EverCommerce Inc. (NASDAQ:EVCM) CEO Eric Richard Reimer recently sold shares of the company in a series of transactions. On November 19, 20 and 21, Reimer sold a total of 25,249 shares at prices between $11.0276 and $11.5199 per share. The total value of these transactions was $284,287.
The sales were made under a Rule 10b5-1 trading plan, which allows executives to schedule trades in advance to avoid concerns about insider trading. Following these transactions, Reimer holds a significant stake indirectly through Buckrell Partners, LLC, which has 7,945,232 shares outstanding.
The sale reflects part of Reimer’s ongoing financial strategy and provides insight into executive trading activities at EverCommerce, which specializes in prepackaged software services.
In other recent news, EverCommerce reported a 0.9% year-over-year increase in its Q3 2024 revenue, totaling $176.3 million. The company’s pro forma revenue, excluding fitness solutions sold, rose 4.3 percent. Adjusted EBITDA was noted at $44.5 million, a margin of 25.3%. The company’s payments and subscription services segments showed strong performance, driving revenue growth despite a decline in marketing technology solutions revenue.
EverCommerce expects Q4 2024 revenue to be between $168 million and $172 million, with an adjusted EBITDA expected to be between $43 million and $46 million. The company maintained its full-year guidance, excluding the impact of sold fitness assets, and aims to accelerate organic growth in 2025 and beyond. However, the company’s net revenue retention (NRR) fell to 96%-97% due to past price swings, with expectations to stabilize by the end of 2024.
EverCommerce CEO Eric Remer and CFO Ryan Siurek led the Q3 2024 earnings call, emphasizing the company’s commitment to transformation and optimization initiatives. The company continues to explore M&A opportunities but does not expect significant changes in headcount or retraining related to the new decentralized structure. As the company approaches its 2025 budget, no immediate strategic changes are expected, with the focus on transformation and optimization efforts.
InvestingPro Insights
To provide additional context to Eric Richard Reimer’s recent stock sales, let’s look at EverCommerce Inc. (NASDAQ:EVCM) Review some key financial metrics and insights from InvestingPro.
EverCommerce has a market capitalization of $2.07 billion, indicating a mid-cap company in the software services sector, according to data from InvestingPro. The company’s revenue for the trailing twelve months as of Q3 2023 was $693.21 million, with a marginal increase in revenue of 3.82% over the same period.
An investing pro tip highlights that management is aggressively buying back shares. This share repurchase program can be seen as a vote of confidence in the company’s future prospects, potentially reducing the impact of executive sales like Reimer’s.
Another related InvestingPro tip notes that net income is expected to increase this year. This projection is consistent with the company’s improving financial performance, as evidenced by 31.99% EBITDA growth over the past twelve months.
It is worth noting that EverCommerce is trading near its 52-week high, with the current price at 94.33% of its peak. This strong stock performance likely influenced Reimer’s decision to sell some shares for portfolio diversification or personal financial planning.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for EverCommerce, providing a deeper understanding of the company’s financial health and market position.
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