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EverCommerce (EVCM)
NASDAQ:EVCM
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EverCommerce
(NASDAQ:EVCM)
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Rating:69Neutral
Price Target:
$13.00
▲(9.80% Upside)
EverCommerce's overall stock score reflects a mix of strengths and challenges. The most significant positive factor is the company's strong cash flow and operational efficiency, as highlighted in the earnings call. Technical indicators also suggest a bullish trend. However, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation score. The cautious revenue guidance and flat gross margins from the earnings call further temper the outlook.
Positive Factors
Cash Flow Generation
EverCommerce's ability to generate positive cash flow despite profitability challenges indicates strong operational efficiency and provides a financial cushion for future investments and debt management.
Customer Utilization Growth
The significant increase in customers using multiple solutions demonstrates strong product integration and customer retention, which can drive long-term revenue growth and market penetration.
AI Integration
The integration of AI features enhances product offerings, potentially increasing customer satisfaction and operational efficiency, positioning EverCommerce as a leader in innovative SaaS solutions.
Negative Factors
Declining Revenue Growth
A declining revenue growth rate suggests challenges in market expansion or product adoption, which could impact long-term financial performance and strategic positioning in the industry.
Negative Return on Equity
Negative ROE indicates that the company is not effectively generating returns on shareholder investments, which may deter potential investors and impact future capital raising efforts.
Conservative Revenue Guidance
Conservative revenue guidance suggests management's cautious outlook on future growth, potentially due to market uncertainties or internal challenges, impacting investor confidence and strategic planning.
EverCommerce (EVCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.15B
Dividend YieldN/A
Average Volume (3M)261.88K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-7.25%
EPS Growth51.12%
CountryUS
Employees2,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.04
Shares Outstanding181,278,750
10 Day Avg. Volume232,712
30 Day Avg. Volume261,879
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue3.62
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda22.29
Forecast
1Y Price Target
$12.25Price Target Upside3.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EverCommerce Business Overview & Revenue Model
Company DescriptionEverCommerce Inc., together with its subsidiaries, engages in providing integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company's solutions include business management software, including route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions that comprise e-invoicing, mobile payments, and integrated payment processing; customer engagement applications, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, including implementation, configuration, installation, or training services. It serves home service professionals, such as home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. The company was incorporated in 2016 and is headquartered in Denver, Colorado.
How the Company Makes MoneyEverCommerce generates revenue through a subscription-based model for its suite of SaaS solutions, which includes business management, customer engagement, and payment processing tools. The company's key revenue streams are subscription fees for its software offerings and transaction fees from its payment processing services. Additionally, EverCommerce benefits from strategic partnerships and integrations with industry-leading platforms that enhance its service offerings and expand its market reach. The company's focus on delivering industry-specific solutions helps it to maintain strong customer retention and attract new clients within its target sectors.
EverCommerce Key Performance Indicators (KPIs)
EverCommerce Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call reflected positive momentum with revenue and EBITDA growth exceeding expectations and strong customer utilization and payment revenue growth. Notable achievements include improved financial flexibility and significant AI integration. However, conservative revenue guidance and flat gross margins indicate caution for future quarters.Q2-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Second quarter revenue increased 5.3% year-over-year, exceeding guidance. Adjusted EBITDA was $45 million, with a 30.4% margin, expanding more than 230 basis points year-over-year.
Increased Customer Utilization
261,000 customers were enabled for more than one solution, reflecting 32% year-over-year growth. 112,000 customers utilized more than one solution, showing 29% year-over-year growth.
Payment Revenue Growth
Payments revenue grew 6.8% year-over-year and accounted for approximately 21% of overall revenue, significantly contributing to EBITDA margin expansion.
Improved Financial Flexibility
Repriced and extended credit facility resulting in approximately $1.3 million in annual interest savings.
Strong AI Integration
AI-powered features launched across several product lines, leading to improved customer engagement and efficiency. AI agents resolved 25% to 50% of support tickets in the chat channel.
Negative Updates
Conservative Revenue Guidance
Despite exceeding revenue guidance for two consecutive quarters, the full-year revenue guidance was not raised, indicating potential caution about future performance.
Flat Adjusted Gross Margin
Adjusted gross margin was relatively flat at 77.4% compared to 77.5% in Q2 2024.
Legacy Product Performance
Lower growth in legacy payment products was noted, offsetting higher TPV growth in top solutions.
