Summary
EverCommerce reported second quarter 2022 revenue of $157.25 million, up 29.9% from $121.05 million in the prior-year quarter. Year-to-date revenue reached $300.82 million, up 33.1% from $225.96 million. The quarter's net loss narrowed to $12.88 million from $24.33 million a year earlier, and diluted loss per share narrowed to $0.07 from $0.56. Year to date, net loss narrowed to $26.19 million from $40.33 million, while diluted loss per share narrowed to $0.13 from $1.27. Operating loss for the quarter narrowed to $6.10 million from $10.80 million. Operating margin improved to negative 3.9% from negative 8.9%. The year-to-date operating loss widened to $19.67 million from $17.38 million, but year-to-date operating margin still improved to negative 6.5% from negative 7.7%. The gap between the quarterly and year-to-date operating loss trends reflects a stronger second quarter compared with a weaker first half overall.
Adjusted EBITDA was $30.7 million, up 11.5% from $27.6 million. Adjusted gross profit was $102.1 million versus $80.2 million. The pro forma revenue growth rate was 16.1% for the quarter and 18.0% year to date. About 95% of revenue in the six months ended June 30, 2022 was recurring or re-occurring, and the annualized net revenue retention rate was more than 100% for the quarter. The company serves more than 600,000 customers and has acquired 52 companies since inception. The company's solutions span home services, health services, and fitness and wellness services, and management aims to cross-sell adjacent products to existing customers.
Operating cash flow was $11.15 million in the quarter, up 20.8% from $9.23 million. Year-to-date operating cash flow was $24.00 million, up 526.4% from $3.83 million. Capital expenditures were $0.68 million in the quarter, down 22.7% from $0.87 million, and $1.56 million year to date, up 37.8% from $1.14 million. Deferred revenue was $25.52 million, up 24.6% from $20.48 million. Remaining performance obligations were $23.10 million, up 54.0% from $15.00 million. The deferred revenue and RPO increases point to a book of business that is growing faster than the headline revenue line, which could support future periods if renewals and new contracts convert as expected.
Management raised full-year 2022 guidance. Revenue is expected to be $626 million to $630 million, and Adjusted EBITDA is expected to be $123 million to $125 million. For the third quarter of 2022, revenue guidance is $159 million to $161 million and Adjusted EBITDA guidance is $31.5 million to $32.5 million. The company repurchased and retired 296,046 shares for $2.7 million under a $50.0 million repurchase program authorized on June 14, 2022 and expiring December 21, 2022. The company expects to fund repurchases with existing cash on hand. Risks include a limited operating history, the possibility that recent growth rates may not be sustainable, and the potential for continued quarterly fluctuations. The company may not achieve profitability in the future. It also faces intense competition, reliance on payment card networks, risks from real or perceived errors or cyber breaches, and ongoing uncertainty from the COVID-19 pandemic. The forward-looking statements also flag risks related to acquisitions, indebtedness, talent retention, and the evolving regulatory environment.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $143.6M | — | — | $121.0M | +18.6% |
| Research & development | $17.6M | — | — | $12.0M | +46.4% |
| Sales & marketing | $30.1M | — | — | $22.8M | +32.2% |
| General & administrative | $31.2M | — | — | $31.9M | -2.2% |
| Total operating expenses | $157.1M | — | — | $131.9M | +19.2% |
| Operating income (loss) | -$13.6M | — | — | -$10.8M | -25.6% |
| Operating margin | -9.4% | — | — | -8.9% | -0.5 pp |
| Net income (loss) | -$13.3M | — | — | -$24.3M | +45.3% |
| Net margin | -9.3% | — | — | -20.1% | +10.8 pp |
| Diluted EPS | -$0.07 | — | — | -$0.56 | +$0.49 |
Risks
Cost of revenues as a percentage of revenue rose to 35.0% for the three months ended June 30, 2022 from 33.8% in the prior-year quarter, and to 35.2% year to date from 33.9%. Management attributes this partly to a growing revenue mix toward Marketing Technology Solutions, which carries a higher cost of revenue percentage than Subscription and Transaction Fees.
Sales and marketing expense increased 31.3% in the three months ended June 30, 2022 and 41.4% year to date versus the prior-year periods, rising to 20.0% of revenue for the six months ended June 30, 2022 from 18.8%. Management states it expects sales and marketing expenses to increase on an absolute basis and as a percentage of revenue in the near and medium term, while the six-month operating loss widened to $19.67 million from $17.38 million.
EverCommerce has acquired 52 companies since inception, including five acquisitions in the year ended December 31, 2021 for $367.1 million, and it plans to continue acquiring complementary businesses that could require additional equity or debt financing. Acquisitions contributed $17.7 million of revenue in the three months ended June 30, 2022 and $34.8 million year to date, making results dependent on successful integration of acquired operations.
As of June 30, 2022 the company had $545.9 million outstanding under its Credit Facilities, all Term Loans, with borrowings accruing interest at adjusted LIBOR or an alternate base rate plus an applicable rate; the effective interest rate on the Term Loans was approximately 4.3% for the three months ended June 30, 2022. Interest and other expense, net, decreased 49.1% in the quarter and 53.4% year to date, but a floating-rate structure with a first lien leverage covenant tied to Revolver usage creates exposure if rates rise.
Management notes that market and macroeconomic conditions may from time to time impact the company's ability to raise capital, and that if it is unable to raise additional funds when desired its business, financial condition and results of operations could be adversely affected. The company serves over 600,000 service-based SMB customers whose health is tied to the broader economy.
The filing states that the COVID-19 pandemic has caused disruption and shut-downs that adversely impacted many SMBs, and that the extent to which it may further impact financial condition, results of operations or liquidity continues to be uncertain and difficult to predict, with impact likely varying by vertical, solution and geography.
The company qualifies as an emerging growth company under the JOBS Act and has elected to adopt new or revised accounting guidance within the same time periods as private companies, which the filing says may make it difficult to compare its financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out.
SaaS KPIs
All quarters →Total Customers
Pro Forma Revenue Growth Rate
Adjusted Gross Profit
Adjusted EBITDA
Net Revenue Retention
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q2 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.