Good evening, everyone. Welcome to the Citizens Technology Conference. My name's Aaron Kimpson. I'm a Software Research Analyst here at Citizens. It's great to have EverCommerce at the conference again this year. I'm really excited to be joined on stage by Evan Berlin, who heads the EverHealth unit, and Brad Korch, who runs IR. How was the trip from Colorado? It was great. Easy. Thanks for having us. Awesome. So you guys are obviously in your quiet period, right? Is there any kind of disclosure you want to give? Yeah, we don't have a formal quiet period. We just abide by Reg FD here. But of course, we report earnings next Thursday. So our comments today are largely based on results through September 30 of last year. And because we're so close, I'm going to read just a quick safe harbor statement. So statements made today are not historical in nature and may constitute forward-looking statements. Such statements are based on the current expectations and beliefs of management. Actual results may differ materially from these forward-looking statements due to risks and uncertainties that are described in more detail in our filings with the SEC. Awesome. Got that out of the way. So maybe going way back in time, right? Back to the IPO, when I was thinking about what I wanted to talk with you guys about today. In 2020, EverPro was 58% of revenue. EverHealth was 14%. EverWell, where you've since divested the fitness piece but still have the salon and spa piece, was 14%. 9% was classified as other. I think that was the last time that you guys broke down the business in that way. But kind of given the divestiture of the fitness solutions, differences in growth rates, the large acquisition of DrChrono in 2021, which flows into EverHealth, is there any color you can give on how we should think about the relative proportions of those businesses as a percentage of revenue today? And which verticals or subverticals were maybe growing fastest as of September 30th? Yeah. Yeah. And just before I start, when we gave those stats around the IPO, I was really looking at customer types as opposed to kind of business structure. So you had payments customers. We would say EverPro really meant they were home field services customers. Same thing with MarTech customers. We'd say, okay, it's a plumber. We'll call it EverPro. When I give the stats just now, it'll be more business formation. So you'll have EverPro, EverWell, EverHealth, and MarTech as sort of big segments. Payments today being part of EverPro. So EverPro today is just over half our revenue, just over 50%. EverHealth is around a quarter. MarTech is just under 20%. And EverWell, which is really our salon and spa software since we divested the fitness assets, that's just under 5%. And when you think about, I won't give specific growth rates. When we think about growth rates, obviously, EverPro is above the average of EverCommerce, kind of upper single digits, near double digits growth. EverHealth is around the EverCommerce growth rate, around mid-single digit. The salon and spa assets within EverWell, those are actually, there's two assets, and one of them is growing quite well. So that's actually into the double digits and one of the better performers at the company. And then MarTech, as we've talked about a lot recently, is kind of flat to down. What's interesting about MarTech is the margin profile is a lot lower in MarTech. So the contribution EBITDA as we look at internally is closer to kind of like a 10% margin on that revenue. So its impact, while larger on revenue, is much smaller on profitability. Got it. That's really helpful. And then I guess kind of getting at my thesis. I think the title of my note last quarter was 25% adjusted EBITDA margins and a potential 25 reacceleration. So Eric talked about the company feeling set up for a potential revenue reacceleration in the back half of 2025 into 2026. How much of that potential reacceleration do you feel like is within your control from internal initiatives versus kind of at the mercy of the macro? Yeah. I mean, yeah, Eric made that comment, I think, on the third quarter call, maybe at a conference after that as well. That's really much more predicated on our internal execution and structure of the company and not macro. When we talked about macro impacts over the last few years, it's been largely in the marketing technology business, which is more kind of nice to have than need to have. When you look at our SaaS software, one, if you're a plumber and your business is up 10%, down 10%, you need to buy the software, right? The macro is on the margin. And then when you look at sort of, particularly in our two largest verticals, EverPro and EverHealth, EverPro, our customers are largely break/fix. So it's sort of like it's got some macro resistance there. And then in the EverHealth space, I mean, it's largely health care and physician practice, which is, again, more macro non-dependent. And so when you think about sort of, okay, Eric's comments and where we're going with that, well, the investments we're making today are really around improving the go-to-market, improving payments adoption, improving product. And that's really the bigger driver, we think, of potential revenue acceleration. Got it. And I guess the natural follow-up there would be, which areas of the business, area or areas, are you most excited about reinvesting into to go ahead and reaccelerate growth? Yeah, I'll take that one. I mean, I think payments is ultimately our biggest growth opportunity. We've talked about that ad nauseam with you. You think about the payments motion, our penetration on the market opportunity or our customer base is about 12%. Payments makes up about 17% of our overall revenue, and that comes with a 95% + gross margin profile, so it's the most accretive thing we can do in the business in terms of driving both growth and profitability, and first and foremost, our customers actually need to be able to process payments to collect from their customers and just run a good business, and that's not vertical dependent. That's the same thing in EverPro and EverHealth and in EverWell, so that's ultimately