EverCommerce(EVCM) - 2024 Q4 - Annual Report

Financial Performance - Revenue grew to $698.8 million for the year ended December 31, 2024, representing a 3.5% increase from$ 675.4 million in 2023[26] - Adjusted EBITDA reached $177.0 million for the year ended December 31, 2024, up from$ 155.6 million in 2023[26] - The company estimates an addressable annualized revenue opportunity with existing customers of greater than $5 billion as of December 31, 2024[1] Market Opportunity - The total addressable market (TAM) for current solutions was approximately$ 1.6 trillion globally in 2023, with $662 billion in North America[31] - Only 9% of the North American service SMB market has been penetrated with fully-integrated software solutions, expected to increase to over 13% by 2025[31] - The service SMB market is estimated to include approximately 456 million businesses globally, with 35 million in North America[30] - Digital payment processing adoption among SMBs increased from less than 50% to nearly 80% in recent years[28] - The company processes an annualized total payment volume of$ 12.7 billion, with an aggregate annualized payment processing opportunity exceeding $100 billion[38] Customer Base and Growth - As of December 31, 2024, the company served approximately 740,000 customers, with 69% based in the United States and 31% international[46] - The number of customers on the platform increased from approximately 110,000 at the end of 2018 to approximately 740,000 at the end of 2024[1] - The estimated lifetime value of customers is approximately six times the cost of acquiring them[26] Product Development and Strategy - The company introduced EverPro Edge in 2023, aimed at providing targeted business growth and education content to customers[1] - The company plans to continue expanding its product offerings based on insights gained through customer lifecycle analysis[1] - The company aims to improve customer experience and retention by displacing point-solution competitors with integrated digital offerings[1] Acquisitions and Corporate Structure - The company has acquired 53 companies since inception and is tracking over 13,000 potential acquisition opportunities[43] - The company has approximately 2,000 employees operating across six countries, with about 1,500 located in the United States[56] Financial Instruments and Risks - The company has entered into interest rate swap agreements covering$ 425.0 million of its $532.1 million outstanding under its Term Loan as of December 31, 2024[390] - The Term Loan bears interest at a forward-looking term rate based on SOFR plus an applicable margin of 2.50%[390] - The company executed three interest rate swaps totaling a notional amount of$ 425 million to convert a portion of the floating rate component of its Term Loan to fixed rates[391] - For every 100 basis point increase in the Adjusted SOFR rate, the company would incur approximately $1.1 million of additional annual interest expense[392] - The company has foreign currency risks related to subsidiaries in Canada, Jordan, the UK, New Zealand, and Australia[393] - A 10% change in the relative value of the U.S. dollar to other foreign currencies is not expected to have a material effect on the company's cash flows and operating results[393] - The company currently does not hedge foreign currency exposure but may consider using currency forward contracts or options in the future[394] Intellectual Property - The company has 140 registered trademarks in the United States and a portfolio of approximately 3,200 registered domain names[62]