EverCommerce Inc. (NASDAQ: EVCM), a leading service commerce
platform, today announced financial results for the quarter ended
March 31, 2022.
First Quarter 2022 Financial
Highlights
-
Revenue of $143.6 million, compared to previously
issued guidance of $140 million to $141 million, an
increase of 36.9% compared to $104.9 million for the quarter ended
March 31, 2021.
- YoY Pro
forma revenue growth rate of 20.2% for the quarter ended
March 31, 2022.
- Net
loss was $13.3 million, or ($0.07) per basic and diluted
share, for the quarter ended March 31, 2022. This compares to
a net loss of $16.0 million, or ($0.72) per basic and diluted
share, for the quarter ended March 31, 2021.
- Adjusted
EBITDA was $23.0 million, compared to previously issued
guidance of $21.5 million to $22.0 million, an increase of 7.8%
compared to $21.3 million for the quarter ended March 31,
2021.
- Management raised its financial
guidance for full-year 2022 Revenue and Adjusted EBITDA.
“EverCommerce’s first quarter results were very
strong,” said Eric Remer, EverCommerce’s Founder and CEO. “We
reported Revenue and Adjusted EBITDA results that were above the
previously announced guidance ranges, while also reporting greater
than 20% Pro forma growth and maintaining healthy margins and cash
flow generation. These results are underpinned by a massive
opportunity we have with the digitization of the service economy
still in the early innings, which we expect to fuel growth for
years to come.”
A reconciliation of GAAP to Non-GAAP measures
has been provided in the financial statement tables included at the
end of this press release. An explanation of these measures is also
included below under the heading “Non-GAAP Financial Measures.”
Business Outlook
Based on information as of today, May 9,
2022, the Company is issuing the following financial guidance for
the second quarter and full year 2022.
Second Quarter 2022:
-
Revenue is expected to be in the range of
$152 million to $154 million.
- Adjusted
EBITDA is expected to be in the range of $28 million to
$29 million.
Full Year 2022:
-
Revenue is expected to be in the range of
$623 million to $629 million.
- Adjusted
EBITDA is expected to be in the range of
$122.5 million to $124.5 million.
A reconciliation of Adjusted EBITDA to net
income, the most directly comparable GAAP measure, is not available
without unreasonable efforts on a forward-looking basis due to the
high variability, complexity and low visibility with respect to
certain charges excluded from this non-GAAP measure; in particular,
the measures and efforts of stock-based compensation expense
specific to equity compensation awards that are directly impacted
by unpredictable fluctuations in our stock price. It is important
to note that these charges could be material to EverCommerce's
results computed in accordance with GAAP.
Conference Call Information
EverCommerce’s management team will hold a
conference call to discuss our first quarter 2022 results and
outlook today, May 9, 2022, at 5:00 p.m. ET. To access this
call, dial (877) 313-2140 (domestic) or (470) 495-9545
(international) (ID number: 7397115). A live webcast of this
conference call and an accompanying presentation will be available
on the “Investor Relations” page of the Company’s website. An
archived replay of the webcast will be available following the
conclusion of the call.
Investor ContactBrad KorchSVP
and Head of Investor Relations,
EverCommerce720-796-7664bkorch@evercommerce.com
Media ContactMeagan DorschVP of
Communications,
EverCommerce303-915-0823mdorsch@evercommerce.com
About EverCommerce
EverCommerce is a leading service commerce
platform, providing vertically-tailored, integrated
software-as-a-service ("SaaS") solutions that help more than
600,000 service-based businesses accelerate growth, streamline
operations and increase retention. Its modern digital and mobile
applications create predictable, informed and convenient
experiences between service professionals and their end consumers.
