EverCommerce at Oppenheimer Conference: Transformative Growth Strategy

On Tuesday, 12 August 2025, EverCommerce (NASDAQ:EVCM) unveiled its strategic transformation at the Oppenheimer 28th Annual Technology, Internet & Communications Conference. CEO Eric Riemer highlighted the company’s focus on empowering small businesses with SaaS solutions, reporting on financial successes and future growth plans. While the company showed robust EBITDA growth, challenges remain in reaching the "rule of 40" milestone.

Key Takeaways

• EverCommerce exceeded guidance in both revenue and EBITDA for the first half of the year.
• EBITDA margins improved from 20% to over 30% since going public.
• The company is close to achieving the "rule of 40" status.
• A transformation program focuses on key verticals like EverPro and EverHealth.
• AI integration is a priority for enhancing operations and customer value.

Financial Results

• Exceeded top-end guidance for EBITDA and revenue in the first half of the year.
• EBITDA margins have increased by over 1,000 basis points since going public.
• Recent months saw an additional 250 basis point improvement despite investments in senior management.
• The company processed just under $13 billion in total payment volume (TPV).
• Maintains over $150 million in cash, with leverage reduced to two times.

Operational Updates

• Initiated a transformation and optimization program 18 months ago to enhance customer proximity.
• Appointed two new CEOs for EverPro and EverHealth divisions.
• Over 10 executives were added or replaced within the last six to nine months.
• 95% of the business is concentrated in the EverPro and EverHealth verticals.
• 80% of customer acquisitions occur through a product-led growth (PLG) strategy.

Future Outlook

• Focus on reaccelerating growth while expanding margins.
• Expects continued investment in EverPro and EverHealth to maximize potential.
• Actively pursuing mergers and acquisitions to enhance product offerings.
• AI integration is a key strategy to improve operations and customer value.

Q&A Highlights

• Discussed competitive advantages in the down market segment compared to ServiceTitan.
• Emphasized providing easy-to-use, cost-effective software for small businesses.
• Cross-selling initiatives focus on integrating payments with SaaS sales.
• Aims to increase product penetration within an installed base of over 720,000 customers.

For more detailed insights, readers are encouraged to refer to the full transcript.

Full transcript - Oppenheimer 28th Annual Technology, Internet & Communications Conference:

Brian: Welcome. I appreciate everyone who’s dialed in today to hear this webinar with EverCommerce. I’m thrilled we’ve got the CEO and founder with us, Eric Riemer. Eric’s a regular here. Thank you very much, Eric, for for coming back.

Not only is he a regular, he is one of the great entrepreneurs of our time, so I feel very honored to to have him for this discussion. Eric, maybe for the new people who are listening in today, take maybe to start the discussion and share with the audience from a 20,000 feet view a brief background on the company and the problems that EverCommerce are solving for your customers.

Eric Riemer, CEO and founder, EverCommerce: Well, definitely. Well, Brian, thanks for having me. It’s great to see you again, and I appreciate the opportunity to be here today. You know, you know the story, but as kind of a little bit of a background, you know, the the focus and the core of everything we’ve done has always been focused on how do we simplify and empower the lives of these service based small business owners. And the predecessor organization to EverCommerce was, as you know, a company I started in 02/2006, called Paysimple.

SaaS platform focused on helping service based small businesses build, collect, manage, and ultimately grow their business. Really nice business, continue to scale. But about eight plus years ago, what I realized was the needs of these service based businesses were becoming more verticalized, even more micro verticalized. So if we had a thousand field service contractors, think about an electrician, a plumber, an HVAC, And we wanted 10,000, 50,000, or today, have over 300,000. We just didn’t have the workflows.

That could be dispatching, inventory management with a truck. And because PaceSimple was a horizontal platform, it just couldn’t be all things to all people. So as I looked at the verticals we were serving, what I saw was a bunch of fragmentation, a bunch of point solutions, and nobody was really bringing that all together. So that’s really what EverCommerce set out to do, focused on three main core verticals, provide end to end SaaS solutions, and really that core system of action that these service based small business need to run their business and be more successful. And that’s really what we are doing today, the leading provider of software and solutions to that service based SaaS marketplace.

