DENVER - EverCommerce Inc. (NASDAQ: EVCM), a prominent provider of SaaS solutions for service-oriented small and medium-sized businesses (SMBs), has announced an expansion of its share repurchase program. The company's Board of Directors has approved an additional $50 million allocation, increasing the total authorization to $200 million through December 31, 2025.
As of Monday, EverCommerce has repurchased approximately 14.6 million shares, amounting to $136 million. Chairman and CEO Eric Remer commented on the company's financial strategy, stating, "With the margin expansion and growth in cash flow from operations we've achieved over the last 12-18 months, we have the flexibility to expand our share repurchase program while also making key investments in our business that we believe can result in growth acceleration."
The repurchase program allows the company to buy back shares opportunistically in the open market at prevailing prices or through off-market negotiated transactions. EverCommerce is adhering to the pricing and volume conditions of Rule 10b-18 for open market repurchases and may also engage in Rule 10b5-1 plans to facilitate the process.
The initiative does not require EverCommerce to purchase a specific number of shares and may be adjusted or suspended at the company's discretion. Funding for the buybacks is expected to come from the company's available cash reserves.
EverCommerce specializes in providing integrated SaaS solutions tailored for the home, health, and wellness service industries under its EverPro, EverHealth, and EverWell brands. The company supports over 690,000 service-based businesses worldwide and aims to enhance growth, streamline operations, and improve customer retention through its platform.
This expansion of the share repurchase program is based on a press release statement by EverCommerce and reflects the company's current capital allocation strategy.
InvestingPro Insights
EverCommerce Inc. (NASDAQ: EVCM) has recently made headlines with their expanded share repurchase program, reflecting a strategic approach to capital allocation. The company, with a market capitalization of $1.98 billion, is navigating the financial markets with a focus on growth and shareholder value. According to InvestingPro data, EverCommerce boasts a revenue growth of 7.21% over the last twelve months as of Q1 2024, underscoring the company's increasing financial strength.
InvestingPro Tips highlight that while EverCommerce is not currently profitable, with a negative P/E ratio of -48.63 and an adjusted P/E ratio of -75.07 from the last twelve months as of Q1 2024, net income is expected to grow this year.
This suggests potential for future profitability, which could be a factor in the company's decision to repurchase shares. Moreover, the company's liquid assets exceed short-term obligations, indicating a solid liquidity position that can support the buyback initiative.
It is worth noting that the company is trading at high EBIT and EBITDA valuation multiples, and the Relative Strength Index (RSI) suggests the stock is in overbought territory. Despite these factors, EverCommerce has experienced a strong return over the last month, with a 17.36% price total return, which may have contributed to the Board's confidence in the share repurchase program.
For those interested in deeper analysis, InvestingPro offers additional insights. There are currently 9 more InvestingPro Tips available for EverCommerce at https://www.investing.com/pro/EVCM, which can provide investors with a more comprehensive understanding of the company's financial health and market position. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full potential of InvestingPro's expert financial analysis.
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