Everbridge Announces Strong First Quarter Financial Results – QNT Press Release


First Quarter Revenue and Adjusted EBITDA Exceed High-End of Guidance

Everbridge, Inc. (NASDAQ:EVBG), the global leader in critical event management (CEM) and national public warning solutions, today announced its financial results for the first quarter ended March 31, 2022.

“We delivered continued momentum across our strategic CEM bundles for the use cases of Business Operations, People Resilience, Digital Operations and Smart Security, and experienced an increased network effect from our Public Safety solution bundle in regions around the world,” said Vernon Irvin, co-Chief Executive Officer and Chief Revenue Officer of Everbridge. “We are seeing early evidence that the actions we took last quarter to streamline, integrate, and reduce complexity in our key offerings are paying off.”

Patrick Brickley, co-Chief Executive Officer and Chief Financial Officer of Everbridge, added, “Demand for our CEM technology drove healthy year-over-year growth in average selling prices and the number of six-figure deals. To help us better focus and execute on these demand trends, we are undertaking a strategic realignment of resources to help drive sustainable revenue growth with a meaningful increase in profitability and positive cash flow through 2022 and beyond.”

First Quarter 2022 Financial Highlights

  • Total revenue was $100.4 million, an increase of 22% compared to $82.2 million for the first quarter of 2021.
  • GAAP operating loss was $(19.2) million, compared to a GAAP operating loss of $(18.2) million for the first quarter of 2021.
  • Non-GAAP operating loss was $(1.6) million, compared to non-GAAP operating income of $2.3 million for the first quarter of 2021.
  • GAAP net loss was $(19.1) million, compared to ($21.8) million for the first quarter of 2021. GAAP net loss per share was $(0.48), based on 39.4 million basic and diluted weighted average common shares outstanding, compared to $(0.60) for the first quarter of 2021, based on 36.4 million basic and diluted weighted average common shares outstanding.
  • Non-GAAP net loss was $(0.6) million, compared to non-GAAP net income of $8.0 million in the first quarter of 2021. Non-GAAP diluted net loss per share was $(0.02), based on 39.4 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.18 for the first quarter of 2021, based on 43.6 million diluted weighted average common shares outstanding.
  • Adjusted EBITDA was $2.6 million, compared to $5.3 million in the first quarter of 2021.
  • Cash flow from operations was an inflow of $7.7 million, compared to an inflow of $19.8 million for the first quarter of 2021.
  • Free cash flow was an inflow of $1.5 million compared to an inflow of $15.5 million for the first quarter of 2021.

Recent Business Highlights

  • Ended the first quarter with 6,224 global enterprise customers, up from 5,748 at the end of the first quarter of 2021.
  • Awarded contracts by two of the largest German mobile network operators (MNOs) to deliver Cell Broadcast emergency alerting capabilities to help power the German government's nationwide public warning system.
  • Unveiled a unique collaboration bringing together AWS, Sinch, and Kaleyra, among other technology leaders, to offer an out-of-band critical communications platform to support humanitarian efforts in Ukraine.
  • Partnered with Atalait, a leading managed technology services integrator, to deliver enterprise resilience capabilities to organizations across Mexico, leading to wins with international healthcare provider BUPA México Compañía de Seguros S.A. de C.V. and leading health services administrator Vitamédica S.A. de C.V. / Vitamédica Administradora S.A. de C.V., among others.
  • Reflecting network effects, after having already won Saudi Araba's countrywide public warning system, Everbridge entered a contract to support Saudi Arabia's future-planned “smart city,” named NEOM, leveraging Everbridge's Smart Security capabilities to keep Saudi Arabia's locals, visitors, and assets safe in the face of potential threats.
  • Recognized by Frost & Sullivan for innovative leadership in earning the top spot in the Frost Radar™: Command and Control Software for Critical National Infrastructure (CNI), Airports, and Safe Cities, Global, 2021.
  • Awarded for Best Global Culture and Best Product & Design Teams by leading workplace culture site Comparably.

Strategic Realignment

Everbridge's Board of Directors has approved a strategic realignment program as part of the Company's effort to accelerate its product and go-to-market integration. This program will help the company realign and optimize resources to drive the top priorities that will better position Everbridge for sustainable growth and an even stronger global presence over the long term. The Company anticipates the strategic realignment program to drive annualized savings of $13 million to $18 million, with $13 million to $21 million in charges associated with these actions.