Brian: Thank you very much for that opening. Let’s get into the results, you know, the first half for the business. You know, this is a transformational year for the business, but, you know, your two q as well as in your first half results, they look good. You exceeded your guidance in both quarters. So tell us what’s working well for the business in in 2025.

Feel free to talk about what you’re seeing in terms of your market segments or the geographies that you serve. What’s working so well?

Eric Riemer, CEO and founder, EverCommerce: Yeah. No. We we feel really great about where we are right now. Feel We great about the first half of the year, as you said, exceeded both, top end of guidance on both, you know, EBITDA as well as revenue. And, you know, if you think about you know, we’ve been talking now for, you know, three plus years, almost four years, actually.

And about eighteen months ago, we kicked off this transformation optimization kind of program within EverCommerce, and it was really focused on two main things. Transforming the way we serve our customers by providing more of our talent, more of our resources in the actual verticals closer to the customer? And then from an optimization standpoint, what do we need to do to be more, efficient with that process to provide better services, better value to our customers, but also, you know, increase the value of our organization? And since we’ve you know, over the last three and a half years, you know, since we went public, our EBITDA margins have grown from 20% to this quarter over 30%. So over a thousand basis point improvement in our profitability as we’ve been transforming the organization really real time and really setting ourselves up for long term sustainable success.

Brian: Let’s dive into a little bit what the future could look like for the business here once you’re through your business transformation. So, you know, if successful with this strategy, what does a new and improved ever commerce commerce look like in the coming years?

Eric Riemer, CEO and founder, EverCommerce: You know, it’s a great question. And and I I actually think we are successful. I think the success we’ve had already, has has already shown in our numbers, and it’s showing our operational efficiency and the things we’re we’re trying to accomplish. But when we look at the world going forward, you know, the transformation really focuses in on, you know, we have three main verticals, you know, EverPro with its home field services, EverHealth, which is our health service, and EverWell, which is our kind of salon and spa. 95% of our business today is in that Everpro and Everhealth areas.

And so we’ve really focused a ton of energy in that space. And so you think about what that looks like going forward. You know, I brought on two new leaders, CEOs, really not GMs, like legitimate CEOs, to run those organizations so they can build teams around them to be as focused as they need to be to provide the most value to the customer. Josh McCarter, who runs our Everpro division, comes back with running public companies. He was CEO of Mindbody.

He’s on the board of Compass. He’s run several private equity backed growth companies, doing a phenomenal job building out his core team of people fully focused on providing the most value within that vertical. Similar in the Ever Health Group, Evan Berlin, who was with us as CEO of EverCommerce, took over as CEO of Ever Health. And very similar, rebuilt that team fully focused on that end to end customer experience, which we can talk more about, but whatever Health is creating from an end to end experience is actually truly unique to the marketplace. And the the last thing I’ll say, which every company probably talks about, that transformation of our organization also includes, you know, our ability to integrate every aspect of our business with AI.

You know, AI is something that people talk about today as as something you’re doing to transform your organization. But in reality, a year from now, it just is. It’s no longer a what are you doing. It just is part of every aspect of how we run our company and how we run our operations, how we provide value to our customers, and how we integrate AI into every product we have in the marketplace.

Brian: Eric, I wanted to just follow-up a little and the bench that that you’ve built around you. I I I think the strength of the bench may be one of the most underappreciated aspects of the business. I just wanted to ask you, what if anything has surprised you about what these new leaders have done to contribute to the success of the business?

Eric Riemer, CEO and founder, EverCommerce: It’s it’s a great question. And and and, Brian, you’re closer to the story, so you kind of get it. But there’s been over 10, you know, executives, within EverPro and EverHealth added or replaced in the last, really, six to nine months. And when you think about the impact that that is going to have on our organization over the next six to twelve months going forward, it’s pretty monumental. You know, we believe you know, it’s it’s hard it’s hard to model the the value that new talent brings to the table.

