EngageSmart, Inc. (NYSE:ESMT) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET

Company Representatives

Bob Bennett - Chief Executive Officer

Cassandra Hudson - Chief Financial Officer

Josh Schmidt - Investor Relations

Conference Call Participant

Terry Tillman - Truist Securities

Bhavin Shah - Deutsche Bank

John Davis - Raymond James

Bob Napoli - William Blair

Michael Rackers - Needham

Madison Schrage - KeyBanc

Operator

Good morning and thank you for attending today’s EngageSmart Second Quarter 2022 Earnings Call. My name is Aaron and I’ll be your moderator today. Currently all phone lines are in a listen-only mode. Later there will be an opportunity to ask questions during our question-and-answer session. [Operator Instructions].

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

Josh Schmidt

Thank you. Good morning, and welcome to our fourth quarterly earnings call as a public company. With me on today’s call 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 www.investors.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.

On this call, we will discuss certain non-GAAP metrics, including adjusted EBITDA. 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 www.investors.engagesmart.com.

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

Bob Bennett

Thank you, Josh for that succinct, yet comprehensive introduction. Good morning, everyone. And thank you for joining us on our call to discuss our Q2 results. We are excited to report another strong quarter marked by high growth and outstanding profitability that yet again exceeded our expectations.

EngageSmart delivered record revenue of $73.9 million, representing 43% year-over-year growth, all organic and adjusted EBITDA of $12 million, which is 16.2% of revenue for the quarter.

Our success is the result of our strong business model and excellent execution as we continued to simplify customer and client engagement through vertically tailored true SaaS solutions with integrated payments. SMB’s strong growth of 56% year-over-year, combined with Enterprise’s highly durable growth of 29% year-over-year, reflects the strength of our solutions and the dedication of our teammates.