profitability, highlighting challenges in achieving bottom-line improvements.
Balance Sheet
75
Positive
The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.007 for the TTM period, indicating low leverage. The equity ratio of 52.27% demonstrates a strong capital structure. However, the net income remains negative, affecting the return on equity, which is also negative at -4.39%. The company's high level of cash and cash equivalents, significantly exceeding its total debt, provides financial stability and liquidity.
Cash Flow
80
Positive
EverCommerce has demonstrated strong cash flow generation, with a TTM operating cash flow of $130.54 million and free cash flow of $123.98 million. The free cash flow to net income ratio is positive, despite net losses, indicating effective cash management. The free cash flow growth rate from 2023 to the TTM period is a robust 52.06%, highlighting improved cash flow performance. The operating cash flow to net income ratio is also favorable, further underscoring the company's strong cash-generating ability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue670.92M698.76M675.37M620.75M490.14M337.52M
Gross Profit468.15M470.39M444.36M403.37M327.91M222.50M
EBITDA79.94M89.08M106.63M80.21M45.53M54.80M
Net Income-32.48M-41.09M-45.62M-59.82M-81.97M-59.95M
Balance Sheet
Total Assets1.41B1.42B1.52B1.59B1.66B1.33B
Cash, Cash Equivalents and Short-Term Investments148.41M135.78M92.61M92.63M93.99M96.03M
Total Debt5.50M527.94M532.20M536.45M546.13M698.33M
Total Liabilities674.53M670.44M692.03M685.03M677.73M808.43M
Stockholders Equity739.57M750.83M826.04M906.69M985.65M519.16M
Cash Flow
Free Cash Flow123.98M94.26M81.53M46.72M22.69M44.46M
Operating Cash Flow130.54M113.16M104.61M64.80M37.48M57.54M
Investing Cash Flow-14.33M-12.30M-38.02M-18.08M-379.67M-418.31M
Financing Cash Flow-59.51M-59.61M-66.63M-47.31M341.18M401.85M

EverCommerce Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.50
Price Trends
50DMA
10.13
Positive
100DMA
10.09
Positive
200DMA
10.50
Positive
Market Momentum
MACD
0.07
Negative
RSI
60.48
Neutral
STOCH
85.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVCM, the sentiment is Positive. The current price of 10.5 is above the 20-day moving average (MA) of 10.04, above the 50-day MA of 10.13, and above the 200-day MA of 10.50, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVCM.

EverCommerce Risk Analysis

EverCommerce disclosed 59 risk factors in its most recent earnings report. EverCommerce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

EverCommerce Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.91B22.4830.24%1.96%3.08%34.87%
74
Outperform
$1.46B69.761.98%4.33%27.63%
72
Outperform
$2.03B-0.90%14.44%91.60%
MQMQ
68
Neutral
$2.75B58.135.01%-8.44%
TDTDC
66
Neutral
$2.10B15.73130.19%-6.53%240.56%
64
Neutral
$1.93B-3.09%-1.96%19.43%
50
Neutral
AU$1.48B1.33-28.24%3.27%16.24%-7.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVCM
EverCommerce
10.55
-0.59
-5.30%
CSGS
CSG Systems International
65.95
26.55
67.39%
TDC
Teradata
23.14
-11.42
-33.04%
FIVN
Five9
26.61
-16.21
-37.86%
TUYA
Tuya
2.33
0.76
48.41%
MQ
Marqeta
5.81
0.27
4.87%

EverCommerce Corporate Events

Executive/Board ChangesShareholder Meetings
EverCommerce Holds Annual Stockholders Meeting June 2025
Neutral
Jun 24, 2025

On June 20, 2025, EverCommerce Inc. held its Annual Meeting of Stockholders with 97.95% of the company’s outstanding common stock represented. During the meeting, two Class I Directors were elected to serve until the 2028 Annual Meeting, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (EVCM) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on EverCommerce stock, see the EVCM Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
EverCommerce Amends Credit Agreement with RBC
Positive
Jun 10, 2025

On June 10, 2025, EverCommerce Inc. subsidiaries amended their Credit Agreement with Royal Bank of Canada, reducing the revolver commitments from $190 million to $155 million and extending the maturity date for $125 million of these commitments to January 6, 2028. This amendment also lowered the applicable margin rates for both Term SOFR and Alternate Base Rate loans, potentially improving the company’s financial flexibility and cost of borrowing.

The most recent analyst rating on (EVCM) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on EverCommerce stock, see the EVCM Stock Forecast page.

Executive/Board Changes
EverCommerce Appoints Amy Shenkan to Board
Neutral
May 20, 2025

On May 17, 2025, EverCommerce Inc. appointed Amy Guggenheim Shenkan to its Board of Directors as a Class II director and as a member of the Audit Committee. As part of her role, Ms. Shenkan will receive an annual retainer and an initial equity award, which will vest in full by May 17, 2026, contingent on her continued service.

The most recent analyst rating on (EVCM) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on EverCommerce stock, see the EVCM Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
EverCommerce Faces Nasdaq Non-Compliance After Director Resignation
Neutral
Apr 11, 2025

On April 9, 2025, Alexi Wellman resigned from the Board of Directors of EverCommerce Inc., effective April 10, 2025, for personal reasons, without any disagreement with the company. Her resignation leaves a vacancy on the Audit Committee, reducing its members to two, which does not comply with Nasdaq’s requirement for three members. EverCommerce has informed Nasdaq of this non-compliance and plans to appoint a new director within 180 days to meet the criteria.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025