But when you think about building specific teams, senior specific teams focused on the success of each of those verticals, which didn’t exist before remember, we were a centralized platform, kind of peanut butter spreading all of our talent across the ecosystem. Now each of these great leaders I just touched upon, Evan and Josh, have their own dedicated teams, CTOs, CROs, you know, head of marketing, head of sales, specifically focused on their vertical. And we think we’re already seeing, and we think it’s gonna happen in the future, better efficiencies and go to market, better sales execution, more focused marketing, spend. And so while we’ve invested a lot of dollars in this senior management, over that same period, we’ve increased our EBITDA margins by almost 250 basis points. And so utilizing that optimization part of our business to be more cost effective across the organization so we can reinvest that into great talent that’s gonna drive us forward.

So our focus is how do we reaccelerate growth to the levels we wanna be at while continuing to expand our margin, you know, where where it is today. We went public four years ago. People asked, you know, what is the mid to long term, you know, EBITDA goals of the company? And we said, look. We think within the mid to long term, we could be in between 2530% EBITDA margins.

This quarter, we exceeded 30%, and we think there is plenty of room to grow from that point going forward. So we feel really good about where we are today from a, you know, infrastructure profitability standpoint and now the opportunity for us to bring the talent integrated throughout the organization so we can reinvest those dollars to reaccelerate growth.

Brian: Sounds good. Sounds like there’s a clear path here to a rule of 40 business over the next We’re

Eric Riemer, CEO and founder, EverCommerce: we’re almost there as we sit here today. You know, we’re we’re we’re really darn close, and we’re in the we’re in the early innings of where we’re gonna be, and we’re we’re literally a point or two away from, you know, a rule of 40 company.

Brian: Yeah. Let’s talk a little bit about the moat. You know, you’ve got ServiceTitan that’s competing in your market. They’ve been doing very well recently. There you’ve got payment suppliers like Bill.

So, you know, what gives EverCommerce the right to win in the markets that you compete in?

Eric Riemer, CEO and founder, EverCommerce: You know, our focus has always been, first and foremost, provide that software that we call the system of action software to these service based small businesses that help them be more successful and then utilize that as the entry point to provide more additional services, payments, marketing technologies, customer engagement solutions that really create that full moat around that around that customer. And when you think about, you know, at the end of the day, you know, no matter what organization you are, what allows you to win is providing the best software. We provide most of our software, because it’s down market, is in a PLG motion. So really good software, really easy to use, really cost effective, really easy to onboard. And you bring up companies like, you know, ServiceTitan who’s doing an amazing job, and we know them well and really great company.

They’re in an amazing vertical. Our EverPro division is our largest area of our organization, and we think that is just massive runway to continue to grow it. The biggest contrast between what we’re doing and ServiceTitan is doing, although we’re focused on the same vertical, we’re focused more on that that down market, really expansive marketplace. You know, again, as a point of reference, you know, they have I think they announced, you know, just under 10,000 customers in that space. We have over 350,000 contractors utilizing our solutions.

And so much more enterprise focused. We’re much more down market in terms of the solutions we’re providing. We think there’s a massive, massive, not only domestic but global marketplace within that vertical. So the end of the day, providing great solutions, great products, easy to use. And in EverHealth, we didn’t really touch upon it, but our differentiator at EverHealth is pretty strong.

We are really the only kind of solution for small practices out there that provides a native, integrated end to end solution from practice management to EMR to patient pay to claims processing and the patient engagement all under one EverHealth ecosystem. That provides a seamless experience for our customers who are utilizing our solutions. So it’s really exciting, and we are literally at the early stages of launching that full EverHealth end to end brand, and it is a true differentiator in the marketplace.

Brian: As I think you mentioned, you do have one of the most comprehensive platforms in the markets that you’re competing in today. So I wanted to touch upon a little bit about the cross selling initiatives. You also highlighted you have one of the largest customer bases in the market segments that you’re competing in. But, you know, I followed the company for a while, so I do know there’s a long runway for product penetration within the installed base. So share with us some of the initiatives going on to improve the product penetration, raise customer values, and maybe you can talk a little bit about how payments is the tip of the spear for the cross selling initiatives.

