EverCommerce(US:EVCM)2021-11-08 16:00Business Overview - EverCommerce serves over 500,000 customers across three core verticals: Home Services, Health Services, and Fitness & Wellness Services[189]. - The company has acquired 51 companies since inception, including 4 in 2021, to deepen competitive moats and enter new verticals and geographies[205]. - The company’s vertically-tailored Business Management Software is typically the first solution adopted by customers, facilitating cross-selling of additional products[197]. Financial Performance - Approximately 95% of revenue for the nine months ended September 30, 2021, was recurring or re-occurring, with a stable average monthly net pro forma revenue retention rate of 99% or more over the last 8 quarters[202]. - Revenue for the three months ended September 30, 2021, increased 17.7% compared to the same period in 2020, excluding the impact of acquisitions[211]. - Pro Forma Revenue Growth Rate for the three months ended September 30, 2021, was 20.0%, compared to 20.6% for the same period in 2020[220]. - Total revenues for the three months ended September 30, 2021, increased by $39.4 million or 44.2% compared to the same period in 2020, driven by subscription and transaction fees growth of $31.8 million[251]. - For the nine months ended September 30, 2021, total revenues increased by $108.9 million or 44.4% compared to the same period in 2020, with subscription and transaction fees contributing $83.7 million[251]. Revenue Breakdown - Revenue from Subscription and Transaction Fees increased by 52.9% for the three months ended September 30, 2021, compared to the same period in 2020[235]. - Revenue from Marketing Technology Solutions increased by 29.8% for the three months ended September 30, 2021, compared to the same period in 2020[235]. - Marketing Technology Solutions revenue includes recurring revenues for managing digital advertising programs and re-occurring fees for consumer leads generated[200]. Expenses and Losses - The company reported a net loss of $36.906 million for the three months ended September 30, 2021, compared to a net loss of $5.444 million for the same period in 2020[229]. - Sales and marketing expenses for the three months ended September 30, 2021, rose by $13.1 million or 108.4% compared to the same period in 2020, accounting for 19.6% of total revenues[256]. - General and administrative expenses increased by $8.7 million or 50.9% for the three months ended September 30, 2021, compared to the same period in 2020, and by $23.4 million or 41.5% for the nine months ended September 30, 2021[260]. - The company recognized $20.8 million and $57.5 million in revenue from acquisitions closed after September 30, 2020, for the three and nine months ended September 30, 2021, respectively[251]. Cash Flow and Financing - As of September 30, 2021, the company had cash, cash equivalents, and restricted cash of $98.3 million, with $155.0 million of available borrowing capacity under its New Revolver[271]. - Net cash provided by operating activities was $13.7 million for the nine months ended September 30, 2021, compared to $32.1 million in the same period of 2020[272]. - Net cash used in investing activities was $194.2 million for the nine months ended September 30, 2021, primarily driven by acquisitions[276]. - Net cash provided by financing activities was $180.5 million for the nine months ended September 30, 2021, mainly from stock issuances and long-term debt proceeds[277]. Debt and Credit Facilities - As of September 30, 2021, the outstanding amount under the New Credit Facilities was $385.0 million, comprising $350.0 million related to New Term Loans and $35.0 million related to the New Revolver[291]. - The effective interest rate on the New Term Loans was approximately 4.0% from July 6, 2021, through September 30, 2021[291]. - The New Term Loans mature in July 2028, while the New Revolver matures in July 2026[290]. - The Company was in compliance with the covenants under the New Credit Agreement as of September 30, 2021[292].