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

Matt Feierstein: Yes, I can take the first part. [indiscernible] if you think about it from a customer engagement funnel and they’re obviously making the choice within our go-to-market motions to engage with that second product again. So we’ll use payments as that example. And of course, we’ve got to go through the process of getting them contracted onboarded and we’re going to deploy a next set of strategy and resources behind that to turn that payment attached customer, that enables customer into a utilizing customer. So I wouldn’t necessarily to us, that’s not discretion. It’s just the next step in that engagement.

Eric Remer: How a couple of questions meant — it’s a proactive decision that they are making and 160,000 people have made that decision to do that. So it’s not default number to be very clear. Our opportunity is to get those people who have made that decision to follow through that decision relatively utilize it. So it’s good that they made the decision we’ve made it available. They’ve signed up and now we want them to utilize it.

Matt Feierstein: Yeah, it’s not a default, that’s not to scratch it is their discussion. They made the choice that they wanted that it integrates.

Eric Remer: We watched this before. It’s almost illogical to not utilize it in some scenarios just in some of the workflows that we have and they just be dealing with small businesses, and they’re busy, and a lot of things going on, and it’s inertia more than anything else. And so we feel very strongly that we have the opportunity to continue to penetrate the base of customers we have at a much higher level. And we’ve made really good progress, a lot of progress to come. Marc, on the second part of the question.

Marc Thompson: Yes. I think on the second part, look, we don’t break out revenue guidance in the pieces. When we say stabilized, I think you should take that. What we’ve seen in the last couple of quarters is consistent with what we expect to see in the second half, and that’s all baked into our guidance going forward. I would just sort of leave it at that.

Clarke Jeffries: All right. Thank you for all the clarification.

Operator: The next question comes from Jeremy Sahler with Jefferies. Your line is open.

Jeremy Sahler: This is Jeremy on for so Monta [ph]. Thanks for taking my question. So I guess, first one is kind of a two-parter. I guess, as you continue to drive attachment of embedded payments, it’s kind of hard to parse out the seasonality. Can you maybe kind of give us some color into what the seasonality of TPV is in a steady-state environment. And then also, you mentioned that take rate expansion again. I guess, what levers are you pulling to drive that rate expansion and kind of how much more is it to go there?

Matt Feierstein: Yes. I think we can talk to the first part seasonality, I think we’ve described it across the business. And specifically, if you think about the largest part of our TPV being in home services, Q4 and Q1 would represent the lower end of seasonality. There’s also some just calendaring in Q4 across the whole payments landscape. When you think about November and December and shorter business days, that plays into it. So we typically think about Q4 and Q1 as the lower end from a seasonality perspective when it comes to payments in Q2 and Q3 and specifically in home services where there is a lot more activity we typically see the higher end of TPV from a seasonality perspective there. The second question, I believe, was about take rate and things that we can continue to do expand that obviously.