Eric Riemer, CEO and founder, EverCommerce: Yeah. It’s a great question. And I think I think it gets underappreciated, the amount of, customers’ payment opportunity and runway we have in front of us. You know, we have over 700,000 really over 720,000 customers utilizing our platform. And the first step in getting customers on that cross sell, process is getting them, you know, getting them getting them integrated into one of our solutions so they they can take it.

We currently have over 260,000 customers that are ready to take more than one solution, which means they’ve signed up for a payment solution, a marketing service solution, or customer engagement. And the vast majority of those 260,000 customers that are utilizing more than one solution, it’s really on the payment side. So the next step in the funnel is really utilization. So the first step is getting them attached. We call it the attach process.

Getting them attached to payments or other solutions, primarily payments, and then really working and really focused on down funnel to make sure that these attached customers that are utilizing a software and now also a potential integrated payments, how do we get them to utilize it? How do we get them to take that first transaction? How do we get them to process all their customers on an ongoing basis? You know, we announced just under 13,000,000,000 of TPV that we’re processing right now. You know, that is, you know, a small, small fraction of the marketplace we have to go after, you know, probably in the, you know, 10% range of, we think, the go go get that we have, within the payment opportunities.

So it’s something that we focus on on a daily basis. Again, attach them up front, which we’ve started to do a really good job on the go to market, integrating our payment attachment with our SaaS sales process, which is why we’ve been growing so well in that attach phase. And then that next stage of utilization, it’s like every other funnel that exists in every organization. It’s just testing, providing more value, integrating them more effectively to get more of those customers utilizing the solution, which gives us more wallet share of that go get that we think we can go get over time.

Brian: Very good. We talked about the back to the base motion with the installed base. Let’s talk a little bit about new customer acquisition and new logos. Can you talk about describe the product led growth initiatives that are happening inside the company to improve the lead generation and the conversions? How far along is the business in the optimization process of the BLG motion?

Eric Riemer, CEO and founder, EverCommerce: No. It’s a it’s a great question. You know, we, you know, we’ve been fortunate that the vast majority of our customers, come through, PLG Motion. So 80% of our customers are actually coming through that PLG Motion. And and our focus has always been if you’re gonna be focused on PLG, you have to be really good at a you know, your go to market, your digital marketing, bringing people to your front door.

But then it’s equally, if not more important, on that PLG motion to have really easy to use products, really easy to use onboarding, really easy and intuitive to get going and begin to utilize that product from the time you see it to the time you buy it. And a lot of resources we talked about the transformation. One of the main reasons we actually did that was if you think about a centralized organization that’s focused on multi verticals. Let’s say you had a senior tech executive focused his energy or her energy across the entire ecosystem. Now we have head of products, head of technology, head of revenue generation, head of sales, head of marketing that are specifically just focused within the verticals we’re going after.

So that provides us more opportunity to provide more value, more focus, more resources to each of our individual customers within each of the end verticals that we serve.

Brian: Great. Let’s dive into a couple of your business segments. Let’s start first with Everpro. Why is this market so underpenetrated? And then what are you seeing in terms of demand trends within the Avapro business?

Eric Riemer, CEO and founder, EverCommerce: You know, if you think about just the end market, you know, it’s a you know, we’ve been focused on this market for many years. And, you know, plumbers, electrician, HVAC, landscapers, you know, anyone who’s on a truck, in general, these aren’t the most tech forward organizations, especially as you go down market. And so the reason why the market is so big, number one, these businesses are thriving. I mean, these are successful entrepreneurial small businesses that are thriving in their communities. You know, go back to the COVID year.

That home service division, that, you know, your HVAC guys, your landscapers, your, you know, your plumbers, your electricians, they didn’t take a breath. You know, they made a slowdown in April 2020. By May 2020, they were out there in your houses serving you and providing you value. So it is so critical to our entire, you know, ecosystem in each of our communities. These businesses serve us on a daily basis, and there are a lot of them, and they’re providing tons of value.

So when you think about our focus, how do we serve those customers that serve us every single day? How do we provide them more value so they can be more successful? And if you look down market, you look at a service titan who’s providing, you know, really great software for enterprise clients, and they clearly knew they need that kind of need. Down market, where there’s literally millions of these customers, a lot of them have been kind of still old school. You know, they answer the phone.

