Slide 1: Earnings Call Presentation
Earnings Call Presentation Q1 2024 – May 9, 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: Q1 2024 Highlights
Q1 2024 Highlights Revenue beat the top end of the guidance range and grew 6% YoY, with > Subscription and Transaction revenue growth of 9%. Adjusted EBITDA beat the top end of the guidance range and grew 28% YoY due > to active cost management and continued focus on profitable growth. Payments Reve
Slide 5: EverCommerce Powers the Service Economy
EverCommerce Celebrates EverCommerce Powers the National Small Business Week Service Economy • Market size of >450M Global Service SMBs • Global TAM of $1.6T. Includes: • Business Management Products TAM of ~$860B • Payments Processing TAM of >$190B • Home and Field Services TAM of ~$170B • Health S
Slide 6: 690,000+ Global Customers, $662M PF LTM Revenue
690,000+ Global Customers $662M PF LTM REVENUE 7% 2,000+ Global Employees PF LTM YoY REVENUE GROWTH 24% LTM ADJ. EBITDA MARGIN $11.7B EST. ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 6 Note: Revenue, Revenue growth, annualized TPV, custo
Slide 7: Continued to make progress on our Optimization and Transformation initiatives
Continued to make progress on our Optimization and Transformation initiatives Optimization Transformation ▪ Identified multiple discrete opportunities to drive efficiency and scalability within our cost base over the ▪ We will double down on our customer-centric vertical next 18-24 months go-to-mark
Slide 8: 27% Growth in Key Cross-Sell Metric
27% Growth in Key Cross-Sell Metric Customers Enabled / Utilizing More Than One Solution (000s)1 +27% 191 151 83k customers currently utilize more than one solution 191k total customers enabled and utilizing more than one solution, representing 27% YoY growth 67 83 1Q23 1Q24 Utilizing Enabled 1 Amou
Slide 9: 11% YoY Growth in Payments Revenue
11% YoY Growth in Payments Revenue1 Total Payments Volume (TPV, $B)1 +9% 11.7 9% YoY Q1 TPV growth and increased take rate drove growth in Payment Revenue Growth of embedded payments continues to be a key lever to drive customer expansion 10.7 1Q23 1Q24 1 Payments Revenue growth and TPV exclude the
Slide 10: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 11: Growth led by core SaaS and payments
Growth led by core SaaS and payments GAAP Reported Revenue ($M) $174.7 $170.1 $169.4 $170.1 $161.1 $170.1M in reported revenue, 5.6% reported 1Q24 YoY Revenue growth 1Q23 2Q23 3Q23 4Q23 1Q24 Recurring + Re-occurring Other $164.7M in Pro Forma revenue, 5.7% Pro Forma Pro Forma Revenue ($M)1,2 1Q24 Yo
Slide 12: >420 bps of YoY Adjusted EBITDA margin expansion
> 420 bps of YoY Adjusted EBITDA margin expansion Adjusted EBITDA ($M) 1Q23 2Q23 3Q23 4Q23 1Q24 $43.1 $41.8 $40.9 Adj. Gross $38.8 Profit Margin1 65.3% 65.8% 64.8% 67.3% 66.6% $31.9 Adj. EBITDA 19.8% 22.8% 23.9% 25.4% 24.0% Margin1 1Q24 Adjusted EBITDA margin expansion driven by revenue mix shift an
Slide 13: 78% growth in LTM LFCF year-over-year
78% growth in LTM LFCF year-over-year Levered Free Cash Flow1 Adjusted Unlevered Free Cash Flow1 (LFCF, $M) (aUFCF, $M) $29.8 $31.3 $29.8 $29.8 $27.1 $22.6 $21.3 $23.4 $7.8 $8.5 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1Q24 LFCF of $8.5M, 7.9% YoY growth 1Q24 aUFCF of $29.8M, 27.4% YoY grow
Slide 14: FCF growth has enabled both de-leveraging and share repurchases
FCF growth has enabled both de-leveraging and share repurchases Repurchased 1.2M shares for $12.1M during the first quarter $27.9M of the $150M share repurchase authorization remaining as of 3/31/2024 $190M undrawn revolver capacity 1 Credit Facility leverage is calculated using additional addbacks
Slide 15: Outlook
Outlook 2024 Revenue Guidance Excludes Fitness Solutions Q2 2024 FY 2024 Total Revenue $169.5 – 173.5M $676 – 696M Adjusted EBITDA $39 – 42M $167 – 176M 15
Slide 16: Q&A
Evercommerce Q&A
Slide 17: Appendix
Appendix
Slide 18: GAAP to Non-GAAP Adj EBITDA Reconciliation
GAAP to Non-GAAP Adj EBITDA Reconciliation Adjusted EBITDA LTM ($ in 000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q1 2024 Net Loss ($20,775) ($896) ($614) ($23,335) ($16,324) ($67,282) ($41,169) Adjusted to Exclude the Following: Interest and Other Expense, Net 15,188 4,761 6,666 19,792 5,7
Slide 19: GAAP to Non-GAAP Adj Gross Profit Reconciliation
GAAP to Non-GAAP Adj Gross Profit Reconciliation Adjusted Gross Profit LTM ($ in 000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q1 2024 Gross Profit $99,281 $105,772 $106,886 $107,383 $108,419 $392,125 $428,460 Adjusted to Exclude the Following: Depreciation and Amortization 5,909 6,095 6,384
Slide 20: LFCF and aUFCF Reconciliations
LFCF and aUFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow LTM ($ in 000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q1 2024 Cash Flow from Operations $12,700 $28,446 $27,441 $36,018 $13,297 $64,650 $105,202 Adjusted for the Following: Purchase of PP&E (476) (725) (939) (897)
Slide 21: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses LTM ($ in 000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q1 2024 Sales and Marketing $30,899 $30,674 $30,086 $31,901 $29,768 $119,813 $122,429 Adjusted for the Following: Stock-based Compensation Expense (402) (477) (402) (391)
Slide 22: Pro Forma Revenue
Pro Forma Revenue Pro Forma Revenue ($ in 000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Revenue $161,136 $170,052 $174,741 $169,440 $170,113 Plus acquisition revenue / Less (5,346) (5,223) (5,688) (5,861) (5,403) disposition revenue Pro Forma Revenue $155,790 $164,829 $169,053 $163,579 $164,710 Pro
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
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