Press-Releases

EverCommerce Announces Third Quarter 2023 Financial


DENVER, Nov. 06, 2023 (GLOBE NEWSWIRE) — EverCommerce Inc. (“EverCommerce” or the “Company”) (NASDAQ: EVCM), a leading service commerce platform, today announced financial results for the quarter ended September 30, 2023.

Third Quarter 2023 Financial Highlights

  • Revenue of $174.7 million, an increase of 10.5% compared to $158.1 million for the quarter ended September 30, 2022.
  • Subscription and transaction fee Revenue of $132.6 million, an increase of 10.5% compared to $120.1 million for the quarter ended September 30, 2022.
  • Net loss was $0.6 million, or $(0.00) per basic and diluted share, for the quarter ended September 30, 2023, compared to net loss of $15.9 million, or $(0.08) per basic and diluted share, for the quarter ended September 30, 2022.
  • Adjusted EBITDA was $41.8 million for the quarter ended September 30, 2023, compared to $30.2 million for the quarter ended September 30, 2022.

“EverCommerce continues to advance its goal of being the leading provider of vertical software for service SMBs,” said Eric Remer, EverCommerce’s Founder and CEO. “Despite modest macroeconomic pressures in the more transactional aspects of our business, we delivered revenue growth that was within our target range and Adjusted EBITDA that exceeded the top end of guidance. Third quarter Adjusted EBITDA grew 38.6% year-over-year, representing 485 basis points of margin expansion.”

A reconciliation of GAAP to Non-GAAP measures has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Share Repurchases

On November 5, 2023, our Board of Directors approved a $50.0 million increase in the previously announced stock repurchase authorization and extended the authorization through December 31, 2024. The total authorization since the repurchase program began allows for the purchase up to $150.0 million in shares of the Company’s common stock.

The Company repurchased and retired 160,000 shares of common stock for approximately $1.6 million during the three months ended September 30, 2023. As of September 30, 2023, $16.0 million remained available under the Repurchase Program.

Repurchases under the program may be made from time to time in the open market at prevailing market prices or in negotiated transactions off the market. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. The Company expects to fund repurchases with cash on hand.

Business Outlook

Based on information as of today, November 6, 2023, the Company is issuing the following financial guidance for the fourth quarter and full year 2023.

Fourth Quarter 2023:

  • Revenue is expected to be in the range of $170 million to $174 million.
  • Adjusted EBITDA is expected to be in the range of $35.5 million to $39.5 million.

Full Year 2023:

  • Revenue is expected to be in the range of $676 million to $680 million.
  • Adjusted EBITDA is expected to be in the range of $148 million to $152 million.

A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to certain charges excluded from this non-GAAP measure; in particular, the measures and efforts of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. It is important to note that these charges could be material to EverCommerce’s results computed in accordance with GAAP.

Conference Call Information

EverCommerce’s management team will hold a conference call to discuss our third quarter 2023 results and outlook today, November 6, 2023, at 5:00 p.m. ET. Please visit the “Investor Relations” page of the Company’s website (https://investors.evercomerce.com) for both telephonic and webcast access to this call as well as a copy of the presentation materials used on the call. An archive replay will be available following the conclusion of the call.

Investor Contact
Brad Korch
SVP and Head of Investor Relations
720-796-7664
[email protected]

Media Contact
Jeanne Trogan
VP of Communications
737-465-2897
[email protected]

About EverCommerce

EverCommerce (Nasdaq: EVCM) is a leading service commerce platform, providing vertically-tailored, integrated SaaS solutions that help more than 685,000 global service-based businesses accelerate growth, streamline operations, and increase retention. Its modern digital and mobile applications create predictable, informed, and convenient experiences between customers and their service professionals. With its EverPro, EverHealth, and EverWell brands specializing in Home, Health, and Fitness & Wellness service industries, EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications. Learn more at EverCommerce.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our future operations and financial results, the underlying trends in our business and the macroeconomic environment, our market opportunity, our potential for growth and our strategy. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our limited operating history and evolving business; our recent growth rates may not be sustainable or indicative of future growth; we may not achieve profitability in the future; we may continue to experience significant quarterly and annual fluctuations in our operating results due to a number of factors, which makes our future operating results difficult to predict; we may reduce our rate of acquisitions and may be unsuccessful in achieving continued growth through acquisitions; revenues and profits generated through acquisitions may be less than anticipated, and we may fail to uncover all liabilities of acquisition targets; we may need to incur additional indebtedness or seek capital through new equity or debt financings, which may not be available to us on acceptable terms or at all; we may not be able to continue to expand our share of our existing vertical markets or expand into new vertical markets; we face intense competition in each of the industries in which we operate; the industries in which we operate are rapidly evolving and the market for technology-enabled services that empower SMBs is relatively immature and unproven; we are dependent on payment card networks and payment processors and if we fail to comply with the applicable requirements of our payment network or payment processors, they can seek to fine us, suspend us or terminate our registrations through our bank sponsors; the inability to keep pace with rapid developments and changes in the electronic payments market or are unable to introduce, develop and market new and enhanced versions of our software solutions; real or perceived errors, failures or bugs in our solutions; unauthorized disclosure, destruction or modification of data, disruption of our software or services or cyber breaches; our estimated total addressable market is subject to inherent challenges and uncertainties; actual or perceived inaccuracies in our operational metrics may harm our reputation; failure to effectively develop and expand our sales and marketing capabilities; failure to maintain and enhance our reputation and brand recognition; inability to retain current customers or to sell additional functionality and services to them may adversely affect our revenue growth; our systems and our third-party providers’ systems may fail or our third-party providers may discontinue providing their services or technology or to us specifically; faster growth of lower margin solutions and services than higher margin solutions and services; risks related to COVID-19; economic and political risks, including the business cycles of our clients and changes in the overall level of consumer and commercial spending; our ability to retain and hire skilled personnel; risks related to our indebtedness; risks related to our material weakness and internal control over financial reporting; risks related to the increasing focus on environmental sustainability and social initiatives; our ability to adequately protect or enforce our intellectual property and other proprietary rights; risk of patent, trademark and other intellectual property infringement claims; risks related to governmental regulation; risks related to our sponsor stockholders agreement and qualifying as a “controlled company” under the rules of The Nasdaq Stock Market; as well as the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2022 and updated by our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Non-GAAP Financial Measures