They leave a little piece of paper at your front door. We all get those pieces of paper still, and you have to write a check. If they want to compete and they’re recognizing the value and having this integrated solution, it not only makes them look more professional. It’s not only a better customer experience. They get paid quicker.

They integrate their payments and their service and their project management all within one system on a really easy to use down market platform. So it is just the natural evolution of this market that for years, Brian, and still today, Inertia is our biggest comp competitor downmarket. There’s several other organizations providing a lot of value, but the market is still very greenfield. There’s still a lot of opportunity to go get new customers.

Brian: Sounds good. Let’s switch to to EverHealth. Yes. So you talked to I think you did a good job laying out the mode and the differentiation in terms of of EverHealth. Well, what are you most excited about in terms of the EverHealth business and the future?

Eric Riemer, CEO and founder, EverCommerce: Yeah. I think the three main things, it starts with the transformation process. With Evan now in charge and built out an amazing team focused specifically in EverHealth. We’re gonna start seeing that value, which we’re already seeing in the in the Sal’s execution, go even further. Then it goes to the, you know, integrated product offering, which we’ve been working on for several years.

Within 02/2006, we’re going to be launching a full end to end EverHealth, you know, branded product, which just is going to provide more value to our customers. And and the last piece is, you know, how AI is going to really make the lives of our customers better from integrated, you know, note taking in the doctor’s office to prescription fills to, you know, RCM, you know, reimbursement at a higher level. All of that all of those kind of solutions that we are integrating to our products are going to provide, again, more value, more integration, and allow our customers to be more successful.

Brian: Sounds good. So how do you, as a leader, you’ve got these two strong business segments. You’ve got your EverPro. You’ve got your EverHealth business. May maybe two questions along the line.

How do you decide, you know, where to lean in in terms of your investment, your growth investments between these two businesses? And then and then in terms of inorganic, so that would be certainly the organic investments. From an inorganic perspective, you know, which seems like more interesting from from an m m and a perspective, the Everpro or the Everhealth divisions?

Eric Riemer, CEO and founder, EverCommerce: You know, you know, I I you know, we you just I just saw you recently, and it it would have been asking you, which kid you like better. Right? You know, we, we we love both our kids, and and and the reality is they’re both great businesses. And so, you know, we’ve made a conscious effort as a as a board, as a management team, as an organization to make pretty significant investments in both of those verticals. We think they’re both have really long runways, really big opportunities to grow.

And I think our our focus to continue to invest in those so we can maximize the potential in those areas is where you’re gonna see EverCommerce putting most of its energy over the next six, twelve, twenty four months going forward. In terms of m and a and inorganic growth, you know, we are always looking for opportunities to increase the value of our offerings. And whether that’s in, you know, product, whether that’s in customers, whether that’s in, you know, more value we can provide to our customers through our product offering, we are looking at opportunities literally on a weekly, monthly basis and trying to find those things that we think are going to be able to be best integrated into our solution, fill a product gap, or fill something that our customers want. And we’ll continue to talk about those as they come to come to fruition, both in EverPro and in EverHealth. And so, you know, we think there’s opportunities to accelerate, you know, some of the, things we’re doing for a product, from, AI, from a, you know, customer standpoint within each of those verticals.

And if we find an opportunity and we feel the value is the right value in terms of what we need to pay to create that within our ecosystem, we’ll definitely pursue it. I mean, we just got it discussed. I mean, our leverage is down to two times. You know, we have over a $150,000,000 on our balance sheet from a cash perspective, and we’re really well positioned from a, you know, capitalization and a balance sheet perspective to be able to do things, you know, and accelerate growth, utilizing m and a if and when we see that opportunity.

Brian: Well, Eric, I wanna thank you very much for your time. I you know, I think this is gonna be one of my top ideas, you know, over the next twelve months in 2026. And gotta keep you on schedule here because he’s got meetings later today. So it was great to see you again, and thank you for for sharing an update on EverCommerce.

Eric Riemer, CEO and founder, EverCommerce: Well, I appreciate, Brian, you having me, and thank you for all your support over the years. And I look forward to continue the conversation.

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