EverCommerce (EVCM) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Strategic transformation and business focus

• Transitioned to focus on two main verticals: home services (EverPro) and health services (EverHealth), divesting the fitness business to sharpen operational execution and maximize value in core markets.

• Leadership changes include appointing Josh McCarter to lead EverPro, with a new EverHealth CEO to be announced, aiming to accelerate decision-making and customer proximity.

• Transformation involved decentralizing talent, increasing efficiency, and improving EBITDA margins by over 600 basis points during the transition.

• Focused investment in the two pillars is expected to drive mid-teens revenue growth and 30% EBITDA margins at scale over the next several years.

• Marketing business now represents under 20% of revenue and is growing at -6%, while core SaaS businesses are near double-digit growth with high margins.

Payments and cross-sell opportunities

• Payments business is a key growth lever, with only 12% of the 700,000-customer base currently utilizing integrated payments, representing significant untapped potential.

• Recent integration of payments into the software sales process increased multi-product sales by 25-30%.

• Payments offer 95%+ gross margins, directly boosting profitability and customer retention.

• Product enhancements, such as integrated ACH, are driving further adoption and growth in transaction processing volume.

• Cross-sell initiatives like Joist Rewards and embedded opportunities are expanding high-margin revenue streams.

Market trends, macro environment, and outlook

• Home services market remains resilient, with core demand steady and break-fix services driving stability.

• EverHealth is consolidating platforms to offer a fully integrated solution, sunsetting legacy brands to support long-term growth.

• Economic and political factors, such as a pro-business administration and improved consumer confidence, are viewed as potential tailwinds.

• Path to mid-teens growth includes payments penetration, organic product development, and strategic reinvestment for future value.

• Sponsors own about 80% of the float and remain supportive of the long-term growth strategy.