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DENVER - EverCommerce Inc. (NASDAQ: EVCM), a provider of SaaS solutions for service-based small businesses (SMBs), is considering the sale of its Marketing Technology solutions. The company, currently trading at significant discount to its InvestingPro Fair Value, announced on Tuesday that it has begun evaluating strategic alternatives to enhance focus on its core vertical SaaS software with embedded payments, aiming to boost growth and shareholder value. With a market capitalization of $1.66 billion and a strong current ratio of 1.81, the company’s liquid assets comfortably exceed its short-term obligations.
The decision to potentially divest the Marketing Technology segment emerged during the company’s ongoing transformation and optimization efforts. Eric Remer, Chairman and CEO of EverCommerce, highlighted the value of the Marketing Technology solutions to customers but emphasized the company’s strategic shift towards its primary SaaS offerings. Despite recent stock performance showing a 17.7% decline year-to-date, analysts maintain a positive outlook, with price targets ranging from $11 to $15 per share.
Tim Gill, Head of the Marketing Technology business, acknowledged the industry’s respect for the company’s lead generation and digital agency capabilities. He expressed confidence in the continued delivery of exceptional service to SMBs, including current EverCommerce customers.
The sale process, initiated in late 2024, is expected to conclude sometime in 2025. Consequently, the company’s financial guidance for the fourth quarter of 2024, scheduled to be released on March 13, will not include the Marketing Technology segment.
EverCommerce has engaged external financial advisors to assist with the strategic review process. The company has stated it will not provide further public comments on the matter until the review is complete or a disclosure is deemed necessary.
This announcement comes as EverCommerce continues to serve over 690,000 global service-based businesses through its EverPro, EverHealth, and EverWell brands, offering comprehensive business management software, payment solutions, and customer experience applications.
Investors and industry observers are advised that the review of strategic alternatives does not guarantee a sale or any specific outcome. The company cautions that the process may not result in any transaction and that the forward-looking statements involved carry risks and uncertainties.
The information in this article is based on a press release statement from EverCommerce.
In other recent news, EverCommerce Inc. announced its financial results for the third quarter of 2024, reporting a revenue of $176.3 million, which represents a 0.9% increase compared to the previous year. The company also noted an expansion in its adjusted EBITDA margin by 140 basis points, reaching a 25.3% margin. Payments revenue increased by 6.7% year-over-year, with total payment volume rising 8.4% to $12.4 billion. For the upcoming fourth quarter, EverCommerce has set a revenue guidance range between $168 million and $172 million, with an expected adjusted EBITDA between $43 million and $46 million.
In terms of company leadership, EverCommerce appointed Tanner Austin as a new Class III director following the resignation of John Marquis from the Board of Directors. This transition is in accordance with a 2021 Stockholders Agreement with Providence Strategic Growth II L.P. Austin has opted out of the company’s Non-Employee Director Compensation Program.
These developments come as EverCommerce continues its strategic initiatives aimed at optimizing growth and profitability. The company also highlighted its focus on expanding its payments wallet share and improving customer acquisition. Analyst firms have not recently issued any upgrades or downgrades for EverCommerce.
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