Everbridge's (NASDAQ:EVBG) Posts Q4 Sales In Line With Estimates But Stock Drops 19.1%

Kayode Omotosho /
2022/02/24 4:29 pm EST
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Critical event management software company Everbridge (NASDAQ:EVBG) reported results in line with analyst expectations in Q4 FY2021 quarter, with revenue up 36% year on year to $102.8 million. However, guidance for the next quarter was less impressive, coming in at $98.9 million at the midpoint, being 4.53% below analyst estimates. Everbridge made a GAAP loss of $10.5 million, improving on its loss of $24.5 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) Q4 FY2021 Highlights:

  • Revenue: $102.8 million vs analyst estimates of $102.1 million (small beat)
  • EPS (non-GAAP): -$0.05 vs analyst estimates of -$0.19 ($0.14 beat)
  • Revenue guidance for Q1 2022 is $98.9 million at the midpoint, below analyst estimates of $103.6 million
  • Management's revenue guidance for upcoming financial year 2022 is $429 million at the midpoint, missing analyst estimates by 4.22% and predicting 16.4% growth (vs 35.9% in FY2021)
  • Free cash flow of $3.5 million, up from negative free cash flow of $7.52 million in previous quarter
  • Customers: 6,135, up from 6,010 in previous quarter
  • Gross Margin (GAAP): 69.8%, down from 71.1% same quarter last year

“We exceeded our fourth quarter and full year 2021 guidance, driven by the continued success of our strategic CEM and Population Warning solutions,” 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 $75.6 million, to $102.8 million.

Everbridge Total Revenue

And unsurprisingly, this was another great solid for Everbridge with revenue up 36% year on year. But the growth did slow down compared to last quarter, as the revenue increased by just $6.08 million in Q4, compared to $10 million in Q3 2021. We'd like to see revenue increase by a greater amount each quarter, but a one-off fluctuation is usually not concerning.

Guidance for the next quarter indicates Everbridge is expecting revenue to grow 20.3% year on year to $98.9 million, slowing down from the 39.5% year-over-year increase in revenue the company had recorded in the same quarter last year. For the upcoming financial year management expects revenue to be $429 million at the midpoint, growing 16.4% compared to 35.9% increase in FY2021.

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Customer Growth

You can see below that Everbridge reported 6,135 customers at the end of the quarter, an increase of 125 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 Q4 Results

With a market capitalization of $1.67 billion Everbridge is among smaller companies, but its more than $488 million in cash and positive free cash flow over the last twelve months put it in a very strong position to invest in growth.

We enjoyed seeing Everbridge’s impressive revenue growth this quarter. And we were also glad to see the improvement in gross margin. On the other hand, it was unfortunate to see that Everbridge's revenue guidance for the full year miss analyst's expectations and it indicates quite a significant slowdown in growth. Overall, this quarter's results were not the best we've seen from Everbridge. The company is down 19.1% on the results and currently trades at $37.49 per share.

Everbridge may have had a tough quarter, but does that actually create an opportunity to invest 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.