Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Nov. 06, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises EngageSmart, Inc. ("EngageSmart" or the "Company") (NYSE: ESMT) investors of a class action representing investors that bought securities between October 23, 2023 and January 26, 2024, inclusive (the "Class Period"). EngageSmart investors have until December 9, 2024 to file a lead plaintiff motion. Investors are encouraged to contact attorney L ...

NEW ORLEANS, Nov. 1, 2024 /PRNewswire/ -- ClaimsFiler, a FREE shareholder information service, reminds investors that they have until December 9, 2024 to file lead plaintiff applications in a securities class action lawsuit against EngageSmart, Inc. ("EngageSmart" or the "Company") (NYSE: ESMT), if they (1) purchased or otherwise acquired EngageSmart common stock between October 23, 2023 and January 26, 2024, or (2) held EngageSmart common stock as of the December 21, 2023 record date of the take-private ac ...

NEW ORLEANS, Oct. 23, 2024 (GLOBE NEWSWIRE) -- ClaimsFiler, a FREE shareholder information service, reminds investors that they have until December 9, 2024 to file lead plaintiff applications in a securities class action lawsuit against EngageSmart, Inc. (“EngageSmart” or the “Company”) (NYSE: ESMT), if they (1) purchased or otherwise acquired EngageSmart common stock between October 23, 2023 and January 26, 2024, or (2) held EngageSmart common stock as of the December 21, 2023 record date of the take-priva ...

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against EngageSmart, Inc. (“EngageSmart” or “the Company”) (NYSE: ESMT) and certain of its officers. Class Definition This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that (1) purchased or otherwise acquired Enga ...

CINCINNATI--(BUSINESS WIRE)--DonorDrive, an EngageSmart (NYSE: ESMT) solution and creator of an advanced enterprise digital fundraising solution, announced a collaboration with Chariot, the creator of Donor Advised Fund (DAF) payments solution DAFpay™️, which will allow DonorDrive clients to accept DAF payments online through their existing DonorDrive donation forms. The new feature is expected to be available in the DonorDrive platform at the end of January 2024. Individual giving experienced a 6.4% yea ...

BOSTON--(BUSINESS WIRE)--EngageSmart, Inc. (NYSE: ESMT), a leading provider of vertically tailored customer engagement software and integrated payments solutions, has appointed Dan Freund as Chief Sales Officer, Enterprise Solutions. In this role, Freund will lead sales for EngageSmart’s Enterprise Solutions, including InvoiceCloud and DonorDrive. Freund brings more than 25 years of global experience leading commercial sales teams and fueling revenue growth for enterprise software companies. Before Engag ...

Customer Metrics - As of September 30, 2023, the company serves approximately 116,221 customers in the SMB Solutions segment and approximately 3,406 customers in the Enterprise Solutions segment, totaling 119,627 customers, a 22.3% increase from 97,796 customers in the same period of 2022[108]. Revenue Breakdown - For the nine months ended September 30, 2023, the SMB Solutions segment generated 56% of total revenue, while the Enterprise Solutions segment generated 44%[100]. - The company’s revenue model primarily consists of subscription revenue and transaction-based revenue, with a significant portion derived from transaction and usage-based revenue in the Enterprise Solutions segment[101]. Transaction Volume - The company processed 42.5 million transactions in Q3 2023, up from 37.5 million in Q3 2022, representing a 13.3% increase; for the nine months ended September 30, 2023, transactions processed totaled 128.9 million, compared to 107.9 million in the same period of 2022, a 19.4% increase[110]. Financial Performance - Adjusted EBITDA for Q3 2023 was $18,847,000, compared to $13,222,000 in Q3 2022, reflecting a 42.5% increase; for the nine months ended September 30, 2023, Adjusted EBITDA was $55,548,000, up from $35,744,000 in the same period of 2022, a 55.5% increase[112]. - The company's net income margin improved to 11.8% in Q3 2023 from 8.6% in Q3 2022, while the Adjusted EBITDA Margin increased to 19.3% from 16.8% in the same period[112]. - Net income for Q3 2023 was $11,530,000, a 70.3% increase from $6,770,000 in Q3 2022[131]. - Revenue for Q3 2023 was $97,732,000, representing a 24.0% increase compared to $78,796,000 in Q3 2022[131]. - Gross profit for Q3 2023 was $75,911,000, a 26.6% increase from $59,951,000 in Q3 2022, with a gross margin of 77.7%[131]. Operating Expenses - Total operating expenses for Q3 2023 were $61,594,000, an increase of 11.5% from $55,233,000 in Q3 2022[131]. - Research and development expenses increased by 37.8% to $17,889,000 in Q3 2023 from $12,978,000 in Q3 2022[131]. - Selling and marketing expenses rose by 29.7% to $33,596,000 in Q3 2023 compared to $25,906,000 in Q3 2022[131]. - General and administrative expenses rose by $4.2 million for the three months ended September 30, 2023, primarily due to a $2.5 million increase in professional and consulting-related expenses[137]. Strategic Moves - The company entered into a Merger Agreement on October 23, 2023, with Icefall Parent, LLC, indicating a strategic move for future growth[102]. - The company divested the HealthPay24 solution on August 2, 2023, which previously contributed to the Enterprise Solutions segment, impacting customer counts and revenue streams[98]. - Gain on sale of business was $10.5 million during the three and nine months ended September 30, 2023, related to the divestiture of the HealthPay24 solution[144]. Cash Flow and Liquidity - As of September 30, 2023, the company had cash and cash equivalents of $366.0 million, expected to meet working capital and capital expenditure needs for at least the next 12 months[160]. - Net cash provided by operating activities increased by $8.3 million to $42.4 million for the nine months ended September 30, 2023, compared to $34.1 million in 2022[165]. - Cash provided by investing activities was $11.2 million for the nine months ended September 30, 2023, driven by $30.0 million from the divestiture of HealthPay24, offset by $11.8 million for the acquisition of Luminello, Inc.[166]. - The company entered into a revolving credit agreement allowing borrowing up to $75.0 million, with $2.1 million utilized as of September 30, 2023, reducing borrowing capacity to $72.9 million[161]. - The company may need to seek additional equity or debt financing if current liquidity sources are insufficient, which could lead to dilution for stockholders[162]. Market Conditions - The company operates in an environment of economic uncertainty and inflationary pressure, but inflation did not materially impact results during the nine months ended September 30, 2023[103]. - There have been no material changes in market risk exposure as described in the 2022 Form 10-K[177]. Compliance and Reporting - The company expects to qualify as a large accelerated filer as of December 31, 2023, and will no longer qualify as an emerging growth company[175]. - The company remains in compliance with all financial covenants under the 2021 Revolving Credit Facility as of September 30, 2023[161].

