Slide 1: Earnings Call Presentation Q4 2023
Earnings Call Presentation Q4 2023 – March 14, 2024
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: Company at a glance: customers, LTM revenue, TPV
708,000 Global Customers $675M LTM REVENUE 9% 2,100+ Global Employees LTM YoY REVENUE GROWTH 23% LTM ADJ. EBITDA MARGIN $11.9B EST. ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 4
Slide 5: Q4 2023 Highlights
Q4 2023 Highlights > Adjusted EBITDA beat the top end of the guidance range and grew 22% YoY despite continuing headwinds impacting revenue growth Balanced growth and profitability with 5% reported YoY Revenue growth, > including 10% growth in Subscription and Transaction Revenue growth, and 25.4% a
Slide 6: Announced Sale of Fitness Assets
Announced Sale of Fitness Assets Transaction Details Fitness Asset Profile § Solutions included: ClubWise, ASF, ClubOS and My PT Hub § $24M in FY 2023 Revenue, roughly flat YoY § Near-zero contribution to Adjusted EBITDA This decision allows us to focus our investments Timing § The North American bu
Slide 7: Program to drive accelerated growth, margin improvement and efficiencies
Launched program to drive accelerated growth, margin improvement and operational efficiencies Optimization Transformation § Identified multiple discrete opportunities to drive § We will double down on our customer-centric efficiency and scalability within our cost base over vertical go-to-market str
Slide 8: Strategic Initiatives Drive Cross-Sell
Strategic Initiatives Drive Cross-Sell Customers Enabled / Utilizing More Than One Solution (000s)1 +26% 183 82k customers currently utilize more than one solution 145 183k total customers enabled and utilizing more than one solution, representing 26% YoY growth 69 82 4Q22 4Q23 Utilizing Enabled 1Am
Slide 9: 19.5% Q4 YoY Growth in Payments Revenue
19.5% Q4 YoY Growth in Payments Revenue Total Payments Volume (TPV, $B) +9% 11.9 9% YoY Q4 TPV growth and increased take rate drove growth in Payment Revenue Growth of embedded payments continues to be a key lever to drive customer expansion 10.9 4Q22 4Q23 9
Slide 10: EverPro Edge
ABOUT EVERPRO EDGE EverPro Edge • Accretive expansion opportunity enabling customers to receive targeted business growth and education content, as well as Dedicated EverPro Solution that provides customers the edge cash-back rebates on supplies they to “Save, Learn, & Grow”, and creates a universal
Slide 11: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 12: Growth Led by Core SaaS and Payments
Growth Led by Core SaaS and Payments Reported Revenue ($M)3 4.7% reported 4Q23 YoY Revenue growth; 4.3% $174.7 Pro Forma 4Q23 YoY Revenue growth1,2 $170.1 $169.4 9.8% Reported YoY growth in Subscription and Transaction Revenue $161.8 $161.1 Continued headwinds in our Marketing Technology and Fitness
Slide 13: Record Gross Profit and Adj EBITDA Margins
Record Gross Profit and Adj EBITDA Margins Adjusted EBITDA ($M) 4Q22 1Q23 2Q23 3Q23 4Q23 Adj. Gross $41.8 $43.1 Profit Margin1 66.7% 65.3% 65.8% 64.8% 67.3% $38.8 $35.2 $31.9 Adj. EBITDA 21.7% 19.8% 22.8% 23.9% 25.4% Margin1 4Q23 Adj. EBITDA beat aided by active cost management and margin expansion
Slide 14: Continued robust Cash Flow generation
Continued robust Cash Flow generation Levered Free Cash Flow1 Adjusted Unlevered Free Cash Flow1 (LFCF, $M) (aUFCF, $M) $31.3 $29.8 $29.8 $27.1 $26.1 $23.4 $22.7 $22.6 $21.3 $7.8 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 4Q23 LFCF of $29.8M, 31% YoY growth 4Q23 aUFCF of $29.8M, 14.1% YoY gro
Slide 15: Growing FCF drives increasing liquidity and decreasing leverage
Growing FCF drives increasing liquidity and decreasing leverage ($M) Q4 2023 BALANCE SHEET Repurchased 2.7M shares during the quarter for $26.0M2 at an average price of $9.65 Cash and cash equivalents $93 Debt, gross $538 $40M remaining share repurchase authorization as of 12/31/2023 Debt, net of ca
Slide 16: Outlook
Outlook Q1 and 2024 Guidance Excludes Fitness Solutions Q1 2024 FY 2024 Total Revenue $160.5 – 163.5M $676 – 696M Adjusted EBITDA $36 – 38M $167 – 176M 16
Slide 17: Q&A
Evercommerce Q&A
Slide 18: Appendix
Appendix
Slide 19: GAAP to Non-GAAP Adj EBITDA Reconciliation
GAAP to Non-GAAP Adj EBITDA Reconciliation Adjusted EBITDA LTM ($ in 000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q4 2023 Net Loss ($17,773) ($20,775) ($896) ($614) ($23,335) ($59,816) ($45,620) Adjusted to Exclude the Following: Interest and Other Expense, Net 12,832 15,188 4,761 6,666 19,
Slide 20: GAAP to Non-GAAP Adj Gross Profit Reconciliation
GAAP to Non-GAAP Adj Gross Profit Reconciliation Adjusted Gross Profit LTM ($ in 000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q4 2023 Gross Profit $101,275 $99,281 $105,772 $106,886 $107,383 $380,122 $419,322 Adjusted to Exclude the Following: Depreciation and Amortization 6,651 5,909 6,095
Slide 21: aUFCF and LFCF Reconciliations
aUFCF and LFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow LTM ($ in 000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q4 2023 Cash Flow from Operations $27,191 $12,700 $28,446 $27,441 $36,018 $64,803 $104,605 Adjusted for the Following: Purchase of PP&E (411) (476) (725) (939)
Slide 22: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses LTM ($ in 000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q4 2023 Sales and Marketing $29,528 $30,899 $30,674 $30,086 $31,901 $119,059 $123,561 Adjusted for the Following: Stock-based Compensation Expense (376) (402) (477) (402)
Slide 23: 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 24: 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