EverCommerce at Canaccord Genuity: Strategic Growth & AI Integration

On Wednesday, 13 August 2025, EverCommerce (NASDAQ:EVCM) presented at Canaccord Genuity’s 45th Annual Growth Conference, highlighting its robust financial performance and strategic initiatives. The company showed positive momentum with revenue growth and a focus on embedded payments, while also addressing challenges in transforming its business model.

Key Takeaways

• EverCommerce exceeded revenue and adjusted EBITDA guidance for Q2.
• The company is divesting its marketing technology business to focus on SaaS solutions.
• AI integration is improving customer experience and operational efficiency.
• EverCommerce is expanding its stock buyback program to $250 million.
• The company aims to expand payment penetration and increase EBITDA margins.

Financial Results

• Q2 revenue surpassed expectations, growing 7.4% year-over-year.
• Adjusted EBITDA margins reached 30%.
• Revenue guidance for the full year increased by $2.5 million.
• The company generates over $100 million in annual cash flow, with $150 million cash on hand.
• Net Revenue Retention stands at 97%, with top solutions experiencing double-digit growth.
• Payments revenue stream contributes 95% to EBITDA margins.

Operational Updates

• Focus on embedded payment space, with 261,000 customers payment enabled, 112,000 actively using payments.
• Divestiture of marketing technology business to emphasize SaaS with embedded capabilities.
• Decentralized structure with divisional CEOs for EverPro and EverHealth.
• AI agents deployed, diverting 25-50% of calls and saving over $200,000 in costs.
• Integration with Stripe Pay Connect for automating payment onboarding.
• Stock buyback program expanded from $200 million to $250 million, with $50 million remaining.

Future Outlook

• Continued brand consolidation within EverHealth and EverPro.
• Aim to increase payment penetration from below 10% of Total Payment Volume.
• Focus on organic investments and selective M&A to advance technology.
• Target higher EBITDA margins through revenue growth and increased payment adoption.
• Leverage AI for enhanced customer experience and back-office efficiency.

In conclusion, EverCommerce is strategically positioning itself for growth by focusing on core SaaS capabilities and operational efficiencies. Readers can refer to the full transcript for more detailed insights.

Full transcript - Canaccord Genuity’s 45th Annual Growth Conference:

Unidentified speaker: So we appreciate it. So we appreciate it. Thrilled to have EverCommerce here. We have CFO Ryan Sourick. We’re gonna do this as a fireside chat, if there are questions from the room, you know, please feel free to interject and, you know, we can work them into the conversation.

But Ryan, maybe just to kick things off for people who may not know the EverCommerce story. Talk a little bit about the problems you solve, kind of the customers you work with, and, you know, the growth strategy for the business.

Ryan Sourick, CFO, EverCommerce: Yep. Appreciate it. And thanks for having us here today. Yeah. We’re in the software space primarily looking at simplifying and empowering the lives of business owners that provide services that you see every day.

We’re in the home and field services space. We’re in the health care space. And we have over 725,000 customers. And we’re trying to provide end to end software solutions that have embedded capabilities that will allow people to focus more on their customers and serving their customers rather than spending all of their time in kind of back office activities. So high efficiency and a focus on cross sell and up sell opportunities across the ecosystem.

Where we have three primary verticals. We call them EverPro, EverHealth and EverWell with EverPro and EverHealth comprising mostly like 95% of our revenue with EverWell about 5%. And across that ecosystem, like I said, over seven and twenty five thousand customers with a range of different, call it software solutions, some of which are product led and some of which are sales led. And we have great opportunities in target markets that we’re enjoying right now and pretty excited about what the future looks like.

Unidentified speaker: Yes. Yes. I mean, you said a couple of times, but deserves emphasis. I mean, 725,000 customers is a massive base to work back into. So you guys just reported Q2 results.

Steady execution again. I think you guys are I think I’ve written it’s a sleep at night stock because the numbers don’t tend to move a whole lot, which is a good thing. Very, very consistent. What stood out to you coming out of q two? What’s working and kind of what still needs some work?

Ryan Sourick, CFO, EverCommerce: Yeah. We’re excited coming out of the first half of the year. For the first quarter and for the second quarter, we exceeded guidance from a revenue perspective, exceeded guidance from adjusted EBITDA perspective. We like the growth rates that we saw. We had 7.4% growth from a revenue perspective on a year over year basis.

