EverCommerce(EVCM) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview EverCommerce achieved strong financial performance in Q2 2025, exceeding guidance for revenue and Adjusted EBITDA, driven by revenue re-acceleration and cost optimization initiatives Q2 2025 Financial Highlights EverCommerce exceeded Q2 2025 revenue and Adjusted EBITDA guidance, achieving net income from continuing operations, reversing prior year's loss Q2 2025 Financial Highlights | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Growth (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------- | | Revenue from Continuing Operations | 148.0 | 140.5 | 5.3% | | Pro Forma Revenue from Continuing Operations | 148.0 | 137.8 | 7.4% | | Subscription and Transaction Fees Revenue from Continuing Operations | 142.8 | 135.7 | 5.3% | | Pro Forma Subscription and Transaction Fees Revenue from Continuing Operations | 142.8 | 133.0 | 7.4% | | Net Income (Loss) from Continuing Operations | 5.8 (Net Income) | (2.6) (Net Loss) | N/A | | Basic and Diluted Earnings (Loss) Per Share from Continuing Operations | 0.03 (Earnings) | (0.02) (Loss) | N/A | | Adjusted EBITDA from Continuing Operations | 45.0 | 39.4 | 14.2% | CEO Commentary and Strategic Priorities CEO Eric Remer highlighted Q2 performance exceeding guidance, attributing success to revenue re-acceleration and cost optimization, with focus on customer experience and AI integration - EverCommerce's second quarter results exceeded the high end of revenue and Adjusted EBITDA guidance[3] - Company strategic priorities include revenue re-acceleration and cost optimization[3] - The company is executing a transformation plan focused on improving customer experience, optimizing payment workflows and adoption, product enhancements, and embedded AI capabilities[3] Share Repurchases EverCommerce repurchased 2 million shares for approximately $20.6 million in Q2 2025, with $51.1 million remaining under the program - The company repurchased and retired 2 million shares of common stock during the three months ended June 30, 2025[4] - The total repurchase amount was approximately $20.6 million[4] - As of June 30, 2025, $51.1 million remained available under the share repurchase program[4] Business Outlook The company provides financial guidance for Q3 and full-year 2025, projecting continued growth in revenue and Adjusted EBITDA from continuing operations Third Quarter 2025 Guidance EverCommerce issued financial guidance for Q3 2025 continuing operations, expecting revenue and Adjusted EBITDA within specified ranges Q3 2025 Guidance | Metric | Q3 2025 Guidance (Millions USD) | | :------------- | :---------------------------- | | Revenue | 146.5 - 149.5 | | Adjusted EBITDA | 41.0 - 43.0 | Full Year 2025 Guidance The company provided full-year 2025 financial guidance for continuing operations, anticipating sustained growth in revenue and Adjusted EBITDA Full Year 2025 Guidance | Metric | Full Year 2025 Guidance (Millions USD) | | :------------- | :------------------------ | | Revenue | 581.0 - 601.0 | | Adjusted EBITDA | 171.0 - 177.0 | Company Information This section provides an overview of EverCommerce's business model and details for investor and media engagement About EverCommerce EverCommerce is a leading service commerce platform offering integrated SaaS solutions to over 740,000 service businesses across various sectors - EverCommerce is a leading service commerce platform providing vertically-tailored, integrated SaaS solutions[10] - The company helps over 740,000 global service businesses accelerate growth, streamline operations, and improve customer retention[10] - Key brands include EverPro (home), EverHealth (health), and EverWell (wellness), offering end-to-end business management software, embedded payments, marketing technology, and customer experience applications[10] Conference Call and Contact Information EverCommerce will host a conference call on August 6, 2025, to discuss Q2 results, with investor and media contact details provided - A conference call will be held on August 6, 2025, at 5:00 PM ET to discuss second quarter results and outlook[9] - Investors can access the call and webcast, along with presentation materials, via the company's website (https://investors.evercommerce.com)[9](index=9&type=chunk) - Investor Contact: Brad Korch (SVP and Head of Investor Relations), Media Contact: Jeanne Trogan (VP of Communications)[10] Forward-Looking Statements This press release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially, with no obligation to update - This press release contains forward-looking statements regarding future operations, financial results, cost savings, transformation optimization, strategic alternatives, market opportunities, share repurchases, and growth potential[12] - These statements involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations[12] - The company undertakes no obligation to update such forward-looking statements, even if subsequent events cause views to change[12] Non-GAAP Financial Measures and Key Performance Metrics Definitions This section defines non-GAAP financial measures and key performance metrics used by EverCommerce, explaining their purpose and limitations General Principles of Non-GAAP Measures EverCommerce uses non-GAAP financial measures for internal analysis and investor evaluation, emphasizing they are not substitutes for GAAP metrics - EverCommerce uses non-GAAP financial measures for internal analysis and believes they are useful for investors to assess ongoing operating performance and trends[13] - Non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures and should be read in conjunction with the GAAP consolidated financial statements[14] - Reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures are provided in this press release[14] Pro Forma Revenue and Subscription & Transaction Fees Revenue Pro Forma Revenue and Subscription & Transaction Fees Revenue are key management metrics for evaluating combined operating performance, standardizing acquisition and divestiture impacts - Pro Forma Revenue and Pro Forma Subscription and Transaction Fees Revenue are key metrics used by management to evaluate the combined operating performance of continuing operations[15] - These metrics are calculated assuming all acquisitions and divestitures were completed at the beginning of the reporting period to measure the potential revenue growth of the business[16] - These metrics do not represent organic revenue generated by the business at the