Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Everbridge Announces Strong First Quarter Financial Results By: Everbridge, Inc. via Business Wire May 09, 2022 at 16:11 PM EDT First Quarter Revenue and Adjusted EBITDA Exceed High-End of Guidance Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM) and national public warning solutions, today announced its financial results for the first quarter ended March 31, 2022. “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. “We are seeing early evidence that the actions we took last quarter to streamline, integrate, and reduce complexity in our key offerings are paying off.” Patrick Brickley, co-Chief Executive Officer and Chief Financial Officer of Everbridge, added, “Demand for our CEM technology drove healthy year-over-year growth in average selling prices and the number of six-figure deals. To help us better focus and execute on these demand trends, we are undertaking a strategic realignment of resources to help drive sustainable revenue growth with a meaningful increase in profitability and positive cash flow through 2022 and beyond.” First Quarter 2022 Financial Highlights Total revenue was $100.4 million, an increase of 22% compared to $82.2 million for the first quarter of 2021. GAAP operating loss was $(19.2) million, compared to a GAAP operating loss of $(18.2) million for the first quarter of 2021. Non-GAAP operating loss was $(1.6) million, compared to non-GAAP operating income of $2.3 million for the first quarter of 2021. GAAP net loss was $(19.1) million, compared to ($21.8) million for the first quarter of 2021. GAAP net loss per share was $(0.48), based on 39.4 million basic and diluted weighted average common shares outstanding, compared to $(0.60) for the first quarter of 2021, based on 36.4 million basic and diluted weighted average common shares outstanding. Non-GAAP net loss was $(0.6) million, compared to non-GAAP net income of $8.0 million in the first quarter of 2021. Non-GAAP diluted net loss per share was $(0.02), based on 39.4 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.18 for the first quarter of 2021, based on 43.6 million diluted weighted average common shares outstanding. Adjusted EBITDA was $2.6 million, compared to $5.3 million in the first quarter of 2021. Cash flow from operations was an inflow of $7.7 million, compared to an inflow of $19.8 million for the first quarter of 2021. Free cash flow was an inflow of $1.5 million compared to an inflow of $15.5 million for the first quarter of 2021. Recent Business Highlights Ended the first quarter with 6,224 global enterprise customers, up from 5,748 at the end of the first quarter of 2021. Awarded contracts by two of the largest German mobile network operators (MNOs) to deliver Cell Broadcast emergency alerting capabilities to help power the German government’s nationwide public warning system. Unveiled a unique collaboration bringing together AWS, Sinch, and Kaleyra, among other technology leaders, to offer an out-of-band critical communications platform to support humanitarian efforts in Ukraine. Partnered with Atalait, a leading managed technology services integrator, to deliver enterprise resilience capabilities to organizations across Mexico, leading to wins with international healthcare provider BUPA México Compañía de Seguros S.A. de C.V. and leading health services administrator Vitamédica S.A. de C.V. / Vitamédica Administradora S.A. de C.V., among others. Reflecting network effects, after having already won Saudi Araba’s countrywide public warning system, Everbridge entered a contract to support Saudi Arabia’s future-planned “smart city,” named NEOM, leveraging Everbridge’s Smart Security capabilities to keep Saudi Arabia’s locals, visitors, and assets safe in the face of potential threats. Recognized by Frost & Sullivan for innovative leadership in earning the top spot in the Frost Radar™: Command and Control Software for Critical National Infrastructure (CNI), Airports, and Safe Cities, Global, 2021. Awarded for Best Global Culture and Best Product & Design Teams by leading workplace culture site Comparably. Strategic Realignment Everbridge’s Board of Directors has approved a strategic realignment program as part of the Company’s effort to accelerate its product and go-to-market integration. This program will help the company realign and optimize resources to drive the top priorities that will better position Everbridge for sustainable growth and an even stronger global presence over the long term. The Company anticipates the strategic realignment program to drive annualized savings of $13 million to $18 million, with $13 million to $21 million in charges associated with these actions. Financial Outlook Based on information available as of today, Everbridge is issuing guidance for the second quarter and full year 2022 as indicated below. Second Quarter 2022 Full Year 2022 Revenue $ 101.8 to $ 102.2 $ 428.2 to $ 432.8 Revenue growth 17 % 18 % 16 % 17 % GAAP net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) GAAP net loss per share $ (1.18 ) $ (1.15 ) $ (3.38 ) $ (3.33 ) Non-GAAP net income (loss) $ (5.2 ) $ (4.2 ) $ 10.7 $ 12.7 Non-GAAP net income (loss) per share $ (0.13 ) $ (0.11 ) $ 0.23 $ 0.27 Adjusted EBITDA $ (1.0 ) $ - $ 33.5 $ 35.5 Full Year 2022 Guidance Issued Feb 24th, 2022 Revenue $ 426.0 to $ 432.0 Revenue growth 15 % 17 % GAAP net loss $ (141.0 ) $ (139.0 ) GAAP net loss per share $ (3.55 ) $ (3.50 ) Non-GAAP net income per share $ 10.2 $ 12.2 Non-GAAP net income per share $ 0.22 $ 0.26 Adjusted EBITDA $ 33.0 $ 35.0 (All figures in millions, except per share data) Conference Call Information What: Everbridge First Quarter 2022 Financial Results Conference Call When: Monday, May 9, 2022 Time: 4:30 p.m. ET Live Call: (833) 685-0904, domestic (412) 317-5740, international Replay: (877) 344-7529, passcode 9087340, domestic (412) 317-0088, passcode 9087340, international Webcast (live & replay): https://edge.media-server.com/mmc/p/frbjpbjf About Everbridge Everbridge, Inc. (NASDAQ: EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to Keep People Safe and Organizations Running™. