Financial Performance - Revenue grew to $698.8 million for the year ended December 31, 2024, representing a 3.5% increase from $675.4 million in 2023[26] - Adjusted EBITDA reached $177.0 million for the year ended December 31, 2024, up from $155.6 million in 2023[26] - The company estimates an addressable annualized revenue opportunity with existing customers of greater than $5 billion as of December 31, 2024[1] Market Opportunity - The total addressable market (TAM) for current solutions was approximately $1.6 trillion globally in 2023, with $662 billion in North America[31] - Only 9% of the North American service SMB market has been penetrated with fully-integrated software solutions, expected to increase to over 13% by 2025[31] - The service SMB market is estimated to include approximately 456 million businesses globally, with 35 million in North America[30] - Digital payment processing adoption among SMBs increased from less than 50% to nearly 80% in recent years[28] - The company processes an annualized total payment volume of $12.7 billion, with an aggregate annualized payment processing opportunity exceeding $100 billion[38] Customer Base and Growth - As of December 31, 2024, the company served approximately 740,000 customers, with 69% based in the United States and 31% international[46] - The number of customers on the platform increased from approximately 110,000 at the end of 2018 to approximately 740,000 at the end of 2024[1] - The estimated lifetime value of customers is approximately six times the cost of acquiring them[26] Product Development and Strategy - The company introduced EverPro Edge in 2023, aimed at providing targeted business growth and education content to customers[1] - The company plans to continue expanding its product offerings based on insights gained through customer lifecycle analysis[1] - The company aims to improve customer experience and retention by displacing point-solution competitors with integrated digital offerings[1] Acquisitions and Corporate Structure - The company has acquired 53 companies since inception and is tracking over 13,000 potential acquisition opportunities[43] - The company has approximately 2,000 employees operating across six countries, with about 1,500 located in the United States[56] Financial Instruments and Risks - The company has entered into interest rate swap agreements covering $425.0 million of its $532.1 million outstanding under its Term Loan as of December 31, 2024[390] - The Term Loan bears interest at a forward-looking term rate based on SOFR plus an applicable margin of 2.50%[390] - The company executed three interest rate swaps totaling a notional amount of $425 million to convert a portion of the floating rate component of its Term Loan to fixed rates[391] - For every 100 basis point increase in the Adjusted SOFR rate, the company would incur approximately $1.1 million of additional annual interest expense[392] - The company has foreign currency risks related to subsidiaries in Canada, Jordan, the UK, New Zealand, and Australia[393] - A 10% change in the relative value of the U.S. dollar to other foreign currencies is not expected to have a material effect on the company's cash flows and operating results[393] - The company currently does not hedge foreign currency exposure but may consider using currency forward contracts or options in the future[394] Intellectual Property - The company has 140 registered trademarks in the United States and a portfolio of approximately 3,200 registered domain names[62]