Adjusted EBITDA margins were 30%. So we’re pushing on rule of 40 from a total company perspective. Back half of the year, our revenue guidance we kept flat for the full year. And we did actually increase the midpoint of guidance by about 2,500,000.0 for the full year. Yeah, I mean we feel really good about where we’re executing right now.

Where we’re focused on our execution is really in the embedded payment space from a cross sell perspective. And I think if you go back and take a look at what we disclosed from an earnings point of view, we focus a lot on payments and the up sell cross sell capabilities there. Although that’s not the only kind of additional product that we can sell. But if you look at the embedded base, we have about 261,000 customers that we identified as payment enabled. That’s about 36% of the total customer base.

And of that about 112,000 that have actually attached and utilizing. And that’s a leading indicator for us in terms of our ability to actually convert those folks into not only lead from a software perspective, but once we lead, actually close them on the payment capability because that enhances the overall margin profile from a company perspective. In addition, like we feel really good about where we stood from an overall liquidity perspective. We’re generating over 100,000,000 in cash flow annually across the base of the entire portfolio. And we continue to optimize the business overall.

We did an amended extend on our term loan B, took that out an additional three years to give us more runway. We have $150,000,000 of cash on hand and ultimately we’ll have $125,000,000 revolving credit facility. So we feel good from a liquidity point of view overall. And from a capital allocation perspective, we’re investing in the business from that free cash flow point of view in the strategic areas of growth like payments, like other product sales, but also using our stock buyback program as well.

Unidentified speaker: Maybe we could zoom out and talk about kind of the core markets that you’re serving, and we’ll focus on the two biggest ones, which are EverPro and EverHealth. Just what are the characteristics of those businesses? What makes them a good target for EverCommerce? And what’s the health of those markets today?

Ryan Sourick, CFO, EverCommerce: Well, I would say first, the size of the market from a TAM point of view, we focus predominantly on North America. But for home and field services, we see that as over a $69,000,000,000 market. For healthcare, we see that as over a $100,000,000,000 market. And so we have a lot of opportunity from penetration perspective. In the ever pro space for home and field services, think of that as kind of the very small to medium sized businesses for plumbers and electricians, field services, landscapers, things of that nature.

And we have a suite of solutions that we can offer to anyone from a one employee business to things like 10 employee business or a company that’s got five to 10 trucks that wants to do field services and have an integrated motion from a software and solution perspective. And then flipping over to Ever Health, think of that as the physician practice management organizations, EMR, PM type software solutions that allows them to run their businesses more efficiently. Our objective is to whether it’s home services or from the healthcare perspective, enable those businesses to free up time to serve their customers in a much more efficient manner than we otherwise could. And so we’re in the process both with Ever Health and with Ever Pro of going through kind of branding consolidation, consolidation from a stack perspective to basically offer these suites of solutions on a fully integrated basis that also enable payment capabilities and additional up sell and cross sell capabilities as well.

Unidentified speaker: There’s been a lot of changes to the business over the last twelve months or so, I’d say, whether it’s investments, organic investments into the business or some structural changes, the divestiture of the marketing business. Maybe you could talk a little bit about the rationale there. I know that process is still ongoing, but kind of why you exited that business and what the ongoing focus will be?

Ryan Sourick, CFO, EverCommerce: Yeah. So back in March, we disclosed that we were going to go through a process to sell the marketing technology business. It’s a good business. It’s just it doesn’t really fit what we’re looking for in terms of being a pure SaaS with embedded capability play, lower EBITDA margins and some more seasonality from a volatility perspective. So when you strip that out and you look at like what we look like from a continuing operations perspective, it’s a much more stable base in terms of what you would expect in terms of revenue growth on a year on year basis as well as our ability to continue to enhance our EBITDA contribution going forward.

So we are in process on that. We announced that back in March. We haven’t disclosed any further updates on that other than the fact that we still expect that we will have a transaction within twelve months from the announcement date. And that’s still our intention.

Unidentified speaker: Okay. Let’s talk about some of the go to market investments you’ve been making and kind of what’s driving those initiatives, what you’re seeing, and kind of what the business will look like after those changes have been executed.

Ryan Sourick, CFO, EverCommerce: From a go to market perspective, our playbook, we want to lead with SaaS. And we will lead with the software capabilities, but essentially have automated flows that enable us to connect from, with customers on a payment basis, you know immediately thereafter. And not lose any leads. We have a front book, we have a back book, but prospectively we want to make sure that we have automated processes in place that allow us to attach those capabilities from a payments perspective. And the reason that’s important is because the margin profile and the retention profile on customers that have more than one product is pretty significantly different.

