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EI

EverCommerce Inc. (EVCM)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $175.0M (+3.3% YoY) and Adjusted EBITDA was $50.4M, both above the top end of guidance; GAAP net loss improved to $(12.2)M and GAAP EPS to $(0.07) .
  • Versus Wall Street consensus, Q4 revenue beat ($175.0M vs $170.5M*) and Primary EPS beat (0.153 vs 0.137*), while FY 2024 revenue was modestly above consensus ($698.8M vs $694.2M*) and Primary EPS below consensus (0.253 vs 0.516*). Values retrieved from S&P Global.
  • Management issued 2025 guidance for continuing operations (excluding Marketing Technology): FY revenue $581–$601M and Adjusted EBITDA $167.5–$175.5M; Q1 2025 revenue $138–$141M and Adjusted EBITDA $39–$41M .
  • Strategic review of Marketing Technology solutions (announced March 11) and plan to report them as discontinued operations from Q1 2025 are key catalysts, alongside stronger payments attachment and cost optimization momentum .

What Went Well and What Went Wrong

  • What Went Well:

    • “Fourth quarter results once again exceeded the top end of our guidance range for both revenue and Adjusted EBITDA” — Eric Remer, CEO .
    • Payments adoption progressed: payments revenue ~17% of total on a net basis with ~95% gross margin; Q4 TPV reached ~$12.6B (+9% YoY); enabled multi-solution customers 219k (+22% YoY) and active multi-solution users 91k (+14% YoY) .
    • Adjusted EBITDA margin expanded to 28.8% (+340 bps YoY) and adjusted gross margin to ~70.9% (vs 67.3% in Q4’23), driven by mix shift and cost optimization .

  • What Went Wrong:

    • Marketing Technology Solutions revenue declined 1.6% YoY in Q4 and will be moved to discontinued operations, reflecting ongoing portfolio reshaping .
    • Non-GAAP “transaction-related and other non-recurring” costs were elevated ($32.3M in Q4), and loss on sale/impairments was $28.0M in Q4, weighing on GAAP results .
    • GAAP profitability remains negative though improving: Q4 net loss $(12.2)M vs $(23.3)M YoY; FY 2024 net loss $(41.1)M .

Financial Results

Core metrics vs prior periods and estimates

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$169.4 $176.3 $175.0
GAAP Net Income ($USD Millions)$(23.3) $(9.2) $(12.2)
GAAP Diluted EPS ($USD)$(0.12) $(0.05) $(0.07)
Adjusted EBITDA ($USD Millions)$43.1 $44.5 $50.4
Adjusted EBITDA Margin %25.4% 25.3% 28.8%
Adjusted Gross Profit ($USD Millions)$114.0 $117.0 $124.0
Adjusted Gross Margin %67.3% 66.4% 70.9%

Segment revenue breakdown

Segment ($USD Millions)Q4 2023Q3 2024Q4 2024
Subscription & Transaction Fees$133.5 $137.6 $139.0
Marketing Technology Solutions$30.1 $34.4 $29.6
Other$5.9 $4.3 $6.4
Total Revenues$169.4 $176.3 $175.0

KPIs

KPIQ2 2024Q3 2024Q4 2024
Customers enabled for >1 solution199,000 212,000 219,000
Customers actively utilizing >1 solution87,000 88,000 91,000
Annualized TPV ($USD Billions)~$12.1 ~$12.4 ~$12.6
Payments revenue as % of total~17% ~17% ~17%
NRR (core software + payments, TTM)97% 96% 96%
Total customers (approx.)>690,000 >690,000 >740,000

Estimate comparisons (S&P Global consensus)

MetricConsensusActualSurprise
Q4 2024 Revenue ($USD Millions)170.5*175.0 +4.5 (Beat)
Q4 2024 Primary EPS ($USD)0.1369*0.1532*+0.0163 (Beat)
FY 2024 Revenue ($USD Millions)694.2*698.8 +4.6 (Beat)
FY 2024 Primary EPS ($USD)0.5164*0.2533*−0.2631 (Miss)

Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q4 2024$168–$172 Actual $175.0 Raised/Beat
Adjusted EBITDA ($USD Millions)Q4 2024$43–$46 Actual $50.4 Raised/Beat
Revenue ($USD Millions)Q1 2025N/A$138–$141 Initiated
Adjusted EBITDA ($USD Millions)Q1 2025N/A$39–$41 Initiated
Revenue ($USD Millions)FY 2025N/A$581–$601 (continuing ops, ex-MarTech) Initiated
Adjusted EBITDA ($USD Millions)FY 2025N/A$167.5–$175.5 (continuing ops, ex-MarTech) Initiated