Revenue Performance - Revenue for Q4 2024 was $175.0 million, a 3.3% increase from $169.4 million in Q4 2023, with pro forma revenue growth of approximately 7.0%[5] - Subscription and transaction fee revenue reached $139.0 million, up 4.2% from $133.5 million in Q4 2023, with pro forma growth of about 8.9%[5] - Total revenues for the three months ended December 31, 2024, increased to $174,999 thousand, up 3.3% from $169,440 thousand in the same period of 2023[27] - Subscription and transaction fees revenue rose to $139,013 thousand for the three months ended December 31, 2024, compared to $133,469 thousand in 2023, reflecting a growth of 4.1%[27] - Full year 2025 revenue guidance is set between $581 million and $601 million, with Adjusted EBITDA anticipated to be between $167.5 million and $175.5 million[11] Profitability and Loss - Adjusted EBITDA for Q4 2024 was $50.4 million, compared to $43.1 million in Q4 2023, indicating a strong operational performance[5] - The net loss for Q4 2024 was $12.2 million, or ($0.07) per share, an improvement from a net loss of $23.3 million, or ($0.12) per share, in Q4 2023[5] - The net loss for the twelve months ended December 31, 2024, was $41,089 thousand, a decrease from a net loss of $45,620 thousand in 2023[30] - The company reported a comprehensive loss of $47,390 thousand for the twelve months ended December 31, 2024, compared to a comprehensive loss of $43,439 thousand in 2023[27] - The basic and diluted net loss per share attributable to common stockholders for the twelve months ended December 31, 2024, was $0.22, compared to $0.24 in 2023[27] - For the three months ended December 31, 2024, the net loss was $12,233 thousand, compared to a net loss of $23,335 thousand for the same period in 2023[33] Cash and Assets - Cash and cash equivalents increased to $135,782 thousand as of December 31, 2024, from $92,609 thousand in 2023, representing a growth of 46.6%[30] - Total assets decreased to $1,421,268 thousand as of December 31, 2024, down from $1,518,064 thousand in 2023, a decline of 6.4%[25] - Total liabilities decreased to $670,442 thousand as of December 31, 2024, compared to $692,028 thousand in 2023, a reduction of 3.1%[25] Operating Expenses - Operating expenses for the twelve months ended December 31, 2024, totaled $698,513 thousand, an increase from $672,943 thousand in 2023, reflecting a rise of 3.8%[27] - Total depreciation and amortization for the twelve months ended December 31, 2024, was $88,824 thousand, down from $104,201 thousand in 2023, indicating a decrease of about 15%[33] - Stock-based compensation expense for the twelve months ended December 31, 2024, was $26,491 thousand, slightly up from $25,559 thousand in 2023, reflecting an increase of approximately 4%[33] - Transaction-related and other non-recurring costs for the twelve months ended December 31, 2024, totaled $54,531 thousand, significantly higher than $17,695 thousand in 2023, marking an increase of over 200%[33] Strategic Initiatives - The company plans to evaluate strategic alternatives for its marketing technology solutions, expecting a sale within the next twelve months[6] - EverCommerce is focusing on strategic investments in SaaS solutions and embedded payments, including AI initiatives, to drive growth acceleration[3] - The company serves over 740,000 global service-based businesses, providing integrated SaaS solutions across various industries[10] Future Projections - For Q1 2025, revenue is projected to be between $138 million and $141 million, with Adjusted EBITDA expected in the range of $39 million to $41 million[11] - The total adjusted EBITDA for the twelve months ended December 31, 2024, was $177,001 thousand, compared to $155,619 thousand in 2023, showing an increase of about 14%[33] - Interest and other expense, net, for the twelve months ended December 31, 2024, was $35,559 thousand, down from $46,407 thousand in 2023, indicating a decrease of approximately 23%[33] - Income tax benefit for the twelve months ended December 31, 2024, was $5,782 thousand, compared to an expense of $1,639 thousand in 2023, reflecting a positive shift in tax position[33] - Other amortization for the twelve months ended December 31, 2024, increased to $6,903 thousand from $5,738 thousand in 2023, representing a growth of about 20%[33]

Core Insights - EverCommerce Inc. reported financial results for Q4 and the full year 2024, exceeding revenue and Adjusted EBITDA guidance, highlighting significant progress in transformation initiatives and strategic investments in SaaS and embedded payments [3][9][11] Financial Performance - Q4 2024 revenue reached $175.0 million, a 3.3% increase from $169.4 million in Q4 2023; pro forma revenue, excluding fitness solutions, increased approximately 7.0% [9] - Subscription and transaction fee revenue for Q4 2024 was $139.0 million, up 4.2% from $133.5 million in Q4 2023; pro forma subscription and transaction fee revenue increased approximately 8.9% [9] - Adjusted EBITDA for Q4 2024 was $50.4 million, compared to $43.1 million in Q4 2023 [9] - The net loss for Q4 2024 was $12.2 million, or ($0.07) per share, an improvement from a net loss of $23.3 million, or ($0.12) per share, in Q4 2023 [9] Share Repurchase Program - The company repurchased 0.6 million shares for approximately $7.0 million during Q4 2024, with $32.7 million remaining under the repurchase program as of December 31, 2024 [4][5] Business Outlook - For Q1 2025, revenue is expected to be between $138 million and $141 million, with Adjusted EBITDA projected in the range of $39 million to $41 million [10] - Full year 2025 revenue is anticipated to be between $581 million and $601 million, with Adjusted EBITDA expected between $167.5 million and $175.5 million [15] Strategic Initiatives - The company is refining its strategy around SaaS solutions and evaluating strategic alternatives for its marketing technology solutions, expecting a sale within the next twelve months [6][11]