I talked about the fact that we had 7.4% growth on a year over year basis from a revenue perspective. But if you look at our top five solutions of where we’re actually spending the majority of our time and our investment dollars. From a revenue perspective in total within software and within payments itself, those are double digit growers. And so we find that to be something that is important for us to continue to focus in on. And if you look at like net retention, we’ve disclosed 97% NRR, which is fine and we want to continue to move that in the right direction above 100%.

But under the hood on that, if you look at the top five solutions and if you look at customers that actually take more than one product offering, the NRR on that is in excess of 100%. So that tells us that like that continued strategy from an investment perspective really makes a lot of sense. And then you think about it in the context of what those additional product offerings can be in terms of additional add on products like payments, like Everpro Edge, which is essentially a way for customers to get a rebate or education on how to grow their business, those are very high EBITDA contribution products for That all flows down and allows us to continue to grow and have the expansion that I think that we said we would have from an IPO perspective and we’ve actually seen so far when we went out from an IPO point of view in 2021, our EBITDA margins were in the low 20s. We’ve grown that to 30%. We still think that there is runway to continue to to have momentum there.

Unidentified speaker: Yeah. You guys appointed divisional CEOs, right, a leader of EverPro, a leader of EverHealth. I’m just curious, like, any changes you’ve seen either from a execution or accountability standpoint, like how important has that been?

Ryan Sourick, CFO, EverCommerce: It’s hugely important. So we kicked off a transformation and optimization program probably eighteen months ago. As part of that transformation optimization, we knew we were going to go from a centralized organizational view to a much more decentralized view. And the intent of which was to get much closer to the customers in order to execute on the strategy of like growing the base from a software perspective and penetrating into the cross sell opportunity. We’re real pleased with what we’ve been able to accomplish in that short period of time.

We’ve hired great leaders in Josh McCarter as the CEO of EverPro, who has a ton of experience from a software and payments perspective as a founder of a business as well as being a CEO of a public company for Mindbody, and a board member at Compass. And then Evan Berlin is the CEO of Ever Health. But Evan’s got legacy history with the company. He was formerly the chief operating officer of a company. Lot of really good history, not just on the company in total, but very specifically for a number of the solutions that were acquired from an Ever Health perspective.

So he’s running that business. Each of those individuals has spent the last call it six and twelve months building out their teams. And we have fully functional teams now that are equipped with chief technology officers, a CRO, chief marketing officers, folks that are really going to be focused in on those areas of the business in order to execute our future strategy.

Unidentified speaker: Yes. I want to dig in on payments a little bit. Sure. I mean we’ve talked several times already around how important that is from a margin contribution standpoint as you execute against that cross sell opportunity. Just talk a little bit about kind of the process of enablement and then driving utilization and some of the initiatives that you have underway to further enable the customer base.

Ryan Sourick, CFO, EverCommerce: Yes. I mean, there’s a obviously top of funnel perspective going down ultimately to activating customers. It starts with payment enablement. This is why we give the stats that we do from an earnings perspective in terms of how many customers that we’ve enabled or grew from an enablement perspective and then how many are actually utilizing. And as I said before, had like 261,000 customers that were payment enabled.

That was like a 32% year over year growth rate overall. So you can clearly tell that we are focused in this area. That represented roughly 36% of our overall customer base. And of that two sixty one, we have 112,000 that are active customers. We also then need to focus in on expanding wallet share as well.

And we’re expanding wallet share in a number of key initiatives that we have by opening up that funnel to things like ACH and tap to pay and other methods of payment opportunity. And then we just have volume monetization, which is the kind of our active management from a take rate point of view. I would say that the areas of focus in terms of investment from a payments perspective is making this a seamless opportunity for customers as they’re onboarding. We have a lot of focus on automating the experience, making sure that there’s not a swivel chair experience for customers. And we’ve made some really good strides in that capability.

I’ll give you one example that I think is worth noting, but is from the service fusion perspective, we’ve enabled Stripe Pay Connect and it now with API feeds allows our customers to basically onboard from a SaaS perspective with an additional couple of pieces of information. We have API feeds that will go out to Stripe and then within seconds we can get authorization. And it’s seamless from customer perspective. Whereas in other situations, you would have to go out to other portals, Stripe, PayPal, whatever it might be. And it just makes it a much simpler experience.

