Slide 1: Investor Presentation Q2 2021
Investor Presentation Q2 2021
Slide 2: Important Information
IMPORTANT INFORMATION This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, incl
Slide 3: Today's Presenters
EVERCOMMERCE Today’s Presenters Eric Remer Marc Thompson FOUNDER / CEO / DIRECTOR CFO 3
Slide 4: Powering The Service Economy
EVERCOMMERCE OVERVIEW Powering The Service Economy Leading service commerce platform providing integrated SaaS solutions for service SMBs. 4
Slide 5: Leading Service Commerce Platform
PERFORMANCE HIGHLIGHTS Leading Service Commerce Platform Scale + Market Leadership 500,000+ 1,800+ $1.3T Global Customers Employees TAM Growth + Visibility $338M 61% 95% 2020 2018-20 Recurring & Revenue Revenue CAGR Re-occurring Revenue Attractive Unit Economics and Retention 10x 99% 2020 CLTV / CAC
Slide 6: Service SMBs: The Backbone of the Economy
LANDSCAPE Service SMBs: The Backbone of the Economy 77% +40% 50M of U.S GDP represented of U.S. GDP represented people in U.S. employed by service businesses by SMBs by service SMBs Sources: World Bank and Small Business Administration 6
Slide 7: Massive, Growing Target Addressable Market
OPPORTUNITY Massive, Growing Target Addressable Market GLOBAL CURRENT NORTH AMERICA OPPORTUNITY 400M SMBs $1.3T TAM HOME HEALTH FITNESS & OTHER NORTH SERVICES SERVICES WELLNESS SERVICES AMERICA SERVICES 31M SMBs $59B $84B $21B $356B $520B TAM Source: Management estimate. North America consists of U.
Slide 8: Underpenetrated Service SMB Market
OPPORTUNITY Underpenetrated Service SMB Market Historical solutions haven’t met their needs. The Service SMB Market is ONLY Broad software lacks specialization 9% Custom solutions not affordable Point solutions lack integration Penetrated Source: Management estimate. SMBs include all firms with <500
Slide 9: Transforming End-to-end Experiences
Transforming End-to-end Experiences VERTICALLY-TAILORED, INTEGRATED SOFTWARE BUSINESS BILLING & CUSTOMER MARKETING MANAGEMENT PAYMENT ENGAGEMENT TECHNOLOGY SOFTWARE SOLUTIONS APPLICATIONS SOLUTIONS 9
Slide 10: Multi-industry, Vertically-tailored Software
GROWTH STRATEGY Multi-industry, Vertically-tailored Software Home Services Health Services Fitness & Wellness Services MARKETING TECHNOLOGY CUSTOMER ENGAGEMENT APPLICATIONS BILLING & PAYMENTS SOLUTIONS BUSINESS MANAGEMENT SOFTWARE [system ofACTION SYSTEM OF action] Field Service & Project EHR & Prac
Slide 11: Industry Trends
INDUSTRY TRENDS Home Services Health Services Fitness & Wellness Services BOOMING INDUSTRY DIGITALLY ACCELERATING RECOVERING INDUSTRY Rise in home equity, Personalization and 80% of consumers open age of homes, and consumerization of to returning to gym, 40% interest rates helped healthcare is still
Slide 12: Dual Engines Accelerate Go-to-Market & Growth
GROWTH OPERATIONS Dual Engines Accelerate Go-to-Market & Growth EXCEPTIONAL UNIT ECONOMICS ORGANIC GROWTH DRIVERS Product & Technology Marketing & Go-to-market Centralized customer CLTV / CAC1 Business Operations & Analytics acquisition strategy Sales & Customer Success INTEGRATED GO-TO-MARKET 10X R
Slide 13: M&A Accelerates Growth
GROWTH OUTLOOK M&A Accelerates Growth STRATEGY • Accelerate growth & market penetration • Expand competitive moat • Shorten time to market SELECTION CRITERIA 10,000+ COMPANIES TRACKED • Strong, vertically-tailored software • Can enhance value of the solution • Solution enhances value to us (via inte
Slide 14: Framework for Onboarding
GROWTH OUTLOOK Framework for Onboarding CENTRALIZED GROWTH OPERATIONS INFRASTRUCTURE STRATEGY & OPERATIONS • Marketing, Sales, and Success • Business Ops & BI • Finance & Accounting • Product Strategy & GTM • Security & Compliance • Legal & HR • Business Development • Technology & Development • Tale
Slide 15: Repeatable, Scalable Technology Ecosystem
