Core Insights - EverCommerce Inc. reported strong financial results for Q2 2025, exceeding guidance for both Revenue and Adjusted EBITDA, driven by strategic priorities of revenue reacceleration and cost optimization [3][8]. Financial Performance - Revenue from continuing operations for Q2 2025 was $148.0 million, a 5.3% increase from $140.5 million in Q2 2024. Pro Forma Revenue, excluding fitness, increased 7.4% to $148.0 million compared to $137.8 million in Q2 2024 [8]. - Subscription and transaction fees revenue from continuing operations was $142.8 million, up 5.3% from $135.7 million in Q2 2024. Pro Forma subscription and transaction fees revenue, excluding fitness, also increased 7.4% to $142.8 million from $133.0 million in Q2 2024 [8]. - Net income from continuing operations was $5.8 million, or $0.03 per share, compared to a net loss of $2.6 million, or $(0.02) per share, in Q2 2024 [8]. - Adjusted EBITDA from continuing operations was $45.0 million for Q2 2025, compared to $39.4 million in Q2 2024 [8]. Share Repurchase Program - The company repurchased and retired 2.0 million shares of common stock for approximately $20.6 million during Q2 2025. As of June 30, 2025, $51.1 million remained available under the Repurchase Program [4][5]. Business Outlook - For Q3 2025, revenue is expected to be in the range of $146.5 million to $149.5 million, and Adjusted EBITDA is anticipated to be between $41.0 million and $43.0 million [9]. - For the full year 2025, revenue is projected to be between $581.0 million and $601.0 million, with Adjusted EBITDA expected in the range of $171.0 million to $177.0 million [14]. Key Performance Metrics - Pro Forma Revenue for Q2 2025 was $148.0 million, compared to $137.8 million in Q2 2024, reflecting a year-over-year growth rate of 7.4% [36]. - Pro Forma Subscription and Transaction Fees Revenue for Q2 2025 was $142.8 million, up from $132.996 million in Q2 2024, indicating a growth rate of 7.4% [38]. - Adjusted EBITDA for Q2 2025 was $44.957 million, compared to $39.433 million in Q2 2024, showing a significant increase [39].

Core Insights - EverCommerce Inc. has successfully repriced and extended the maturities of its existing Term Loan B and Revolving Credit Facilities, enhancing its capital structure and financial flexibility [1][2] Financial Details - The company refinanced its $529.4 million term loan facility with a new class of Term B-2 Loans, extending the maturity by 3 years to July 6, 2031, and reducing the interest rate by 25 basis points to SOFR plus 2.25% [1] - The maturity date for $125 million of commitments under the existing revolver was extended to July 29, 2030, with a similar interest rate reduction of 25 basis points to SOFR plus 2.00% [1] - The expected annual cash interest expense is projected to decrease by approximately $1.3 million due to these changes [2] Company Overview - EverCommerce is a leading service commerce platform that provides integrated SaaS solutions to over 725,000 global service-based businesses, focusing on growth acceleration, operational streamlining, and customer retention [3] - The company operates under brands such as EverPro, EverHealth, and EverWell, specializing in Home, Health, and Wellness service industries [3]

Core Viewpoint - EverCommerce Inc. is set to report its second quarter 2025 financial results on August 6, 2025, after U.S. financial markets close [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call scheduled for August 6 at 5:00 p.m. Eastern Time [2] - Access to the conference call will be available via the Company's Investor Relations page, with a replay archived on the website [2] Group 2: Company Overview - EverCommerce is a leading service commerce platform that provides integrated SaaS solutions for over 725,000 service-based businesses globally [3] - The company specializes in vertical markets such as Home, Health, and Wellness through its brands EverPro, EverHealth, and EverWell [3] - EverCommerce offers end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [3]

Core Insights - Security Information Systems (SIS) has formed a strategic partnership with Carahsoft Technology Corp. to enhance its presence in the Public Sector, allowing government entities to access SIS's advanced security solutions [1][2] - The collaboration aims to modernize security capabilities across government sectors, providing tools for improved situational awareness and streamlined alarm monitoring [2][4] Company Overview - EverCommerce, the parent company of SIS, is a leading service commerce platform that offers integrated SaaS solutions to over 725,000 service-based businesses globally [5] - Carahsoft is recognized as a trusted IT solutions provider for the Public Sector, delivering a wide range of technology solutions through various contract vehicles [7] Partnership Benefits - The partnership will enable government agencies to integrate legacy and modern security systems, enhancing operational efficiency and public safety [4][6] - SIS's solutions will allow for centralized command and control, optimizing responses to security alerts and automating alarm verification [6] - The collaboration simplifies procurement processes for government entities, ensuring quick and cost-effective access to the latest security technologies [6]

