EverCommerce Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a modest increase in revenue but a significant rise in net losses compared to the previous year. Total revenues for the third quarter reached $176.3 million, a 0.9% increase from $174.7 million in the same period of 2023. For the nine months, revenues totaled $523.8 million, up 3.5% from $505.9 million in the prior year. The growth was primarily driven by a 3.7% increase in subscription and transaction fees, which amounted to $137.6 million for the third quarter and $409.3 million for the nine months.
Despite the revenue growth, EverCommerce reported a net loss of $9.2 million for the third quarter, compared to a loss of $614,000 in the same period last year. For the nine months, the net loss was $28.9 million, up from $22.3 million in 2023. The increase in losses was attributed to higher operating expenses, including a notable rise in stock-based compensation, which increased to $8.2 million for the third quarter from $5.9 million in 2023.
The company’s operating income improved to $9.9 million for the third quarter, up from $6.3 million a year earlier, and $12.2 million for the nine months, compared to $2.8 million in 2023. However, comprehensive losses also increased, reflecting broader challenges in the market, including geopolitical tensions and inflationary pressures.
Strategically, EverCommerce has been active in acquisitions and divestitures. In August 2023, the company acquired Norman’s Dojo Inc. (Kickserv) for approximately $15 million, aimed at enhancing its offerings in the Home Services vertical. Conversely, EverCommerce divested its Fitness Solutions segment, with the sale of North American Fitness completed in March 2024 and UK Fitness in July 2024. The divestiture resulted in a loss of $5 million for the nine months ended September 30, 2024, alongside $6.4 million in goodwill impairment charges.
As of September 30, 2024, EverCommerce had total assets of $1.45 billion and total liabilities of $680.4 million, with stockholders' equity at $770.7 million. The company reported cash and cash equivalents of $101.6 million, reflecting a net increase in cash for the nine months. The company continues to face challenges in its marketing technology solutions, which saw a decline in revenue due to reduced consumer spending. Overall, EverCommerce's performance highlights a complex landscape of growth and operational challenges as it navigates its strategic initiatives.
About EverCommerce Inc.
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