EverCommerce (EVCM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $177.4 million, up 4.3% year-over-year, 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 was $41.2 million (23.2% margin), up from $38.8 million, beating guidance midpoint and expanding year-over-year.

• Transformation and optimization initiatives advanced, focusing on EverHealth and EverPro, with new leadership hires and brand consolidation.

• Net loss was $3.4 million for Q2 2024, compared to $0.9 million in Q2 2023, impacted by losses on asset sales and impairments.

Financial highlights

• Subscription and transaction revenue was $137 million, up 5.2% year-over-year; marketing technology solutions revenue was $35 million, up 1.6%.

• 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; for the first half of 2024, it was $37.2 million, down from $41.1 million in the prior year period.

• 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.

• Guidance assumes flat year-over-year trends in marketing technology services.

• 2024 is positioned as a transition year with investments in transformation and optimization to drive future growth.

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