Company Guidance
In EverCommerce's second quarter 2025 earnings call, the company reported strong financial results, exceeding guidance with a 5.3% year-over-year revenue increase, or 7.4% on a pro forma basis. Adjusted EBITDA reached $45 million, representing a 30.4% margin, and a year-over-year margin expansion of over 230 basis points. Payments revenue, excluding the fitness solutions, grew by 6.8% year-over-year and made up approximately 21% of overall revenue, contributing significantly to the adjusted EBITDA margin expansion. The annualized total payment volume expanded to approximately $12.9 billion, reflecting nearly 7% year-over-year growth. The company also highlighted a 32% year-over-year growth rate in customers enabled for more than one solution, with 29% of customers actively utilizing multiple solutions. Looking forward, EverCommerce expects third-quarter revenue between $146.5 million to $149.5 million and adjusted EBITDA of $41 million to $43 million. For the full year 2025, they anticipate revenue between $581 million to $601 million and increased adjusted EBITDA guidance of $171 million to $177 million.EverCommerce Financial Statement Overview
Summary
EverCommerce demonstrates strengths in cost management and cash flow generation, with a strong gross profit margin and positive cash flow metrics. However, the company faces challenges with declining revenue growth and persistent net losses, impacting its profitability. The balance sheet is stable with low leverage, but the negative return on equity indicates room for improvement in generating shareholder value.Income Statement
EverCommerce's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 4.38%, which is concerning. However, the company has managed to maintain a strong gross profit margin of 72.75% in the TTM, which is a positive indicator of its ability to control costs. The net profit margin remains negative, indicating ongoing profitability challenges. The EBIT and EBITDA margins have improved over the years, suggesting better operational efficiency, but the negative net income remains a concern.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.74 in the TTM, indicating prudent leverage management. The equity ratio is healthy, suggesting a strong capital structure. However, the return on equity is negative, highlighting profitability issues. The company's ability to manage debt effectively is a positive sign, but the negative ROE indicates that shareholder returns are not being maximized.70
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with a 6.04% growth in free cash flow in the TTM. The operating cash flow to net income ratio is strong at 1.13, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also positive, suggesting that the company is generating sufficient cash to cover its net losses. Overall, the cash flow position is robust, providing a cushion against profitability challenges.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 641.55M | 698.76M | 675.37M | 620.75M | 490.14M | 337.52M |
| Gross Profit | 450.14M | 470.39M | 444.36M | 403.37M | 327.91M | 222.50M |
| EBITDA | 104.27M | 89.08M | 106.63M | 80.21M | 45.53M | 54.80M |
| Net Income | -20.95M | -41.09M | -45.62M | -59.82M | -81.97M | -59.95M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.42B | 1.52B | 1.59B | 1.66B | 1.33B |
| Cash, Cash Equivalents and Short-Term Investments | 151.06M | 135.78M | 92.61M | 92.63M | 93.99M | 96.03M |
| Total Debt | 540.91M | 527.94M | 532.20M | 536.45M | 546.13M | 698.33M |
| Total Liabilities | 675.03M | 670.44M | 692.03M | 685.03M | 677.73M | 808.43M |
| Stockholders Equity | 743.98M | 750.83M | 826.04M | 906.69M | 985.65M | 519.16M |
Cash Flow | ||||||
| Free Cash Flow | 131.47M | 94.26M | 81.53M | 46.72M | 22.69M | 44.46M |
| Operating Cash Flow | 133.61M | 113.16M | 104.61M | 64.80M | 37.48M | 57.54M |
| Investing Cash Flow | -17.52M | -12.30M | -38.02M | -18.08M | -379.67M | -418.31M |
| Financing Cash Flow | -55.00M | -59.61M | -66.63M | -47.31M | 341.18M | 401.85M |
EverCommerce Technical Analysis
Positive
11.84
Price Trends
11.17
Positive
10.69
Positive
10.58
Positive
Market Momentum
0.24
Negative
57.05
Neutral
75.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVCM, the sentiment is Positive. The current price of 11.84 is above the 20-day moving average (MA) of 11.58, above the 50-day MA of 11.17, and above the 200-day MA of 10.58, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 57.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVCM.
EverCommerce Risk Analysis
EverCommerce disclosed 59 risk factors in its most recent earnings report. EverCommerce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EverCommerce Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 1.90B | 22.92 | 28.19% | 1.91% | 3.31% | 31.16% | |
73 Outperform | 1.62B | 53.72 | 0.50% | 4.00% | 22.46% | 0.00% | |
69 Neutral | $2.15B | ― | -1.92% | ― | -7.25% | 51.12% | |
69 Neutral | 2.05B | 293.36 | 1.23% | ― | 14.21% | 0.00% | |
66 Neutral | 2.08B | 19.43 | 62.50% | ― | -6.74% | 80.49% | |
63 Neutral | 2.55B | -44.35 | -7.67% | ― | 17.47% | -544.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
EVCM
EverCommerce
11.84
1.17
10.97%
TDC
Teradata
22.00
-7.32
-24.97%
EVTC
Evertec
33.67
0.30
0.90%
FIVN
Five9
26.49
-1.10
-3.99%
APPN
Appian
32.67
-0.31
-0.94%
AVDX
AvidXchange Holdings
9.94
1.69
20.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.