2856

Everbridge (NASDAQ:EVBG) Posts Better-Than-Expected Sales In Q2, Provides Encouraging Quarterly Guidance


Kayode Omotosho /
2021/08/09 4:09 pm EDT
Add to Watchlist

Critical event management software company Everbridge (NASDAQ:EVBG) announced better-than-expected results in the Q2 FY2021 quarter, with revenue up 32.5% year on year to $86.6 million. Everbridge made a GAAP loss of $33.8 million, down on its loss of $19.2 million, in the same quarter last year.

Is now the time to buy Everbridge? Access our full analysis of the earnings results here, it's free.

Everbridge (EVBG) Q2 FY2021 Highlights:

  • Revenue: $86.6 million vs analyst estimates of $83.9 million (3.25% beat)
  • EPS (non-GAAP): $0.03 vs analyst estimates of -$0.23 ($0.26 beat)
  • Revenue guidance for Q3 2021 is $94.3 million at the midpoint, above analyst estimates of $92.6 million
  • The company lifted revenue guidance for the full year, from $358.8 million to $363.3 million at the midpoint, a 1.25% increase
  • Free cash flow was negative -$9.04 million, down from positive free cash flow of $15.5 million in previous quarter
  • Customers: 5,890, up from 5,748 in previous quarter
  • Gross Margin (GAAP): 68%, down from 69.2% previous quarter

“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.

Founded in 2002, Everbridge supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.

Climate change is expected to result in an increasing number of extreme weather events, globally, impacting both supply chains and personal security. This in turn increases the need for automated systems for critical events, meaning that there should be an increasing demand for software such as Everbridge.

Sales Growth

As you can see below, Everbridge's revenue growth has been very strong over the last year, growing from quarterly revenue of $65.3 million, to $86.6 million.

Everbridge Total Revenue

And unsurprisingly, this was another great quarter for Everbridge with revenue up an absolutely stunning 32.5% year on year. But the growth did slow down compared to last quarter, as the revenue increased by just $4.43 million in Q2, compared to $6.6 million in Q1 2021. We'd like to see revenue increase by a greater amount each quarter, but a one-off fluctuation is usually not concerning.

Analysts covering the company are expecting the revenues to grow 28.2% over the next twelve months, although we would expect them to review their estimates once they get to read these results.

There are others doing even better. Founded by ex-Google engineers, a small company making software for banks has been growing revenue 90% year on year and is already up more than 400% since the IPO in December. You can find it on our platform for free.

Customer Growth

You can see below that Everbridge reported 5,890 customers at the end of the quarter, an increase of 142 on last quarter. That's in line with the customer growth we have seen over the last couple of quarters, suggesting that the company can maintain its current sales momentum.

Everbridge Customers

Key Takeaways from Everbridge's Q2 Results

With market capitalisation of $5.44 billion Everbridge is among smaller companies, but its more than $559.8 million in cash and positive free cash flow over the last twelve months put it in a very strong position to invest in growth.

It was good to see Everbridge deliver strong revenue growth this quarter. And we were also excited to see it that it outperformed Wall St’s revenue expectations. On the other hand, there was a deterioration in gross margin. Overall, this quarter's results seemed pretty positive and shareholders can feel optimistic. The company is up 1.77% on the results and currently trades at $147 per share.

Should you invest in Everbridge right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our full report which you can read here, it's free.

One way how to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.