The Colorado-based tech firm, EverCommerce Inc. (NASDAQ: EVCM) specializes in offering customized Software-as-a-Service (SaaS) solutions. The firm operates for small and medium-sized businesses that are service-based.
Quarter 3 Financial Highlights for EVCM
The company achieved consistent revenue growth and exceeded the top end of the guidance range in terms of adjusted EBITDA. It maintained a balanced approach towards growth and profitability with 11% YoY revenue growth and 24% adjusted EBITDA margin.
The company’s board authorized a $50 Million increase and a 12-month extension of the share repurchase program. Payment revenue grew through an 11% YoY Total payment volume (TPV) increase and an increased take rate. Additionally, during the quarter, the company repurchased 160K shares for $1.62 Million, at an average price of $9.83.
Highlights of the Previous Quarter
One of the major achievements for the firm is that they were able to decrease their pre-tax income loss to 76% per year-on-year (YoY) in Q2. However, they hit their quarterly operating income positively for the first time in recent quarters. Now, even in the previous quarters, the company is continuously decreasing its pretax losses.
When dug deep into the statements of profit and loss, it was found that the company may reach break-even soon. This will drastically improve the EVCM stock price performance.
Technical Analysis and Prediction of the EVCM Stock Price
The EVCM stock price reached a high of $13.47 at the time of May this year. At this level, the bullish pressure was intense, which made the trend negative, as can be seen in the graph above. The bears broke some significant support levels till now, further solidifying the downtrend.
At the press time, the EVCM stock price is trading at the level of $8.13. Despite some significant fundamental improvements in the quarterly results published on 6th November, the bears are still in control.
The stock price has made a gap-down opening to its immediate support level of $8.33. The RSI, on the other hand, has also gone down to its oversold zone of 30 while its SMA is above 40.
EVCM Price Prediction
The EVCM stock price is expected to rise further for three reasons. Firstly, the RSI has reached the oversold zone. Secondly, there is a significant gap between the RSI and its SMA, which will eventually be bridged. Finally, positive fundamentals may take some time to be fully absorbed by the market, potentially driving the price even higher.
Conclusion
EverCommerce, Inc. (NASDAQ: EVCM) posted its recent quarterly updates on the market. On one hand, the fundamentals showed significant improvement, but on the other hand, the bears pushed the price lower. The price prediction is bullish due to some significant indications.
Technical Levels
- Support Levels: $8.33 and $7.30
- Resistance Levels: $9.46 and $10.61
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/11/08/evcm-stock-price-strong-q3-results-will-bulls-perform-well/