Core Insights - EverCommerce Inc. has appointed Amy Guggenheim Shenkan to its Board of Directors, enhancing its leadership team with her extensive experience in technology and digital transformation [1][2][3] Company Overview - EverCommerce is a leading service commerce platform that provides vertically-tailored, integrated SaaS solutions to over 725,000 global service-based businesses, focusing on growth acceleration, operational streamlining, and customer retention [4] - The company operates under brands such as EverPro, EverHealth, and EverWell, offering end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [4] Leadership and Strategy - Ms. Shenkan's background includes leadership roles at notable companies such as Wells Fargo and McKinsey & Company, emphasizing innovation and digital transformation [2] - The CEO of EverCommerce expressed enthusiasm about Ms. Shenkan's appointment, highlighting her potential contributions to the company's ongoing transformation and AI integration efforts [3]

Core Insights - EverCommerce Inc. reported first-quarter sales of $142.27 million, exceeding analyst expectations of $139.57 million, while earnings per share were 1 cent, below the consensus estimate of 3 cents [1][2] - The company anticipates second-quarter sales between $144.5 million and $147.5 million, slightly below market estimates of $145.93 million [2] Financial Performance - First-quarter sales of $142.27 million surpassed the analyst consensus estimate by approximately 1.5% [1] - Quarterly earnings per share of 1 cent missed the analyst consensus estimate by 2 cents [1] Management Commentary - CEO Eric Remer highlighted strong execution and active cost management as key drivers of performance, along with ongoing transformation and optimization initiatives [2] - Strategic investments in high-margin areas, including payments monetization and artificial intelligence, are part of the company's growth strategy [2] Stock Performance - Following the earnings announcement, EverCommerce shares increased by 2.4%, reaching a trading price of $11.26 [3] - Analysts adjusted their price targets for EverCommerce, with Canaccord Genuity raising it from $13 to $14 and Barclays increasing it from $9 to $11 [8]

Financial Data and Key Metrics Changes - For Q1 2025, GAAP revenue increased by 3.2% year over year, while on a pro forma basis, revenue grew by 7.4% year over year [8][17] - Adjusted EBITDA was $44.9 million, representing a margin of 31.6%, with a year-over-year margin expansion of nearly 360 basis points [9][18] - Total payment volume (TPV) for Q1 was approximately $12.7 billion, reflecting nearly 9% year-over-year growth [16] Business Line Data and Key Metrics Changes - Subscription and transaction revenue grew by 8.1% year over year, with adjusted gross profit of $111.1 million and an adjusted gross margin of 78.1% [11][19] - Payments revenue, excluding fitness solutions, grew by 8.4% year over year, accounting for approximately 21% of overall revenue [15][16] - The number of customers enabled for more than one solution grew by 20% year over year, reaching 240,000 [13] Market Data and Key Metrics Changes - The company serves over 725,000 customers across its three major verticals: EverPro, EverHealth, and EverWell, with the first two representing 95% of consolidated revenue [10] - Annualized net revenue retention (NRR) was 97%, indicating strong customer retention [15] Company Strategy and Development Direction - The company is focusing on integrating AI capabilities into its customer-facing software to enhance innovation and maintain a competitive edge [12] - Strategic investments are being made in the payments platform to drive adoption and revenue acceleration [16] - The company is prioritizing payment attachment at the point of initial SaaS sale as a core strategy [25] Management's Comments on Operating Environment and Future Outlook - Management has not observed any degradation in key metrics despite macroeconomic volatility, indicating a stable operating environment [32] - The guidance for Q2 and full year 2025 remains unchanged, reflecting confidence in the business's resilience [33][22] Other Important Information - The Board of Directors approved a $50 million increase to the share repurchase program, extending it to year-end 2026 [9][21] - Cash flow from operations for Q1 was $30.7 million, more than double the previous year's figure [20] Q&A Session Summary Question: How has prioritizing payment attachment at the point of sale impacted sales teams? - Management noted an increase in payment attachment with new customers in Q1, indicating positive results from this strategy [25][26] Question: What are the biggest upsell opportunities within EverPro, EverHealth, and EverWell? - Management highlighted payments as the largest opportunity, along with additional product integrations to enhance customer experience [27][28] Question: Any changes in pipeline activity or expansion metrics due to macroeconomic factors? - Management confirmed no degradation in key metrics, maintaining a "business as usual" stance [32] Question: Is there potential tariff exposure on the EverPro side of the business? - Management indicated that most EverPro business is break-fix, suggesting limited direct exposure to tariffs [41] Question: Any surprises or areas of improvement identified in the EverPro business? - Management expressed optimism about growth opportunities in payments and cross-selling other products [44]

