EverCommerce(US:EVCM)2025-08-06 22:00Financial Data and Key Metrics Changes - Revenue for the second quarter was $148 million, an increase of 5.3% year over year, and 7.4% on a pro forma basis, adjusting for the sale of fitness solutions [15][6] - Adjusted EBITDA was $45 million, representing a 30.4% margin, with a year-over-year margin expansion of over 230 basis points [7][16] - Payments revenue, excluding fitness solutions, grew 6.8% year over year, accounting for approximately 21% of overall revenue [12][15] Business Line Data and Key Metrics Changes - EverPro and EverHealth verticals represent 95% of consolidated revenue, with a total of 725,000 customers across all verticals [8][9] - Subscription and transaction revenue grew 8.1% year over year, with adjusted gross profit of $114.6 million and an adjusted gross margin of 77.4% [16][18] - The number of customers enabled for more than one solution grew by 32% year over year, with 261,000 customers enabled [10][11] Market Data and Key Metrics Changes - Annualized total payment volume (TPV) reached approximately $12.9 billion, reflecting nearly 7% year-over-year growth [13][19] - The company reported a net revenue retention (NRR) of 97% over the trailing twelve months [12][10] Company Strategy and Development Direction - The company is focusing on enhancing product capabilities and go-to-market strategies to prioritize payment attachments at the point of initial sale [9][10] - Continued investments in AI functionalities are aimed at improving customer experience and operational efficiency across various product lines [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic conditions, maintaining a cautious approach to revenue guidance for the second half of the year [26][38] - The company is optimistic about the ongoing transformation initiatives and the positive results seen in efficiency and sales [23][24] Other Important Information - The company has repriced and extended its credit facility, resulting in approximately $1.3 million in annual interest savings [20][19] - The company repurchased approximately 2 million shares for $20.6 million at an average price of $10.1 per share [20] Q&A Session Summary Question: Update on transformation initiatives - Management highlighted ongoing optimization efforts and positive results in efficiency and sales from the transformation initiatives [23][24] Question: Reason for not raising revenue guidance despite strong performance - Management indicated a prudent approach to revenue guidance, considering potential moderation in the second half of the year [26][38] Question: AI functionalities enhancing customer experience - Management discussed the launch of AI-powered features across product lines, improving customer engagement and operational efficiency [29][30] Question: Tax implications of the One Big Beautiful bill - Management stated it is early for analysis but anticipates some benefits from changes in interest deductibility [33] Question: Visibility into business post-Martech discontinuation - Management noted improved visibility and linearity in operations, focusing efforts on core verticals [62]