Slide 1: Earnings Call Presentation Q4 2022
Earnings Call Presentation Q4 2022 – March 15, 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: Q4 and FY 2022 Highlights
Q4 and FY 2022 Highlights > Q4 Revenue and EBITDA beat, above top end of guidance > Achieved Pro Forma Revenue growth of 16% in FY 2022 > Managed 4Q22 to balance growth and profitability: 19.3% reported Revenue growth; 14.2% Pro Forma Revenue growth; 21.7% EBITDA margins > Strong customer metrics: 1
Slide 5: 685,000+ Global Customers, $621M FY Revenue, $10.9B TPV
685,000+ Global Customers $621M FY REVENUE 27% 2,200+ Global Employees FY YoY REVENUE GROWTH 16% 19% FY YoY PRO FORMA REVENUE GROWTH FY ADJ. EBITDA MARGIN $10.9B EST. ANNUALIZED TPV Simplifying and empowering the lives of business owners whose services support us every day 5
Slide 6: Consistent customer and ARPU growth
Consistent customer and ARPU growth Total Customers (000s) 12% YoY growth in total customer count 689 617 Average solution-level ARPU expansion of approximately 8% YoY. 513 402 Change in ARPU largely driven by a combination of cross-sell and up-sell Total customer base of 689k represents large oppor
Slide 7: Cross-Sell Drives ARPU Growth and Retention
Cross-Sell Drives ARPU Growth and Retention Customers Utilizing More Than One Solution (000s)1 +29% 71 55 >71k customers currently utilize more than one solution = 29% YoY growth Increased adoption drives Annualized Net Revenue Retention of 100% in 4Q22 4Q21 4Q22 1Amounts are estimated as of the end
Slide 8: Payment Volume Expands 19% in 2022
Payment Volume Expands 19% in 2022 Total Payment Volume (TPV, B) +19% Embedded payments a key lever to drive $10.9 customer expansion Customers who take embedded payments not only yield higher ARPU, but also $9.21 improved retention TPV growth is driven by both increased customer adoption and increa
Slide 9: 2023 Priorities
2023 Priorities Provide leading system of action software across multiple service SMB > verticals, embedding payments and other valuable add-on solutions to help our customers streamline their operations and drive success. Prioritize our investments towards our best opportunities to achieve our > gr
Slide 10: Marc Thompson, Chief Financial Officer
Marc Thompson Chief Financial Officer
Slide 11: Strong QoQ Organic Growth Continues
Strong QoQ Organic Growth Continues Revenue (M)3 Pro Forma Revenue Growth Rate1 $161.8 $157.2 $158.1 4Q22 FY 20222 PF Growth % 14.2% 15.6% $143.6 $135.6 19.3% reported 4Q22 YoY Revenue growth includes M&A; 14.2% Pro forma YoY growth normalizing for acquisitions 4Q21 1Q22 2Q22 3Q22 4Q22 Recurring + R
Slide 12: Adjusted EBITDA Margins Exceed Target Level
Adjusted EBITDA Margins Exceed Target Level Adjusted EBITDA (M) 4Q21 1Q22 2Q22 3Q22 4Q22 $35.2 Adj. Gross $29.3 $30.8 $30.2 Profit Margin1 68.5% 64.7% 65.0% 63.5% 66.7% $23.0 Adj. EBITDA 21.6% 16.0% 19.6% 19.1% 21.7% Margin1 4Q22 Adj. EBITDA beat primarily driven by more stringent cost management Se
Slide 13: 14% Cash Flow margins provide flexibility
14% Cash Flow margins provide flexibility Levered Free Cash Flow Adjusted Unlevered Free Cash Flow1 (LFCF, M) (aUFCF, M) $22.7 $26.1 $20.0 $22.1 $22.3 $22.0 $14.9 $8.5 $9.1 $6.5 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 4Q22 LFCF of $22.7M 4Q22 aUFCF of $26.1M $46.7 TTM LFCF, a 7.5% margin T
Slide 14: Accretive buybacks highlight capital efficiency
Accretive buybacks highlight capital efficiency ($mm) Q4 2022 BALANCE SHEET Repurchased 2.9M shares during the Cash and cash equivalents $93 quarter for $21M2 at an average price of Debt, gross $543 $7.38. Debt, net of cash and cash equivalents $450 LEVERAGE $57M2 remaining of $100M repurchase Credi
Slide 15: Outlook
Outlook Q1 2023 FY 2023 Total Revenue $157 – 160M $680 – 700M Adjusted EBITDA $27 – 29M $134 – 142M 15
Slide 16: Evercommerce Q&A
Evercommerce Q&A
Slide 17: Appendix
Appendix
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted EBITDA ($ in 000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2021 FY 2022 Net Loss $(4,731) $(13,309) $(12,881) $(15,853) $(17,773) $(81,966) $(59,816) Adjusted to Exclude the Following: Interest and Other Expense, Net 4,849 5,478 6,702 8,890 $12,832 36,111
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Gross Profit ($ in 000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2021 FY 2022 Gross Profit1 $87,808 $87,278 $96,542 $95,027 $101,275 $308,301 $380,122 Adjusted to Exclude the Following: Depreciation and Amortization 5,099 5,553 5,601 5,444 $6,651 19,608 23
Slide 20: aUFCF and LFCF Reconciliations
aUFCF and LFCF Reconciliations Levered and Adjusted Unlevered Free Cash Flow ($ in 000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2021 FY 2022 Cash Flow from Operations $23,809 $12,854 $11,150 $13,610 $27,191 $68,352 $64,803 Adjusted for the Following: Purchase of PP&E (1,171) (889) (676) (590) (4
Slide 21: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Adjusted Operating Expenses ($ in 000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2021 FY 2022 Sales and Marketing $26,142 $30,145 $29,946 $29,440 $29,528 $93,789 $119,059 Adjusted for the Following: Stock-based Compensation Expense (207) (328) (419) (380) (376)
Slide 22: 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 23: 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