Everbridge Announces Strong Second Quarter 2021 Financial Results Highlighted by a Record Number of Critical Event Management (CEM) Wins

BURLINGTON, Mass.–(BUSINESS WIRE)–#Earnings–Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM), today announced its financial results for the second quarter ended June 30, 2021.

“We delivered strong second quarter results, building off the momentum we established at the beginning of the year,” said David Meredith, Chief Executive Officer of Everbridge. “Both revenue and profitability exceeded our guidance, and we capitalized on growing demand for our CEM suite and our Public Warning capabilities. We completed a record 19 CEM transactions in the second quarter, which drove a record average selling price in the second quarter. With a growing number of digital and physical critical events, our mission is more important now than ever before. We are looking forward to sustaining our momentum in the second half of the year and our confidence is reflected in our increased guidance for the year, as we continue to execute on our strategy and further penetrate the fast-growing critical event management market.”

Second Quarter 2021 Financial Highlights

• Total revenue was $86.6 million, an increase of 33% compared to $65.4 million for the second quarter of 2020.
• GAAP operating loss was $(27.4) million, compared to $(14.5) million for the second quarter of 2020.
• Non-GAAP operating loss was $(1.9) million, compared to non-GAAP operating income of $1.5 million for the second quarter of 2020.
• GAAP net loss was $(33.8) million, compared to $(19.2) million for the second quarter of 2020. GAAP net loss per share was $(0.89), based on 38.0 million basic and diluted weighted average common shares outstanding, compared to $(0.56) for the second quarter of 2020, based on 34.4 million basic and diluted weighted average common shares outstanding.
• Non-GAAP net income was $1.5 million, compared to non-GAAP net income of $1.2 million in the second quarter of 2020. Non-GAAP diluted net income per share was $0.03, based on 45.1 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.03 for the second quarter of 2020, based on 35.7 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $0.5 million, compared to $3.6 million in the second quarter of 2020.
• Cash flow from operations was an outflow of $(5.1) million, compared to an outflow of $(3.9) million for the second quarter of 2020.
• Free cash flow was an outflow of $(9.0) million, compared to an outflow of $(7.2) million for the second quarter of 2020.

Recent Business Highlights

• Ended the second quarter with 5,890 global enterprise customers, up from 5,340 at the end of the second quarter of 2020.
• Launched the industry’s first Critical Event Management (CEM) Certification™ Program for assessing an organization’s enterprise resilience, and announced Discover, Goldman Sachs, NBCUniversal, Dow and Alexion among the FORTUNE 500^TM leaders earning the prestigious Best in Enterprise Resilience^TM designation through their rigorous CEM Certification^TM benchmarking.
• Reinforced Everbridge’s position as a leader in critical event management by hosting the third of our COVID-19: Road to Recovery symposiums which have brought together tens of thousands of executives from 150 countries across business, healthcare, and government. The virtual leadership summit in May featured marquee keynote speakers including the 42^nd President of the United States Bill Clinton, as well as former United States Secretary of State Dr. Madeleine K. Albright, Chairman & Editor-In-Chief of Forbes Media Steve Forbes, Co-Founder of Apollo Global Management and owner of the Philadelphia 76ers Josh Harris, and a special address by Director-General of the World Health Organization (WHO) Dr. Tedros Adhanom Ghebreyesus.
• Announced that Estonia, home to 1.3 million residents and a popular destination for 3.2 million annual tourists, and one of the world’s most advanced digital societies, selected Everbridge’s countrywide Public Warning solution to help keep its residents and visitors safe and informed in the event of an emergency.
• Successfully deployed Everbridge Public Warning Cell Broadcast technology at three of the largest Mobile Network Operators in the United Kingdom, as a key technology component of the UK Government’s first-ever, nationwide emergency alerting system, planned for rollout later this year.
• Announced a next-generation 911 solution designed to improve emergency dispatch in the United States. Through a partnership with RapidSOS, Everbridge 911 Connect™, an extension of the company’s CEM for Public Safety solutions, delivers enhanced location accuracy and provides unique caller identification information on wireless 911 calls, leveraging an expanded life safety database of over 250 million residential and business contacts.
• Announced a partnership with Tech Data, a leading global IT distribution and solutions aggregator serving more than 125,000 partners, to help organizations automate the response to, and build resilience against, critical events while opening new routes to market for Everbridge.
• Partnered with WizNucleus, a leading provider of cyber and physical security solutions to nuclear and electric grid customers, to increase digital and physical security for some of the world’s largest nuclear, electric, and other utility companies and expand CEM adoption within the energy industry.

Financial Outlook

Based on information available as of today, Everbridge is issuing guidance for the third quarter and full year 2021 as indicated below.

(All figures in millions, except per share data)

Conference Call Information

About Everbridge, Inc.

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 or other incidents such as product recalls or supply-chain interruptions, over 5,800 global customers 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 devices, and track progress on executing response plans. Everbridge serves 8 of the 10 largest U.S. cities, 9 of the 10 largest U.S.-based investment banks, 47 of the 50 busiest North American airports, 9 of the 10 largest global consulting firms, 8 of the 10 largest global automakers, 9 of the 10 largest U.S.-based health care providers, and 7 of the 10 largest technology companies in the world. Everbridge is based in Boston with additional offices in 20 cities around the globe. 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 and loss on extinguishment of convertible notes, capped call modification and the tax impact of such adjustments. The tax impact was considered immaterial for fiscal year 2020 and quarters within fiscal year 2020; however, the prior period tax impact presentation has been recast to align with our 2021 reporting presentation. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, loss on extinguishment of convertible notes 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 third quarter of 2021 and the full fiscal year 2021. 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 Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021. 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.

Contacts

Everbridge Contacts:
Jeff Young

Media Relations

jeff.young@everbridge.com
781-859-4116

Joshua Young

Investor Relations

joshua.young@everbridge.com
781-236-3695

Read full story here