We appreciate you all joining us on this call this morning. Thank you very much. [Operator Instructions] And our first question will come from Bhavin Shah with Deutsche Bank. Your line is open. Cassandra Hudson Got it. And then just – Cassandra, just following up on your fiscal year guidance. Even after we adjust for the HealthPay sale, it appears that you haven't raised the full-year guidance despite the 2Q outperformance. Anything that you're seeing in the business or kind of pipeline that has you a littl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number: 001-40835 EngageSmart, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other ...

Financial Data and Key Metrics Changes - EngageSmart reported record revenue of $88.4 million for Q1 2023, representing a 31% year-over-year growth, all organic [4][15] - Adjusted EBITDA reached $17.3 million, with an adjusted EBITDA margin of 19.6%, a significant improvement from $10.6 million in Q1 2022 [4][16] - The total customer count increased to 108,200, a 23% increase year-over-year [15] Business Line Data and Key Metrics Changes - The SMB segment achieved revenue growth of 36% year-over-year, totaling $49.8 million, driven by new customer additions and transaction revenue [5][15] - The Enterprise segment reported revenue of $38.6 million, reflecting a 25% year-over-year growth, supported by digital payments and paperless adoption [6][15] Market Data and Key Metrics Changes - The demand for mental health care continues to grow, presenting opportunities for the SMB segment, particularly in the mental health vertical [5][17] - The Enterprise segment benefits from organizations digitizing their operations, providing a steady growth tailwind [6][9] Company Strategy and Development Direction - EngageSmart focuses on simplifying customer engagement and expanding its reach across all verticals, with a strong emphasis on product innovation [4][12] - The company is investing in features for group practices and enhancing its SimplePractice solution to cater to the growing demand in mental health care [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and create long-term value, citing strong demand in both SMB and Enterprise segments [17][66] - The company anticipates a slight deceleration in revenue growth throughout the year but remains optimistic about achieving its full-year guidance [13][42] Other Important Information - EngageSmart raised its full-year revenue guidance to a range of $380 million to $384 million, reflecting a growth expectation of approximately 26% [13] - The adjusted EBITDA guidance for the full year was also raised to a range of $69 million to $71 million, indicating a margin improvement [13] Q&A Session Summary Question: Customer growth within SMB and pricing tiers - Management noted a stable mix across pricing tiers, with most customers on the top two tiers and significant upgrade activity observed [21] Question: Updated guidance and expense trends - Management indicated that revenue is expected to decelerate slightly, with significant investments planned for Q2 impacting EBITDA margins [22][23] Question: Adjusted EBITDA margin surprises - The strong adjusted EBITDA margin was attributed to efficiencies in G&A and sales and marketing, with lower insurance costs contributing as well [25][26] Question: Group practices and revenue comparison - Management highlighted the growth in group practices, noting that they have adjusted their solutions to meet the increasing complexity and needs of these customers [39][40] Question: Digital payments penetration in Enterprise - The average customer processes about 45% of bills through EngageSmart, with a goal to increase this to 80% over time [57] Question: Progress on Monarch and EAPs - Management confirmed ongoing discussions with several EAPs and expressed excitement about recent contracts and progress in providing mental health assistance [58][59] Question: Digital ad market impact on new ads - Despite rising digital advertising costs, management reported stable customer growth and efficient customer acquisition [62][63]