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EngageSmart (ESMT) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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EngageSmart reported $94.41 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 27.8%. EPS of $0.07 for the same period compares to $0.04 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $93.08 million, representing a surprise of +1.43%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.07.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how EngageSmart performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Transactions Processed: 43.8 million versus 44.66 million estimated by three analysts on average.
  • Customers in the Enterprise Solutions segment: 3400 versus the two-analyst average estimate of 3416.
  • Total Number of Customers: 113200 versus the two-analyst average estimate of 112551.
  • Customers in the SMB Solutions segment: 109700 compared to the 109135 average estimate based on two analysts.
  • Revenue- SMB Revenue: $53.10 million compared to the $52.86 million average estimate based on four analysts.
  • Revenue- Enterprise Revenue: $41.31 million compared to the $40.31 million average estimate based on four analysts.
View all Key Company Metrics for EngageSmart here>>>

Shares of EngageSmart have returned -1.9% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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