EverCommerce Conference Call Summary Company Overview - **Company**: EverCommerce - **Industry**: Software solutions for service-based businesses, primarily in home and field services and healthcare - **Customer Base**: Over 725,000 customers across various service sectors [4][6] Core Business Segments - **Segments**: - EverPro (home and field services) - EverHealth (healthcare services) - EverWell (minor segment, about 5% of revenue) [5] - **Revenue Contribution**: EverPro and EverHealth comprise approximately 95% of total revenue [5] Financial Performance - **Q2 Results**: - Revenue growth of 7.4% year-over-year [7] - Adjusted EBITDA margins at 30% [8] - Increased full-year revenue guidance midpoint by $2.5 million [8] - **Cash Flow**: Generating over $100 million in annual cash flow [11] - **Liquidity**: $150 million in cash on hand and a $125 million revolving credit facility [12] Market Opportunities - **Total Addressable Market (TAM)**: - Home and field services market estimated at over $69 billion - Healthcare market estimated at over $100 billion [13] - **Customer Segmentation**: Focus on small to medium-sized businesses, including plumbers, electricians, and healthcare providers [14] Strategic Focus - **Cross-Selling and Upselling**: - 261,000 customers identified as payment-enabled (36% of total customer base) [9] - 112,000 customers actively utilizing payment solutions [10] - **Product Development**: Emphasis on enhancing payment capabilities and integrating additional product offerings [18][19] Organizational Changes - **Leadership Appointments**: - New divisional CEOs for EverPro and EverHealth to enhance execution and accountability [22] - **Decentralization Strategy**: Transitioning from a centralized to a decentralized organizational structure to better serve customers [21] Payment Solutions - **Payment Enablement**: - 32% year-over-year growth in payment-enabled customers [26] - Focus on expanding payment methods and enhancing customer onboarding experience [27][28] - **Profitability of Payments**: Payments revenue stream has a 95% EBITDA contribution margin, indicating high profitability [32] Capital Allocation Strategy - **M&A Activity**: Future acquisitions will be more surgical, focusing on technology advancements and filling software gaps [38] - **Stock Buyback Program**: Expanded from $200 million to $250 million, with $50 million remaining capacity [44] AI Integration - **AI Utilization**: Ongoing use of AI for lead scoring and customer experience improvements, with significant cost avoidance achieved [46][47] Future Outlook - **EBITDA Margin Expansion**: Current margins at 30%, with potential for further growth driven by software revenue and payment penetration [48][49] - **Investor Perception**: Emphasis on the strong portfolio of solutions and significant free cash flow generation, highlighting the company's value proposition [52][53]

EverCommerce Conference Call Summary Company Overview - **Company**: EverCommerce - **Industry**: Software as a Service (SaaS) for service-based small businesses - **Focus**: Simplifying and empowering service-based small business owners through tailored software solutions [3][5] Key Points and Arguments Business Performance - **Financial Results**: Exceeded guidance for both EBITDA and revenue in the first half of 2025, with EBITDA margins growing from 20% to over 30% [8][17] - **Transformation Program**: Initiated 18 months ago, focusing on customer service improvement and operational efficiency [8][9] Market Segments - **Core Verticals**: Focus on three main areas: EverPro (home field services), EverHealth (health services), and EverWell (salon and spa services) [10][11] - **Customer Base**: Over 720,000 customers, with 350,000 contractors using their solutions [20][25] Competitive Landscape - **Market Position**: Competes with companies like ServiceTitan, but focuses on the down market with a larger customer base [19][20] - **Differentiation**: Unique end-to-end solutions in EverHealth, integrating practice management, EMR, patient engagement, and claims processing [22][39] Growth Strategy - **Cross-Selling Initiatives**: Over 260,000 customers are ready to adopt multiple solutions, primarily in payments [26][27] - **Product-Led Growth (PLG)**: 80% of new customers come through PLG, emphasizing easy onboarding and user-friendly products [29][30] Future Outlook - **Investment Focus**: Continued investment in both EverPro and EverHealth, with a balanced approach to growth opportunities [41][42] - **M&A Opportunities**: Actively seeking acquisitions to enhance product offerings and customer value, with a strong balance sheet to support growth [43][44] Additional Important Insights - **Leadership Changes**: New CEOs for EverPro and EverHealth to enhance focus and operational efficiency [11][12] - **AI Integration**: Plans to integrate AI across all business operations and products, enhancing customer experience and operational efficiency [13][39] - **Market Potential**: Significant growth opportunities in underpenetrated markets, particularly in service-based small businesses [33][37] This summary encapsulates the key insights from the EverCommerce conference call, highlighting the company's strategic direction, market positioning, and growth potential.

Company Overview - EverCommerce Inc. is a leading service commerce platform providing vertically-tailored, integrated SaaS solutions for over 725,000 global service-based businesses [2] - The company specializes in Home, Health, and Wellness service industries through its brands EverPro, EverHealth, and EverWell [2] - EverCommerce offers end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications [2] Upcoming Investor Conferences - CEO Eric Remer will present at the Oppenheimer 28th Annual Technology, Internet & Communications Conference on August 12, 2025, at 12:25 p.m. EST [3] - CFO Ryan Siurek and SVP, Finance, & Head of Investor Relations Brad Korch will present at the Canaccord Genuity 45th Annual Growth Conference in Boston on August 13, 2025, at 9:30 a.m. EST [3] - Brad Korch will participate in 1x1 meetings at the Deutsche Bank Technology Conference on August 27, 2025 [3] - Ryan Siurek and Brad Korch will also participate in 1x1 meetings at the Piper Sandler Growth Frontiers Conference on September 10, 2025 [3]

Q2 2025 Performance Highlights - Revenue reached $148 million, exceeding guidance, with a reported year-over-year growth of 53%[11], and a pro forma growth of 74% excluding fitness sale[11] - Adjusted EBITDA surpassed guidance, achieving a 304% margin, a 230 bps year-over-year expansion[11] - Payments Revenue, excluding Fitness, increased by 68% year-over-year, driven by Total Payments Volume (TPV) growth[11] - The company repriced and extended its Term Loan and Revolving Credit Facility, resulting in approximately $13 million in annual interest cost savings[11] Customer and Payments Growth - The company has over 725,000 global customers and a pro forma last twelve months (LTM) revenue of $5741 million[13] - Total customers enabled with more than one solution grew by 32% year-over-year, reaching 261,000[16, 17] - Total Payments Volume (TPV) increased by 7% year-over-year, reaching $129 billion[20] Financial Metrics and Outlook - Adjusted EBITDA for Q2 2025 was $45 million[27] - Levered Free Cash Flow (LFCF) for Q2 2025 was $189 million[31] - Adjusted Unlevered Free Cash Flow (aUFCF) for Q2 2025 was $349 million, a 162% year-over-year increase[33] - The company anticipates Q3 2025 total revenue to be between $1465 million and $1495 million, and adjusted EBITDA between $41 million and $43 million[38]

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 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 - 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]

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]

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]