Slide 1: Earnings Call Presentation
Earnings Call Presentation Q4 2021 – March 14, 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: Simplifying and empowering the lives of business owners whose services support us every day
Simplifying and empowering the lives of business owners whose services support us every day 4
Slide 5: 600,000+ Global Customers, $490M 2021 Revenue, $9.1B TPV
600,000+ Global Customers $490M 2,000+ Global Employees 2021 REVENUE 45% 2021 REVENUE GROWTH 21% 2021 PRO FORMA REVENUE GROWTH 22% 2021 Adj. EBITDA MARGIN $9.1B EST. ANNUALIZED TPV Leading the digital transformation of the service economy. 5
Slide 6: Massive, Growing Target Addressable Market
Massive, Growing Target Addressable Market CURRENT NORTH AMERICA OPPORTUNITY GLOBAL 400M SMBs HOME HEALTH FITNESS & OTHER WELLNESS SERVICES SERVICES SERVICES $1.3T TAM SERVICES $59B $84B $21B $356B NORTH AMERICA 77% of U.S GDP +40% of U.S GDP 50M people in 31M SMBs represented represented U.S. emplo
Slide 7: 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 ofACTION SYSTEM OF action] Field Service & Project EHR
Slide 8: Scalable Service Commerce Platform
Scalable Service Commerce Platform Home Services Health Services Fitness & Wellness Services 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 A
Slide 9: Q4 2021 Highlights
Q4 2021 Highlights Robust 4Q21 growth: 47% reported Revenue growth; 24% Pro Forma Revenue > growth and >20% customer logo & TPV growth Balanced with profitability and free cash flow generation: 22% adjusted > EBITDA margins and 16% aUFCF margin Operational momentum accelerating with Dr. Chrono integ
Slide 10: Consistent customer and ARPU growth
Consistent customer and ARPU growth Total Customers (000s) 617 Average solution-level ARPU expansion of 513 approximately 15% YoY. Change in ARPU 402 driven by a combination of cross-selling, up-selling and pricing actions >55k customers currently utilize more than one solution FY 2019 FY 2020 FY 20
Slide 11: Cross-selling opportunity exemplified by continued payment volume growth
Cross-selling opportunity exemplified by continued payment volume growth Total Payment Volume (TPV, B) Horizontal Embedded Revenue $9.1 Opportunity $8.6 $8.0 $7.5 1Q21 2Q21 3Q21 4Q21 21% Total Annualized Payment Volume (TPV) growth since initiating the metric in 1Q21 11
Slide 12: Dr. Chrono Integration on-track
Dr. Chrono Integration on-track Fully on-boarded into EverHealth; customers already benefitting from additional capabilities within solution suite Opportunities for revenue acceleration through embedded payments and cross selling playing out as expected Actively investing in product enhancements in
Slide 13: 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 14: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 15: 47% Revenue growth, 24% Pro Forma growth…
47% Revenue growth, 24% Pro Forma growth… Revenue (M) Pro Forma Revenue Growth Rate1 $135.6 4Q21 FY 2021 $128.5 $121.1 $104.9 PF Growth % 24% 21% $92.0 47% reported 4Q21 YoY Revenue growth; 45% full year 2021 Revenue growth Recurring & Re-occurring Revenue accounts for 95% of total Revenue 4Q20 1Q21
Slide 16: …with continued 20%+ adjusted EBITDA margins
…with continued 20%+ adjusted EBITDA margins Adjusted EBITDA (M) 4Q20 1Q21 2Q21 3Q21 4Q21 Adj. Gross $29.0 $29.3 Profit Margin1 68.9% 66.0% 66.2% 66.6% 68.5% $27.6 Adj. EBITDA $22.0 $21.3 23.9% 20.3% 22.8% 22.6% 21.6% Margin1 4Q21 adjusted Gross Profit Margin of 68.5% reflects seasonality 21.6% 4Q21
Slide 17: Positive aUFCF funds investments, interest
Positive aUFCF funds investments, interest Levered Free Cash Flow Adjusted Unlevered Free Cash Flow1 (LFCF, M) (aUFCF, M) $21.7 $22.2 $23.1 $19.7 $20.0 $13.1 $13.7 $5.5 $5.7 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 $(8.4) $22.7 2021 LFCF in part reflects higher pre-IPO 54.6% growth in aUFCF
Slide 18: Strong Balance Sheet provides flexibility
Strong Balance Sheet provides flexibility ($mm) Q4 2021 BALANCE SHEET Fully undrawn revolver, access to $190M of capacity Cash and cash equivalents $94 Net leverage of 3.7x as defined by Credit Agreement Debt, gross $554 Debt, net of cash and cash equivalents $460 LEVERAGE Credit facility leverage 1
Slide 19: Outlook
Outlook Q1 2022 FY 2022 Total Revenue $140 – 141M $619 – 625M Adjusted EBITDA $21.5 – 22.0M $122 – 124M 19
Slide 20: Q&A
Evercommerce Q&A
Slide 21: Appendix
Appendix
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA ($ in 000s) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 Net Loss $(20,923) $(15,995) $(24,334) $(36,906) $(4,731) $(59,954) $(81,966) Adjusted to Exclude the Following: Interest and Other Expense, Net 10,892 12,949 13,165 5,148 4,849 41,545
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Gross Profit ($ in 000s) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 Gross Profit1 $59,050 $64,645 $75,521 $80,327 $87,808 $207,691 $308,301 Adjusted to Exclude the Following: Depreciation and Amortization 4,306 4,587 4,673 5,249 5,099 14,814 19,6
Slide 24: aUFCF and LFCF Reconciliations
aUFCF and LFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow ($ in 000s) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 Cash Flow from Operations $25,470 $(5,400) $9,232 $9,841 $23,809 $57,539 $37,482 Adjusted for the Following: Purchase of PP&E (204) (262) (874) (796) (1,17
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