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EngageSmart (ESMT) Reports Q3 Earnings: What Key Metrics Have to Say

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For the quarter ended September 2023, EngageSmart reported revenue of $97.73 million, up 24% over the same period last year. EPS came in at $0.07, compared to $0.04 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $95.54 million, representing a surprise of +2.30%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $0.06.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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: 42.5 million versus 46.08 million estimated by two analysts on average.
  • Total Number of Customers: 119,627 versus the two-analyst average estimate of 117,463.
  • Customers in the Enterprise Solutions segment: 3,406 versus 3,471 estimated by two analysts on average.
  • Customers in the SMB Solutions segment: 116,221 compared to the 113,992 average estimate based on two analysts.
  • Revenue- SMB Revenue: $55.48 million compared to the $55.29 million average estimate based on four analysts.
  • Revenue- Enterprise Revenue: $42.25 million versus the four-analyst average estimate of $40.17 million.
View all Key Company Metrics for EngageSmart here>>>

Shares of EngageSmart have returned +21% over the past month versus the Zacks S&P 500 composite's -1.1% 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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