the number one thing we can do. In terms of driving that, it's not just the go-to-market motion and the customer experience, but it's actually having the workflow embedded in our core systems of action in each workflow or in each vertical to enable our customers to process as many payments as possible as they can with us. And so we're investing in the products in our key verticals, both EverHealth and EverPro and EverWell, to be able to further take advantage of that opportunity. I think on top of that, and just from an EverHealth perspective, investing in our core products and integrating the ecosystem further is a key priority for 2025, not just to be more competitive and stay competitive from a product perspective, but just to deliver our customers more value. When you think about what we've been able to assemble, we own, we talk about systems of action, kind of the core workflows in each vertical. In In EverHealth, that's practice management, electronic medical records. It's also patient engagement, patient payments, as I just touched on, revenue cycle management, and so ultimately, further integrating that to make the customer experience more integrated and cohesive, so we're providing that digital end-to-end solution that we've talked about really since going public. That's a key priority and growth lever for this year. Very helpful. And then of your, let's call it 700,000-ish customers at the end of 3Q, you had 212,000 customers that had more than one solution enabled. Only 88,000 of those customers were characterized as actively utilizing more than one solution. So can you help us think through the delta there and how to get that number up, whether it's via producing more tailored functionality, educating customers about the solutions you offer, or other different factors? Yeah, that's a great question. I mean, most of those customers, or most of the metric in that number are payments customers. And so they've been set up. They've been enabled for payments. They have a merchant account. Getting them to use it is product functionality. It's education. It's our go-to-market and kind of customer success, kind of the expand part of land and expand motion to get those customers to really change their business process, right? Either they're moving from a different solution or they're moving from paper, pencil, and a whiteboard and maybe cash and check and an unintegrated credit card or debit card processing solution. And so moving them onto our system and driving that activation is kind of the second stage of the funnel. And then ultimately getting those customers to process more and more with us really drive wallet share expansion. That goes back to customer education, the product workflows I touched on, and ultimately that customer success motion that we use both humans and automation to ensure that our customers understand we have all of these features to enable people to process more and more payments with us. So it's really think of it like a funnel. We've done a really good job of driving the top of the funnel. We have to continue to drive each leg of that or each step in that funnel down to ultimately driving total payment volume. Understood. Evan, you got a promotion this year, right? Congrats. I think at the beginning of the year, now leading the EverHealth vertical. So you've been with the company pretty much since the beginning. Most recently, you were COO for about two years. There's a lot of questions here. But I guess first, I feel like your business, EverHealth, is not understood by the street on the whole, right? When people think about EverCommerce, they think more on the EverPro side. Can you provide an overview for investors who may be less familiar with EverHealth, kind of from its genesis to the DrChrono acquisition in 2021 and what that added to where you're at today? Sure. So the business is made up of 11 acquisitions we did from 2017 to 2021, kind of culminating with the DrChrono acquisition, which was at the end of 2021. I touched on it earlier, but think when you walk into a doctor's office, the practice management solutions that enable scheduling and billing, communication with you as a patient, the electronic medical records components that really take place in that kind of clinical workflow in the back room when you're getting an exam, regardless of the specialty, all the patient engagement communication in terms of pre-visit forms, fax, which in the health care industry is still a heavily utilized mode of communication for a lot of different reasons. And then all of the billing components in terms of both insurance clearinghouse. We own our own clearinghouse, so we send claims directly to payers, as well as the patient component that we touched on from a credit card processing perspective. Then we've got a revenue cycle management service, which we've built out, and we do billing on behalf of our customers. So what we've been up to the past really two or three years is further integrating that set of assets into one brand called EverHealth, and then ultimately focused on the operations and the product to have more and more of a cohesive, integrated solution that we can go sell to customers, that we can upsell our existing customers, and not sell them point solutions, which really was the genesis of how we built EverCommerce and ultimately EverHealth. You end up with a lot of different point solutions that small practice providers are paying for in an unintegrated fashion. What they really want is an integrated solution that they can pay one bill to one vendor, one number for customer support. And we're not there yet, but we continue to make really good strides in providing that to our customers. And ultimately believe that when we get there, we will have a differentiated offering that provides really a competitive moat against the competition. It enables us to capture market share in what is a very large TAM. And unfortunately, we're all getting older and sicker. And so the growth rates in this space are not declining anytime soon. Absolutely. So you started the brand consolidation in 2023, right? Just to dig in a little bit more there, where are