Summary
EverCommerce closed fiscal 2024 with fourth-quarter revenue of $175.00 million, up 3.3% from $169.44 million in the prior-year quarter. Full-year revenue was $698.76 million, up 3.5% from $675.37 million. Profitability moved the other way. The fourth-quarter operating loss was $11.93 million, a sharp reversal from a $0.36 million operating loss a year earlier. For the full year, operating income was $0.25 million, down 89.6% from $2.43 million. Operating margin was -6.8% in the fourth quarter, down from -0.2%, and 0.0% for the full year, down from 0.4%.
Net loss narrowed to $12.23 million in the fourth quarter from $23.34 million a year earlier. The full-year net loss was $41.09 million, better than the $45.62 million loss in 2023. Diluted EPS for the full year was -$0.22, up from -$0.24. Cash generation held up. Operating cash flow was $48.41 million in the fourth quarter, up 34.4%, and $113.16 million for the full year, up 8.2%. Capital expenditures were $0.25 million in the fourth quarter, down 71.7%, and $1.46 million for the full year, down 51.9%. Those capital expenditure figures are purchases of property and equipment, not total investing cash use.
Deferred revenue was $25.12 million at the end of the fourth quarter, up 4.3% from the prior-year quarter. Remaining performance obligations were $20.20 million, down 1.0%. The company served more than 740,000 customers and said approximately 97% of revenue was recurring or re-occurring in both 2024 and 2023. Retention softened. Annualized net revenue retention was approximately 91%, compared with approximately 93% in the prior-year quarter. Core software and payments net revenue retention was approximately 96%, compared with approximately 98%. Pro forma revenue growth rate was 5.7% for the full year. Adjusted EBITDA was $177.0 million for 2024 and $155.6 million for 2023.
Management is evaluating strategic alternatives for Marketing Technology Solutions and expects a probable sale within the next 12 months. The company expects to reflect that business as discontinued operations beginning with the first quarter of 2025. For full fiscal year 2025, management expects product development expenses to increase in absolute dollars and as a percentage of revenue. General and administrative expenses are also expected to increase in absolute dollars. Those investments, along with incremental spending on transformation and Sarbanes-Oxley compliance, may pressure short-term profitability.
Management also highlighted margin progress. Cost of revenues fell to 32.7% of revenue for 2024 from 34.2% in 2023. The combined cost of revenue, sales and marketing, product development, and general and administrative costs fell to 81.6% of revenue from 83.3%. That improvement came even as product development and general and administrative expenses rose in absolute dollars. Adjusted gross profit was $470.4 million for 2024 and $444.4 million for 2023. Revenue growth came from business management software and billing and payment solutions, while marketing technology solutions faced softer demand. The company continues to pursue cross-selling of payments and other adjacent solutions to support margins.
The quarter and the year carried clear risks. The macroeconomic climate remains pressured by geopolitical conflicts, tariffs, inflation, interest rate volatility, and supply chain disruptions. Retention declined across the total business and the core software and payments business. The marketing technology reporting unit required a goodwill impairment during the fourth quarter after lower than expected financial performance and future forecasted growth rates. Management also noted that its pace of acquisitions has slowed, while it continues to evaluate dispositions of non-core assets. The fourth-quarter operating loss shows that the transformation still has ground to cover.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $175.0M | $176.3M | -0.7% | $169.4M | +3.3% |
| Research & development | $19.2M | $20.1M | -4.4% | $19.3M | -0.3% |
| Sales & marketing | $31.2M | $30.6M | +2.1% | $31.9M | -2.2% |
| General & administrative | $35.6M | $34.3M | +3.8% | $30.7M | +16.2% |
| Total operating expenses | $186.9M | $166.3M | +12.4% | $169.8M | +10.1% |
| Operating income (loss) | -$11.9M | $9.9M | -220.3% | -$361.0K | -3205.8% |
| Operating margin | -6.8% | 5.6% | -12.4 pp | -0.2% | -6.6 pp |
| Net income (loss) | -$12.2M | -$9.2M | -33.6% | -$23.3M | +47.6% |
| Net margin | -7.0% | -5.2% | -1.8 pp | -13.8% | +6.8 pp |
| Diluted EPS | -$0.07 | -$0.05 | -$0.02 | -$0.12 | +$0.05 |
| Customers | 740,000 | 708,000 | +4.5% | 708,000 | +4.5% |
Risks
Annualized net revenue retention rate was approximately 91% for the quarter ended December 31, 2024, down from approximately 93% for the quarter ended December 31, 2023; excluding marketing technology solutions, core software and payments retention was approximately 96%, down from approximately 98%. The MD&A ties growth and margin improvement to retaining and cross-selling to existing SMB customers.
During fourth quarter 2024 the company recognized an approximately $28.1 million goodwill impairment for its marketing technology reporting unit due to lower than expected financial performance and future forecasted growth rates. It also recognized $6.4 million of goodwill impairment and $4.9 million of losses related to the sale of Fitness Solutions during the year ended December 31, 2024.
Current quarter operating income was -$11.93 million, down from -$0.36 million in the prior-year quarter, and the loss widened. Current year-to-date operating income was $0.25 million, down 89.6% from $2.43 million, while current quarter operating margin was -6.8%, down from -0.2%, and current year-to-date operating margin was 0.0%, down from 0.4%.
Payment-related transactions comprised approximately 17% of revenue in 2024. The company depends on card networks such as Visa and MasterCard and processors such as Worldpay and PayPal; failure to comply with network or processor requirements could result in suspension or termination of registrations and agreements, and being precluded from processing Visa and MasterCard transactions could lose substantially all revenue.
In March 2025 the company announced evaluation of strategic alternatives for Marketing Technology Solutions with an expectation of a probable disposition by sale within the next 12 months and expects to reflect it as discontinued operations starting in first quarter 2025. Marketing technology solutions revenue decreased 2.9% for the year ended December 31, 2024.
The MD&A states the macroeconomic climate may continue to pressure results from international geopolitical conflicts, increased and proposed tariffs between the United States and other nations, rising inflation, fluctuations in the US Dollar, rising interest rates and supply chain disruptions, which may adversely affect revenue, demand and costs.
The company is developing and implementing AI Technologies throughout its business and making significant investments, but warns of risks from incorrectly designed models, poor quality or insufficiently licensed data, lack of oversight, and reliance on third-party AI that may become incompatible, unavailable or more expensive.
The company faces intense competition in fragmented markets from manual processes, homegrown solutions, vertically specialized platforms and horizontal competitors including Salesforce, Intuit, Square and HubSpot, with low barriers to entry and competitors that may have greater resources.
A putative class action filed January 31, 2024 in Delaware Chancery Court challenges the Sponsor Stockholders' CEO Approval Right under Section 141(a) of the DGCL. Motions to dismiss remain pending, and the outcome is difficult to assess or quantify and could result in substantial costs and management distraction.
The company operates in Canada, the UK, Australia, Jordan and New Zealand and uses independent contractors in India, Russia, Ukraine and Jordan for software development. It warns that sanctions, ongoing conflict in Ukraine and Israel, and political tensions could disrupt or delay third-party software development and render resources unavailable.
As of December 31, 2024 the company had $532.1 million outstanding under its Term Loan, $190.0 million of available borrowing capacity under its Revolver and an effective interest rate on the Term Loan of approximately 8.6% for the year ended December 31, 2024. The Credit Facilities contain restrictive covenants and future financing may not be available on favorable terms.
SaaS KPIs
All quarters →Total Customers
Pro Forma Revenue Growth Rate
Annualized Net Revenue Retention Rate
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q4 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 1, 2026.