Summary
EverCommerce closed fiscal 2022 with fourth-quarter revenue of $161.8 million, up 19.3% from the prior-year quarter. Full-year revenue reached $620.7 million, up 26.6%. The company said its pro forma revenue growth rate was 15.6% for the year ended December 31, 2022. It finished 2022 with more than 685,000 customers, up from over 600,000 at the end of 2021. About 95% of revenue in 2022 and 2021 was recurring or re-occurring, and the net pro forma revenue retention rate was approximately 100% for the quarter ended December 31, 2022. The company serves three core verticals. It counted approximately 320,000 customers in Home Services, 95,000 in Health Services, and 69,000 in Fitness & Wellness Services. For the year, it estimated that approximately 90% of customers contributed less than $2,000 in revenue and less than 5% contributed more than $5,000 in revenue.
Profitability remained mixed. The fourth-quarter operating loss narrowed 36.2% to $3.7 million. For the full year, the operating loss widened 12.5% to $30.6 million. The quarterly net loss widened 275.7% to $17.8 million. The full-year net loss narrowed 27.0% to $59.8 million. Diluted EPS for the full year was -$0.31, up $0.51 or 62.2%. Operating margin improved to -2.3% in the quarter, up 2.0 percentage points, and to -4.9% for the full year, up 0.6 percentage points. Adjusted EBITDA, a non-GAAP measure, was $119.0 million for the full year, compared with $107.2 million in 2021.
Cash generation improved. Fourth-quarter operating cash flow was $27.2 million, up 14.2%, and full-year operating cash flow was $64.8 million, up 72.9%. Capital expenditures fell 64.9% in the quarter to $0.4 million and 17.3% for the full year to $2.6 million. Deferred revenue, current portion, was flat at $22.9 million. Remaining performance obligations rose 1.8% to $22.8 million. The balance sheet showed $95.8 million of cash, cash equivalents and restricted cash, $190.0 million of available borrowing capacity under the Revolver, and $543.1 million outstanding under the Term Loans as of December 31, 2022. The effective interest rate on the Term Loans was approximately 5.2% for the year. The company entered an interest rate swap on October 31, 2022 for a notional amount of $200.0 million with a fixed rate of 4.2295% and a five-year term. It also entered a second swap on March 14, 2023 for a notional amount of $100.0 million with a fixed rate of 3.969%, effective March 31, 2023. The Term Loans mature in July 2028 and the Revolver matures in July 2026.
Management outlined spending plans for the foreseeable future. The filing states that sales and marketing expenses should increase in absolute dollars and may rise as a percentage of revenue, while product development expenses should increase in absolute dollars and remain generally consistent as a percentage of revenue. General and administrative expenses should increase in absolute dollars. The company has acquired 52 companies since inception, including five in 2021 and nine in 2020, and it continues to pursue acquisitions. Risks include macroeconomic pressure from the COVID-19 pandemic, rising inflation, a strengthened US Dollar, rising interest rates, and supply chain disruptions. Acquisition risks include growth rates that may not be sustainable, integration challenges, unanticipated liabilities, and potential impairment charges. The company also carries significant debt, with $543.1 million outstanding under the Credit Facilities and covenants tied to its Revolver. It was in compliance with those covenants as of December 31, 2022. During 2022 it repurchased and retired 4,951,966 shares for $43.0 million and had $57.1 million remaining under its repurchase program as of December 31, 2022. On November 7, 2022, the board expanded the program to $100.0 million total and extended it through December 31, 2023.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $161.8M | $158.1M | +2.3% | $135.6M | +19.3% |
| Research & development | $18.1M | $18.5M | -2.5% | $14.4M | +25.2% |
| Sales & marketing | $29.5M | $29.4M | +0.3% | $26.1M | +13.0% |
| General & administrative | $35.7M | $32.2M | +11.1% | $30.6M | +16.9% |
| Total operating expenses | $165.5M | $165.4M | +0.1% | $141.4M | +17.0% |
| Operating income (loss) | -$3.7M | -$7.3M | +49.4% | -$5.8M | +36.2% |
| Operating margin | -2.3% | -4.6% | +2.3 pp | -4.2% | +2.0 pp |
| Net income (loss) | -$17.8M | -$15.9M | -12.1% | -$4.7M | -275.7% |
| Net margin | -11.0% | -10.0% | -1.0 pp | -3.5% | -7.5 pp |
| Diluted EPS | -$0.09 | -$0.08 | -$0.01 | -$0.04 | -$0.05 |
| Customers | 685,000 | — | — | 600,000 | +14.2% |
Risks
MD&A states the macroeconomic climate continues to see pressure from COVID-19, rising inflation, a strengthened US Dollar, rising interest rates and supply chain disruptions, which may adversely affect revenue, demand and costs. The company has international operations and floating-rate debt, amplifying exposure.
EverCommerce has completed 52 acquisitions since inception and expects to continue, but MD&A and risk factors note it may reduce its acquisition rate and that integration, undisclosed liabilities, dilution and debt financing risks could impair growth. Pro forma revenue growth was 15.6% for FY2022.
Operating loss widened to $30.6 million for FY2022 year to date from $27.2 million in prior-year YTD, though net loss narrowed to $59.8 million from $82.0 million. Continued net losses and public-company investments may pressure profitability.
The company has significant outstanding Term Loans under its credit facilities, with an effective interest rate of approximately 5.2% for FY2022. Rising interest rates and restrictive covenants could increase costs or limit capital and acquisition flexibility.
Payment-related transactions comprised approximately 14% of revenue in 2022, and the company relies on Visa, MasterCard, Worldpay and PayPal. Failure to comply with card network rules could suspend or terminate registrations, and preclusion from Visa and MasterCard transactions could cause substantial revenue loss.
Revenue grew 26.6% for FY2022 year to date versus prior year YTD, but the company warns historical growth rates may not be sustainable and acquisitions have significantly contributed. A decline in new customers or acquisition activity could slow revenue growth.
EverCommerce faces intense competition in each vertical from specialized and horizontal competitors such as Salesforce, Intuit, Square and HubSpot, with low barriers to entry and potential competition from partners. Competitive pressure could reduce market share and pricing power.
The company operates in Canada, UK, Australia, Jordan and New Zealand and uses independent contractors in India, Russia and Ukraine for software development. Russia-Ukraine conflict, sanctions or political instability could disrupt development resources or payments.
EverCommerce collects and processes sensitive payment card and health care data and has experienced cyber-attacks of varying degrees, though none materially impacted operations. A breach could trigger fines, payment network restrictions, litigation and reputational harm.
The company must attract, train and retain qualified sales, support, engineering and management personnel, with software engineers noted as potentially constrained. Failure to retain key personnel could impair growth and product development.
SaaS KPIs
All quarters →Total Customers
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q4 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.