Financial Outlook

Based on information available as of today, Everbridge is issuing guidance for the second quarter and full year 2022 as indicated below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2022

 

 

Full Year 2022

 

Revenue

$

101.8

 

to

$

102.2

 

 

$

428.2

 

to

$

432.8

 

Revenue growth

 

17

%

 

 

18

%

 

 

16

%

 

 

17

%

GAAP net loss

$

(46.0

)

 

$

(45.0

)

 

$

(135.0

)

 

$

(133.0

)

GAAP net loss per share

$

(1.18

)

 

$

(1.15

)

 

$

(3.38

)

 

$

(3.33

)

Non-GAAP net income (loss)

$

(5.2

)

 

$

(4.2

)

 

$

10.7

 

 

$

12.7

 

Non-GAAP net income (loss) per share

$

(0.13

)

 

$

(0.11

)

 

$

0.23

 

 

$

0.27

 

Adjusted EBITDA

$

(1.0

)

 

$

 

 

$

33.5

 

 

$

35.5

 

 

Full Year 2022 Guidance

Issued Feb 24th, 2022

 

Revenue

$

426.0

 

to

$

432.0

 

Revenue growth

 

15

%

 

 

17

%

GAAP net loss

$

(141.0

)

 

$

(139.0

)

GAAP net loss per share

$

(3.55

)

 

$

(3.50

)

Non-GAAP net income per share

$

10.2

 

 

$

12.2

 

Non-GAAP net income per share

$

0.22

 

 

$

0.26

 

Adjusted EBITDA

$

33.0

 

 

$

35.0

 

(All figures in millions, except per share data)

Conference Call Information

What:

Everbridge First Quarter 2022 Financial Results Conference Call

When:

Monday, May 9, 2022

Time:

4:30 p.m. ET

Live Call:

(833) 685-0904, domestic

 

(412) 317-5740, international

Replay:

(877) 344-7529, passcode 9087340, domestic

 

(412) 317-0088, passcode 9087340, international

Webcast (live & replay):

https://edge.media-server.com/mmc/p/frbjpbjf

About Everbridge

Everbridge, Inc. (NASDAQ:EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations' operational response to critical events in order to Keep People Safe and Organizations Running™. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events including IT outages, cyber-attacks, product recalls or supply-chain interruptions, over 6,200 customers in 76 countries rely on the Company's Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication modalities, and track progress on executing response plans. For more information, visit www.everbridge.com, read the company blog, and follow on Twitter and Facebook.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow.

Non-GAAP operating income/(loss) excludes stock-based compensation, change in fair value of contingent consideration and amortization of acquired intangible assets. Non-GAAP net income/(loss) excludes stock-based compensation, change in fair value of contingent consideration, amortization of acquired intangible assets, accretion of interest on convertible senior notes, gain/(loss) on extinguishment of debt and capped call modification and the tax impact of such adjustments. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, gain/(loss) on extinguishment of debt and capped call modification, change in fair value of contingent consideration and stock-based compensation expense. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs.

We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge's financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the second quarter of 2022 and the full fiscal year 2022. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers' expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to increase sales of our other applications; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; the impact of the global COVID-19 pandemic on our operations and those of our customers and suppliers; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 and our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners.

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

March 31,

 

 

December 31,

 

 

2022

 

 

2021

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

492,054

 

 

$

488,035

 

Restricted cash

 

2,088

 

 

 

3,880

 

Accounts receivable, net

 

109,484

 

 

 

120,995

 

Prepaid expenses

 

16,512

 

 

 

13,740

 

Deferred costs and other current assets

 

28,277

 

 

 

28,469

 

Total current assets

 

648,415

 

 

 

655,119

 

Property and equipment, net

 

12,521

 

 

 

12,185

 

Capitalized software development costs, net

 

24,501

 

 

 

22,720

 

Goodwill

 

525,264

 

 

 

531,163

 

Intangible assets, net

 

208,871

 

 

 

219,319

 

Restricted cash

 

867

 

 

 

843

 

Prepaid expenses

 

1,591

 

 

 

1,916

 

Deferred costs and other assets

 

36,268

 

 

 

35,750

 

Total assets

$

1,458,298

 

 

$

1,479,015

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

9,990

 

 

$

16,002

 

Accrued payroll and employee related liabilities

 

34,839

 

 

 

36,725

 

Accrued expenses

 

16,509

 

 

 

13,884

 

Deferred revenue

 

235,726

 

 

 

223,579

 

Convertible senior notes

 

8

 

 

 

8

 

Other current liabilities

 

14,281

 

 

 

14,132

 

Total current liabilities

 

311,353

 

 

 

304,330

 

Long-term liabilities:

 

 

 

 

 

 

 

Deferred revenue, noncurrent

 

10,083

 

 

 

14,261

 

Convertible senior notes

 

809,690

 

 

 

665,695

 

Deferred tax liabilities

 

5,070

 

 

 

16,082

 

Other long-term liabilities

 

14,363

 

 

 

15,958

 

Total liabilities

 

1,150,559

 

 

 

1,016,326

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock

 

40

 

 

 

39

 

Additional paid-in capital

 

675,984

 

 

 

853,664

 

Accumulated deficit

 

(360,023

)

 

 

(388,112

)

Accumulated other comprehensive loss

 

(8,262

)

 

 

(2,902

)

Total stockholders' equity

 

307,739

 

 

 

462,689

 

Total liabilities and stockholders' equity

$

1,458,298

 

 

$

1,479,015

 

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

<td …

 

Three Months Ended

 

 

March 31,

 

 

2022

 

 

2021

 

Revenue

$

100,375

 

 

$

82,210

 

Cost of revenue

 

31,857

 

 

 

25,280

 

Gross profit

 

68,518

 

 

Full story available on Benzinga.com





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