Specializing in Home Services, Health Services and Fitness &
Wellness Services industries, EverCommerce solutions include
end-to-end business management software, integrated payment
acceptance, marketing technology and customer engagement
applications. Learn more at EverCommerce.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking statements, including without limitation
statements regarding our future operations and financial results,
the underlying trends in our business, our market opportunity, our
potential for growth and our acquisition strategy. These statements
are neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements, including,
but not limited to, our limited operating history and evolving
business; our recent growth rates may not be sustainable or
indicative of future growth; we may not achieve profitability in
the future; we may continue to experience significant quarterly and
annual fluctuations in our operating results due to a number of
factors, which makes our future operating results difficult to
predict; we may reduce our rate of acquisitions and may be
unsuccessful in achieving continued growth through acquisitions;
revenues and profits generated through acquisitions may be less
than anticipated, and we may fail to uncover all liabilities of
acquisition targets; we may need to incur additional indebtedness
or seek capital through new equity or debt financings, which may
not be available to us on acceptable terms or at all; we may not be
able to continue to expand our share of our existing vertical
markets or expand into new vertical markets; we face intense
competition in each of the industries in which we operate; the
industries in which we operate are rapidly evolving and the market
for technology-enabled services that empower SMBs is relatively
immature and unproven; we are dependent on payment card networks
and payment processors and if we fail to comply with the applicable
requirements of our payment network or payment processors, they can
seek to fine us, suspend us or terminate our registrations through
our bank sponsors; the inability to keep pace with rapid
developments and changes in the electronic payments market or are
unable to introduce, develop and market new and enhanced versions
of our software solutions; real or perceived errors, failures or
bugs in our solutions; unauthorized disclosure, destruction or
modification of data, disruption of our software or services or
cyber breaches; our estimated total addressable market is subject
to inherent challenges and uncertainties; actual or perceived
inaccuracies in our operational metrics may harm our reputation;
failure to effectively develop and expand our sales and marketing
capabilities; failure to maintain and enhance our reputation and
brand recognition; inability to retain current customers or to sell
additional functionality and services to them may adversely affect
our revenue growth; our systems and our third-party providers’
systems may fail or our third-party providers may discontinue
providing their services or technology or to us specifically;
faster growth of lower margin solutions and services than higher
margin solutions and services; risks related to the COVID-19
pandemic; economic and political risks, including the business
cycles of our clients and changes in the overall level of consumer
and commercial spending; our ability to retain and hire skilled
personnel; risks related to our indebtedness; risks related to the
increasing focus on environmental sustainability and social
initiatives; our ability to adequately protect or enforce our
intellectual property and other proprietary rights; risk of patent,
trademark and other intellectual property infringement claims;
risks related to governmental regulation; risks related to our
sponsor stockholders agreement and qualifying as a “controlled
company” under the rules of The Nasdaq Stock Market; as well as the
other factors described in our Annual Report on Form 10-K for the
year ended December 31, 2021 and updated by our other filings
with the SEC. These factors could cause actual results to differ
materially from those indicated by the forward-looking statements
made in this press release. Any such forward-looking statements
represent management’s estimates as of the date of this press
release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
Key Business and Financial
Metrics
Pro Forma Revenue Growth Rate is a key
performance measure that our management uses to assess our
consolidated operating performance over time. Management also uses
this metric for planning and forecasting purposes.
Our year-over-year Pro Forma Revenue Growth Rate
is calculated as though all acquisitions closed as of the end of
the latest period were closed as of the first day of the prior year
period presented. In calculating Pro Forma Revenue Growth Rate, we
add the revenue from acquisitions for the reporting periods prior
to the date of acquisition (including estimated purchase accounting
adjustments) to our results of operations, and then calculate our
revenue growth rate between the reported periods. As a result, Pro
Forma Revenue Growth Rate includes pro forma revenue from
businesses acquired during the period, including revenue generated
during periods when we did not yet own the acquired businesses. In
including such pre-acquisition revenue, Pro Forma Revenue Growth
Rate allows us to measure the underlying revenue growth of our
business as it stands as of the end of the respective period, which
we believe provides insight into our then-current operations. Pro
Forma Revenue Growth Rate does not represent organic revenue
generated by our business as it stood at the beginning of the
respective period. Pro Forma Revenue Growth Rates are not
necessarily indicative of either future results of operations or
actual results that might have been achieved had the acquisitions
been consummated on the first day of the prior year period
presented. We believe that this metric is useful to investors in
analyzing our financial and operational performance period over
period and evaluating the growth of our business, normalizing for
the impact of acquisitions. This metric is particularly useful to
management due to the number of acquired entities.
Non-GAAP Financial Measures
EverCommerce has provided in this press release
financial information that has not been prepared in accordance with
generally accepted accounting principles in the United States
(“GAAP”). EverCommerce uses these non-GAAP financial measures
internally in analyzing its financial results and believes that use
of these non-GAAP financial measures is useful to investors as an
additional tool to evaluate ongoing operating results and trends
and in comparing EverCommerce’s financial results with other
companies in its industry, many of which present similar non-GAAP
financial measures.
Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
financial measures and should be read only in conjunction with
EverCommerce’s consolidated financial statements prepared in
accordance with GAAP. A reconciliation of EverCommerce’s historical
non-GAAP financial measures to the most directly comparable GAAP
measures has been provided in the financial statement tables
included in this press release, and investors are encouraged to
review the reconciliation.