you at on that journey? And what are your top two or three strategic priorities as you take on this new role for the last couple of months now? Yeah, thank you. I think we made good progress in terms of. I I touched on kind of brand, product, and operations. Because we built the business inorganically, building and integrated systems, all the enabling systems under the covers to allow us to operate one business versus a set of point solutions is something we've been investing in and focusing on from an operational standpoint for the past 18 months or so. I think in terms of priorities this year, we're focused on investing in the product and continuing to mature our operation, and then I'd say really our commercial operation in terms of our go-to-market motions and our customer experience. That's with humans and automation to just deliver more value to existing customers, make it easier. We talk all the time internally, make it easier for customers to find us, to buy from us, to buy more from us, to use the products and train other people on their staff, how to use the workflows in both the clinical and kind of the business setting, so those are kind of key areas of prioritization for 2025. Really helpful, and then shifting to the non-health piece of the business, last November, the company appointed Josh McCarter, who used to be the CEO of Mindbody when I acquired ClassPass in 2021, to lead the EverPro side of the business. How did you guys come to the conclusion that having individuals responsible for the two major segments is the optimal way to run the business at this point? Yeah, no, before I start, yes. I mean, Josh started last fall. We're super excited to have him, just as we're excited to have Evan leading EverHealth. I mean, the two leading those organizations will be a tremendous help to our growth rate. When you think about, I mean, if I go back in time when I was either in your shoes or on the buy side, and the number of times I heard a company say, well, we're going to reorganize our business and everything's going to be great. If I had a nickel for every time, I'd have a lot of nickels. This is not that. This is really the natural evolution of a business when you're doing a lot of acquisitions and putting things together. So if you go way back to the pre-IPO days, when we bought all these different solution sets, we put a leader in charge of each one of them, and we called them presidents. Around the time of the IPO, we said, okay, well, we're going to focus on grouping these solution sets by end customer a little bit more. And we're going to put a GM structure over each of them. And we're really coordinating and making sure that product and pricing and everything all made sense. After that, then we got on a phase where you were consolidating solutions with each other. So we had a salon software in the U.S. called SalonBiz. We had salon software in New Zealand called Timely. We should put that under one management team. It's basically doing the same thing and realize some synergies there. The natural evolution is, okay, well, you still have silos of people doing things, different systems, whatever. And you get to, Evan talked about EverHealth, but the same thing with EverPro. It makes much more sense to have a strong leader over the top of these products that go towards a certain customer set. And then focusing on improved go-to-market, product, customer support, et cetera, with a functional-based integrated management team. So that's essentially what we've done here. And then the investments then that we're making are around how do you broaden your go-to-market approach? How do you look at either different channels or partners? How do you focus on integrated product code development and sharing across things? Like that's just part of the natural evolution of our company, which again started 10 years ago as $25 million PaySimple, right? So I think when you look at it under that lens, it's not like, well, how did you decide what the right organizational structure is? It just kind of makes sense. Absolutely. And then given Josh's background in the wellness space at Mindbody, is he also responsible for the remnants of EverWell? He's not. And like I said earlier, that's roughly 5% or so of total revenue. And of the two assets within that organization, the New Zealand asset, which is a solution called Timely, which is focused on the Australia, New Zealand, and U.K. market for salons, that's actually one of, if not the fastest growing solution within EverCommerce and doing quite well. And so we have basically, as I just mentioned, sort of the evolution, the management teams of that has been combined, and it's run out of New Zealand. And so there's a leader based in New Zealand that kind of oversees that group. I think one thing I'd add is just, based on the way we built the business, we've kind of swung the pendulum multiple times in terms of where people sit. How do we generate value for our internal customers, our employees, and our actual customers in terms of functional expertise sitting kind of at the corporate level or sitting within the business? And I think this evolution is to put more of those experts, more of those resources closer to the customer inside of Josh's organization, my organization, and others, so that when you think about marketing or business operations, you have those people working really closely with the product and the go-to-market and the customer teams on how do we make this a better business and kind of improve the operation and doing that from the customer lens versus more of a corporate lens, which we did on purpose as we bought a lot of really small companies that might have had one operational resource or a couple of marketers. And we got no synergies by having 40 organizations with two marketers in each part of the business. We get much more synergies if we had 60 total marketers that ran marketing with a best-in-class tech stack across EverCommerce. So it's been an evolution, kind of multiple swings of the pendulum. But to Brad's point, I think this evolution is really quite positive for customers and for employees and ultimately for