Those are the automation opportunities that we see kind of continuing to accelerate the growth from a payments point of view in the future.

Unidentified speaker: Yeah. Yeah. I mean that seamless ease of use, given the profile of the customer that you’re working with, critically important, right, and just being able to have that kind of one click setup. What do you think the ceiling is on payments penetration over time? I mean, you have this massive customer base.

I think you said 110,000 of over 700. Where could that go over time?

Ryan Sourick, CFO, EverCommerce: Well, I mean, we’re sub 10% penetrated from a TPV perspective right now. When you start to think about just the initiatives that we’re taking to enhance the capability from a payments perspective as well as just expanding on the wallet share point of view. We haven’t come up with kind of like what we think the cap could be, but we’re well under penetrated in terms of what we think the capabilities are in that space. So that’s why we’re so focused there. And in addition to kind of the contribution from an EBITDA margin perspective.

So I would say that being sub 10% penetrated right now, if we can even double that, that would just be phenomenal from a growth rate perspective.

Unidentified speaker: And we’ve talked about the profitability of the business, but maybe just a double click there, like

Ryan Sourick, CFO, EverCommerce: how profitable is the payments revenue stream? Payments, we give guidance from an average perspective, but like we account for that on a net basis. It’s got 95% EBITDA contribution margins. And so it’s one of the most profitable spaces that we can deploy our time and Now we will lead with the software that we have to and that’s kind of our strategy, lead with software. But quickly look at other products that can be enabled to enhance the overall margins.

And which is why you’re seeing the margin expansion that we have, as well as the other work that we’re doing from a transformation and optimization point of view, because we are using the optimization opportunities here from a kind of cost perspective in order to fund the investment growth. Because we are very cost conscious and we want to make sure that while we are making investments, we’re doing it in a way that from a capital perspective continues to allow us to generate a very solid free cash flow.

Unidentified speaker: Yeah. Yeah. As you said, the business has been nicely profitable for a long time, you know, dollars 100,000,000 in cash flow ish a year.

Ryan Sourick, CFO, EverCommerce: Yep.

Unidentified speaker: Balance sheet’s in a good spot. Now we talked about that. How do you think about capital allocation? I mean, the business has been historically active with M and A.

Ryan Sourick, CFO, EverCommerce: Right.

Unidentified speaker: You have these organic investment initiatives. You’re buying back stock. How do you balance it all?

Ryan Sourick, CFO, EverCommerce: Well, we’re definitely going to continue to be looking at M and A opportunities, probably just not at the pace that we had previously. Think you know this, but for the broader audience, I mean 55 acquisitions roughly in maybe a two and a half year period. That was quite a clip. It allowed us to put the portfolio together to form what is now EverPro, EverHealth and EverWell. But the acquisitions that we’ve had since then, KickServe as an example, those are kind of more surgical in nature.

And I would say that as we see opportunities in the market, we’re gonna continue to look for opportunities that will advance us from a technology perspective and fit in particular with any gaps that we have from a software and solutions perspective. Combined with just the organic investment opportunities that we wanna make sure that we can continue to fund, payments obviously is the one that I’ve been talking about the most, but there’s other opportunities as well. Everpro Edge completely greenfield when we started this a couple of years ago and it’s got over a thousand customers on that. And so we’re going to continue to expand and grow that. It helps our customers, it educates our customers and it provides them an opportunity for rebates that honestly can help to offset or defuse the cost of their software.

So it essentially makes it a risk free transaction.

Unidentified speaker: Do you want to just explain what Edge does for folks who may not be familiar?

Ryan Sourick, CFO, EverCommerce: Edge is, it does a lot of things. But one of them, it’s a program that allows customers to get educated and grow their businesses. But while at the same time, it allows them to get rebates from a purchasing perspective. Almost like a group buying organization, if you will. So through their opportunity to have purchases.

We do this mainly through, right now it’s through one of our PLG led motion solutions called Joist. But it allows those customers to basically be able to utilize a buying platform through several vendors and then get rebates on the back end of that. We have another program as well that’s associated with that. So we have, that is an opportunity and that actually has very solid contribution from EBITDA margin perspective as well. And then you asked about stock buyback from a capital allocation perspective.