Financial Data and Key Metrics Changes - In Q1 2025, GAAP revenue increased by 3.2% year over year, while on a pro forma basis, revenue grew by 7.4% year over year [7][17] - Adjusted EBITDA was $44.9 million, representing a margin of 31.6%, with a year-over-year margin expansion of nearly 360 basis points [8][18] - Total payment volume (TPV) for Q1 was approximately $12.7 billion, reflecting nearly 9% year-over-year growth [16] Business Line Data and Key Metrics Changes - Subscription and transaction revenue grew by 8.1% year over year, with adjusted gross profit of $111.1 million, resulting in an adjusted gross margin of 78.1% [10][19] - EverPro and EverHealth verticals accounted for 95% of consolidated revenue, with significant growth opportunities identified in payment integrations and additional product offerings [9][27] Market Data and Key Metrics Changes - The company reported a net revenue retention (NRR) of 97% over the trailing twelve months, indicating strong customer loyalty and revenue stability [15] - Approximately 240,000 customers were enabled for more than one solution, reflecting a 20% year-over-year growth [13] Company Strategy and Development Direction - The company is focusing on integrating AI capabilities into its products to enhance innovation and operational efficiency [11] - Strategic investments are being made in payment platforms to drive adoption and revenue growth, with a focus on optimizing go-to-market strategies [16][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their end markets, noting no significant degradation in key metrics despite macroeconomic volatility [31][33] - Guidance for Q2 2025 remains unchanged, with expected total revenue between $144.5 million and $147.5 million, and adjusted EBITDA between $39.5 million and $41.5 million [22] Other Important Information - The Board of Directors approved a $50 million increase to the share repurchase program, extending the authorization to year-end 2026 [8][21] - The company generated significant free cash flow, with cash flow from operations for the quarter at $30.7 million, more than double the previous year [20] Q&A Session Summary Question: How has prioritizing payment attachment at the point of sale impacted sales teams? - Management noted positive results in Q1, with increased payment attachment seen with new customers, and emphasized ongoing efforts to integrate payment selling into SaaS workflows [24][26] Question: What are the biggest upsell opportunities within EverPro, EverHealth, and EverWell? - Management highlighted payments as the largest growth opportunity, along with additional product integrations to enhance customer experience and value [27][28] Question: Any changes in pipeline activity or net expansion metrics due to macroeconomic factors? - Management reported no degradation in key metrics and stated that business operations remain stable despite macroeconomic concerns [31][32] Question: Is there potential tariff exposure on the EverPro side of the business? - Management indicated that most of the EverPro business is break-fix, suggesting limited direct exposure to tariffs, although some supply costs may be affected [40] Question: Any surprises or areas of improvement identified in the EverPro business? - Management expressed optimism about growth opportunities in payments and cross-selling other products, emphasizing the potential for significant improvements [42]