GROWTH OUTLOOK Repeatable, Scalable Technology Ecosystem Home Services Health Services Fitness & Wellness Services 1 NEW VERTICAL SYSTEMS OF ACTION Remodeling Primary Care Practice Gym / Club SYSTEM OF ACTION SYSTEM OF ACTION SYSTEM OF ACTION Security & Alarm Field Services Specialty Practice Studio
Slide 16: EverCommerce Acquired Timely
GROWTH OUTLOOK EverCommerce Acquired Timely Fitness & Wellness Services Expands penetration in Fitness & 1 Wellness micro-vertical NEW VERTICAL SYSTEMS OF ACTION Embedded payments integration Gym / Club opportunity SYSTEM OF ACTION Adds global penetration in existing vertical market Studio / Trainin
Slide 17: Multiple Levers Driving Durable Growth
GROWTH OUTLOOK Multiple Levers Driving Durable Growth Global Expansion Vertical International Expansion acquisitions and focused product Product Unique multi-vertical development open Expansion + horizontal market untapped global penetration approach Wallet creates testable markets Build/buy optiona
Slide 18: EverCommerce Investment Highlights
EverCommerce Investment Highlights Massive, growing underpenetrated TAM with strong tailwinds Large, diversified multi-vertical base of global customers Strategic central operating platform drives exceptional unit economics Differentiated market penetration strategy drives long-term organic growth S
Slide 19: Financial Overview Q2 2021
Evercommerce Financial Overview Q2 2021
Slide 20: Revenue Growth at Scale
FINANCIAL HIGHLIGHTS Revenue Growth at Scale Revenue Growth ($mm) Pro Forma Revenue Growth Rate1 Q2 2021 YTD 2021 $226 PF Growth % 31% 21% 35% $156 CAGR $121 $121 $105 $89 $92 $ 79 $ 77 $79 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q2 21 YTD 20 YTD 21 Recurring + Re-occurring Other 1See Appendix for
Slide 21: Centralized Operations Driving Profitability
FINANCIAL HIGHLIGHTS Centralized Operations Driving Profitability Q2 Q2 YTD YTD Adjusted EBITDA1 ($mm) 2020 2021 2020 2021 Adj. Gross Margin1,2 63% 66% 64% 66% Adj. Sales & $ 49 Marketing1,2 (% of Total 13% 18% 15% 18% Revenue) Adj. Product $ 28 $28 Development1,2 (% of Total 8% 10% 9% 10% $ 19 Reve
Slide 22: Liquidity and Leverage
FINANCIAL HIGHLIGHTS Liquidity and Leverage As adjusted Q2 2021 ($mm) Q2 20211 • Concurrent with the IPO on July 6th, 2021, EVCM BALANCE SHEET refinanced its outstanding facility with a new credit facility: Cash and cash equivalents (a) $199 $200 • $350M term loan and $190M revolver, of which $79M w
Slide 23: 2H 2021 Financial Outlook
FINANCIAL HIGHLIGHTS 2H 2021 Financial Outlook Q3 2021 FY 2021 Total Revenue $122M - $124M $471M - $474M Adjusted EBITDA1 $23M - $24M $100M - $102M 1 A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts on a forwa
Slide 24: Appendix
Appendix
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, ($ in 000s) 2021 2020 2021 2020 Net Loss $(24,334) $(13,685) $(40,329) $(33,587) Adjusted to Exclude the Following: Interest and Other Expense, Net 13,165 10.146 26,114 20,897 Income Tax Benefit 367
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Gross Profit Three Months Ended June 30, Six Months Ended June 30, ($ in 000s) 2021 2020 2021 2020 Gross Profit1 $75,521 $46,681 $140,166 $92,579 Adjusted to Exclude the Following: Depreciation and Amortization 4,673 3,584 9,260 6,899 Adjusted Gross Profit $8
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Operating Expenses Three Months Ended June 30, Six Months Ended June 30, ($ in 000s) 2021 2020 2021 2020 Sales and Marketing $22,802 $10,629 $42,491 $24,233 Adjusted to Exclude the Following: Stock-based Compensation 113 – 142 – Other Amortization 677 410 1,2
Slide 28: Definitions
Definitions Adjusted Gross Profit: Adjusted Gross Profit is calculated as gross profit adjusted to exclude depreciation and amortization allocated to cost of revenues. Gross profit is calculated as total revenues less cost of revenues (exclusive of depreciation and amortization), amortization of dev