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EverCommerce (EVCM)
NASDAQ:EVCM
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EverCommerce
(NASDAQ:EVCM)
68Neutral
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.
Financial Performance
EverCommerce's revenue and EBITDA surpassed the high-end of guidance, with a 7% proforma revenue growth and 29% EBITDA margins, setting a new high-water mark for the business.
Market Valuation
EVCM shares are considered cheap, which supports the analyst's belief in a BUY rating.
Negative Factors
Segment Challenges
The MarTech segment has been associated with mixed or disappointing earnings guidance in several quarters, indicating challenges in this area.
Segment Quality
The MarTech segment is considered lower-quality revenue due to its lower gross margin and adjusted EBITDA margin.
EverCommerce (EVCM) vs. S&P 500 (SPY)
Market Cap
$1.89B
Dividend YieldN/A
Average Volume (3M)186.16K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-1.96%
EPS Growth19.43%
CountryUS
Employees2,000
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.04
Shares Outstanding182,540,860
10 Day Avg. Volume233,950
30 Day Avg. Volume186,160
Financial Highlights & Ratios
PEG Ratio-2.29
Price to Book (P/B)2.69
Price to Sales (P/S)0.00
P/FCF Ratio18.76
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit5.38
Enterprise Value/Ebitda5.77
Forecast
1Y Price Target
$11.88Price Target Upside17.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EverCommerce Business Overview & Revenue Model
Company DescriptionEverCommerce Inc., together with its subsidiaries, engages in providing integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company's solutions include business management software, including route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions that comprise e-invoicing, mobile payments, and integrated payment processing; customer engagement applications, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, including implementation, configuration, installation, or training services. It serves home service professionals, such as home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. The company was incorporated in 2016 and is headquartered in Denver, Colorado.
How the Company Makes MoneyEverCommerce generates revenue primarily through its subscription-based software solutions, which provide businesses with tools for business management, customer engagement, and payment processing. The company offers a variety of integrated platforms that cater to specific industries, ensuring that they meet the unique needs of their clients. In addition to subscription fees, EverCommerce may also earn revenue from transaction fees associated with payment processing services. Key partnerships with industry-specific service providers enhance its product offerings and create opportunities for cross-selling, further contributing to its earnings.
EverCommerce Financial Statement Overview
Summary
EverCommerce exhibits positive revenue growth and effective cash flow management, underpinned by a strong equity position. However, the company struggles with profitability, as indicated by persistent net losses and weak EBIT margins. While the low leverage reduces financial risk, the negative return on equity and net profit margin highlight areas for improvement to enhance shareholder value.Income Statement
EverCommerce shows a consistent revenue growth trend, with a 3.46% increase from 2023 to 2024. The gross profit margin remains robust at 67.34%, indicating efficient cost management relative to sales. However, the company faces challenges in profitability, as evidenced by negative net income and a net profit margin of -5.88% for 2024. The EBIT margin has significantly declined, and EBITDA margin stands at 0.91%, reflecting limited profitability from core operations.62
Positive
Balance Sheet
The balance sheet presents a strong equity position, with an equity ratio of 52.83% for 2024, suggesting a solid capital structure. The debt-to-equity ratio is low at 0.01, indicating limited leverage and reduced financial risk. Despite these strengths, the return on equity is negative due to ongoing net losses, which could pose challenges for shareholder returns.70
Positive
Cash Flow
EverCommerce demonstrates strong cash flow management, with a significant free cash flow growth of 37.02% from 2023 to 2024. The operating cash flow to net income ratio is favorable at -2.75, highlighting effective cash generation relative to reported losses. The company maintains a healthy free cash flow to net income ratio of -2.72, emphasizing its ability to sustain operations despite profitability challenges.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 698.76M | 675.37M | 620.75M | 490.14M | 337.52M | Gross Profit |
| 470.39M | 444.36M | 403.37M | 327.91M | 222.50M | EBIT |
| 252.00K | 2.43M | -30.59M | -27.19M | -22.04M | EBITDA |
| 95.48M | 106.63M | 80.21M | 45.53M | 54.80M | Net Income Common Stockholders |
| -41.09M | -45.62M | -59.82M | -81.97M | -59.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 135.78M | 92.61M | 92.63M | 93.99M | 96.03M | Total Assets |
| 1.42B | 1.52B | 1.59B | 1.66B | 1.33B | Total Debt |
| 527.94M | 532.20M | 536.45M | 546.13M | 698.33M | Net Debt |
| 392.16M | 439.59M | 443.82M | 452.13M | 602.30M | Total Liabilities |
| 670.44M | 692.03M | 685.03M | 677.73M | 808.43M | Stockholders Equity |
| 750.83M | 826.04M | 906.69M | 985.65M | 519.16M |
| Cash Flow | Free Cash Flow | |||
| 94.26M | 81.53M | 46.72M | 22.69M | 44.46M | Operating Cash Flow |
| 113.16M | 104.61M | 64.80M | 37.48M | 57.54M | Investing Cash Flow |
| -12.30M | -38.02M | -18.08M | -379.67M | -418.31M | Financing Cash Flow |
| -59.61M | -66.63M | -47.31M | 341.18M | 401.85M |
EverCommerce Technical Analysis
Negative
10.11
Price Trends
10.07
Positive
10.24
Negative
10.54
Negative
Market Momentum
0.14
Positive
46.84
Neutral
30.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVCM, the sentiment is Negative. The current price of 10.11 is below the 20-day moving average (MA) of 10.31, above the 50-day MA of 10.07, and below the 200-day MA of 10.54, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.88B | 22.38 | 30.24% | 1.86% | 3.08% | 34.87% | |
72 Outperform | $2.14B | ― | -0.90% | ― | 14.44% | 91.60% | |
71 Outperform | $2.36B | 50.25 | 5.01% | ― | -8.44% | ― | |
68 Neutral | $1.89B | ― | -3.09% | ― | -1.96% | 19.43% | |
67 Neutral | $2.19B | 16.15 | 130.19% | ― | -6.53% | 240.56% | |
66 Neutral | $1.68B | 313.79 | 0.51% | 2.23% | 29.84% | ― | |
60 Neutral | $11.58B | 10.33 | -7.23% | 2.94% | 7.47% | -10.84% |
* Technology Sector Average
Performance Comparison
EVCM
EverCommerce
10.11
-0.75
-6.91%
CSGS
CSG Systems International
64.73
23.01
55.15%
TDC
Teradata
22.66
-10.87
-32.42%
FIVN
Five9
27.23
-26.42
-49.25%
TUYA
Tuya
2.64
0.60
29.41%
MQ
Marqeta
5.24
-0.29
-5.24%
EverCommerce Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -2.32%|
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 Corporate Events
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.
Spark’s Take on EVCM Stock
According to Spark, TipRanks’ AI Analyst, EVCM is a Neutral.
EverCommerce’s score reflects a strong financial structure and effective cash flow management, but profitability challenges and a negative P/E ratio impact the valuation component. Technical indicators suggest a neutral market sentiment. While the company is strategically positioned for growth with leadership changes, key risks like profitability remain.
To see Spark’s full report on EVCM stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.