EverCommerce(US:EVCM)2022-05-10 02:33Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $143.6 million, representing a 37% increase year-over-year, exceeding the high end of guidance [16][22] - Adjusted EBITDA for the quarter was $23 million, with a margin of 16%, reflecting an 8% year-over-year growth [17][18] - Adjusted gross profit was $92.8 million, with an adjusted gross margin of 64.7%, slightly lower than Q1 2021 due to revenue mix [18][19] - Annualized total payment volume (TPV) reached approximately $9.5 billion, a 26% year-over-year growth [13][16] Business Line Data and Key Metrics Changes - Subscription and transaction fees accounted for $108 million, up 44% from the prior year [16] - Marketing technology solutions generated $29.9 million, an 18% increase from the previous year [16] - The number of customers using more than one solution increased to over 60,000, a nearly 40% year-over-year growth [12] Market Data and Key Metrics Changes - The total addressable market (TAM) for EverCommerce is estimated at $1.3 trillion, with less than 0.1% penetration globally [9] - The company serves over 600,000 customers across various service sectors, indicating a diversified customer base [10][12] Company Strategy and Development Direction - The company aims to balance growth with profitability, targeting organic growth of 15% to 20% for the foreseeable future [5][14] - EverCommerce plans to invest in product development and marketing to enhance its competitive position [14][22] - The focus remains on three main verticals: home services, health services, and fitness and wellness services [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the service economy, particularly in non-cyclical categories like home and health services [25][56] - The company does not foresee significant headwinds in its core categories for the remainder of the year [25] - Management highlighted the importance of digital transformation in driving future growth opportunities [5][22] Other Important Information - The company announced leadership changes, including the appointment of a new Chief Human Resources Officer [15] - Adjusted unlevered free cash flow for the quarter was $14.9 million, representing a 9% year-over-year growth [20] Q&A Session Summary Question: Thoughts on the health of the service economy - Management sees continued growth in home and health services, with no pushback observed to date [25] Question: Penetration of payment solutions in the customer base - Current adoption of payment solutions is about 34%, with significant growth potential as the overall TPV is projected to exceed $80 billion [27] Question: Performance of DrChrono and its impact on revenue - DrChrono is performing as expected and contributing positively to revenue growth [32] Question: Changes in go-to-market strategy in a recession - The company plans to maintain its current strategy, focusing on embedding solutions and optimizing customer acquisition [38] Question: Pricing strategy in the context of inflation - The company is evaluating pricing based on value and competitive market conditions, with no immediate changes planned [66] Question: Customer acquisition metrics and performance - The new customer acquisition engine is performing well, with strong bookings reported for Q1 [72]