EverCommerce Inc. (NASDAQ:EVCM) shares plunged more than 16% on Friday following the company’s reported Q3 results, with EPS of ($0.08) coming in worse than the Street estimate of $0.08. Revenue was $158.1 million, missing the Street estimate of $160.17 million.
According to the analysts at Deutsche Bank, disappointing Q3 results were below expectations as the evolving macro backdrop had a meaningful impact on the company’s marketing-based solutions.
While cross-sell KPIs remain strong and the company continues to benefit from the ongoing secular trends in digital payments, the analysts expect the focus will remain on the pace of growth going forward as investors will likely be concerned about the headwinds facing marketing spreading to the company’s subscription business. The analysts lowered their price target to $12 from $16 while maintaining their buy rating.