EngageSmart Inc (ESMT, Financial), a leading provider of customer engagement software and integrated payments solutions, announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a significant increase in its revenue and net income, driven by persistent demand for its SaaS solutions.
Financial Performance
EngageSmart Inc (ESMT, Financial)'s total revenue for Q3 2023 was $97.7 million, marking a 24% increase from $78.8 million in the same quarter of 2022. The company's net income stood at $11.5 million, representing an 11.8% net income margin, compared to $6.8 million, or 8.6% net income margin, in the third quarter of 2022. The adjusted EBITDA was $18.8 million, representing a 19.3% adjusted EBITDA margin, compared to $13.2 million, or 16.8% adjusted EBITDA margin, for the third quarter of 2022.
Business Segments Performance
The company's SMB segment achieved a third-quarter revenue growth of 29%, driven by new customers and expansion from existing customers. The Enterprise segment delivered revenue growth of 18%, despite the divestiture of the HealthPay24 solution, driven by a record bookings quarter and the signing of the largest customer in the company's history.
Acquisition by Vista Equity Partners
EngageSmart Inc (ESMT, Financial) also announced that it has entered into a definitive agreement to be acquired by Vista Equity Partners for approximately $4.0 billion. The company expects to close the transaction in the first quarter of 2024.
Financial Statements
The financial statements and the Quarterly Report Form 10-Q are available on the EngageSmart investor relations website and on the U.S. Securities and Exchange Commission website.
About EngageSmart
EngageSmart is a leading provider of vertically tailored customer engagement software and integrated payments solutions. The company serves 116,200 customers in the SMB Solutions segment and 3,400 customers in the Enterprise Solutions segment across several core verticals: Health & Wellness, Government, Utilities, Financial Services, and Giving.
Explore the complete 8-K earnings release (here) from Engagesmart Inc for further details.
