EverCommerce Inc. (NASDAQ:EVCM) On The Verge Of Breaking Even

With the business potentially at an important milestone, we thought we'd take a closer look at EverCommerce Inc.'s (NASDAQ:EVCM) future prospects. EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium-sized businesses in the United States and internationally. The US$2.1b market-cap company posted a loss in its most recent financial year of US$41m and a latest trailing-twelve-month loss of US$16m shrinking the gap between loss and breakeven. As path to profitability is the topic on EverCommerce's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 8 industry analysts covering EverCommerce, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$16m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 91%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving EverCommerce's growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for EverCommerce

One thing we would like to bring into light with EverCommerce is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in EverCommerce's case is 71%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of EverCommerce to cover in one brief article, but the key fundamentals for the company can all be found in one place – EverCommerce's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:

1. Valuation: What is EverCommerce worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether EverCommerce is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EverCommerce’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.