EverCommerce Conference Call Summary Company Overview - **Company**: EverCommerce (NasdaqGS:EVCM) - **IPO Year**: 2021 [1] Industry Focus - **Main Verticals**: - EverPro (Home Services) - EverHealth (Health Services) - **Revenue Contribution**: Approximately 95% of total revenue from these two verticals [6] Key Insights and Trends - **2025 as a Transition Year**: - 2023 and 2024 were years of transformation and optimization for the organization, focusing on stabilization in 2025 [4][9] - **Market Conditions**: - Current market characterized by uncertainty and volatility, but essential services in home and health sectors are relatively stable and anti-cyclical [3][12][13] Financial Performance - **EBITDA Margin Improvement**: - Achieved a 500 basis points improvement in EBITDA margin from 2022 to 2025, with nearly 1,000 basis points improvement since IPO [7][8] - **Growth Strategy**: - Focus on efficiency, customer value, and reinvestment in key verticals to drive growth in 2026 and beyond [9][59] Market Opportunities - **Underpenetrated Market**: - EverPro has around 300,000-400,000 contractors using its services, representing less than 2% market penetration in North America [18][19] - Total Addressable Market (TAM) includes approximately 30 million contractors globally [20] - **Cross-Selling Opportunities**: - Significant potential in payments, customer engagement solutions, and AI products [27][28][29] AI Integration - **Acquisition of ZyraTok**: - Introduction of AI-driven customer engagement solutions, including an AI Receptionist, aimed at enhancing customer service and operational efficiency [29][30][39] - **AI Applications in EverHealth**: - Plans to integrate AI solutions for ambient voice note-taking and billing processes to improve user experience [50][52] Organizational Changes - **Leadership Changes**: - New leadership in both EverPro and EverHealth, with a focus on building strong teams to drive growth [55][56] - **Talent Acquisition**: - 50 new leadership positions created to enhance focus and execution within the two main verticals [55] Future Outlook - **Growth Projections**: - Anticipated mid-double-digit growth rates as the company reinvests in its core verticals and leverages AI and payment solutions [58][59] - **Capital Allocation**: - Focus on using generated cash flow for strategic acquisitions and share buybacks to enhance shareholder value [66][70] Conclusion - **Long-Term Vision**: - EverCommerce aims to solidify its leadership in the home and health service markets, leveraging technology and operational efficiencies to drive sustainable growth [65][69]

Core Points - EverCommerce Inc. will present at the 2025 RBC Capital Markets Global Technology, Internet, and Media & Telecommunications Conference on November 18, 2025, at 3:20 p.m. EST [1] - The presentation will be led by CEO Eric Remer and SVP of Finance & Head of Investor Relations Brad Korch [1] Company Overview - EverCommerce is a leading service commerce platform that provides vertically-tailored, integrated SaaS solutions for over 725,000 global service-based businesses [3] - The company focuses on helping businesses accelerate growth, streamline operations, and increase customer retention through modern digital and mobile applications [3] - EverCommerce operates under brands such as EverPro, EverHealth, and EverWell, specializing in Home, Health, and Wellness service industries [3] - The company offers end-to-end business management software, embedded payment acceptance, and customer experience applications [3]

Financial Data and Key Metrics Changes - EverCommerce reported revenue of $147.5 million for Q3 2025, reflecting a 5.3% year-over-year growth, consistent with previous guidance [5][18] - Adjusted EBITDA for the quarter was $46.5 million, representing a margin of 31.5%, which is an expansion of 140 basis points year-over-year [5][18] - Payments revenue grew by 6% year-over-year, accounting for approximately 21% of overall revenue [10][11] Business Line Data and Key Metrics Changes - Subscription and transaction revenue totaled $142.2 million, with core SaaS revenue growing over 8% in the quarter [18] - Adjusted gross profit was $114 million, yielding a gross profit margin of 77.3%, slightly down from 78.1% in Q3 2024 [18] - The annualized total payments volume (TPV) reached approximately $13 billion, marking a 5.2% year-over-year growth [11] Market Data and Key Metrics Changes - EverCommerce serves over 725,000 customers across three major verticals: EverPro, EverHealth, and Everwell, with the first two accounting for about 95% of consolidated revenue [8] - The company achieved a net revenue retention (NRR) of 97%, with customers using multiple solutions showing an NRR of over 100% [10] Company Strategy and Development Direction - The strategic acquisition of Zyratok, an AI agentic platform, aims to enhance AI capabilities within the service-based industries, particularly in home and field services [6][12] - The company is focusing on providing AI-powered vertical software to maximize long-term growth and shareholder value [6][8] - EverCommerce plans to continue its transformation and optimization programs to improve customer satisfaction and operational efficiency [19][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core SaaS business despite some macroeconomic headwinds affecting the rebate program [28][35] - The company has narrowed its revenue and adjusted EBITDA guidance for 2025, expecting total revenue of $584 to $592 million and adjusted EBITDA of $174.5 to $179.5 million [22][23] Other Important Information - The company ended the quarter with $107 million in cash and cash equivalents and $155 million of undrawn capacity on its revolver [21] - EverCommerce repurchased approximately 2.6 million shares for $29.1 million at an average price of $11.10 per share [21][22] Q&A Session Summary Question: Can you elaborate on the Zyratok acquisition and its business model? - Management indicated that Zyratok's product is focused on the home service sector and will be integrated into EverCommerce's systems, enhancing capabilities across the board [25][26] Question: What were the impacts of the rebate program on guidance? - Management noted a small impact from the rebate program due to macroeconomic factors, but emphasized that the core SaaS business remains strong [28][29] Question: What changes to guidance have occurred due to macro trends? - Management confirmed that there were no significant macroeconomic impacts other than those related to the rebate program, maintaining a positive outlook for the core SaaS business [35][36] Question: How is the pricing for Zyratok structured? - The pricing model for Zyratok includes both subscription and usage-based components, with plans to integrate these into EverCommerce's broader SaaS offerings [39][40] Question: How is the spending optimization program progressing? - Management reported successful cost reductions exceeding $10 million in 2025, with ongoing efforts to enhance operational efficiency and margin expansion [46][47]

