EverCommerce (EVCM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $176.3 million, up 0.9% year-over-year, with pro forma revenue (excluding fitness) up 4.3%; growth driven by subscription and transaction fees, while marketing technology revenue declined.

• Adjusted EBITDA rose to $44.5 million (25.3% margin), up 6.5% year-over-year, surpassing guidance; net loss widened to $9.2 million due to higher interest expense and divestiture-related charges.

• Transformation and optimization initiatives advanced, including new EverPro leadership, decentralization, and cost-saving measures.

• Payments revenue (excluding fitness) grew 6.7% year-over-year, driven by 8.4% TPV growth.

• Customer enablement for multiple solutions rose 25% year-over-year, with 212,000 customers enabled and 88,000 actively utilizing more than one solution.

Financial highlights

• Subscription and transaction revenue was $137.6 million, up 3.7% year-over-year; marketing technology revenue declined 6.7% to $34.4 million.

• Adjusted gross profit reached $117 million (66.4% margin), up from 64.8% in Q3 2023.

• Operating income increased to $9.9 million from $6.3 million year-over-year.

• Cash flow from operations was $64.8 million for the nine months; cash and equivalents stood at $101.6 million at quarter-end.

• Levered free cash flow for Q3 was $23 million; adjusted unlevered free cash flow was $35.5 million.

Outlook and guidance

• Q4 2024 revenue expected between $168–$172 million; adjusted EBITDA expected between $43–$46 million.

• Full-year 2024 guidance remains unchanged at the midpoint, excluding fitness assets.

• Management expects continued focus on expanding gross margin, net income, and adjusted EBITDA through transformation initiatives.