EverCommerce Inc. (NASDAQ:EVCM) Q3 2023 Earnings Call Transcript

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Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Wayne Trinh with Piper Sandler. Your line is now open.

Wayne Trinh: This is Wayne Trinh on for Clarke Jeffries. I noticed there are 11,000 added enabled customers. And of those 7,000 are using more than one solution. So about 63% over the 50% or so last year. Is that a function of the payments mandate? And should we expect this to tick up over time?

Matt Feierstein: Thanks for the question, Wayne. I appreciate it. I think the payments mandate is obviously just one tactic when we think about the overall strategy of payment enablement. Obviously, when we think about cross-sell payments is where we are furthest along and there are a variety of strategies and tactics in play to continue to drive payment enablement and all the down funnel metrics in the payments funnel. So again, mandate one, but we’re obviously thinking about a lot of other things, product expansion, et cetera, to drive increased payment take. And then there’s obviously a cross-sell of other products. Whether it be in customer experience solutions, marketing technology, we have the opportunity to continue to grow the expansion of utilization of more than one product.

I think you’ve seen nice progress as we’ve split those metrics into two, try to give you a little bit more transparency, but a lot of opportunity for us to continue to grow both the payments cross-sell as well as other cross-sell.

Wayne Trinh: Got it. That makes sense. And then you guys mentioned price increases last quarter. Do you anticipate maintaining that into 2024 and maybe continuing it? Thank you.

Marc Thompson: So price increases will be a continuing phenomenon. I mean we always look at those and think a lot about price to value, as we’ve mentioned before. I think this year, we became more aggressive than we were in the prior year in terms of rolling out price increases across the continuum of our solutions. And we’ll continue to do that really for the foreseeable future. It’s obviously a great lever. And as we continue to invest in our products and continue to find new ways to create value for our customers. I think it’s a great opportunity.

Wayne Trinh: Got it. Thank you.

Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Pat Walravens with JMP Securities. Your line is now open.

Aaron Kimson: Hi, this is Aaron on. Is there any additional color you can give on the revenue-based customer count growth expectations on Kickserv going forward?

Eric Remer: Kickserv added minimal customers. It was a very small tuck-in acquisition, really focused on providing real technology into the base of customers. We had a sound market solution called Joist, kind of more of a little bit upmarket for SMBs and still SMBs called Service Fusion. And Kickserv really sits right in the middle of that. So nominal from a kind of revenue profitability and customer standpoint.

Aaron Kimson: That’s helpful. And then maybe just as a follow-up. Marc, you mentioned direct was about 7%. When we think about modeling OpEx going forward, which lines you see the most benefit there?

Marc Thompson: It’s really across the board, literally across the board. I mean people are represented through support and success in our COGS line right on through the OpEx categories.

Aaron Kimson: Got it.

Operator: Thank you. I’m currently showing no further questions at this time. I’d like to hand the conference back over to Mr. Eric Remer for closing remarks.

Eric Remer: Well, thank you so much. The EverCommerce team continues to work extremely hard to achieve key short- and long-term objectives for the company. We remain extremely excited about the opportunities and growth prospects in front of us. Thank you again for joining the call today.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.

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