Customer Base and Revenue - As of December 31, 2024, EverCommerce served over 740,000 customers across three core verticals: Home Services, Health Services, and Wellness Services[116] - Approximately 97% of revenue for the three months ended March 31, 2025, was recurring or re-occurring, with an annualized net revenue retention rate of approximately 97%[122] - The Pro Forma Revenue Growth Rate was 7.4% for the three months ended March 31, 2025, driven by new customer acquisition and increased solutions for existing customers[133] - The company reported a revenue growth rate of 3.2% for the three months ended March 31, 2025, including pre-divestiture revenue from Fitness Solutions of $5.4 million[132] - Total revenue for the three months ended March 31, 2025, was $142,273,000, representing a 3.2% increase from $137,852,000 in the same period of 2024[136] - Total revenues increased by $4.4 million, or 3.2%, to $142.3 million for the three months ended March 31, 2025, compared to $137.9 million in the same period in 2024[158] Financial Performance - Adjusted EBITDA from continuing operations rose to $44,945,000, up 16.3% from $38,650,000 in the same period last year[139] - Net income from continuing operations improved significantly to $934,000, compared to a loss of $16,010,000 in the prior year, marking a turnaround of $16,944,000[139] - The company reported a net loss of $7,713,000 for the three months ended March 31, 2025, a significant improvement from a loss of $16,324,000 in the same period last year[155] Expenses and Cost Management - Total operating expenses decreased by 9.9% to $128,068,000 from $142,148,000 in the previous year[155] - Cost of revenues as a percentage of total revenue decreased from 22.9% in Q1 2024 to 21.9% in Q1 2025, improving gross margin[157] - General and administrative expenses as a percentage of revenue decreased from 23.0% to 22.0% year-over-year[157] - Stock-based compensation expense increased to $6,755,000 from $5,410,000, reflecting a rise of 24.8%[155] - Sales and marketing expenses rose by $1.2 million, or 4.4%, to $28.8 million, primarily due to increased advertising and personnel costs[160] - Product development expenses increased by $0.7 million, or 3.4%, to $20.0 million, mainly driven by higher outsourced services[161] - General and administrative expenses decreased by $0.4 million, or 1.1%, to $31.3 million, improving as a percentage of revenue from 23.0% to 22.0%[162] - Depreciation and amortization expenses decreased by $4.1 million, or 19.8%, to $20.9 million, primarily due to lower amortization of intangible assets[163] Cash Flow and Liquidity - Net cash provided by operating activities was $30.7 million for the three months ended March 31, 2025, compared to $13.3 million in the same period in 2024[174] - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash of $148.4 million, with $190.0 million of available borrowing capacity under its Revolver[172] Debt and Financing - The company has a credit agreement providing for a Term Loan of $550.0 million and a Revolver with a capacity of $190.0 million[180] - As of March 31, 2025, the outstanding amount under the Credit Facilities was $530.8 million, all related to the Term Loan, with no amounts outstanding under the Revolver[189] - The effective interest rate on the Term Loan was approximately 7.17% for the three months ended March 31, 2025[189] - The company is subject to a financial covenant requiring a first lien leverage ratio of 7.50 to 1.00 or less if revolving loans exceed 35% of the aggregate commitments[182] - The company has entered into interest rate swap agreements to convert a portion of the floating rate component of the Term Loan to fixed rate[186] - The company expects the commitment fee for the Revolver to range from 0.25% to 0.375% per annum[187] - As of March 31, 2025, the company was in compliance with the covenants under the Credit Facilities[189] Shareholder Returns - The company repurchased 1.1 million shares of common stock for approximately $11.2 million during the three months ended March 31, 2025[191] - The total authorization for the stock repurchase program has been increased to $250.0 million, with $21.6 million remaining available as of March 31, 2025[190][191] - The Term Loan matures in July 2028, while the Revolver matures in July 2026[188] Market Conditions - The macroeconomic climate, including rising inflation and supply chain disruptions, poses challenges to revenue and demand for EverCommerce's products[124] Product Development and Strategy - EverCommerce's vertically-tailored Business Management Software serves as the primary point-of-entry for customers, facilitating cross-selling opportunities[119] - The company maintains a strategy of "land and expand," allowing for customer acquisition and expansion through product development and acquisitions[118] - The company expects continued investment in product development, anticipating an increase in related expenses as a percentage of revenue in 2025[147] - EverCommerce's Customer Experience Solutions enhance customer engagement and retention through innovative communication tools[119] - The company is actively engaged in selling its marketing technology solutions, with a sale transaction expected in 2025[125]

Financial Performance - Revenue reached $142.3 million, exceeding guidance, with a reported year-over-year growth of 3.2% [12, 30] - Pro Forma revenue growth was 7.4% year-over-year, excluding fitness solutions [12, 30] - Adjusted EBITDA margin expanded by 360 basis points year-over-year to 31.6% [12, 34] - Levered Free Cash Flow (LFCF) for Q1 2025 was $25.1 million, a 197% year-over-year increase [36, 37] - Adjusted Unlevered Free Cash Flow (aUFCF) for Q1 2025 was $34.3 million, a 14.8% year-over-year increase [38, 39] Payments and Customer Growth - Payments revenue, excluding fitness, grew by 8.4% year-over-year, driven by a 9.0% increase in Total Payments Volume (TPV) [13, 25] - Total Payments Volume (TPV) reached $12.7 billion [16, 26] - The company has enabled 244,000 customers with more than one solution, representing a 28% year-over-year growth [23, 24] AI Initiatives - 40% of customer inquiries are resolved by the AI agent [21] - The AI agent achieves an 85% CSAT (Customer Satisfaction) score on resolutions [21] Capital Allocation - The company increased its share repurchase authorization by $50 million through December 31, 2026 [13, 41] Outlook - Q2 2025 total revenue is projected to be between $144.5 million and $147.5 million [42]