EverCommerce: I Like The Restructuring, But Not The Price

Summary

• I recommend a 'Hold' rating on EverCommerce, as restructuring has been priced in, leaving little near-term upside for long-term investors.
• The company’s focus on three core workflow and payments software units should improve profitability and revenue quality, but near-term revenue will decline.
• Projected single-digit revenue growth and 97% net revenue retention lag peers like Weave, which trades at a lower multiple, despite stronger metrics.
• While I applaud management’s strategic overhaul, the current valuation is fair; I see no compelling bargain at these levels.

MoMo Productions

Investment Thesis

With this analysis, I am beginning my coverage on EverCommerce Inc. (NASDAQ:EVCM) by recommending a ‘Hold’ rating for long-term investors. As I’ll explain throughout my analysis, the company is in the midst of an ongoing restructuring and consolidating

Analyst’s Disclosure:I/we have a beneficial long position in the shares of WEAV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.