EverCommerce Inc.

Thank you for standing by and welcome to EverCommerce's first quarter 2025 earning call. My name is Corey. I'll be your operator today. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone and you will hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. As a reminder, this conference call is being recorded today, Thursday, May 8th of 2025. I would now like to turn the conference call over to Brad Korsch, SVP and Head Investor of Relations for EverCommerce. Please go ahead.

Good afternoon and thank you for joining. Today's call will be led by Eric Reamer, EverCommerce's Chairman, Chief Executive Officer, and Ryan Surick, EverCommerce's Chief Financial Officer. Joining them for the Q&A portion of the call, are EverCommerce's President, Matt Feierstein, EverPro's Chief Executive Officer, Josh McCarter, and EverHealth's Chief Executive Officer, Evan Berlin. This call is being webcast with a slide presentation that reviews the key financial and operating results for the three months ended March 31st, 2025. For a link to the live or replay webcast, please visit the investor relations section of the EverCommerce website, www.evercommerce.com. The slide presentation and earnings release are also directly available on the site. Please turn to page two of our earnings call presentation while I review our safe harbor statement. Statements made on this call and containing the earnings materials available on our website that are not historical in nature may constitute forward-looking statements. Such statements are based on the current expectations and beliefs of management. Actual results may differ materially from these forward-looking statements due to risks and uncertainties that are described in more detail in our filings with the SEC. We undertake no obligation to publicly update or revise these forward-looking statements, except as required by law. We will also refer to certain non-GAAP financial measures in our comments today. A reconciliation of non-GAAP to GAAP historical measures is provided in both our earnings press release and on our earnings call presentation. As a quick reminder, following our announcement in March that we are seeking strategic alternatives for the marketing technology solutions, we have classified marketing technology as discontinued operations. Our commentary today will focus on the continuing operations of our business, focus on our EverHealth, EverPro, and EverWell verticals. All financial and operating metric results are presented related to the continuing operations only, unless otherwise specified. I will now turn it over to our CEO, Eric Reamer. Please continue.

Thank you, Brad. I'll focus my commentary on first quarter 2025 results, as well as our top strategic priorities. Brian will then discuss our financial performance in more detail. Our first quarter reported revenue exceeded the top-end of our guidance range. For the first three months of the year, GAAP revenue increased 3.2% year-over-year. At a pro-form basis, which adjusts to the prior year's sale of fitness solutions, revenue increased 7.4% year-over-year. Adjusting even to $44.9 million also beat the top-end of our guidance range, representing a 31.6% margin. Adjusting even to the margin expanded nearly 360 basis points year-over-year. Payment revenue, excluding the fitness solutions, grew 8.4% year-over-year, driven by nearly 9% growth in TPV. Finally, our board of directors approved a $50 million increase to our share repurchase program, while also extending this authorization to year-end 2026. EverCommerce provides SaaS solutions for the service SMB economy. We offer tremendous value to our customers by providing the system of action necessary to run their businesses with tailored, unique workflows. Adjusted to account for the planned sales and marketing technology solutions, we provide end-to-end solutions to more than 725,000 customers across our three major verticals, EverPro for home field services, EverHealth for physician practices, and EverWell for wellness, with the two former verticals representing 95% consolidated revenue. Our large base of customers represents an immense embedded opportunity to provide value-added features and services like payments and customer rebates, through our purchasing programs. On a pro-forma basis, for the last 12 months, we generated $563.9 billion in revenue, representing 7.8% year-over-year growth. Subscription and transaction revenue grew 8.1% year-over-year. Over the last 12 months, we generated 30.1% adjusted EBITDA margin. Finally, our annualized total payment volume, or TPV, expanded to over $12.7 billion. Before I dive into our normal course discussion of customer trends, I wanted to update you on our AI initiatives at EverCommerce. AI is an important part of our forward strategy for multiple reasons. First, embedding AI capabilities into our customer-facing software allows us to innovate faster and maintain a leading competitive position. Second, using AI for development work enables us to more efficiently and more quickly bring new features, functions, and solutions to market. And third, we believe that using AI-driven workflows internally will be a key driver to continue our cost discipline and drive additional long-term margin expansion. Over the past six to 12 months, we have made significant progress integrating AI in our products and our internal workflows. We've deployed third-party AI platform features and automation tools across talent acquisition, people operations, employee development functions to reduce manual workloads, improve data collection, and create impactful, actionable insights. Looking ahead, we expect additional AI use cases to have a meaningful contribution to our products and operations. Before discussing our customer metrics, I want to once again remind you that these metrics have been restated for both the current and year-ago periods to exclude marketing technology solutions. Accelerating payments adoption and utilization continues to be our highest priority And in 2025, we're making specific investments in our product capabilities and go-to-market motions to prioritize payment attachment at the point of initial SaaS sale. At the end of the first quarter, 244,000 customers were enabled for more than one solution, reflecting 20% year-over-year growth. As we discussed when we introduced this metric, enabling customers for more than one solution is the first step in the funnel that leads to increased revenue, retention, and ultimately profitability of these customers. Once customers are enabled, the next action item for us is to facilitate usage. In the case of payments, this is getting our customers to actively process on our platform. We measure this step in the funnel as utilization. At the end of the first quarter, approximately 99,000 customers were actively utilizing more than one solution, reflecting 20% year-over-year growth. Customers that purchase and utilize more than one solution are naturally some of our most profitable and stickiest customers. As we've illustrated in past earnings calls, the effect of more customers taking payments or other add-on features and services is higher net revenue retention. Looking back over the trailing 12 months, our annualized net revenue retention, or NRR, was 97%. Year over year, our payments revenue on a pro forma basis grew over 8% and accounted for approximately 21% of overall revenue. As a reminder, we report our payments revenue on a net basis and therefore contributes approximately 95% gross margin. Payments revenue is a meaningful contributor to overall adjusted EBITDA margin expansion. First quarter estimated annualized total payment volume of TPV was approximately $12.7 billion, representing nearly 9% year-over-year growth. As I mentioned earlier, we are making strategic high ROI investments into our payments platform and team, which we believe will result in increased payment adoption, TPV growth, and revenue acceleration. Now I'll pass it over to Ryan, who will review our financial results in more detail. as well as provide our second quarter guidance.