EverCommerce Inc. has recently released its 10-K report, providing a comprehensive look at the company's financial condition and performance. EverCommerce is a leading provider of integrated software-as-a-service solutions for service-based small and medium-sized businesses in the United States and internationally. The company serves over 740,000 customers across three core verticals: EverPro for Home Services, EverHealth for Health Services, and EverWell for Wellness Services. EverCommerce's platform offers vertically-tailored SaaS solutions that address the specialized demands of service SMBs and provide fully-integrated offerings, aiming to improve customer experiences and streamline operations.
The company's revenue streams include Subscription and Transaction Fees, Marketing Technology Solutions, and Other revenue. Approximately 97% of EverCommerce's revenue is recurring or re-occurring, with an annualized net revenue retention rate of approximately 91% and 93% for the quarters ended December 31, 2024 and 2023, respectively. Excluding marketing technology solutions, the annualized net revenue retention rate for core software and payments solutions was approximately 96% and 98% for the same periods. The company's ability to cross-sell additional products and services to existing customers has contributed to a high net pro forma revenue retention rate.
In response to the macroeconomic climate, EverCommerce has taken actions to mitigate the impact of economic challenges. However, the company acknowledges that global developments such as international geopolitical conflicts, pandemics, inflation, and supply chain disruptions may continue to affect its revenues and demand for products and services.
In a strategic move, EverCommerce sold its fitness solutions, comprising North American Fitness and UK Fitness, to Jonas Software. The sale resulted in recognized losses of $4.9 million and $6.4 million of goodwill impairment charges during the year ended December 31, 2024. The company's performance and future success are believed to depend on various factors, including market demand for its solutions, customer retention, and the ability to innovate and adapt to changing economic conditions.
As a result of these announcements, the company's shares have moved 3.0% on the market, and are now trading at a price of $9.22. For more information, read the company's full 10-K submission here.
