Slide 1: Earnings Call Presentation
Earnings Call Presentation Q2 2023 – August 7, 2023
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Se
Slide 3: Eric Remer, Chairman and Chief Executive Officer
Eric Remer Chairman and Chief Executive Officer 3
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights Consistent Revenue growth while adjusted EBITDA beat the top end of the > guidance range Balanced growth and profitability with 8% reported YoY Revenue growth and > 23% adjusted EBITDA margin Payments Revenue grew 32% YoY, aided by 13% growth in Total Payments > Volume (TPV) > 0.9
Slide 5: 685,000+ Global Customers, $651M LTM Revenue
685,000+ Global Customers $651M LTM REVENUE 15% 2,200+ Global Employees LTM YoY REVENUE GROWTH 12% 21% LTM YoY PRO FORMA REVENUE GROWTH LTM ADJ. EBITDA MARGIN $11.4B EST. ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 5
Slide 6: Continued Cross-Sell Progress
Continued Cross-Sell Progress Customers Enabled / Utilizing More Than One Solution (000s)1 +29% 162 126 >75k customers currently utilize more than one solution; 29% YoY growth in total customers enabled and utilizing more than one solution 65 75 2Q22 2Q23 Utilizing Enabled 1Amounts are estimated as
Slide 7: 32% YoY Growth in Payments Revenue
32% YoY Growth in Payments Revenue Total Payments Volume (TPV, B) +13% $11.4 13% YoY TPV growth and increased take rate drove growth in Payment Revenue >300bps increase in Payments as a % of Total Revenue $10.1 Embedded payments are a key lever to drive customer expansion 2Q22 2Q23 7
Slide 8: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 9: Organic Growth Remains Strong
Organic Growth Remains Strong Revenue (M)3 Pro Forma Revenue Growth Rate1 170.1 2Q23 LTM 2Q232 161.9 161.1 PF Growth % 8.1% 15.2% 158.1 157.2 8.1% reported and Pro Forma 2Q23 YoY Revenue growth 12.7% YoY growth in Subscription and Transaction 2Q22 3Q22 4Q22 1Q23 2Q23 Revenue Recurring + Re-occurring
Slide 10: Strong EBITDA and Gross Profit Margin Growth
Strong EBITDA and Gross Profit Margin Growth Adjusted EBITDA (M) 2Q22 3Q22 4Q22 1Q23 2Q23 Adj. Gross Profit Margin1 65.0% 63.5% 66.7% 65.3% 65.8% Adj. EBITDA 19.6% 19.1% 21.7% 19.8% 22.8% Margin1 2Q23 Adj. EBITDA beat aided by active cost management and timing of planned investments 1See Appendix fo
Slide 11: Record aUFCF with 15% Margin
Record aUFCF with 15% Margin Levered Free Cash Flow Adjusted Unlevered Free Cash Flow1 (LFCF, M) (aUFCF, M) 27.1 26.1 22.3 22.0 22.4 2Q22 3Q22 4Q22 1Q23 2Q23 2Q23 LFCF of $22.6M 2Q23 aUFCF of $27.1M $62.2 TTM LFCF, a 9.6% margin TTM aUFCF of $97.5M, a 15.0% margin 1See Appendix for definition 11
Slide 12: Growing FCF drives increasing liquidity and decreasing leverage
Growing FCF drives increasing liquidity and decreasing leverage ($mm) Q2 2023 BALANCE SHEET Repurchased 0.9M shares during the quarter for 2 ~$10M at an average price of $11.10. Cash and cash equivalents $83 Debt, gross $540 $17.5M remaining of $100M repurchase authorization Debt, net of cash and ca
Slide 13: Outlook
Outlook Q3 2023 FY 2023 Total Revenue $174 – 178M $680 – 700M Adjusted EBITDA $34.5 – 37.5M $142 – 148M 13
Slide 14: Q&A
Evercommerce Q&A
Slide 15: Appendix
Appendix
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA LTM ($ in 000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2Q 22 2Q 23 Net Loss ($12,881) ($15,853) ($17,773) ($20,775) ($896) ($67,828) ($55,297) Adjusted to Exclude the Following: Interest and Other Expense, Net 6,702 8,890 12,832 15,188 4,761 22,178 41
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Gross Profit LTM ($ in 000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2Q 22 2Q 23 Gross Profit1 $96,542 $95,027 $101,275 $99,281 $105,772 $351,955 $401,355 Adjusted to Exclude the Following: Depreciation and Amortization 5,601 5,444 6,651 5,909 6,095 21,502 24
Slide 18: aUFCF and LFCF Reconciliations
aUFCF and LFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow LTM ($ in 000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 22 Q2 23 Cash Flow from Operations $11,150 $13,610 $27,191 $12,700 $28,446 $57,652 $81,947 Adjusted for the Following: Purchase of PP&E (676) (590) (411) (476) (725
Slide 19: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses LTM ($ in 000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 22 Q2 23 Sales and Marketing $29,946 $29,440 $29,528 $30,899 $30,674 $111,389 $120,541 Adjusted for the Following: Stock-based Compensation Expense (419) (380) (376) (402) (477
Slide 20: 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
Slide 21: Definitions
Definitions Levered Free Cash Flow: Levered Free Cash Flow (LFCF) is calculated as Cash Flow from Operations, adjusted for purchases of PP&E and capitalized software costs. Purchases of PP&E and capitalized software costs are cash expenses unrelated to financing activities and as such are included i