Earnings Call Presentation Q3 2025 – November 6, 2025 SAFE HARBOR This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this press release may b ...

Core Insights - EverCommerce Inc. reported third quarter financial results for the period ending September 30, 2025, with revenue in line with guidance and Adjusted EBITDA exceeding expectations, driven by cost optimization efforts and the acquisition of ZyraTalk, enhancing its AI capabilities for service SMBs [3][9]. Financial Performance - Revenue for the third quarter was $147.5 million, a 5.3% increase from $140.1 million in the same quarter of 2024 [9]. - Subscription and transaction fees revenue was $142.2 million, up 4.3% from $136.3 million year-over-year [9]. - Net income from continuing operations was $5.8 million, or $0.03 per share, compared to a net loss of $9.1 million, or $(0.05) per share, in the prior year [9][31]. - Adjusted EBITDA for the quarter was $46.5 million, compared to $42.1 million in the same quarter of 2024 [9]. Share Repurchase Program - The Board of Directors approved a $50 million increase in the stock repurchase authorization, bringing the total to $300 million since the program's inception [4][5]. - During the third quarter, the company repurchased 2.6 million shares for approximately $29.1 million, leaving $22.3 million available under the repurchase program as of September 30, 2025 [5][6]. Business Outlook - For the fourth quarter of 2025, revenue is expected to be between $148 million and $152 million [8]. - Full-year revenue guidance is projected to be in the range of $584 million to $592 million, with Adjusted EBITDA expected between $174.5 million and $179.5 million [15]. Key Metrics - Pro Forma Revenue for the third quarter was $148.3 million, reflecting a 5.3% increase compared to $140.8 million in the same quarter of 2024 [9][36]. - Pro Forma Subscription and Transaction Fees Revenue was $143.1 million, a 4.4% increase from $137.0 million year-over-year [9][38]. Balance Sheet Highlights - As of September 30, 2025, total assets were $1.403 billion, a slight decrease from $1.421 billion at the end of 2024 [28]. - Total liabilities stood at $674.6 million, compared to $670.4 million at the end of 2024 [28]. - Stockholders' equity was $728.5 million, down from $750.8 million at the end of 2024 [29]. Cash Flow Analysis - Net cash provided by operating activities for the nine months ended September 30, 2025, was $90.2 million, compared to $64.8 million in the same period of 2024 [33]. - Cash used in investing activities totaled $56.5 million, primarily due to acquisitions and capitalized software costs [34]. - Cash used in financing activities was $62.3 million, which included stock repurchases and payments on long-term debt [34].

Core Insights - EverCommerce Inc. will report its third quarter 2025 financial results on November 6, 2025, after U.S. financial markets close [1] - A conference call will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results and provide a business update [2] Company Overview - EverCommerce is a leading service commerce platform that offers vertically-tailored, integrated SaaS solutions to over 725,000 global service-based businesses [3] - The company specializes in Home, Health, and Wellness service industries through its brands EverPro, EverHealth, and EverWell, providing end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [3]

Core Insights - EverCommerce has completed the acquisition of ZyraTalk, enhancing its position as an AI-driven innovator in the service SMB sector [1][2] - The acquisition aims to integrate ZyraTalk's AI capabilities into EverCommerce's Home & Field Services vertical, EverPro, with plans for broader applications across other verticals [1][2] Company Strategy - The acquisition is described as a strategic investment to drive long-term growth and deliver greater value to customers [2] - ZyraTalk's AI platform is expected to improve customer engagement by providing 24/7 responsiveness, booking appointments, and enhancing overall customer experience [2][6] Operational Impact - Integrating ZyraTalk's technology is anticipated to unlock new opportunities for automation, cross-selling, and customer engagement within EverPro's ecosystem of over 350,000 service providers [2][6] - The acquisition is expected to enhance efficiency and profitability for existing customers, potentially leading to measurable revenue increases [2][6] Financial Aspects - The transaction was funded using a portion of cash on hand, although specific financial terms were not disclosed [3]

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]