Company: EVCM
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001853145-25-000017
Chunk: 96

Company: EverCommerce Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 96
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, 2025, due to an expansion in our number of customers, certain price increases across our portfolio, and an increase in rebate revenue from contracted suppliers due to growth of membership subscriptions in group purchasing programs. Billing and payment solutions revenues drove an increase of $0.4 million during the three months ended March 31, 2025. The increase in the three-month period was primarily due to higher transaction volumes processed through our payment platforms, partially offset by lower revenue due to the Fitness Solutions divestiture. Subscription and transaction fees revenue also includes pre-divestiture revenue from Fitness Solutions of $5.8 million for the three months ended March 31, 2024 (see Note 4. Fitness Solutions Disposition in this Quarterly Report on Form 10-Q). Other revenues were relatively consistent as compared to the prior year period. 

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Cost of Revenues

 Three months ended March 31,Change 20252024$ (dollars in thousands)Cost of revenues (exclusive of depreciation and amortization presented separately below)$31,188$31,501$(313)

Cost of revenues decreased by $0.3 million, or 1.0%, for the three months ended March 31, 2025 as compared to the same period in 2024. As a percentage of revenue, cost of revenues decreased slightly in the three-month period from 22.9% to 21.9%, an improvement of 100 basis points, due to cost discipline through ongoing transformation initiatives.

Sales and Marketing

 Three months ended March 31,Change 20252024$ (dollars in thousands)Sales and marketing$28,783$27,564$1,219 

Sales and marketing expenses increased by $1.2 million, or 4.4%, for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was driven primarily by an additional $0.5 million in advertising expense, $0.4 million increase in personnel and compensation expenses, and $0.2 million in outsourced services.

Product Development

 Three months ended March 31,Change20252024$ (dollars in thousands)Product development$19,963$19,306$657 

Product development expenses increased by $0.7 million, or 3.4%, for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was