EverCommerce Inc. Q3 FY2025 earnings call

• Third quarter revenue of $147.5 million was within guidance, with 5.3% year-over-year growth. Adjusted EBITDA of $46.5 million beat the top of guidance range with a margin of 31.5%. - Acquired ZyraTalk, an AI-powered customer engagement solution, to accelerate AI development, particularly for the EverPro vertical. - Sold Marketing Technology solutions to Ignite Visibility, allowing focus on core SaaS and payments business. - EverCommerce serves over 725,000 customers across verticals, with significant embedded opportunity for value-added features. - Front book attach rates in EverPro and EverHealth verticals were greater than 60% in the third quarter. - Annualized net revenue retention was 97%, with customers using multiple solutions having an NRR >100%.

EverCommerce generated revenue of $147.5 million in the third quarter, a 5.3% year-over-year growth. The company's verticals include EverPro, EverHealth, and EverWell, with the first two representing approximately 95% of consolidated revenue. Subscription and transaction revenue was $142.2 million. Payments revenue grew 6% year-over-year and accounted for approximately 21% of overall revenue. Adjusted EBITDA was $46.5 million, beating the top of the guidance range with a margin of 31.5%.

• Fourth quarter 2025: Expected total revenue of $148 million to $152 million and adjusted EBITDA of $39.5 million to $41.5 million. - Full year 2025: Narrowed revenue guidance to $584 million to $592 million and adjusted EBITDA guidance to $174.5 million to $179.5 million, with an increase to the top end of the adjusted EBITDA range. - ZyraTalk's expected contribution to fourth quarter is immaterial.

• Macro and tariff-related impacts on rebate programs, which are a small portion of revenue but had some softness in Q3. - Uncertainties in forward-looking statements due to risks and uncertainties described in SEC filings.

Q: Can you talk more about the ZyraTalk acquisition business model?

A: ZyraTalk's product sells on subscription and usage basis, and the focus is on integrating it into EverCommerce's core solutions to make software more effective, with plans to expand to other verticals over time.

Q: What played out with the rebate program?

A: Rebates had about $1.6 million of softness in Q3 due to macroeconomic factors and tariffs, but it's a small portion of revenue and not a significant impact to the business.

Q: How are spending optimization efforts progressing?

A: Transformation optimization program has reduced operating costs by over $10 million in 2025, with continued efforts to embed it in the operating model, and expectation of continuing margin expansion while focusing on investing in products for customers.