Slide 1: Earnings Call Presentation Q1 2022
Earnings Call Presentation Q1 2022 – May 9, 2022
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: Q1 2022 Highlights
Q1 2022 Highlights > Exceeded the top end of guidance for both Revenue and Adjusted EBITDA Robust 1Q22 YoY growth: 37% reported Revenue growth; 20% Pro Forma Revenue > growth Balanced investing in growth while driving profitability and free cash flow > generation: 16% adjusted EBITDA margins and 10%
Slide 5: 600,000+ Global Customers, $529M LTM Revenue, $9.5B TPV
600,000+ Global Customers $529M 2,100+ Global Employees LTM REVENUE 45% LTM YoY REVENUE GROWTH 23% LTM YoY PRO FORMA REVENUE GROWTH 21% LTM Adj. EBITDA MARGIN $9.5B EST. ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 5
Slide 6: Multi-industry, Vertically-tailored Software
Multi-industry, Vertically-tailored Software Home Services Health Services Fitness & Wellness Services INTEGRATED PERFORMANCE MARKETING SOLUTIONS CUSTOMER ENGAGEMENT APPLICATIONS BILLING & PAYMENTS SOLUTIONS BUSINESS MANAGEMENT SOFTWARE SYSTEM [systemOF ofACTION action] Field Service & Project EHR &
Slide 7: Massive, Growing Target Addressable Market
Massive, Growing Target Addressable Market CURRENT NORTH AMERICA OPPORTUNITY GLOBAL 400M SMBs FITNESS & HOME HEALTH OTHER WELLNESS $1.3T TAM SERVICES SERVICES SERVICES SERVICES $59B $84B $21B $356B NORTH AMERICA 31M SMBs 77% of U.S GDP +40% of U.S GDP 50M people in represented represented U.S. emplo
Slide 8: Diversified Base of 600K+ SMB Customers
Diversified Base of 600K+ SMB Customers Revenue by EverBrand Portfolio STRONG, MICRO-VERTICAL CUSTOMER DIVERSIFICATION Other EverWell FITNESS & HOME HEALTH OTHER WELLNESS SERVICES SERVICES SERVICES SERVICES HVAC Primary Care Big Box Gyms Nonprofit Plumbing Behavioral Health Health Clubs Professional
Slide 9: Attractive Customer Acquisition & Retention Profile
…With an Attractive Customer Acquisition & Retention Profile ILLUSTRATIVE CUSTOMER JOURNEY >100% 100% ANNUALIZED NET REVENUE RETENTION 90% Cross-sell / up-sell motion 80% drives both ARPU expansion and higher NRR <12 Mos. 70% Customer Value 60% LTM PAYBACK 50% 40% 85% Sticky nature of software solut
Slide 10: Up-sell, Cross-sell Motion Drives Growth in Multi-Solution Customers
Up-sell, Cross-sell Motion Drives Growth in Customers Utilizing Multiple Solutions Customers Utilizing More Than One Solution (000s)1 60 54 55 >60k customers currently utilize more than 48 one solution, ~10% QoQ growth and ~40% 43 YoY growth Increased adoption aids growth in Annualized Net Revenue R
Slide 11: TPV Growth Underscores Cross-sell Momentum
TPV Growth Underscores Cross-sell Momentum Total Payment Volume (TPV, B) $9.1 $9.5 Embedded Payments Example $8.6 $8.0 $7.5 3x Customers who take ARPU PER embedded payments not only CUSTOMER yield higher ARPU, but also SALONBIZ TTM results for payments customers improved retention versus non-payment
Slide 12: 2022 Priorities
2022 Priorities Continue to scale our customer acquisition engine and cross-sell initiatives in order > to maintain 15-20% organic growth for the foreseeable future Increase product development investments to support growth by launching new > solutions and maintaining market competitiveness > Advanc
Slide 13: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 14: 37% Revenue Growth, 20% Pro Forma Growth
37% Revenue Growth, 20% Pro Forma Growth… Revenue (M) Pro Forma Revenue Growth Rate1 $143.6 1Q22 LTM 1Q222 $135.6 $128.5 $121.1 PF Growth % 20.2% 22.9% $104.9 37% reported 1Q22 YoY Revenue growth includes M&A; 20% Pro forma growth normalizing for acquisitions Recurring & Re-occurring Revenue account
Slide 15: With 8% Growth in Adjusted EBITDA
…With 8% Growth in Adjusted EBITDA Adjusted EBITDA (M) 1Q21 2Q21 3Q21 4Q21 1Q22 $29.0 $29.3 Adj. Gross Profit $27.6 Margin1 66.0% 66.2% 66.6% 68.5% 64.7% $23.0 Adj. EBITDA $21.3 20.3% 22.8% 22.6% 21.6% 16.0% Margin1 1Q22 adjusted Gross Profit Margin of 64.7% reflects seasonality 16.0% 1Q22 adjusted
Slide 16: FCF Generation Funds Investments, Interest
FCF Generation Funds Investments, Interest… Levered Free Cash Flow Adjusted Unlevered Free Cash Flow1 (LFCF, M) (aUFCF, M) $21.7 $22.2 $20.0 $19.7 $14.9 $13.7 $8.5 $5.5 $5.7 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 $(8.4) $39.6 TTM LFCF illustrates deleveraging potential, 8.9% YoY growth in
Slide 17: And Yields an Optimal Cap Structure
… And Yields an Optimal Cap Structure aUFCF 3.5x interest coverage ($mm) Q1 2022 BALANCE SHEET Undrawn $190M revolver Cash and cash equivalents $101 available for M&A Debt, gross $553 Debt, net of cash and cash equivalents $452 3.7x leverage, consistent with LEVERAGE financial policy Credit facility
Slide 18: Outlook
Outlook Q1 2022 FY 2022 Total Revenue $152 – 154M $623 – 629M Adjusted EBITDA $28 – 29M $122.5 – 124.5M 18
Slide 19: Q&A
Evercommerce Q&A
Slide 20: Appendix
Appendix
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA LTM ($ in 000s) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 1Q21 1Q22 Net Loss $(15,995) $(24,334) $(36,906) $(4,731) $(13,309) $(56,046) $(79,282) Adjusted to Exclude the Following: Interest and Other Expense, Net 12,949 13,165 5,148 4,849 5,478 43,743 28
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Gross Profit LTM ($ in 000s) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 1Q21 1Q22 1 Gross Profit $64,645 $75,521 $80,327 $87,808 $87,278 $226,438 $330,934 Adjusted to Exclude the Following: Depreciation and Amortization 4,587 4,673 5,249 5,099 5,553 16,086 20,57
Slide 23: aUFCF and LFCF Reconciliations
aUFCF and LFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow LTM ($ in 000s) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 1Q21 1Q22 Cash Flow from Operations $(5,400) $9,232 $9,841 $23,809 $12,854 $55,544 $55,736 Adjusted for the Following: Purchase of PP&E (262) (874) (796) (1,171) (889)
Slide 24: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses LTM ($ in 000s) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 1Q21 1Q22 Sales and Marketing $19,689 $22,802 $25,156 $26,142 $30,145 $56,331 $104,245 Adjusted for the Following: Stock-based Compensation (29) (113) (157) (207) (328) (29) (805)
Slide 25: 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 26: 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