Adjusted Gross Profit. Adjusted Gross Profit is
a key performance measure that our management uses to assess our
operational performance, as it represents the results of revenues
and direct costs, which are key components of our operations. We
believe that this non-GAAP financial measure is useful to investors
and other interested parties in analyzing our financial performance
because it reflects the gross profitability of our operations, and
excludes the indirect costs associated with our sales and
marketing, product development, general and administrative
activities, and depreciation and amortization, and the impact of
our financing methods and income taxes.
We calculate Adjusted Gross Profit as gross
profit adjusted to exclude depreciation and amortization allocated
to cost of revenues. Gross profit is calculated as total revenues
less cost of revenues (exclusive of depreciation and amortization),
amortization of developed technology, amortization of capitalized
software and depreciation expense (allocated to cost of revenues).
Adjusted Gross Profit should be viewed as a measure of operating
performance that is a supplement to, and not a substitute for,
operating income or loss, net earnings or loss and other U.S. GAAP
measures of income (loss) or profitability.
Adjusted EBITDA. Adjusted EBITDA is a key
performance measure that our management uses to assess our
financial performance and is also used for internal planning and
forecasting purposes. We believe that this non-GAAP financial
measure is useful to investors and other interested parties in
analyzing our financial performance because it provides a
comparable overview of our operations across historical periods. In
addition, we believe that providing Adjusted EBITDA, together with
a reconciliation of net income (loss) to Adjusted EBITDA, helps
investors make comparisons between our company and other companies
that may have different capital structures, different tax rates,
and/or different forms of employee compensation.
Adjusted EBITDA is used by our management team
as an additional measure of our performance for purposes of
business decision-making, including managing expenditures, and
evaluating potential acquisitions. Period-to-period comparisons of
Adjusted EBITDA help our management identify additional trends in
our financial results that may not be shown solely by
period-to-period comparisons of net income or income from
continuing operations. In addition, we may use Adjusted EBITDA in
the incentive compensation programs applicable to some of our
employees. Our Management recognizes that Adjusted EBITDA has
inherent limitations because of the excluded items, and may not be
directly comparable to similarly titled metrics used by other
companies.
We calculate Adjusted EBITDA as net income
(loss) adjusted to exclude interest and other expense, net, income
tax benefit, depreciation and amortization, other amortization,
acquisition related costs, stock-based compensation, and other
non-recurring costs. Other amortization includes amortization for
capitalized contract acquisition costs. Acquisition related costs
are specific deal-related costs such as legal fees, financial and
tax due diligence, consulting and escrow fees. Other non-recurring
costs are expenses such as system implementation costs and
severance related to planned restructuring activities. Acquisition
related costs and other non-recurring costs are excluded as they
are not representative of our underlying operating performance.
Adjusted EBITDA should be viewed as a measure of operating
performance that is a supplement to, and not a substitute for,
operating income or loss, net earnings or loss and other U.S. GAAP
measures of income (loss). The following table presents a
reconciliation of net loss, the most directly comparable financial
measure calculated in accordance with U.S. GAAP, to Adjusted EBITDA
on a consolidated basis.
Condensed Consolidated Balance
Sheets(in thousands, except per share and share
amounts)(unaudited)
|
March 31, |
|
December 31, |
|
2022 |
|
2021 |
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