Core Viewpoint - EverCommerce Inc. is evaluating strategic alternatives for its Marketing Technology solutions to focus on its core vertical SaaS offerings, aiming to maximize long-term growth and shareholder value [1][2]. Company Overview - EverCommerce is a leading service commerce platform providing integrated SaaS solutions to over 690,000 service-based businesses globally, enhancing growth and operational efficiency [4]. - The company specializes in various service industries through its brands EverPro, EverHealth, and EverWell, offering end-to-end business management software, embedded payment acceptance, and marketing technology [4]. Strategic Focus - The company’s leadership emphasizes the need to concentrate resources on best-in-class vertical SaaS software with embedded payments, which is seen as crucial for long-term growth and margin improvement [2]. - The Marketing Technology solutions are recognized for their value in lead generation and digital agency capabilities, with a commitment to continue providing exceptional service to small businesses [2]. Sale Process - EverCommerce initiated a review process for its Marketing Technology solutions in late 2024, with expectations for a sale to occur in 2025 [2][3]. - Financial guidance for the fourth quarter of 2024 will exclude the Marketing Technology segment, reflecting the strategic shift [2]. Advisory Support - The company has engaged external financial advisors to assist in the strategic review of its Marketing Technology solutions [3].

Group 1 - EverCommerce Inc. will present at the Citizens JMP Technology Conference in San Francisco on March 3, 2025, at 11:30 a.m. PST [1] - The presentation will be led by CEO Evan Berlin and SVP & Head of Investor Relations Brad Korch [1] - Live webcasts for the conferences will be available through the Investor Relations section of the company's website [1] Group 2 - EverCommerce is a leading service commerce platform that provides vertically-tailored, integrated SaaS solutions [2] - The company serves over 690,000 global service-based businesses, helping them accelerate growth, streamline operations, and increase retention [2] - EverCommerce operates under the brands EverPro, EverHealth, and EverWell, focusing on Home, Health, and Wellness service industries [2] - The company offers end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications [2]

Group 1 - EverCommerce Inc. will report its fourth quarter 2024 financial results on March 13, 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] - EverCommerce is a leading service commerce platform that offers integrated SaaS solutions to over 690,000 service-based businesses globally [3] Group 2 - The company's solutions are tailored for specific industries, including Home, Health, and Wellness, under the brands EverPro, EverHealth, and EverWell [3] - EverCommerce provides end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [3] - The company's digital and mobile applications aim to enhance customer experiences and improve business operations for service professionals [3]

Core Insights - EverCommerce Inc. has appointed Evan Berlin as the leader of its EverHealth healthcare vertical, reporting directly to CEO Eric Remer [1] - Berlin has a 17-year history with the company, starting from its predecessor Pay Simple, and has held various leadership roles, including Chief Operating Officer since March 2023 [2] - The company aims to focus on high-growth potential verticals as part of its transformation initiative, with key leadership appointments in place to drive this strategy [5] Company Overview - EverCommerce is a leading service commerce platform providing integrated SaaS solutions to over 690,000 global service-based businesses, enhancing growth and operational efficiency [6] - The company operates under brands such as EverPro, EverHealth, and EverWell, specializing in Home, Health, and Wellness service industries [6] - EverCommerce offers end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [6]

Core Viewpoint - EverCommerce has successfully repriced the fixed rate component of its $533.5 million term loan, resulting in significant interest cost savings as part of its transformation and optimization efforts [1][2]. Financial Summary - The repricing reduced the fixed component of the interest rate by 50 basis points, from SOFR plus 3.0% to SOFR plus 2.50% [2]. - This change is expected to yield annualized interest cost savings of approximately $3.3 million based on the outstanding principal amount as of September 30, 2024 [2]. Risk Management - EverCommerce executed a series of interest rate swaps with a combined notional amount of $425 million, effectively reducing the company's floating rate exposure [3]. Company Overview - EverCommerce is a leading service commerce platform that provides vertically-tailored, integrated SaaS solutions to over 690,000 global service-based businesses [3]. - The company specializes in Home, Health, and Wellness service industries through its brands EverPro, EverHealth, and EverWell, offering end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [3].

