EverCommerce Inc. Q1 FY2025 earnings call

• AI Initiatives: Embedding AI in customer-facing software for faster innovation, using AI for development to bring new features to market quickly, and using AI-driven workflows internally for cost discipline and margin expansion. Made progress integrating AI in products and internal workflows, with talent acquisition using third-party AI platforms for automation.
• Customer Metrics: Restated to exclude marketing technology solutions. 244,000 customers enabled for more than one solution (28% YOY growth), 99,000 actively utilizing more than one solution (20% YOY growth). Payments revenue on a pro forma basis grew over 8% and accounted for ~21% of overall revenue.
• Financial Performance: Q1 GAAP revenue up 3.2% YOY pro forma, adjusted EBITDA $44.9 million (31.6% margin), subscription and transaction revenue up 7.6% YOY.
• Share Repurchase: Board approved a $50 million increase to share repurchase program, extended to year-end 2026. Repurchased ~1.1 million shares in Q1 for $11.2 million.

EverCommerce Inc. has three major verticals: EverPro for home field services, EverHealth for physician practices, and EverWell for wellness. The two forward verticals (EverPro and EverWell) represent 95% of consolidated revenue. On a pro forma basis, for the last twelve months, the company generated $563.9 million in revenue, with subscription and transaction revenue growing 8.1% year over year. Annualized total payment volume (TPV) expanded to over $12.7 billion. Q1 GAAP revenue increased 3.2% year over year on a pro forma basis, and adjusted EBITDA was $44.9 million with a 31.6% margin.

• Q2 2025: Expected total revenue of $144.5 to $147.5 million and adjusted EBITDA of $39.5 to $41.5 million.
• Full Year 2025: Expected total revenue of $581 to $601 million and adjusted EBITDA of $167.5 to $175.5 million (unchanged from mid-March guidance).

• Macro-economic volatility could impact business metrics such as lead generation, onboarding, etc.
• Tariff concerns and potential supply chain cost pass-throughs to customers could affect business operations.

Q: Last quarter prioritizing payment attachment at the point of sale versus future add-on sales motion was mentioned. How has this been playing out for sales teams in terms of win rates?

A: In Q1, saw benefits with increases in payment attach with new customers. Focus on integrating payments into SaaS workflow and sell behind efforts.

Q: Any change in pipeline activity or net expansion tied to macro or tariff concerns?

A: No degradation in key metrics so far, monitoring macro but guidance remains unchanged as no particular assumption differently made regarding macroeconomic environment.

Q: Thoughts on tariff exposure on EverPro side and improvements identified in EverPro?

A: EverPro not directly exposed to tariffs. Mindbody lessons applicable to EverPro, with opportunities in payments, cross-sell, and rebate programs like Service Nation.