What happened
Shares of EverCommerce (EVCM 3.29%), a service commerce platform, were rising quickly today after the company reported its fourth-quarter financial results. The company's top line beat Wall Street's expectation for the quarter and EverCommerce issued full-year revenue guidance that likely impressed investors.
As a result, the software stock climbed 16.9% as of 2:14 p.m. ET.
So what
EverCommerce reported a non-GAAP (adjusted) loss of $0.09 for the quarter, which was worse than the $0.02 loss in the year-ago quarter and much lower than analysts' consensus earnings estimate of $0.08 per share.
But investors looked past the company's bottom-line results and instead focused their attention on the fact that EverCommerce's sales climbed 19% from the year-ago quarter to $161.8 million and outpaced Wall Street's average estimate of $157.9 million.
EverCommerce CEO Eric Remer said in prepared remarks that the company exceeded its revenue guidance for the year "despite increased macroeconomic headwinds that affected our marketing services solutions in the second half of the year."
Remer also noted that the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) of $35.2 million -- up 20% year over year -- was also ahead of guidance and was partially the result of EverCommerce reining in some of its costs.
Now what
Management issued 2023 revenue guidance in the range of $680 million to $700 million, which is in line with the analysts' average sales estimate of $690 million for the year.
With the company beating Wall Street's average top-line estimate for the quarter and issuing solid revenue guidance for the full year, investors were unsurprisingly optimistic about the software company today.
