Slide 1: Earnings Call Presentation
Earnings Call Presentation Q3 2023 – November 6, 2023
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: Q3 2023 Highlights
Q3 2023 Highlights Consistent Revenue growth while adjusted EBITDA beat the top end of the > guidance range Balanced growth and profitability with 11% reported YoY Revenue growth and > 24% adjusted EBITDA margin Payments Revenue grew 28% YoY, aided by 11% growth in Total Payments > Volume (TPV) Boar
Slide 5: 685,000+ Global Customers, $668M LTM Revenue
685,000+ Global Customers $668M LTM REVENUE 12% 2,200+ Global Employees LTM YoY REVENUE GROWTH 22% LTM ADJ. EBITDA MARGIN $11.7B EST. ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 5
Slide 6: Strategic Initiatives are Accelerating Cross-Sell
Strategic Initiatives are Accelerating Cross-Sell Customers Enabled / Utilizing More Than One Solution (000s)1 +28% 173 82k customers currently utilize more than one 136 solution 173k total customers enabled and utilizing more than one solution, representing 28% YoY growth 70 82 3Q22 3Q23 Utilizing
Slide 7: 28% YoY Growth in Payments Revenue
28% YoY Growth in Payments Revenue Total Payments Volume (TPV, $B) +11% $11.7 11% YoY TPV growth and increased take rate drove growth in Payment Revenue Embedded payments are a key lever to drive customer expansion $10.5 3Q22 3Q23 7
Slide 8: Kickserv Acquisition
Kickserv Acquisition KICKSERV ATTRIBUTES • System of action software for Strategic Field Service Management (FSM) acquisition that field service providers complements our existing EverPro portfolio • Serves over 1,000 paying customers • Target customer: single-location businesses with 1-9 employees
Slide 9: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 10: Growth Led by Core SaaS and Payments
Growth Led by Core SaaS and Payments Reported Revenue ($M)3 $174.7 $170.1 10.5% reported 3Q23 YoY Revenue growth; 10.3% $161.8 $161.1 Pro Forma 3Q23 YoY Revenue growth1,2 $158.1 10.5% Reported YoY growth in Subscription and Transaction Revenue 3Q22 4Q22 1Q23 2Q23 3Q23 Recurring + Re-occuring Other 1
Slide 11: Focus on Efficiency Drove Margin Expansion
Focus on Efficiency Drove Margin Expansion Adjusted EBITDA ($M) 3Q22 4Q22 1Q23 2Q23 3Q23 Adj. Gross Profit Margin1 63.5% 66.7% 65.3% 65.8% 64.8% Adj. EBITDA 19.1% 21.7% 19.8% 22.8% 23.9% Margin1 3Q23 Adj. EBITDA beat aided by active cost management and timing 1See Appendix for definition 11
Slide 12: Record aUFCF with 16% Margin
Record aUFCF with 16% Margin Levered Free Cash Flow Adjusted Unlevered Free Cash Flow1 (LFCF, $M) (aUFCF, $M) 3Q23 LFCF of $21.3M 3Q23 aUFCF of $31.3M $74.4M LTM LFCF, a 11.1% margin LTM aUFCF of $106.8M, a 16.0% margin 1See Appendix for definition 12
Slide 13: Growing FCF drives increasing liquidity and decreasing leverage
Growing FCF drives increasing liquidity and decreasing leverage Q3 2023 Repurchased 160K shares during the quarter for ($M) 2 $1.6M at an average price of $9.83 BALANCE SHEET Cash and cash equivalents $87 Repurchase authorization increased by $50M to $150M and extended through year-end 2024 Debt, gr
Slide 14: Outlook
Outlook Q4 2023 FY 2023 Total Revenue $170 – 174M $676 – 680M Adjusted EBITDA $35.5 – 39.5M $148 – 152M 14
Slide 15: Q&A
Evercommerce Q&A
Slide 16: Appendix
Appendix
Slide 17: GAAP to Non-GAAP Adj EBITDA Reconciliation
GAAP to Non-GAAP Adj EBITDA Reconciliation Adjusted EBITDA LTM ($ in 000s) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q3 2023 Net Loss ($15,853) ($17,773) ($20,775) ($896) ($614) ($46,776) ($40,058) Adjusted to Exclude the Following: Interest and Other Expense, Net 8,890 12,832 15,188 4,761 6,6
Slide 18: GAAP to Non-GAAP Adj Gross Profit Reconciliation
GAAP to Non-GAAP Adj Gross Profit Reconciliation 1Gross profit is calculated as total revenues less cost of revenues (exclusive of depreciation and amortization), amortization of developed technology, amortization of capitalized software and depreciation expense (allocated to cost of revenues). Note
Slide 19: aUFCF and LFCF Reconciliations
aUFCF and LFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow LTM ($ in 000s) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q3 2023 Cash Flow from Operations $13,610 $27,191 $12,700 $28,446 $27,441 $61,421 $95,778 Adjusted for the Following: Purchase of PP&E (590) (411) (476) (725)
Slide 20: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses LTM ($ in 000s) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q3 2023 Sales and Marketing $29,440 $29,528 $30,899 $30,674 $30,086 $115,673 $121,187 Adjusted for the Following: Stock-based Compensation Expense (380) (376) (402) (477)
Slide 21: 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 22: 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