EverCommerce Inc. (NASDAQ:EVCM) Q2 2023 Earnings Call Transcript

Matt Feierstein: Yes. Again, I don’t think this is all that different than things that we’ve talked about in prior quarters. But from an attachment standpoint, as you think from a top of funnel down strategic standpoint, continuing to drive incremental resources from both into our PLG led products, but also where there can be some outbound sales touches into the software customer base to drive that. Front as you go down the funnel in terms of converting more of our payment-enabled users into active processing users, looking at outbound customer success resources that we have been testing and have metrics around and now have the ability to say, this is where we should double down from incremental resources from that perspective as well.

And then as you go further down funnel both to get more people actively processing and expand wallet share, looking at opportunities to, like we’ve talked about in past quarters, expands the base of payment enablement product landscape throughout the ecosystem. So those are all areas where we are looking at and actively now for 2H that investment — incremental investments on top will help really drive quicker execution on those strategies.

Eric Remer: And Brad, thanks for the question. One more thing to add to that, we have implemented payment mandate in two of our solutions, which we have been — 1 have been mandated as of August 01, and one was in the kind of early Q2. And so we’re — if that takes some time to kind of roll out those mandates, but those are positive things that we’ve kind of implemented in the East [ph]. Some of them just got implemented literally last week. So we’re excited about the things that that brought up in addition to some mandates were put in to our software solutions.

Brad Reback: Great. And then on — Eric, on the AI monetization side, is that going to be direct or more indirect insomuch as that will help support future price increases broadly across the product portfolio? Thanks.

Matt Feierstein: Yes. I think Brad, both. Ultimately, I think what Eric spoke to was incremental monetization. But certainly, there will be indirect monetization via just more fire higher or behind some of the products that we’re able to bring to market. So we see the opportunity for both. And Eric’s example was really an incremental monetization opportunity.

Eric Remer: And the one that we didn’t talk about much because I’m sure the company has different pieces of the puzzle, but we utilize and we’ve been utilizing AI-type capabilities internally to our operations for quite some time. And with the increased AI access, we implemented some of those in different operational capabilities internally that we’ll start seeing hopefully some additional value probably 2024.

Brad Reback: Great. Thanks very much.

Operator: The next question comes from Alexander Sklar with Raymond James. Your line is open.

Unidentified Analyst: Hi. Thanks for taking the question. This is John [ph] on for Alex. Eric or Matt, I know pricing has really been more of a lever this year that you’ve been looking to push versus prior years. I’m just curious any message you can give on price elasticity to date, if you can maybe share the percent of your base has seen an increase or maybe some of the retention dynamics surrounding that.

Marc Thompson: This is Marc. So two things. One, we come into each year with a series of pricing actions planned in for the year, and we’ve executed against most of those and you really — we expect to see continuing impact from that through the year. But overall, we kind of talked about circa 3% for the year. I think that’s very much still the way we think about that. In terms of churn, we historically always planned that into our internal plans and quite honestly, execute quite well through those and never really see that materialized the way we plan. So we tend to be pretty conservative in our outlook on that internally and have really not seen any real impact from that for many of the pricing actions that have been taken thus far in the first half.