DENVER - EverCommerce Inc. (NASDAQ: EVCM), a prominent provider of software as a service (SaaS) solutions for small and medium-sized businesses in the service sector, announced a reduction in its debt costs through the repricing of its $533.5 million term loan. The repricing, effective today, has adjusted the interest rate to the Secured Overnight Financing Rate (SOFR) plus 2.50%, a decrease from the previous rate of SOFR plus 3.00%. This change is expected to save the company approximately $3.3 million annually in interest expenses based on the principal amount outstanding as of September 30, 2024. According to InvestingPro data, the company maintains a healthy current ratio of 1.81, with liquid assets exceeding short-term obligations.
The company confirmed that there were no significant changes to the credit facility's terms other than the repricing. The move is part of EverCommerce's ongoing strategy to transform and optimize its financial structure. In a previous step to manage its interest rate exposure, EverCommerce executed interest rate swaps with a combined notional amount of $425 million, aiming to mitigate the risks associated with floating rates. With a market capitalization of $2.24 billion, the stock is trading near its 52-week high, showing strong momentum. InvestingPro analysis indicates the stock appears undervalued based on its Fair Value assessment.
EverCommerce specializes in offering integrated SaaS solutions tailored to the needs of service-based businesses in various sectors, including home services, healthcare, and wellness, through its EverPro, EverHealth, and EverWell brands. The company supports over 690,000 service-based businesses worldwide, aiming to foster growth, streamline operations, and improve customer retention. With annual revenue of $693.21 million and positive analyst expectations for future profitability, the company shows promising growth potential. For deeper insights and additional ProTips, visit InvestingPro, where you'll find comprehensive analysis and the full Pro Research Report.
The information in this article is based on a press release statement from EverCommerce. The forward-looking statements within the release, as per the Private Securities Litigation Reform Act of 1995, highlight anticipated annual interest cost savings but also acknowledge potential risks and uncertainties that could affect the company's financial outcomes. EverCommerce has made it clear that while they may update forward-looking statements in the future, they are under no obligation to do so.
In other recent news, EverCommerce disclosed its Q3 2024 earnings, highlighting a modest revenue growth. Total (EPA:TTEF) revenue for the quarter reached $176.3 million, marking a 0.9% increase year-over-year. The company's adjusted EBITDA rose to $44.5 million, with a margin of 25.3%. A key contributor to this growth was the company's focus on payments and subscription services, despite a noted decline in Marketing Technology Solutions revenue.
Looking forward, EverCommerce anticipates Q4 2024 revenue to be between $168 million and $172 million, with an adjusted EBITDA of $43 million to $46 million. The company is maintaining its full-year guidance, excluding the impact of sold fitness assets, and is aiming for a reacceleration in organic growth in 2025 and beyond.
EverCommerce's leadership has expressed optimism about the company's direction and continues to explore merger and acquisition opportunities. Despite a dip in Net Revenue Retention due to past pricing changes, the company has seen a 25% year-over-year increase in customers enabled for multiple solutions, signaling potential for higher spending and retention. These are among the recent developments for EverCommerce.
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