Everbridge (NASDAQ:EVBG) Q1: Beats On Revenue But Customer Growth Slows Down

Adam Hejl /
2022/05/09 4:22 pm EDT

Critical event management software company Everbridge (NASDAQ:EVBG) reported Q1 FY2022 results that beat analyst expectations, with revenue up 22% year on year to $100.3 million. The company expects that next quarter's revenue would be around $102 million, which is the midpoint of the guidance range. That was in roughly line with analyst expectations. Everbridge made a GAAP loss of $19 million, improving on its loss of $21.7 million, in the same quarter last year.

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Everbridge (EVBG) Q1 FY2022 Highlights:

  • Revenue: $100.3 million vs analyst estimates of $98.8 million (1.57% beat)
  • EPS (non-GAAP): -$0.02 vs analyst estimates of -$0.18
  • Revenue guidance for Q2 2022 is $102 million at the midpoint, roughly in line with what analysts were expecting
  • The company reconfirmed revenue guidance for the full year, at $430.5 million at the midpoint
  • Free cash flow of $1.52 million, down 56.5% from previous quarter
  • Customers: 6,224, up from 6,135 in previous quarter
  • Gross Margin (GAAP): 68.2%, down from 69.2% same quarter last year

“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.

Founded as a reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.

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Sales Growth

As you can see below, Everbridge's revenue growth has been very strong over the last year, growing from quarterly revenue of $82.2 million, to $100.3 million.

Everbridge Total Revenue

This quarter, Everbridge's quarterly revenue was once again up a very solid 22% year on year. But the revenue actually decreased by $2.45 million in Q1, compared to $6.08 million increase in Q4 2021. We'd like to see revenue increase each quarter, but a one-off fluctuation is usually not concerning and the management is guiding for growth to rebound in the next quarter.

Guidance for the next quarter indicates Everbridge is expecting revenue to grow 17.7% year on year to $102 million, slowing down from the 32.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Ahead of the earnings results the analysts covering the company were estimating sales to grow 15.4% over the next twelve months.

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Customer Growth

You can see below that Everbridge reported 6,224 customers at the end of the quarter, an increase of 89 on last quarter. That is a little slower customer growth than what we are used to seeing lately, suggesting that the customer acquisition momentum is slowing a little bit.

Everbridge Customers

Key Takeaways from Everbridge's Q1 Results

With a market capitalization of $1.57 billion Everbridge is among smaller companies, but its more than $492 million in cash and the fact it is operating close to free cash flow break-even put it in a robust financial position to invest in growth.

Everbridge topped analysts’ revenue expectations this quarter, even if just narrowly. That feature of these results really stood out as a positive. On the other hand, it was unfortunate to see the slowdown in customer growth and gross margin deteriorated a little. Overall, this quarter's results were not the best we've seen from Everbridge. The company is flat on the results and currently trades at $35.82 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 actionable report which you can read here, it's free.

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