2856

Everbridge's (NASDAQ:EVBG) Q2 Earnings Results: Revenue In Line With Expectations, Customer Growth Accelerates


Adam Hejl /
2022/08/09 4:13 pm EDT
Add to Watchlist

Critical event management software company Everbridge (NASDAQ:EVBG) reported results in line with analyst expectations in Q2 FY2022 quarter, with revenue up 18.8% year on year to $102.9 million. The company expects that next quarter's revenue would be around $110.8 million, which is the midpoint of the guidance range. That was in roughly line with analyst expectations. Everbridge made a GAAP loss of $36.1 million, down on its loss of $33.8 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 FY2022 Highlights:

  • Revenue: $102.9 million vs analyst estimates of $102 million (0.94% beat)
  • EPS (non-GAAP): $0.03 vs analyst estimates of -$0.12 ($0.15 beat)
  • Revenue guidance for Q3 2022 is $110.8 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 was negative $13.9 million, down from positive free cash flow of $1.52 million in previous quarter
  • Customers: 6,345, up from 6,224 in previous quarter
  • Gross Margin (GAAP): 67.7%, in line with same quarter last year

David Wagner, Everbridge’s recently appointed President and CEO said, “I am excited to join Everbridge at this important moment in the Company’s evolution. Everbridge is a pioneer and the clear industry leader in Critical Event Management and Public Warning. Everbridge offers powerful solutions for positive change with the ability to keep people safe and businesses running smoothly. I look forward to partnering with Patrick, Vernon and the entire Everbridge team to build on our commitment to growth, sustainable profitability, and increased shareholder value.”

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.

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

Sales Growth

As you can see below, Everbridge's revenue growth has been strong over the last year, growing from quarterly revenue of $86.6 million, to $102.9 million.

Everbridge Total Revenue

This quarter, Everbridge's quarterly revenue was once again up 18.8% year on year. On top of that, revenue increased $2.61 million quarter on quarter, a strong improvement on the $2.45 million decrease in Q1 2022, and a sign of acceleration of growth, which is very nice to see indeed.

Guidance for the next quarter indicates Everbridge is expecting revenue to grow 14.5% year on year to $110.8 million, slowing down from the 35.7% 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 15.8% over the next twelve months.

In volatile times like these we look for robust businesses with strong pricing power. Unknown to most investors, this company is one of the highest-quality software companies in the world, and their software products have been the default standard in critical industries for decades. The result is an impressive business that is up an incredible 18,152% since the IPO. You can find it on our platform for free.

Customer Growth

You can see below that Everbridge reported 6,345 customers at the end of the quarter, an increase of 121 on last quarter. That is a little better customer growth than last quarter and in line with what we have seen in previous quarters, demonstrating the company has the sales momentum required to drive continued growth. We've no doubt shareholders will take this as an indication that the company's go-to-market strategy is running smoothly.

Everbridge Customers

Key Takeaways from Everbridge's Q2 Results

Since it has still been burning cash over the last twelve months it is worth keeping an eye on Everbridge’s balance sheet, but we note that with a market capitalization of $1.27 billion and more than $474.6 million in cash, the company has the capacity to continue to prioritise growth over profitability.

We enjoyed seeing Everbridge’s strong acceleration in customer growth this quarter. That feature of these results really stood out as a positive. Zooming out, we think this was a decent quarter, showing the company is staying on target. The company is up 4.87% on the results and currently trades at $31 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.

One way 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.