Skip to main content
No. of Recommendations: 6
EngageSmart LLC.

Sounds like a bunch of lawyers that crank out prenups.

They IPO'd last week. I no longer invest, but bought a few shares today. Sometimes you gotta say
"What the Heck", make your move.

Here's what they say they do: We offer vertically-tailored customer engagement software and
integrated payment capabilities that simplify our customers’ engagement with their clients by
driving digital adoption and self-service.
Blah, blah, blah.

Here's what I think they do: They sell subscriptions for cloud software to doctors, dentists, city
and town governments, insurance companies, non-profits, and utilities. ESMT's software helps these
customers enroll, schedule, and track their clients, present them with a bill or statement, and
offer them a bunch of easy payment options. A good example is City of Boston's parking ticket

Healthcare, government, utilities, financial services -- their customers are recession defensive.

I use (NYSE: BILL) as a comp. In the last 12 months...

ESMT had $183M in revenue.
BILL had $238M in revenue.

ESMT grew revenue 53% year over year.
BILL grew revenue 51% year over year.

ESMT had 124% net dollar retention rate.
BILL had 124% net dollar retention rate.

ESMT had 75% Gross Margin.
BILL had 74% Gross Margin.

ESMT had 63% Operating Expenses.
BILL had 122% Operating Expenses.

ESMT has a Market Cap of $5.7 billion.
BILL has a Market Cap of $25.6 billion.

ESMT's problem is that it's making a GAAP profit. Plus BILL uses words like AI and machine learning.

That, and BILL just issued a secondary offering for $1.3 billion and raised $500 million in
convertible debt to buy two firms that let's them guide next year for...wait for it...100% growth!!!

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.