EverCommerce has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). EverCommerce uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing EverCommerce’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with EverCommerce’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of EverCommerce’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Adjusted Gross Profit. Adjusted Gross Profit is a key performance measure that our management uses to assess our operational performance, as it represents the results of revenues and direct costs, which are key components of our operations. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it reflects the gross profitability of our operations, and excludes the indirect costs associated with our sales and marketing, product development, general and administrative activities, and depreciation and amortization, and the impact of our financing methods and income taxes.

Gross profit is calculated as total revenue less cost of revenue (exclusive of depreciation and amortization), amortization of developed technology, amortization of capitalized software and depreciation expense (allocated to cost of revenues). We calculate Adjusted Gross Profit as gross profit adjusted to exclude depreciation and amortization allocated to cost of revenues. Adjusted Gross Profit should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss) or profitability.

Adjusted EBITDA. Adjusted EBITDA is a key performance measure that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of net income (loss) to Adjusted EBITDA, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.

Adjusted EBITDA is used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income or income from continuing operations. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Our Management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.

We calculate Adjusted EBITDA as net loss adjusted to exclude interest and other expense, net, income tax expense (benefit), depreciation and amortization, other amortization, acquisition related costs and non-recurring costs, and stock-based compensation. Other amortization includes amortization for capitalized contract acquisition costs. Acquisition related costs and non-recurring costs are specific deal-related costs such as legal fees, financial and tax due diligence, consulting and escrow fees as well as expenses such as system implementation costs and severance related to planned restructuring activities. Acquisition related and non-recurring costs are excluded as they are not representative of our underlying operating performance. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss).

EverCommerce Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share and share amounts)
(unaudited)
  September 30,   December 31,
    2023       2022  
       
Assets      
Current assets:      
Cash and cash equivalents $ 87,335     $ 92,625  
Restricted cash   3,488       3,199  
Accounts receivable, net of allowance for expected credit losses of $6.3 million and $4.7 million at September 30, 2023 and December 31, 2022, respectively   50,725       48,032  
Contract assets   13,233       12,971  
Prepaid expenses and other current assets   24,480       23,760  
Total current assets   179,261       180,587  
Property and equipment, net   10,261       11,930  
Capitalized software, net   40,607       32,554  
Other non-current assets   46,563       46,855  
Intangible assets, net   340,841       405,720  
Goodwill   923,766       914,082  
Total assets   1,541,299       1,591,728  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 8,354     $ 8,373  
Accrued expenses and other   57,935       56,963  
Deferred revenue   24,639       22,885  
Customer deposits   12,188       11,360  
Current maturities of long-term debt   5,500       5,500  
Total current liabilities   108,616       105,081  
Long-term debt, net of current maturities and deferred financing costs   527,762       530,946  
Other non-current liabilities   42,765       49,008  
Total liabilities   679,143       685,035  
Commitments and contingencies      
Stockholders’ equity:      
Preferred stock, $0.00001 par value, 50,000,000 shares authorized and no shares issued or outstanding as of September 30, 2023 and December 31, 2022          
Common stock, $0.00001 par value, 2,000,000,000 shares authorized and 188,927,445 and 191,447,237 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively   2       2  
Accumulated other comprehensive loss   (12,919 )     (10,198 )
Additional paid-in capital   1,471,713       1,489,935  
Accumulated deficit   (596,640 )     (573,046 )
Total stockholders’ equity   862,156       906,693  
Total liabilities and stockholders’ equity $ 1,541,299     $ 1,591,728  
EverCommerce Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share and share amounts)
(unaudited)
  Three months ended
September 30,
  Nine months ended
September 30,
    2023       2022       2023       2022  
               
