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

Aaron Kimson: Awesome. Thank you.

Operator: The next question comes from Clarke Jeffries with Piper Sandler. Your line is open.

Clarke Jeffries: Hello. Thanks for taking the question. I wanted to ask about that disclosure around enabled and utilization in the customer base. Can you help us think through how those buckets work, how the enabled flows into the utilized? And maybe how much opportunity is left to add to that enabled bucket rather than the overall logos. I’m thinking of large systems of action that may not have that payments enablement or sort of add-on functionality to really offer that enablement to the customer.

Eric Remer: Yes. Thanks, Clark. I’ll start with just so we define it properly and then Matt can talk about the specifics. So the reason we opened that reason we kind of brought the statistic up because it really is a better leading indicator of how we’re doing in terms of giving people when we say enabled — you’re right, enable is even higher. So we need to integrate the payment solutions into a software so they even have the opportunity to take it. And then we’re actually talking about we enabled, they enable sign up and onboarded. So they’ve actually said, “Yes, I want it” and then that third statistic that we’ve been giving is the utilization. So with the statistic that we kind of brought up today that we’re going to be giving going forward is that middle one.

So they’ve been enabled in terms of the integration — is now signed up and onboarded and we’ve yet to get them to fully utilize or have to utilize that particular month. Matt, want to talk some more statistics on that.

Matt Feierstein: Yes. I think Eric makes a great point. We really think it’s just a better leading indicator to where we are with multiproduct, ultimately getting to multiproduct utilization, empowering more of our customers’ businesses with the integrated suite of solutions that we have. So again, as Eric talked about, obviously, getting people contract and onboarding for that second solution and then from a strategy perspective, ensuring that, like, again, thinking about the payments world where we’ve just done the most. First, we’re focused on the go-to-market motions and marketing sales that’s going to drive payment attachment. We talked about some of the strategic initiatives like mandating payments that’s going to help us achieve that.

We talked about adding outbound sales touches to complement product-led growth funnels and product messaging. Again, once that’s enabled, really, we go to our next strategy efforts, which are focused much further down the customer engagement funnel. So driving them into for payments customer active processes expanding their wallet share initiatives like proactive customer success engagement via those outbound touches, adding more product real estate to the payment integration. And frankly, that could be adding more product real estate to any integration that’s going to drive that multiproduct utilization. So again, really, that’s how we think about it. Again, it’s a — these are numbers that we’ll continue to publish going forward, but we think really the right indicators of where we are in that journey to multiproduct utilization.

Clarke Jeffries: Perfect. And just to clarify, is any part of it a discretionary choice of the customer? Or is it really just duration as they will move towards that utilizing bucket over time and it’s more time dependent rather than discretionary. And just a separate question for Marc, you mentioned stabilization in marketing, any way you could further clarify whether stabilization means return to positive year-over-year growth or any way you could bracket subscription and transaction growth in the second half of the year, so we know the kind of balance between the segments in the second half.

Eric Remer: Yes. The first part, Matt?