Company: EVCM
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001853145-25-000017
Chunk: 95

Company: EverCommerce Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 95
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.0 %14.0 %— %General and administrative22.0 %23.0 %(1.0)%Depreciation and amortization11.8 %15.2 %(3.4)%Loss on held for sale and impairments0.1 %8.1 %(8.0)%Total operating expenses90.0 %103.1 %(13.1)%

While revenue growth remains a key focus, we remain committed to continued expansion of gross margin, net income and Adjusted EBITDA through ongoing transformation initiatives. As a percentage of revenue, cost of revenues declined from 22.9% for the three months ended March 31, 2024, to 21.9% for the three months ended March 31, 2025, an improvement of approximately 100 basis points resulting in higher gross margin. As a percentage of revenue, the combination of cost of revenue, sales and marketing, product development and general and administrative costs declined from 79.8% for the three months ended March 31, 2024 as compared to 78.2% for the three months ended March 31, 2025, an improvement of 220 basis points. A discussion on primary drivers of cost reductions resulting in improved margin follows in the subsequent sections.

RevenuesThree months ended March 31,Change20252024$(in thousands)Revenues:Subscription and transaction fees$137,779 $133,382 $4,397 Other4,494 4,470 24 Total revenues$142,273 $137,852 $4,421 

Revenues increased $4.4 million, or 3.2%, for the three months ended March 31, 2025, as compared to the same period in 2024. The growth of revenue from subscription and transaction fees was 3.3% during the three months ended March 31, 2025, as compared to the prior year period, while other revenue was consistent with the prior year period. The majority of our revenue growth is attributable to the successful delivery of system of action capabilities to our SMBs in our verticals of home services, health and wellness. The subscription and transaction fees revenue increase consists primarily of increases from (a) business management software and (b) billing and payment solutions. Business management software revenues drove a $4.0 million increase in subscription and transaction fees revenue for the three months ended March 31