Revenues:              
Subscription and transaction fees $ 132,640     $ 120,085     $ 386,765     $ 343,734  
Marketing technology solutions   36,838       36,276       103,081       101,340  
Other   5,263       1,765       16,083       13,874  
Total revenues   174,741       158,126       505,929       458,948  
Operating expenses:              
Cost of revenues (exclusive of depreciation and amortization presented separately below)   61,471       57,655       175,602       163,503  
Sales and marketing   30,086       29,440       91,660       89,531  
Product development   19,318       18,508       56,352       53,568  
General and administrative   31,538       32,164       101,553       96,748  
Depreciation and amortization   26,035       27,613       77,975       82,524  
Total operating expenses   168,448       165,380       503,142       485,874  
Operating income (loss)   6,293       (7,254 )     2,787       (26,926 )
Interest and other expense, net   (6,666 )     (8,890 )     (26,615 )     (21,070 )
Net loss attributable to common stockholders before income tax (expense) benefit   (373 )     (16,144 )     (23,828 )     (47,996 )
Income tax (expense) benefit   (241 )     291       1,543       5,953  
Net loss attributable to common stockholders   (614 )     (15,853 )     (22,285 )     (42,043 )
Other comprehensive loss:              
Foreign currency translation losses, net   (1,940 )     (6,978 )     (2,721 )     (15,811 )
Comprehensive loss attributable to common stockholders $ (2,554 )   $ (22,831 )   $ (25,006 )   $ (57,854 )
Basic and diluted net loss per share attributable to common stockholders $     $ (0.08 )   $ (0.12 )   $ (0.22 )
Basic and diluted weighted-average shares of common stock outstanding used in computing net loss per share   188,805,421       194,542,764       189,039,709       195,205,260  
EverCommerce Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
  Nine months ended
September 30,
    2023       2022  
       
Cash flows provided by operating activities:      
Net loss $ (22,285 )   $ (42,043 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization   77,975       82,524  
Stock-based compensation expense   19,610       19,776  
Deferred taxes   (2,066 )     (6,855 )
Amortization of deferred financing costs and non-cash interest   1,240       1,622  
Bad debt expense   5,285       2,362  
Other non-cash items   (4,807 )     1,583  
Changes in operating assets and liabilities:      
Accounts receivable, net   (9,145 )     (11,722 )
Prepaid expenses and other current assets   (1,331 )     (7,151 )
Other non-current assets   4,511       (1,313 )
Accounts payable   (62 )     (1,450 )
Accrued expenses and other   1,436       (1,308 )
Deferred revenue   1,514       2,503  
Other non-current liabilities   (3,288 )     (916 )
Net cash provided by operating activities   68,587       37,612  
Cash flows used in investing activities:      
Purchases of property and equipment   (2,140 )     (2,155 )
Capitalization of software costs   (14,727 )     (11,440 )
Acquisition, net of cash acquired   (14,959 )      
Net cash used in investing activities   (31,826 )     (13,595 )
Cash flows used in financing activities:      
Payments on debt   (4,125 )     (6,125 )
Exercise of stock options   1,982       1,675  
Proceeds from common stock issuance for Employee Stock Purchase Plan   1,765       1,754  
Repurchase and retirement of common stock   (41,268 )     (21,863 )
Net cash used in financing activities   (41,646 )     (24,559 )
Effect of foreign currency exchange rate changes on cash   (116 )     (1,796 )
Net decrease in cash and cash equivalents and restricted cash   (5,001 )     (2,338 )
Cash and cash equivalents and restricted cash:      
Beginning of period   95,824       97,559  
End of period $ 90,823     $ 95,221  
       
Supplemental disclosures of cash flow information:    
Cash paid for interest $ 34,112     $ 19,460  
Cash paid for income taxes $ 2,939     $ 1,950  
  Three months ended
September 30,
  Nine months ended
September 30,
    2023     2022     2023     2022
  (in thousands)
               
Reconciliation from Gross Profit to Adjusted Gross Profit:              
Gross profit $ 106,886   $ 95,027   $ 311,939   $ 278,847
Depreciation and amortization   6,384     5,444     18,388     16,598
Adjusted gross profit $ 113,270   $ 100,471   $ 330,327   $ 295,445
  Three months ended
September 30,
  Nine months ended
September 30,
    2023       2022       2023       2022  
  (in thousands)
               
Reconciliation from Net loss to Adjusted EBITDA:              
Net loss $ (614 )   $ (15,853 )   $ (22,285 )   $ (42,043 )
Adjusted to exclude the following:              
Interest and other expense, net   6,666       8,890       26,615       21,070  
Income tax expense (benefit)   241       (291 )     (1,543 )     (5,953 )
Depreciation and amortization   26,035       27,613       77,975       82,524  
Other amortization   1,431       1,093       4,184       3,063  
Stock-based compensation expense   5,855       7,133       19,610       19,776  
Acquisition-related and other non-recurring costs   2,190       1,570       7,985       5,429  
Adjusted EBITDA $ 41,804     $ 30,155     $ 112,541     $ 83,866  

 

EverCommerce Inc



Source link

The content is by Globe Newswire. Headlines of Today Media is not responsible for the content provided or any links related to this content. Headlines of Today Media is not responsible for the correctness, topicality or the quality of the content.

Back to top button