shareholders. Understood. And then I guess thinking competitively, right? Given EverPro's focus on contractors, service technicians, can you help us think about where EverCommerce fits in versus ServiceTitan, which went public last year but has, I think, kind of bigger customers? You have Housecall Pro, which is a late-stage private company that generally has very small customers. Are you ever in the same deals on the fringes as either of those two, or generally just attacking separate areas of what's a massive market? Yeah, no. And I think if you look at ServiceTitan's S-1 IPO and their kind of first earnings call, the story they tell is quite similar to ours. But the precise part of the market they serve is very different. So I think in their public releases, they're at roughly 8,000 customers for a revenue size that's not that different than all of EverCommerce's. When you look at, and there's different ways to slice these numbers, but if you look at what we would call kind of our core home and field services customers, we're like maybe 350,000 customers. And we've talked many times in the past about 80% + of our customers spending less than $2,000 a year. There's just a difference in sort of the kind of target market that we're going after. They maybe touch a hair, but not really. When you get to a Housecall Pro or a Jobber, yeah, there's potentially some more overlap there. I think, again, we have a bunch of different solutions that target different parts of the market. And so you get to our Service Fusion product, which is sort of our kind of mainstream home and field services business management software. There may be some more features in Service Fusion that even a Housecall Pro wouldn't have. And Housecall Pro probably has some more features than sort of some of our entry-level invoicing solutions have. I think the more important part, which you kind of alluded to in your question, is that this overall market is vast. And when you look at the home and field services market, why it's so attractive and why there are a few companies kind of attacking it, bless you, is that you have a number of customers that really are potential customers as greenfield. A lot of folks that are using pen, paper, Excel, a point solution that's not integrated, whatnot. They're using different payments providers or taking cash and check. And so unlike some other markets, like yes, you can win business from other solutions, but there's a lot of greenfield and a lot of opportunity there. Really helpful. All right, we've got a few minutes left. I've got more questions, but I'll go ahead and open it up to the audience. If anyone in the audience has questions, give everyone a chance. They won't give you a break. No. Here we go. So you did over 53 acquisitions, right, from 2016 to 2023, 49, I think, from 2016 up to the IPO, so mostly before the IPO. In recent years, yeah, you've been more measured with the acquisitions, kind of given the benefit of hindsight. Is it fair to say the company maybe bit off a bit more than it could chew and is still in the process of digesting all the acquisitions? Or was it necessary to get that critical mass of SMB customers and now go ahead and cross-sell into it? I think the very last point was absolutely true. You had a business plan back in 2016 around leading with business management software and embedding payments where you needed software, right? There was an element of, okay, we need to do some acquisitions to get to relevance quicker. That was definitely part of it. In terms of a need to pause, to reorganize, or to recalibrate, I don't think that that's accurate. I mean, I think we went public in July of 2021. We all know what happened that fall and early the next year in SaaS multiples. That is more of the reason why we slowed down M&A than anything else. I think through much of 2022 into 2023, there was still a much, still a little bit, but still a much bigger discrepancy in multiples between where public companies are trading and where kind of the private smaller entities are. And so that caused us to take a pause. When we had the pause, we took the opportunity to look more internally and looking at the evolution of the organizational structure, looking at systems and processes and whatnot. And we realized, well, there's a tremendous opportunity internally to keep improving the business if we can't do M&A. And I think if you look at the first three quarters of 2024 versus first three quarters of 2022, our EBITDA margins are up 600 basis points, right? And so the proof is in the pudding in terms of what we did. Now, if you think about the organizational structure, the systems, and all that that I mentioned, I think coming out of all of this transformation project that we're kind of over the, I would say, the most uncertain and disruptive parts, we have the opportunity to be more active in M&A. Not saying that we will or won't, but the ability to plug stuff into a structure that's functionally organized and focused on defined end customers is just a much bigger opportunity for us. Absolutely. I think I'll go ahead and ask one more. So you're majority owned by private equity, Providence Strategic Growth, and Silver Lake, I think own about 80% combined. Each have two board seats. How would you characterize the degree of involvement in the business of each? Yeah, I mean, look, we're a public company. We run board governance like a public company. They each have two board seats each, and so not the majority of the board, but a decent part of it. Look, they're active like any person that owns combined 80% of a company would be. I wouldn't say overly active, but more importantly, I would say they're available to us to help. I mean, we've used them to leverage some of the reorganizational work and optimization work. They were helpful there, some of the kind of outsourcing type stuff and getting expertise on AI as we look to use that more and more in our business. So I would say, yes, they're active, but not overly active and certainly very helpful. Awesome. I think that's a good spot to leave it. Brad, Evan, thank you guys for coming out again this year. Thank you.