101,201 |
|
$ |
93,993 |
Restricted
cash |
|
3,798 |
|
|
3,566 |
Accounts receivable, net of allowance for doubtful accounts of $2.1
million and $1.9 million at March 31, 2022 and
December 31, 2021,
respectively |
|
42,318 |
|
|
40,514 |
Contract
assets |
|
12,861 |
|
|
11,039 |
Prepaid expenses and other current
assets |
|
26,304 |
|
|
22,505 |
Total current
assets |
|
186,482 |
|
|
171,617 |
Non-current assets: |
|
|
|
Property and equipment,
net |
|
13,367 |
|
|
13,509 |
Capitalized software,
net |
|
26,357 |
|
|
24,000 |
Other non-current
assets |
|
21,036 |
|
|
24,296 |
Intangible assets,
net |
|
482,536 |
|
|
508,535 |
Goodwill |
|
921,615 |
|
|
921,416 |
Total non-current
assets |
|
1,464,911 |
|
|
1,491,756 |
Total
assets |
$ |
1,651,393 |
|
$ |
1,663,373 |
Condensed Consolidated Balance Sheets
(Continued)(in thousands, except per share and
share amounts)(unaudited)
|
March 31, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Liabilities,
Convertible Preferred Stock and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
8,195 |
|
|
$ |
10,325 |
|
Accrued expenses and other |
|
53,735 |
|
|
|
49,340 |
|
Deferred revenue |
|
27,075 |
|
|
|
22,992 |
|
Customer deposits |
|
8,805 |
|
|
|
9,828 |
|
Current maturities of long-term debt |
|
11,070 |
|
|
|
10,943 |
|
Total current liabilities |
|
108,880 |
|
|
|
103,428 |
|
Non-current
liabilities: |
|
|
|
Deferred tax liability, net |
|
7,747 |
|
|
|
17,862 |
|
Long-term deferred revenue |
|
2,982 |
|
|
|
2,803 |
|
Long-term debt, net of current maturities and deferred financing
costs |
|
534,122 |
|
|
|
535,184 |
|
Other non-current liabilities |
|
19,129 |
|
|
|
18,448 |
|
Total non-current liabilities |
|
563,980 |
|
|
|
574,297 |
|
Total liabilities |
|
672,860 |
|
|
|
677,725 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.00001 par value, 50,000,000 shares authorized
and no shares issued or outstanding as of March 31, 2022 and
December 31,
2021 |
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value, 2,000,000,000 shares authorized
and 195,510,446 and 195,384,291 shares issued and outstanding at
March 31, 2022 and December 31, 2021,
respectively |
|
2 |
|
|
|
2 |
|
Accumulated other comprehensive
loss |
|
(2,431 |
) |
|
|
(1,767 |
) |
Additional paid-in
capital |
|
1,507,501 |
|
|
|
1,500,643 |
|
Accumulated
deficit |
|
(526,539 |
) |
|
|
(513,230 |
) |
Total stockholders’
equity |
|
978,533 |
|
|
|
985,648 |
|
Total liabilities, convertible preferred stock and
stockholders'
equity |
$ |
1,651,393 |
|
|
$ |
1,663,373 |
|
Condensed Consolidated Statements of
Operations and Comprehensive Loss(in thousands,
except per share and share
amounts)(unaudited)
|
Three months endedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Revenues: |
|
|
|
Subscription and transaction fees |
$ |
108,001 |
|
|
$ |
75,195 |
|
Marketing technology solutions |
|
29,904 |
|
|
|
25,388 |
|
Other |
|
5,671 |
|
|
|
4,323 |
|
Total revenues |
|
143,576 |
|
|
|
104,906 |
|
Operating expenses: |
|
|
|
Cost of revenues (exclusive of depreciation and amortization
presented separately below) |
|
50,745 |
|
|
|
35,674 |
|
Sales and marketing |
|
30,145 |
|
|
|
19,689 |
|
Product development |
|
17,637 |
|
|
|
10,325 |
|
General and administrative |
|
31,226 |
|
|
|
22,094 |
|
Depreciation and amortization |
|
27,391 |
|
|
|
23,697 |
|
Total operating expenses |
|
157,144 |
|
|
|
111,479 |
|
Operating loss |
|
(13,568 |
) |
|
|
(6,573 |
) |
Interest and other expense, net |
|
(5,478 |
) |
|
|
(12,949 |
) |
Net loss before income tax benefit |
|
(19,046 |
) |
|
|
(19,522 |
) |
Income tax benefit |
|
5,737 |
|
|
|
3,527 |
|
Net loss |
|
(13,309 |
) |
|
|
(15,995 |
) |
Other comprehensive
income: |
|
|
|
Foreign currency translation gains (losses), net |
|
(664 |
) |
|
|
543 |
|
Comprehensive loss |
$ |
(13,973 |
) |
|
$ |
(15,452 |
) |
|
|
|
|
Net loss attributable to
common stockholders: |
|
|
|
Net loss |
$ |
(13,309 |
) |
|
$ |
(15,995 |
) |
Adjustments to net
loss |
|
— |
|
|
|
(15,105 |
) |
Net loss attributable to common
stockholders |
$ |
(13,309 |
) |
|
$ |
(31,100 |
) |
|
|
|
|
