Slide 1: Investor Presentation Q3 2021 – November
Investor Presentation Q3 2021 – November
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: Leading the digital transformation of the service economy
500,000+ Global Customers $447M 2,000+ Global Employees LTM REVENUE 61% 2018-20 REVENUE CAGR $8.6B+ ANNUALIZED TPV 95% 10x RECURRING & REOCURRING 2020 CLTV / REVENUE CAC RATIO1 Leading the digital transformation of the service economy. 3
Slide 4: One Vision. One Team. One EverCommerce.
One Vision. One Team. One EverCommerce. 4
Slide 5: 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 5
Slide 6: 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 7: 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 8: 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 8
Slide 9: Multi-industry, Vertically-tailored Software
GROWTH STRATEGY Multi-industry, Vertically-tailored Software MARKETING TECHNOLOGY CUSTOMER ENGAGEMENT APPLICATIONS BILLING & PAYMENTS SOLUTIONS BUSINESS MANAGEMENT SOFTWARE [system ofACTION SYSTEM OF action] Field Service & Project EHR & Practice Guest & Facilities Management Management Management 9
Slide 10: Introducing EverConnect
GROWTH STRATEGY Introducing EverConnect INTEGRATED PERFORMANCE MARKETING SOLUTIONS CUSTOMER ENGAGEMENT APPLICATIONS BILLING & PAYMENTS SOLUTIONS BUSINESS MANAGEMENT SOFTWARE [system ofACTION SYSTEM OF action] Field Service & Project EHR & Practice Guest & Facilities Management Management Management
Slide 11: Introducing EverConnect
GROWTH STRATEGY Introducing EverConnect CONNECT WITH CONSUMERS IN DEMAND Integrated Performance Marketing Solutions Enable a better customer experience, more effective cross-sell capabilities, and more efficient go-to-market expansion. CONVERT THEM TO LOYAL CUSTOMERS Field Service & Project EHR & Pr
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 • Enhance value of existing solutions to customers • Enhance value to us via
Slide 14: Framework for Onboarding
GROWTH OUTLOOK Framework for Onboarding CENTERS OF EXCELLENCE GROWTH OPERATIONS INFRASTRUCTURE Centralized Strategy • Marketing, Sales, and Success • Business Ops & BI • Finance & Accounting & Operations • Product Strategy & GTM • Security & Compliance • Legal & HR • Business Development • Technolog
Slide 15: Onboard > Optimize > Integrate > Grow
CASE STUDY Onboard > Optimize > Integrate > Grow Within 12 months of acquisition, optimized sales & marketing operations and integrated adjacent, value-add solutions yielding 15% increase in ARPU. +38% +11% +24% by EverPro PAYMENT PAYMENT YOY DIGITAL NEW MONETIZATION ADOPTION CUSTOMER ACQUISITION po
Slide 16: Repeatable, Scalable Technology Ecosystem
GROWTH OUTLOOK Repeatable, Scalable Technology Ecosystem 1 NEW VERTICAL SYSTEMS OF ACTION Remodeling Independent Practice Gym / Club SYSTEM OF ACTION SYSTEM OF ACTION SYSTEM OF ACTION Security & Alarm Field Services Specialty Practice Studio / Training SYSTEM OF ACTION SYSTEM OF ACTION SYSTEM OF ACT
Slide 17: EverCommerce Acquisition of DrChrono
GROWTH OUTLOOK EverCommerce Acquisition of DrChrono Health Services 1 Expands penetration in health NEW VERTICAL SYSTEMS OF ACTION services micro-vertical Independent Practice Embedded payments integration SYSTEM OF ACTION opportunity Specialty Practice Integrates with existing, adjacent SYSTEM OF A
Slide 18: End-to-end Integrated Solutions
GROWTH OUTLOOK End-to-end Integrated Solutions SOLUTIONS VALUE CHAIN Marketing & Practice Lead Management Generation MARKETING powered by TECHNOLOGY Brighter Vision EHR / EMR Lead Digital Capture Intake CUSTOMER ENGAGEMENT powered by APPLICATIONS Updox Revenue PATIENT PROVIDER Cycle BILLING & PAYMEN
Slide 19: EverCommerce: Service Commerce Disruptor
GROWTH OUTLOOK EverCommerce: Service Commerce Disruptor SMB Service Public Sector Retail / Insurance Industrial Life Sciences Real Estate Bank Tech Commerce /Non-profit eCommerce Vertical Software Disruptors • Vertically-tailored software • SMB flexibility and affordability • Embedded payments & adj
Slide 20: 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 markets Build/buy optionality creates test
Slide 21: 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 22: Financial Overview Q3 2021
Evercommerce Financial Overview Q3 2021
Slide 23: Revenue Growth at Scale
FINANCIAL HIGHLIGHTS Revenue Growth at Scale Revenue Growth ($mm) Pro Forma Revenue Growth Rate1 $355 Q3 2021 YTD 2021 PF Growth % 20% 21% $245 34% CAGR $121 $129 $129 $105 $89 $92 $ 89 $ 77 $79 Q3 20 Q3 21 YTD 20 YTD 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Recurring + Re-occurring Other 1See A
Slide 24: Centralized Operations Driving Profitability
FINANCIAL HIGHLIGHTS Centralized Operations Driving Profitability Q3 Q3 YTD YTD Adjusted EBITDA1 ($mm) 2020 2021 2020 2021 Adj. Gross Margin1,2 67% 67% 65% 66% Adj. Sales & $ 78 Marketing1,2 (% of Total 13% 19% 14% 18% Revenue) $57 Adj. Product Development1,2 (% of Total 9% 10% 9% 10% $ 29 $ 29 Reve
Slide 25: Liquidity and Leverage
FINANCIAL HIGHLIGHTS Liquidity and Leverage As adjusted Q3 2021 ($mm) Q3 20212 Estimated credit facility leverage of 3.7x reflects the BALANCE SHEET impact of our pending acquisition of DrChrono Cash and cash equivalents (a) $96 $68 Debt (b) $385 $540 Debt, net of cash and cash $289 $472 equivalents
Slide 26: Q4 and FY 2021 Financial Outlook
FINANCIAL HIGHLIGHTS Q4 and FY 2021 Financial Outlook Q4 2021 FY 2021 Total Revenue $129.5M – 131M $484M – 485.5M Adjusted EBITDA1 $27M – 28M $105M – 106M 1 A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts on
Slide 27: Appendix
Appendix
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, ($ in 000s) 2021 2020 2021 2020 Net Loss $(36,906) $(5,444) $(77,235) $(39,031) Adjusted to Exclude the Following: Interest and Other Expense, Net 5,148 9,756 31,262 30,653 Income Tax Ben
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Gross Profit Three Months Ended September 30, Nine Months Ended September 30, ($ in 000s) 2021 2020 2021 2020 Gross Profit1 $80,327 $56,062 $220,493 $148,641 Adjusted to Exclude the Following: Depreciation and Amortization 5,249 3,609 14,509 10,508 Adjusted G
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Operating Expenses Three Months Ended September 30, Nine Months Ended September 30, ($ in 000s) 2021 2020 2021 2020 Sales and Marketing $25,156 $12,072 $67,647 $36,305 Adjusted to Exclude the Following: Stock-based Compensation 160 – 298 – Other Amortization
Slide 31: 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