We feel very good in terms of like where we are overall from just a balance sheet capitalization point of view, but we also feel like we’re quite undervalued in the market. With $150,000,000 of cash on the balance sheet and with the liquidity position that we’re in, we feel like it’s good use of money to redeploy that to buy back stock. And we’ve expanded that program from $200,000,000 to $250,000,000 At the end of the quarter, we had about $50,000,000 in remaining capacity.

Unidentified speaker: Yep. Yep. We’re twenty minutes in. I think this is the longest I’ve done a software presentation without bringing up AI, right? It seems like obviously that’s a focal point for everyone these days.

Let’s talk about how you guys are thinking about AI, where you see opportunities in the base to kind of embed it into the product, the pain points you could serve for customers. How are

Ryan Sourick, CFO, EverCommerce: you thinking about it? Well, I mean, we have actually been using AI for years in different parts of our business, not all parts of our business. Lead scoring, lead generation capabilities. We’ve been utilizing that in several parts. We see AI as being something that’s going to be fundamental and core to our business really across every space that is available.

Not only from a product perspective and engaging from a customer perspective and customer experience. But also just like optimizing our back office as well. So we’re continuing to develop in those spaces. I think we’ve seen huge success in some areas, customer experience as an example. We deployed an AI agent in one of our mobile solutions areas and it’s actually diverting 25 to 50% of calls successfully.

And we’ve estimated it’s like resulted in cost avoidance of over a couple $100,000. So we’re going to continue to embed and utilize AI. I would say from a product and engineering perspective, not only from a code point of view, but also just looking at the abilities that AI can serve our customers in the future as well. Because our customers are going to be wanting to further simplify their time and their allocation of resources. So the more that we can actually make automated within our systems of action, the better.

Unidentified speaker: Talk about the numbers for a second. So we’ve already kind of said reliable, mid to high single digit organic growth after the exit of the marketing business, big step up in profitability. We have EBITDA margins north of 30%. Can you drive the EBITDA margins higher? Is it dependent on payments?

Or do we need to see a reacceleration in growth? Like how are you thinking about the trajectory of margins from here?

Ryan Sourick, CFO, EverCommerce: We definitely feel that we can further expand margins. We’re at like roughly right now at the end of the quarter, we settled in at 30%. I think our guidance overall for the year would have us come in at roughly 29%. We don’t think that we’re capped at all from that perspective. So we see more room to grow in terms of the existing EBITDA margins.

Now we don’t give guidance on like how far we think that can go. What will that what do we need to believe to make that true? The revenue growth from a software perspective is fundamental. But we also think that the expansion from a payments perspective is critical. Being able to get further penetration into payments is what we now need to further demonstrate that we can execute on.

We have good leading indicators. We need to to back that up with with fundamental execution in the business. And now I I think we’re, like, we’re set up in a very positive way to be able to do that. We have team that is dedicated to payments across all solutions, both for EverPro and EverHealth. And they’re working inextricably with those businesses to identify the opportunities.

And we prioritize our investments on that same basis of where we think we’re going to get the most leverage.

Unidentified speaker: Yep, yep. We’re in our last minute here. Sure. In terms of what you think investors may underappreciate or misunderstand about the business, I mean, already said, hey, we think our stock’s cheap. We’re putting our own money to work buying it.

What do you think folks are still missing with the EverCommerce story? Like, what do want the message to be coming out of here?

Ryan Sourick, CFO, EverCommerce: We I think we’ve assembled quite a strong portfolio solutions, and we generate significant amount of free cash flow. And the way that we’ve been able to cost contain and transform simultaneously is quite important. I said we talked, we kind of initiated this transformation and optimization program, call it eighteen months ago. We’ve essentially been kind of changing the business but not losing momentum in the business. And we are going to further focus on not only brand consolidation, each within Ever Health and Ever Pro, but continuing to make our systems of action easier for customers to utilize.

And I think people don’t necessarily appreciate how much value we can bring to our end markets that will then drive value for the company from a continued free cash flow perspective and just ability to generate strong profitability. I think we’ve demonstrated that and we’re going to continue to do that as we kind of expand on the strategy.

Unidentified speaker: Yeah. Yeah. Well, it’s a great story. As I said, sleep at night stock, very reliable growth, high margins, expanding, pretty resilient end markets. So you guys are in a good spot.

Thank you for doing this.

Ryan Sourick, CFO, EverCommerce: I appreciate it.

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