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% year-over-year, exceeding guidance.

• Adjusted EBITDA was $44.5 million, a 25.3% margin, up 6.5% year-over-year, beating guidance.

• Net loss widened to $9.2 million, impacted by higher interest expense, divestiture-related charges, and goodwill impairment.

• Transformation and optimization initiatives advanced, including new EverPro leadership and organizational restructuring.

• Completed sale of Fitness Solutions, resulting in a $5.0 million loss and $6.4 million goodwill impairment.

Financial highlights

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

• Adjusted gross profit was $117.0 million (66.4% margin), up from $113.3 million and 64.8% margin in Q3 2023.

• Cash flow from operations was $27.5 million for Q3 and $64.8 million for the nine months; cash and equivalents at quarter-end were $101.6 million.

• Levered free cash flow for Q3 was $23.0 million; adjusted unlevered free cash flow was $35.5 million.

• Ended quarter with $533.5 million in debt and $190 million undrawn revolver capacity.

Outlook and guidance

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

• Full-year 2024 guidance remains unchanged, excluding divested fitness assets.