Basic and diluted net loss per
share attributable to common
stockholders |
$ |
(0.07 |
) |
|
$ |
(0.72 |
) |
|
|
|
|
Basic and diluted
weighted-average shares of common stock outstanding used in
computing net loss per
share |
|
195,432,404 |
|
|
|
43,231,295 |
|
Condensed Consolidated Statements of Cash
Flows (in
thousands)(unaudited)
|
Three months endedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Cash flows provided by
(used in) operating activities: |
|
|
|
Net loss |
$ |
(13,309 |
) |
|
$ |
(15,995 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and
amortization |
|
27,391 |
|
|
|
23,697 |
|
Amortization of discount on long-term
debt |
|
104 |
|
|
|
1,540 |
|
Amortization of deferred financing costs on long-term
debt |
|
229 |
|
|
|
59 |
|
Amortization of costs and fees on credit facility
commitments |
|
99 |
|
|
|
229 |
|
Deferred taxes |
|
(5,990 |
) |
|
|
(3,429 |
) |
Bad debt
expense |
|
460 |
|
|
|
637 |
|
Paid-in-kind interest on long-term
debt |
|
107 |
|
|
|
99 |
|
Stock-based
compensation |
|
6,135 |
|
|
|
903 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions: |
|
|
|
Accounts receivable,
net |
|
(2,261 |
) |
|
|
(4,715 |
) |
Prepaid expenses and other current
assets |
|
(5,717 |
) |
|
|
(776 |
) |
Other non-current
assets |
|
(691 |
) |
|
|
(2,039 |
) |
Accounts
payable |
|
(2,122 |
) |
|
|
1,471 |
|
Accrued expenses and
other |
|
3,498 |
|
|
|
(10,289 |
) |
Deferred
revenue |
|
4,240 |
|
|
|
5,143 |
|
Other long-term
liabilities |
|
681 |
|
|
|
(1,935 |
) |
Net cash provided by (used in) operating
activities |
|
12,854 |
|
|
|
(5,400 |
) |
|
|
|
|
Cash flows used in
investing activities: |
|
|
|
Purchases of property and
equipment |
|
(889 |
) |
|
|
(262 |
) |
Capitalization of software costs |
|
(3,503 |
) |
|
|
(2,765 |
) |
Acquisition of companies, net of cash acquired |
|
— |
|
|
|
(69,117 |
) |
Net cash used in investing activities |
|
(4,392 |
) |
|
|
(72,144 |
) |
|
|
|
|
Cash flows provided by
(used in) financing activities: |
|
|
|
Payments on long-term debt |
|
(1,375 |
) |
|
|
(2,015 |
) |
Proceeds from long-term debt |
|
— |
|
|
|
69,216 |
|
Exercise of stock options |
|
723 |
|
|
|
735 |
|
Net cash provided by (used in) financing
activities |
|
(652 |
) |
|
|
67,936 |
|
Effect of foreign currency
exchange rate changes on cash |
|
(370 |
) |
|
|
196 |
|
Net increase (decrease) in cash and cash equivalents and
restricted cash |
|
7,440 |
|
|
|
(9,412 |
) |
Cash and cash equivalents and
restricted cash: |
|
|
|
Beginning of period |
|
97,559 |
|
|
|
98,337 |
|
End of period |
$ |
104,999 |
|
|
$ |
88,925 |
|
|
Three months endedMarch 31, |
|
2022 |
|
2021 |
|
(in thousands) |
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid for
interest |
$ |
4,943 |
|
$ |
10,837 |
Cash paid for income
taxes |
$ |
235 |
|
$ |
5 |
|
|
|
|
Supplemental
disclosures of noncash investing and financing
activities: |
|
|
|
Rollover equity in consideration of net assets
acquired |
$ |
— |
|
$ |
416 |
Accretion of Series B Preferred Stock to redemption
value |
$ |
— |
|
$ |
15,105 |
|
Three months endedMarch 31, |
|
2022 |
|
2021 |
|
(in thousands) |
|
|
|
|
Reconciliation from
Gross Profit to Adjusted Gross Profit: |
|
|
|
Gross profit |
$ |
87,278 |
|
$ |
64,645 |
Depreciation and
amortization |
|
5,553 |
|
|
4,587 |
Adjusted Gross
Profit |
$ |
92,831 |
|
$ |
69,232 |
|
Three months endedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands) |
|
|
|
|
Reconciliation from
Net loss to Adjusted EBITDA: |
|
|
|
Net
loss |
$ |
(13,309 |
) |
|
$ |
(15,995 |
) |
Adjusted to exclude the
following: |
|
|
|
Interest and other expense,
net |
|
5,478 |
|
|
|
12,949 |
|
Income tax
benefit |
|
(5,737 |
) |
|
|
(3,527 |
) |
Depreciation and
amortization |
|
27,391 |
|
|
|
23,697 |
|
Other
amortization |
|
942 |
|
|
|
600 |
|
Acquisition related
costs |
|
597 |
|
|
|
1,098 |
|
Stock-based
compensation |
|
6,135 |
|
|
|
903 |
|
Other non-recurring
costs |
|
1,465 |
|
|
|
1,585 |
|
Adjusted
EBITDA |
$ |
22,962 |
|
|
$ |
21,310 |
|
EverCommerce (NASDAQ:EVCM)
過去 株価チャート
から 6 2024 まで 7 2024
EverCommerce (NASDAQ:EVCM)
過去 株価チャート
から 7 2023 まで 7 2024