beginning of the period and are not necessarily indicative of future operating results[16] Adjusted Gross Profit Adjusted Gross Profit is a key management metric for assessing operational performance, reflecting revenue and direct costs by excluding depreciation and amortization - Adjusted Gross Profit is a key metric used by management to evaluate operating performance, reflecting the results of revenue and direct costs[17] - It is calculated by subtracting depreciation and amortization allocated to cost of revenue from gross profit[18] - This metric aims to reflect the operating gross margin and exclude the impact of indirect costs, financing methods, and income taxes[17] Adjusted EBITDA Adjusted EBITDA is a key management metric for evaluating financial performance and internal planning, adjusting net income for various non-operating and non-cash items - Adjusted EBITDA is a key metric used by management to evaluate financial performance and for internal planning and forecasting[19] - It is calculated by adjusting net income (loss) to exclude interest and other expenses, income tax expense, depreciation and amortization, other amortization, stock-based compensation expense, and transaction-related and other non-recurring or unusual costs[21] - This metric aims to provide a comparable operating overview and assist investors in inter-company comparisons, but its inherent limitations include the exclusion of certain items and potential non-comparability with similar metrics used by other companies[19][20] Condensed Consolidated Financial Statements This section presents EverCommerce's condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows Condensed Consolidated Balance Sheets As of June 30, 2025, EverCommerce's balance sheet shows a slight decrease in total assets, an increase in cash, and minor shifts in liabilities and equity Condensed Consolidated Balance Sheets | Metric (Thousands USD) | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :------------- | | Assets | | | | Cash and cash equivalents | 151,060 | 135,782 | | Total current assets | 279,273 | 218,314 | | Goodwill | 867,205 | 863,152 | | Total assets | 1,419,005 | 1,421,268 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | 117,921 | 110,726 | | Long-term debt (net) | 520,294 | 522,442 | | Total liabilities | 675,027 | 670,442 | | Total stockholders' equity | 743,978 | 750,826 | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) In Q2 2025, EverCommerce reported revenue growth and net income from continuing operations, a significant improvement from the prior year's net loss Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :----------- | :----------- | | Total revenue | 148,015 | 140,523 | 290,288 | 278,375 | | Operating income | 15,802 | 7,703 | 30,007 | 3,407 | | Net income (loss) from continuing operations | 5,761 | (2,552) | 6,695 | (18,562) | | Net income (loss) | 8,153 | (3,376) | 440 | (19,700) | | Basic and diluted earnings (loss) per share from continuing operations (USD) | 0.03 | (0.02) | 0.04 | (0.10) | Condensed Consolidated Statements of Cash Flows For H1 2025, EverCommerce saw increased cash flow from operations, higher cash used in investing, and reduced cash used in financing activities Condensed Consolidated Statements of Cash Flows | Metric (Thousands USD) | YTD 2025 | YTD 2024 | | :------------------------ | :----------- | :----------- | | Net cash provided by operating activities | 57,659 | 37,216 | | Net cash used in investing activities | (13,745) | (8,526) | | Net cash used in financing activities | (29,576) | (34,190) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | 15,278 | (6,138) | | Cash, cash equivalents, and restricted cash at end of period | 151,060 | 90,041 | Non-GAAP Financial Measures Reconciliations This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including pro forma revenue, adjusted gross profit, and adjusted EBITDA Pro Forma Revenue Reconciliation This reconciliation details the calculation from GAAP revenue to pro forma revenue by excluding divestiture-related revenue for a comparable view Pro Forma Revenue Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------ | :------------- | :------------- | :----------- | :----------- | | Revenue | 148,015 | 140,523 | 290,288 | 278,375 | | Less: Divestiture revenue | — | (2,712) | — | (8,115) | | Pro Forma Revenue | 148,015 | 137,811 | 290,288 | 270,260 | Pro Forma Subscription and Transaction Fees Revenue Reconciliation This reconciliation illustrates the conversion from GAAP subscription and transaction fees revenue to pro forma, excluding divestiture revenue Pro Forma Subscription and Transaction Fees Revenue Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------ | :------------- | :------------- | :----------- | :----------- | | Subscription and transaction fees revenue | 142,841 | 135,684 | 280,620 | 269,066 | | Less: Divestiture revenue | — | (2,688) | — | (8,013) | | Pro Forma Subscription and Transaction Fees Revenue | 142,841 | 132,996 | 280,620 | 261,053 | Adjusted Gross Profit Reconciliation This reconciliation shows the calculation from GAAP gross profit from continuing operations to Adjusted Gross Profit by adding back depreciation and amortization Adjusted Gross Profit Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------ | :------------- | :------------- | :----------- | :----------- | | Gross profit from continuing operations | 110,067 | 103,804 | 216,500 | 204,688 | | Add: Depreciation and amortization | 4,553 | 5,158 | 9,205 | 10,625 | | Adjusted Gross Profit from Continuing Operations | 114,620 | 108,962 | 225,705 | 215,313 | Adjusted EBITDA Reconciliation This reconciliation details adjustments from GAAP net income (loss) from continuing operations to Adjusted EBITDA, providing a non-GAAP measure of core operating performance Adjusted EBITDA Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :----------- | :----------- | | Net income (loss) from continuing operations | 5,761 | (2,552) | 6,695 | (18,562) | | Add: Interest and other expenses (net) | 8,798 | 9,552 | 21,557 | 15,343 | | Add: Income tax expense | 1,243 | 703 | 1,755 | 6,626 | | Add: Depreciation and amortization | 16,589 | 19,901 | 33,357 | 40,805 | | Add: Other amortization | 1,541 | 1,321 | 3,023 | 2,632 | | Add: Stock-based compensation expense | 8,072 | 6,247 | 14,827 | 11,657 | | Add: Transaction-related and other non-recurring or unusual costs | 2,953 | 4,261 | 8,688 | 19,582 | | Adjusted EBITDA from Continuing Operations | 44,957 | 39,433 | 89,902 | 78,083 |