EngageSmart, Inc. (NYSE:ESMT) Q3 2022 Results Conference Call November 3, 2022 8:30 AM ET

Company Participants

Josh Schmidt - IR

Bob Bennett - CEO

Cassandra Hudson - CFO

Conference Call Participants

Bob Napoli - William Blair

Bhavin Shah - Deutsche Bank

John Davis - Raymond James

Michael Rackers - Needham

Josh Beck - KeyBanc

Raquel Betesh - JPMorgan

Tyler DuPont - Bank of America

Operator

Good morning. Thank you for attending today's EngageSmart Third Quarter 2022 Earnings Call. My name is Shelby, and I will be your moderator today.

I'll now turn the call over to Josh Schmidt of EngageSmart. Josh?

Josh Schmidt

Thank you. Good morning, and welcome to our Q3 2022 quarterly earnings call. With me on the call today are Bob Bennett, Chief Executive Officer; and Cassandra Hudson, Chief Financial Officer. Our earnings press release, supplemental presentation and associated Form 8-K can be found at investor.engagesmart.com.

During this call, we will be discussing certain forward-looking information. Actual results could differ materially from those contemplated by these forward-looking statements. Please refer to the Risk Factors section of our annual report on Form 10-K and other SEC filings for more information on the risks regarding these forward-looking statements and risk factors associated with our business. All metrics discussed during this call are non-GAAP unless otherwise noted. A reconciliation of non-GAAP metrics to the nearest GAAP metric as well as statements regarding why management believes these measures provide useful information can be found in our earnings press release and supplemental presentation, both of which are available on the Investor Relations section of our website. This call is being webcast live and will be available for replay on our website at investor.engagesmart.com.

I would now like to turn the call over to our CEO, Bob Bennett.

Bob Bennett

Thank you for that introduction, Josh. Good morning, everyone, and thanks for joining us on our call to discuss our quarterly results today. Q3 marked our one-year anniversary of being a public company, and it has certainly been an eventful year. We have repeatedly beaten our revenue and adjusted EBITDA guidance every quarter since our IPO. This is a testament to the strength of our business model and the huge need for our offerings to the ongoing quest to digitize business and consumer engagement in legacy industries.

To date, the market dynamic has remained relatively strong despite the macroeconomic flux. This is due to the continued demand for mental health and wellness services and the durability and predictability of services to help consumers ease the payment process for their bills and charitable donations. And our results speak for themselves. EngageSmart delivered record revenue of $78.8 million, representing 42% year-over-year growth, all organic and adjusted EBITDA of $13.2 million, which is 16.8% of revenue for the quarter.