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Everbridge (EVBG) Q3 Earnings Report Preview: What To Look For


Petr Huřťák /
2022/11/07 2:25 am EST

Critical event management software company Everbridge (NASDAQ:EVBG) will be reporting earnings tomorrow before market hours. Here's what investors should know.

Last quarter Everbridge reported revenues of $102.9 million, up 18.8% year on year, in line with analyst expectations. It was a decent quarter for the company, with accelerating customer growth. The company added 121 customers to a total of 6,345.

Is Everbridge buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Everbridge's revenue to grow 14.4% year on year to $110.7 million, slowing down from the 35.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

Everbridge Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.29%.

Looking at Everbridge's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Appian delivered top-line growth of 27.5% year on year, beating analyst estimates by 1.52% and ServiceNow reported revenues up 21% year on year, missing analyst estimates by 1.11%. Appian traded down 15.8% on the results, ServiceNow was up 11.00%. Read our full analysis of Appian's results here and ServiceNow's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. Everbridge is down 6.98% during the same time, and is heading into the earnings with analyst price target of $37.60, compared to share price of $27.95.

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.