EverCommerce (EVCM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4.3% year-over-year to $177.4 million, exceeding guidance and including $2.7 million from divested international fitness assets.

• Pro forma revenue growth, excluding divested fitness assets, was 6% year-over-year.

• Adjusted EBITDA rose to $41.2 million (23.2% margin), up from $38.8 million, reflecting margin expansion despite ongoing investments.

• Transformation and optimization initiatives are progressing, with a focus on EverHealth and EverPro, organizational simplification, and new leadership hires.

• CFO transition announced: Ryan Siurek to succeed Marc Thompson in September 2024.

Financial highlights

• Subscription and transaction revenue grew 5.2% to $137 million; marketing technology solutions revenue rose 1.6% to $35 million.

• Adjusted gross profit was $116.1 million (65.4% margin), slightly down from 65.8% in Q2 2023.

• Operating income improved to $6.9 million from $1.8 million year-over-year.

• Cash flow from operations was $23.9 million in Q2; $37.2 million for the first half of 2024.

• Levered free cash flow was $19 million, down 16% year-over-year due to working capital timing.

Outlook and guidance

• Q3 2024 revenue expected at $172–$176 million; Adjusted EBITDA at $39–$42 million.

• Full-year 2024 guidance unchanged: revenue of $676–$696 million and Adjusted EBITDA of $167–$176 million.

• 2024 is a transition year with investments in transformation and optimization, aiming for accelerated growth and profitability in 2025.

• Existing cash, cash equivalents, and available credit are expected to be sufficient to fund operations and obligations for at least the next twelve months.