Evercommerce Inc. · NASDAQ:EVCM

Evercommerce — Q2 2024 Earnings Presentation

24 slides from Evercommerce's earnings presentation, Aug 6, 2024

  1. Slide 1: Earnings Call Presentation

    Earnings Call Presentation Q2 2024 – August 6, 2024

  2. 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

  3. Slide 3: Eric Remer, Chairman and Chief Executive Officer

    Eric Remer Chairman and Chief Executive Officer 3

  4. Slide 4: Q2 2024 Highlights

    Q2 2024 Highlights Revenue beat the top end of the guidance range and grew 4.3% YoY; on a Pro > Forma basis, Revenue grew 6.0% YoY. Adjusted EBITDA above the midpoint of the guidance range; 23.2% margins > expanded modestly YoY despite investments. > Payments Revenue excluding Fitness grew 8.0% YoY,

  5. Slide 5: 690,000+ Global Customers, $683M PF LTM Revenue, $12.1B TPV

    $683M 690,000+ Global Customers PF LTM REVENUE 7.0% 2,000+ Global Employees PF LTM YoY REVENUE GROWTH 24.1% LTM ADJ. EBITDA MARGIN $12.1B EST. PF ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 5 Note: Revenue and Revenue growth excludes the

  6. Slide 6: 25% Growth in Key Cross-Sell Metric

    25% Growth in Key Cross-Sell Metric Customers Enabled / Utilizing More Than One Solution (000s)1 +25% 199 199k total customers enabled more than one solution, 159 representing 25% YoY growth 87k customers actively utilize more than one solution 75 87 2Q23 2Q24 Utilizing Enabled 1 Amounts are estimat

  7. Slide 7: 8.0% YoY Growth in Payments Revenue

    8.0% YoY Growth in Payments Revenue1 Total Payments Volume (TPV, $B)1 +8.4% 12.1 8.4% YoY Q2 TPV growth drove growth in Payment Revenue Growth of embedded payments continues to be a key lever to drive customer expansion 11.2 2Q23 2Q24 1 Payments Revenue growth and TPV exclude the fitness solutions 7

  8. Slide 8: Timely Point of Sale Rollout

    CASE STUDY Timely Point of Sale1 Rollout ABOUT TIMELY • Enables businesses in beauty, salon, and ~2X TPV spa industries to easily book Growth appointments, engage customers pre, during, and post service, collect and 600 process payments, and manage inventory. 500 POS System Intro POS IMPACT ON PAYME

  9. Slide 9: Joist EverPro Edge

    CASE STUDY Joist EverPro Edge ABOUT EVERPRO EDGE Dedicated EverPro Solution that provides customers the edge to “Save, Learn, & Grow”, and creates a universal channel and trusted brand for engagement with them • Accretive expansion opportunity enabling customers to receive targeted business growth a

  10. Slide 10: Marc Thompson, Chief Financial Officer

    Marc Thompson Chief Financial Officer

  11. Slide 11: Growth led by core SaaS and payments

    Growth led by core SaaS and payments GAAP Reported Revenue ($M) Impacted by NA Fitness Solution Sale $174.7 $177.4 $170.1 $169.4 $170.1 $177.4M in reported revenue, 4.3% reported 2Q24 YoY Revenue growth 6.0% Pro Forma 2Q24 YoY Revenue growth1,2 7.3% Pro Forma YoY growth in Subscription and Transacti

  12. Slide 12: YoY margin expansion despite investments

    YoY margin expansion despite investments Adjusted EBITDA ($M) 2Q23 3Q23 4Q23 1Q24 2Q24 $43.1 Adj. Gross Profit Margin1 65.8% 64.8% 67.3% 66.6% 65.4% $41.8 $41.2 $40.9 Adj. EBITDA 22.8% 23.9% 25.4% 24.0% 23.2% Margin1 $38.8 2Q24 Adjusted EBITDA margin expansion driven by revenue mix shift and active

  13. Slide 13: LFCF generation remains a priority

    LFCF generation remains a priority Levered Free Cash Flow1 Adjusted Unlevered Free Cash Flow1 (LFCF, $M) (aUFCF, $M) $31.3 $29.8 $30.0 $29.8 $29.8 $22.6 $21.3 $19.0 $27.1 $8.5 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q24 LFCF of $19.0M, -16.0% YoY, 2Q24 aUFCF of $30.0M, 11.0% YoY growth im

  14. Slide 14: FCF growth has enabled both de-leveraging and share repurchases

    FCF growth has enabled both de-leveraging and share repurchases ($mm) Q2 2024 Repurchased 2.5M shares for $24.1M during the BALANCE SHEET second quarter Cash and cash equivalents $87 Debt, gross $535 $54M of the $200M share repurchase authorization Debt, net of cash and cash equivalents $448 remaini

  15. Slide 15: Outlook

    Outlook 2024 Revenue Guidance Excludes Fitness Solutions Q3 2024 FY 2024 Total Revenue $172 – 176M $676 – 696M Adjusted EBITDA $39 – 42M $167 – 176M 15

  16. Slide 16: Q&A

    Evercommerce Q&A

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: GAAP to Non-GAAP Adj EBITDA Reconciliation

    GAAP to Non-GAAP Adj EBITDA Reconciliation Adjusted EBITDA LTM ($ in 000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q2 2024 Net Loss ($896) ($614) ($23,335) ($16,324) ($3,376) ($55,297) ($43,649) Adjusted to Exclude the Following: Interest and Other Expense, Net 4,761 6,666 19,792 5,791 9,552

  19. Slide 19: GAAP to Non-GAAP Adj Gross Profit Reconciliation

    GAAP to Non-GAAP Adj Gross Profit Reconciliation Adjusted Gross Profit LTM ($ in 000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q2 2024 Gross Profit $105,772 $106,886 $107,383 $108,419 $110,490 $401,355 $433,178 Adjusted to Exclude the Following: Depreciation and Amortization 6,095 6,384 6,65

  20. Slide 20: LFCF and aUFCF Reconciliations

    LFCF and aUFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow LTM ($ in 000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q2 2024 Cash Flow from Operations $28,446 $27,441 $36,018 $13,297 $23,919 $81,947 $100,675 Adjusted for the Following: Purchase of PP&E (725) (939) (897) (402)

  21. Slide 21: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses LTM ($ in 000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q2 2024 Sales and Marketing $30,674 $30,086 $31,901 $29,768 $30,952 $120,541 $122,707 Adjusted for the Following: Stock-based Compensation Expense (477) (402) (391) (341)

  22. Slide 22: Pro Forma Revenue

    Pro Forma Revenue Pro Forma Revenue ($ in 000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Revenue $170,052 $174,741 $169,440 $170,113 $177,393 Plus: acquisition revenue 658 292 Less: NA Fitness solutions revenue (3,313) (3,254) (3,227) (2,672) - Pro Forma Revenue $167,397 $171,779 $166,213 $167,441 $1

  23. Slide 23: Definitions

    Definitions Adjusted EBITDA: Adjusted EBITDA is calculated as net loss adjusted to exclude interest and other expense, net, income tax expense (benefit), depreciation and amortization, other amortization, stock- based compensation and transaction-related and other non-recurring costs. Other amortiza

  24. 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

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