Summary
EverCommerce closed FY2024 Q3 with slow top-line growth and a wider net loss. Revenue rose 0.9% to $176.26 million. Operating income rose 57.6% to $9.92 million, and operating margin was 5.6%, up 2.0 percentage points from the prior-year quarter. Net loss was $9.16 million, and the loss widened from the prior-year quarter. Diluted EPS was -$0.05 and swung to a loss. Year to date, revenue rose 3.5% to $523.77 million. Operating income was $12.19 million, up 337.2%, and operating margin was 2.3%, up 1.8 percentage points. The year-to-date net loss was $28.86 million and widened. Diluted EPS was -$0.16 and the loss widened. The quarter produced operating income growth alongside a wider net loss.
On a non-GAAP basis, pro forma revenue, which excludes fitness, increased 4.3% from $169.1 million. Pro forma subscription and transaction fee revenue increased 8.3% from $127.0 million. Adjusted EBITDA was $44.5 million compared to $41.8 million. For the nine months, Adjusted EBITDA was $126.6 million compared to $112.5 million. Retention remains a concern. The annualized net revenue retention rate was approximately 91% for the quarter ended September 30, 2024, compared to 97% for the quarter ended September 30, 2023. Excluding marketing technology solutions, the annualized net revenue retention rate for core software and payments solutions was approximately 96%, compared to 100% a year earlier. The company served more than 690,000 global service-based businesses, excluding customers associated with the sold fitness assets.
Cash generation was steady but not stronger. Operating cash flow was $27.53 million for the quarter, flat from the prior-year quarter. Year-to-date operating cash flow was $64.75 million, down 5.6%. Capital expenditures were $0.17 million for the quarter, down 81.7%, and $1.21 million year to date, down 43.6%. Deferred revenue, current portion, was $26.27 million, up 6.6% from the prior-year quarter. Remaining performance obligations were $21.20 million, down 0.9% from the prior-year quarter. The company repurchased and retired 1.4 million shares for approximately $14.6 million during the quarter, and $39.4 million remained available under the repurchase program as of September 30, 2024.
Guidance for the fourth quarter of 2024 puts Adjusted EBITDA in the range of $43 million to $46 million. Full year 2024 guidance is unchanged, and the revenue guidance excludes now-divested fitness assets. Management pointed to strong execution across SaaS business lines. The company plans to focus in 2025 on transformation and optimization initiatives, including strategic investments aimed at future growth acceleration.
Risks remain material. EverCommerce has a history of net losses and may not achieve profitability. The macroeconomic climate creates pressure from inflation, interest rates, geopolitical conflict and currency swings. The company faces intense competition, dependence on payment networks and processors, and execution risk around its transformation and cost initiatives. Marketing technology solutions carry lower margins and face weaker demand. A lower retention rate adds pressure to future revenue. The fitness divestiture simplifies the portfolio but also removes revenue and contributed to losses and impairments. The balance sheet carries debt and interest rate swap exposure, which can create earnings volatility. For now, the investment case rests on steady recurring revenue, cost discipline and whether new initiatives can lift growth without further margin damage.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $176.3M | $177.4M | -0.6% | $174.7M | +0.9% |
| Research & development | $20.1M | $20.2M | -0.3% | $19.3M | +4.0% |
| Sales & marketing | $30.6M | $31.0M | -1.2% | $30.1M | +1.6% |
| General & administrative | $34.3M | $35.7M | -3.7% | $31.5M | +8.9% |
| Total operating expenses | $166.3M | $170.5M | -2.4% | $168.4M | -1.2% |
| Operating income (loss) | $9.9M | $6.9M | +44.2% | $6.3M | +57.6% |
| Operating margin | 5.6% | 3.9% | +1.8 pp | 3.6% | +2.0 pp |
| Net income (loss) | -$9.2M | -$3.4M | -171.2% | -$614.0K | -1391.2% |
| Net margin | -5.2% | -1.9% | -3.3 pp | -0.3% | -4.8 pp |
| Diluted EPS | -$0.05 | -$0.02 | -$0.03 | $0.00 | -$0.05 |
| Customers | 708,000 | 708,000 | ±0.0% | 685,000 | +3.4% |
Risks
Annualized net revenue retention rate was approximately 91% for the quarter ended September 30, 2024, compared with approximately 97% for the quarter ended September 30, 2023. Excluding marketing technology solutions, annualized net revenue retention for core software and payments solutions was approximately 96% for the quarter ended September 30, 2024, compared with 100% for the prior-year quarter.
Interest and other expense, net, increased 175.0% for the three months ended September 30, 2024 and 26.5% for the nine months ended September 30, 2024 compared to the prior-year periods, driven primarily by unrealized losses on interest rate swaps. As of September 30, 2024, $533.5 million was outstanding under the Term Loans and the effective interest rate was approximately 8.0% for the three months ended September 30, 2024.
MD&A states the macroeconomic climate continues to see pressure from international geopolitical conflict, terrorism, rising inflation, fluctuations in the value of the US Dollar, rising interest rates, and supply chain disruptions, which have had and may continue to have an adverse effect on revenues and demand and on costs of doing business.
Marketing technology solutions revenue decreased 6.7% and 3.3% for the three and nine months ended September 30, 2024, respectively, compared to the prior-year periods, primarily due to a reduction in demand driven by decreases in consumer spending.
SaaS KPIs
All quarters →Total Customers
Pro Forma Revenue Growth Rate
Adjusted Gross Profit
Adjusted EBITDA
Annualized Net Revenue Retention Rate
Pro Forma Revenue
Pro Forma Subscription and Transaction Fees Revenue
Annualized Pro Forma Net Revenue Retention Rate
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q3 FY2024 (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 2, 2026.