Note: Marketing Technology solutions expected to be reported as discontinued operations beginning Q1 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Payments adoption & TPVQ2: TPV ~$12.1B; payments ~17% rev; attach rising ; Q3: TPV ~$12.4B; payments ~17%; attach/utilization growing Q4: TPV ~$12.6B (+9% YoY); payments ~17% with ~95% gross margin; attach/utilization improving Accelerating adoption
Multi-solution enablementQ2: Enabled 199k; Active 87k ; Q3: Enabled 212k; Active 88k Q4: Enabled 219k; Active 91k Steady growth
NRR trajectoryQ2: 97%, impacted by prior price action ; Q3: 96% Q4: 96%, stable Stabilizing
Organizational transformation (EverPro/EverHealth)Q2: vertical alignment, brand consolidation, Edge program; CFO transition announced Q4: Pure‑play SaaS & embedded payments focus; EverPro/EverHealth ~95% of revenue post MarTech sale Focused portfolio
Marketing Technology SolutionsQ3: headwinds; below internal expectations Q4: Strategic alternatives announced; discontinued ops starting Q1’25 Divestiture planned
Partnerships/channelQ2: integrated sales motion; Edge & reputation management cross‑sell Q4: Continued emphasis; digital still 80–85% of acquisition, partnerships growing in EverHealth Building
Cost & capital structureQ3: swaps to manage rates; buybacks ; Q2: buyback increased Q4: term loan repriced (SOFR+2.5%) saving ~$3.3M annually; $32.7M buyback authorization remaining Improving FCF/interest

Management Commentary

  • “Our most important accomplishment was material progress on our transformation initiatives… planned strategic investments in both SaaS solutions and embedded payments, including AI initiatives, gives us confidence we can meet our goal of growth acceleration exiting 2025.” — Eric Remer, CEO .
  • “Post the planned sale of the Marketing Technology business, our core verticals will be EverPro (Home) and EverHealth (Health), with the 2 former verticals representing approximately 95% of consolidated revenue.” — Eric Remer .
  • “Fourth quarter adjusted EBITDA was $50.4M, representing a 28.8% margin… Adjusted gross margin ~70.9% versus 67.3% in Q4 2023.” — Ryan Siurek, CFO .
  • “Payments revenue contributes approximately 95% gross margin and is a meaningful contributor to our overall adjusted EBITDA margin.” — Eric Remer .
  • “We successfully repriced the term loan… SOFR + 2.5%, resulting in annualized interest cost savings of approximately $3.3 million.” — Ryan Siurek .

Q&A Highlights

  • Macro/tariffs: No discernible macro impact on acquisition, utilization or churn; home services (repair/replace) and health services demand seen as consistent across macro cycles .
  • Partnerships/channel: Digital remains 80–85% of new acquisition; partnerships showing double‑digit growth in EverHealth channels (EMR affiliates, marketplace) .
  • Guidance philosophy: “Prudent” 50/50 guide; expect to meet or beat as in 2024; focus on continuing ops excluding MarTech in 2025 .
  • Payments friction & investments: Addressing SMB inertia via integrated SaaS+payments sales, specialized payment reps, customer success for activation, and expanded workflows (e.g., tap‑to‑pay) .
  • EverHealth payments: Opportunity smaller than EverPro but growing; early stages in platforms like DrChrono with workflow build‑outs underway .
  • Customer count ex‑MarTech color: ~15,000 customer impact referenced; final figures to be provided next quarter .

Estimates Context

  • Q4 2024 revenue beat consensus by ~$4.5M; Primary EPS beat by ~$0.02. FY 2024 revenue modestly above consensus, while Primary EPS below, reflecting non‑GAAP normalization vs GAAP losses. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Execution beat: Q4 revenue and Adjusted EBITDA exceeded guidance; margin expansion from mix and optimization is durable .
  • Payments flywheel: Attach/utilization and TPV are rising; with ~95% gross margin, payments should support margin accretion and FCF .
  • Portfolio focus: Divesting MarTech to sharpen a pure‑play SaaS+embedded payments profile; continuing‑ops guidance sets 2025 baseline .
  • Capital efficiency: Term loan repricing lowers interest by ~$3.3M/year; robust cash ($136M), undrawn revolver ($190M), remaining buyback authorization ($32.7M) .
  • Near‑term setup: Q1 2025 guide reflects continuing ops post‑MarTech; monitor payments attach and EverPro/EverHealth go‑to‑market execution .
  • Medium‑term thesis: Transformation initiatives, AI‑enabled workflows, and integrated sales motions aim to accelerate growth exiting 2025 .
  • Risks: Transition/discontinued ops accounting, non‑recurring charges and MarTech divestiture timing could add noise to reported GAAP metrics .

Appendix: Additional Data

Share Repurchases and Liquidity (Q4 2024)

  • Repurchased ~623k shares for ~$7.0M; $32.7M remaining authorization as of 12/31/2024 .
  • Cash & equivalents $135.8M; total debt $527.9M (incl. current); net leverage ~2.2x per credit facility .

Non-GAAP Adjustments (Q4 2024)

  • Transaction-related and other non-recurring costs $32.3M; Depreciation & amortization $21.9M; Stock-based comp $6.3M .

Values retrieved from S&P Global for the estimates table.