EverCommerce(US:EVCM)2023-05-13 21:26Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $161.1 million, representing a year-over-year growth of 12.2% [15] - Adjusted EBITDA for Q1 was $31.9 million, with a margin of 19.8%, compared to 16% in Q1 2022, reflecting a 39% year-over-year growth [22] - Adjusted gross profit was $105.2 million, with an adjusted gross margin of 65.3%, up from 64.7% in the previous year [22] Business Line Data and Key Metrics Changes - Subscription and transaction revenue was $123.8 million, up 14.6% year-over-year, while marketing technology solutions revenue was $31.8 million, up 6.3% [15] - Embedded payments revenue grew 37% year-over-year, significantly contributing to overall revenue growth and margin expansion [12][15] Market Data and Key Metrics Changes - Total payment volume (TPV) reached approximately $11.1 billion, representing a 17% year-over-year growth [13] - The number of customers using more than one solution grew by 22% year-over-year, indicating strong cross-selling opportunities [12] Company Strategy and Development Direction - The company is focused on optimizing its operations through the consolidation of products and brands, particularly within the EverHealth segment, which serves approximately 100,000 small health practices [4][14] - There is an emphasis on enhancing customer experience by providing integrated solutions rather than point solutions, which is expected to drive growth and operational efficiencies [14][40] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has not negatively impacted core verticals, with steady growth expected to continue throughout the year [20] - The company raised its full-year 2023 revenue guidance to $680 million to $700 million and adjusted EBITDA guidance to $136 million to $144 million, driven by price increases and new product introductions [17] Other Important Information - The company repurchased 3.1 million shares for $29.6 million in Q1, reflecting a commitment to returning value to shareholders [16] - The company ended the quarter with $69.8 million in cash and cash equivalents, maintaining a net leverage of approximately 3.2x [16] Q&A Session Summary Question: Opportunities for M&A strategy - Management indicated that while they are open to M&A, they currently see compelling value in their stock and prefer to be prudent with leverage [3] Question: Trends in new customer acquisition - Management reported stability in customer acquisition and conversion rates, with no significant changes from previous quarters [35] Question: Impact of price increases on customer reception - Historically, price increases have not significantly impacted customer retention, and management expects similar outcomes for the current year [36] Question: Cost efficiencies from brand consolidation - Management anticipates cost efficiencies from consolidating brands and reducing digital marketing costs, enhancing overall operational efficiency [31][40] Question: Onboarding of payment capabilities - The company is focused on improving the onboarding process for payment capabilities to enhance customer activation and utilization [58]