Eric Richard Remer, CEO of EverCommerce Inc. (NASDAQ:EVCM), recently sold shares of the company in a series of transactions. On November 19, 20, and 21, Remer sold a total of 25,249 shares at prices ranging between $11.0276 and $11.5199 per share. The total value of these transactions amounted to $284,287.
These sales were conducted under a Rule 10b5-1 trading plan, which allows executives to schedule trades in advance to avoid concerns about insider trading. Following these transactions, Remer holds significant shares indirectly through Buckrail Partners, LLC, with 7,945,232 shares remaining.
The sales reflect a part of Remer’s ongoing financial strategy and provide insight into executive trading activities at EverCommerce, a company specializing in prepackaged software services.
In other recent news, EverCommerce reported a modest increase in its Q3 2024 revenue, with a year-over-year growth of 0.9%, totaling $176.3 million. The company’s pro forma revenue, excluding sold fitness solutions, grew by 4.3%. Adjusted EBITDA was noted at $44.5 million, marking a margin of 25.3%. The company’s payments and subscription services sectors showed strong performance, contributing to revenue growth, despite a decline in Marketing Technology Solutions revenue.
EverCommerce anticipates Q4 2024 revenue to be between $168 million and $172 million, with an adjusted EBITDA projected to be between $43 million and $46 million. The company has maintained its full-year guidance, excluding the impact of sold fitness assets, and aims for reacceleration in organic growth in 2025 and beyond. However, the company’s Net Revenue Retention (NRR) dipped to 96%-97% due to past pricing changes, with an expectation for stabilization by the end of 2024.
EverCommerce’s 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 anticipate significant changes in headcount or retraining related to the new decentralized structure. As the company approaches the 2025 budget, no immediate strategic changes are expected, with a focus remaining on transformation and optimization efforts.
InvestingPro Insights
To provide additional context to Eric Richard Remer’s recent stock sales, let’s examine some key financial metrics and insights from InvestingPro for EverCommerce Inc. (NASDAQ:EVCM).
According to InvestingPro data, EverCommerce’s market capitalization stands at $2.07 billion, indicating a mid-cap company in the software services sector. The company’s revenue for the last twelve months as of Q3 2023 was $693.21 million, with a modest revenue growth of 3.82% over the same period.
One InvestingPro Tip highlights that management has been aggressively buying back shares. This share repurchase program could be seen as a vote of confidence in the company’s future prospects, potentially offsetting the impact of executive sales like Remer’s.
Another relevant InvestingPro Tip notes that net income is expected to grow this year. This projection aligns with the company’s improving financial performance, as evidenced by the 31.99% EBITDA growth in the last twelve months.
It’s 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 may have influenced Remer’s decision to sell some shares, possibly 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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