EverCommerce : Third Quarter 2023 Earnings Conference Call Presentation

Earnings Call Presentation

Q3 2023 - November 6, 2023

SAFE HARBOR

This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this presentation include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, equity compensation, business strategy, plans, market growth, future acquisitions, stock repurchases, and other capital expenditures and our objectives for future operations.

The forward-looking statements in this presentation are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022. The forward-looking statements in this presentation are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this presentation with the understanding that our actual future results, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this presentation. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of any new information, future events or otherwise.

This presentation also contains estimates and other statistical data prepared by independent parties and by the Company relating to market size and growth and other data about the Company's industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither the Company nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk. In light of the foregoing, you are urged not to rely on any forward-looking statement or third-party data in reaching any conclusion or making any investment decision about any securities of the Company.

This presentation includes certain financial measures that are not presented in accordance with generally accepted accounting principles in the United States, ("GAAP"), such as adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, adjusted gross margin, adjusted sales & marketing expense, adjusted product development expense, adjusted general & administrative expense, levered free cash flow, adjusted unlevered free cash flow, credit facility leverage and debt, net of cash and cash equivalents, to supplement financial information presented in accordance with GAAP. There are limitations to the use of non-GAAP financial measures and such non-GAAP financial measures should not be construed as alternatives to financial measures determined in accordance with GAAP. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. The Company's presentation of such measures, which may include adjustments to exclude unusual or non- recurring items, should not be construed as an inference that the Company's future results will be unaffected by other unusual or non-recurring items. A reconciliation is provided elsewhere in this presentation for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.

The Company cannot provide a reconciliation between forecasted Adjusted EBITDA and Adjusted EBITDA margin to net income and net income margin, respectively, the most directly comparable GAAP measures, without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to certain charges excluded from these non-GAAP measures; in particular, the measures and efforts of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. It is important to note that these charges could be material to EverCommerce's results computed in accordance with GAAP.

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Eric Remer

Chairman and Chief Executive Officer

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Q3 2023 Highlights

Consistent Revenue growth while adjusted EBITDA beat the top end of the guidance range

Balanced growth and profitability with 11% reported YoY Revenue growth and 24% adjusted EBITDA margin

Payments Revenue grew 28% YoY, aided by 11% growth in Total Payments Volume (TPV)

Board authorized a $50M upsize and 12-month extension of the company's share repurchase program

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685,000+ Global Customers	$668M	12%
LTM REVENUE
2,200+ Global Employees		LTM YoY
		REVENUE
		GROWTH

22%

LTM ADJ. EBITDA

MARGIN

$11.7B

EST. ANNUALIZED

TPV

Simplifying and empowering the lives of business owners whose services support us every day

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Strategic Initiatives are Accelerating Cross-Sell

Customers Enabled / Utilizing

More Than One Solution (000s)1

+28%

173

136

			82
	70

3Q22	3Q23
		Utilizing	Enabled

1Amounts are estimated as of the end of the most recent quarter

82k customers currently utilize more than one solution

173k total customers enabled and utilizing more than one solution, representing 28% YoY growth

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28% YoY Growth in Payments Revenue

Total Payments Volume (TPV, $B)

+11%

$11.7

$10.5

11% YoY TPV growth and increased take rate drove growth in Payment Revenue

Embedded payments are a key lever to drive customer expansion

3Q22

3Q23

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Kickserv Acquisition

Strategic Field Service Management (FSM) acquisition that complements our existing EverPro portfolio

KICKSERV ATTRIBUTES

• System of action software for field service providers
• Serves over 1,000 paying customers
• Target customer: single-location businesses with 1-9 employees

RATIONALE

• Payments attach upside
• Fills a customer journey gap between Joist and Invoice Simple
• Revenue acceleration opportunity leverage EVCM go- to-market engine.

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Marc Thompson

Chief Financial Officer

Growth Led by Core SaaS and Payments

Reported Revenue ($M)3

$174.7

$170.1

$161.8	$161.1

$158.1

3Q22	4Q22	1Q23	2Q23	3Q23
		Recurring + Re-occuring	Other

10.5% reported 3Q23 YoY Revenue growth; 10.3% Pro Forma 3Q23 YoY Revenue growth1,2

10.5% Reported YoY growth in Subscription and Transaction Revenue

1See Appendix for definition of Pro Forma Revenue Growth Rate.

2Growth rate calculations include estimates for pre-acquisition GAAP Revenue

3Recurring+Re-occurring vs. Other breakout presented pro-forma for the DrChrono reclassification disclosed in 3Q22

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