Company Announcements - EverCommerce Inc. will present at the RBC Capital Markets Technology, Internet, Media & Telecommunications Conference on November 20, 2024, at 10:00 a.m. EST [1] - Senior Vice President and Head of Investor Relations, Brad Korch, will participate in 1x1 meetings at the Raymond James TMT and Consumer Conference on December 10, 2024 [2] - CFO Ryan Siurek and SVP Brad Korch will also participate in 1x1 meetings at the Barclays Global Technology Conference on December 12, 2024 [2] Investor Relations - Live webcasts for the conferences will be available through the Investor Relations section of EverCommerce's website [3] - Contact information for investor relations is provided, including Brad Korch's phone number and email [5] Company Overview - EverCommerce is a leading service commerce platform that offers vertically-tailored, integrated SaaS solutions to over 690,000 global service-based businesses [4] - The company specializes in Home, Health, and Wellness service industries through its brands EverPro, EverHealth, and EverWell [4] - EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications [4]

Financial Data and Key Metrics Changes - The company reported GAAP revenue of $176.3 million for Q3 2024, representing a 0.9% year-over-year increase. On a pro forma basis, revenue increased by 4.3% year-over-year [10][28][31] - Adjusted EBITDA was $44.5 million, with a margin of 25.3%, reflecting a 140 basis point expansion year-over-year [11][34] - Total payment volume (TPV) reached approximately $12.4 billion, indicating an 8.4% year-over-year growth [27] Business Line Data and Key Metrics Changes - Subscription and Transaction revenue was $137.6 million, up 3.7% year-over-year, while Marketing Technology solutions revenue decreased by 6.7% year-over-year to $34.4 million [28] - Payments revenue, excluding fitness solutions, grew by 6.7% year-over-year, contributing approximately 17% of overall revenue [26][31] Market Data and Key Metrics Changes - The company ended the quarter with approximately 212,000 customers enabled for more than one solution, reflecting a 25% year-over-year growth [22] - Active utilization of more than one solution reached approximately 88,000 customers, representing a 13% year-over-year growth [23] Company Strategy and Development Direction - The company is focused on transformation and optimization initiatives, including the hiring of a new leader for the EverPro vertical to enhance decision-making and customer alignment [12][16] - The strategy emphasizes integrated sales motions and cross-selling opportunities, particularly in payments, to enhance customer value and drive revenue growth [21][56] Management's Comments on Operating Environment and Future Outlook - Management noted that the transformation initiatives are expected to set the stage for organic growth acceleration in the latter half of 2025 and into 2026 [52] - The company is optimistic about its ability to penetrate further into the payments market, which remains a significant opportunity for growth [55] Other Important Information - The company generated $27.5 million in cash flow from operations for the quarter, with levered free cash flow of $23 million [38] - The company repurchased approximately 1.4 million shares for $14.6 million during the quarter, with $39.4 million remaining in the repurchase authorization [42] Q&A Session Summary Question: Can you talk about specific initiatives for cross-sell optimization? - Management highlighted the Edge program, which has been successfully integrated into multiple solutions, driving significant uptake [46][47] Question: How do you rank the most important catalysts for organic reacceleration in 2025? - Management emphasized the importance of effective customer acquisition, integrated sales processes, and further penetration into the payments market as key catalysts [51][55] Question: Any changes in the broader SMB purchasing environment in Q3? - Management reported no significant changes, with continued ASP expansion and flat to compressed sales cycles [62][63] Question: What are the key focus areas for the new CFO? - The CFO indicated a focus on transformation and optimization, particularly in embedded functionality for 2025 [64] Question: What is driving the growth in customers enabled for more than one product? - Management attributed this growth to an integrated sales motion that emphasizes the full breadth of offerings during customer acquisition [70][71] Question: How does the new organizational structure impact R&D and sales? - The new structure aims to enhance decision-making and resource allocation, improving both R&D and sales effectiveness [102][106] Question: What is the current status of net revenue retention (NRR)? - Management noted that NRR has been impacted by a previous pricing action but is expected to stabilize as the company moves forward [110][111]