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events including IT outages, cyber-attacks, product recalls or supply-chain interruptions, over 6,200 customers in 76 countries rely on the Company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication modalities, and track progress on executing response plans. For more information, visit www.everbridge.com, read the company blog, and follow on Twitter and Facebook. Non-GAAP Financial Measures This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow. Non-GAAP operating income/(loss) excludes stock-based compensation, change in fair value of contingent consideration and amortization of acquired intangible assets. Non-GAAP net income/(loss) excludes stock-based compensation, change in fair value of contingent consideration, amortization of acquired intangible assets, accretion of interest on convertible senior notes, gain/(loss) on extinguishment of debt and capped call modification and the tax impact of such adjustments. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, gain/(loss) on extinguishment of debt and capped call modification, change in fair value of contingent consideration and stock-based compensation expense. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge's financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business. Cautionary Language Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the second quarter of 2022 and the full fiscal year 2022. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers’ expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to increase sales of our other applications; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; the impact of the global COVID-19 pandemic on our operations and those of our customers and suppliers; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 and our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners. Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2022 2021 Current assets: Cash and cash equivalents $ 492,054 $ 488,035 Restricted cash 2,088 3,880 Accounts receivable, net 109,484 120,995 Prepaid expenses 16,512 13,740 Deferred costs and other current assets 28,277 28,469 Total current assets 648,415 655,119 Property and equipment, net 12,521 12,185 Capitalized software development costs, net 24,501 22,720 Goodwill 525,264 531,163 Intangible assets, net 208,871 219,319 Restricted cash 867 843 Prepaid expenses 1,591 1,916 Deferred costs and other assets 36,268 35,750 Total assets $ 1,458,298 $ 1,479,015 Current liabilities: Accounts payable $ 9,990 $ 16,002 Accrued payroll and employee related liabilities 34,839 36,725 Accrued expenses 16,509 13,884 Deferred revenue 235,726 223,579 Convertible senior notes 8 8 Other current liabilities 14,281 14,132 Total current liabilities 311,353 304,330 Long-term liabilities: Deferred revenue, noncurrent 10,083 14,261 Convertible senior notes 809,690 665,695 Deferred tax liabilities 5,070 16,082 Other long-term liabilities 14,363 15,958 Total liabilities 1,150,559 1,016,326 Stockholders' equity: Common stock 40 39 Additional paid-in capital 675,984 853,664 Accumulated deficit (360,023 ) (388,112 ) Accumulated other comprehensive loss (8,262 ) (2,902 ) Total stockholders' equity 307,739 462,689 Total liabilities and stockholders' equity $ 1,458,298 $ 1,479,015 Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2022 2021 Revenue $ 100,375 $ 82,210 Cost of revenue 31,857 25,280 Gross profit 68,518 56,930 68.26 % 69.25 % Operating expenses: Sales and marketing 41,816 34,527 Research and development 23,559 18,079 General and administrative 22,336 22,562 Total operating expenses 87,711 75,168 Operating loss (19,193 ) (18,238 ) Other expense, net: Interest and investment income 62 133 Interest expense (1,300 ) (6,560 ) Loss on extinguishment of convertible notes and capped call modification — (2,888 ) Other income (expense), net 280 (49 ) Total other expense, net (958 ) (9,364 ) Loss before income taxes (20,151 ) (27,602 ) Benefit from income taxes 1,078 5,813 Net loss $ (19,073 ) $ (21,789 ) Net loss per share attributable to common stockholders: Basic $ (0.48 ) $ (0.60 ) Diluted $ (0.48 ) $ (0.60 ) Weighted-average common shares outstanding: Basic 39,429,686 36,386,819 Diluted 39,429,686 36,386,819 Other comprehensive loss: Foreign currency translation adjustment (5,360 ) (2,597 ) Total comprehensive loss $ (24,433 ) $ (24,386 ) Stock-based compensation expense included in the above: (in thousands) Three Months Ended March 31, 2022 2021 Cost of revenue $ 817 $ 999 Sales and marketing 1,295 3,742 Research and development 1,723 2,028 General and administrative 2,249 5,916 Total stock-based compensation $ 6,084 $ 12,685 Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Cash flows from operating activities: Net loss $ (19,073 ) $ (21,789 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 15,434 10,843 Amortization of deferred costs 3,963 3,722 Deferred income taxes (6,553 ) (6,701 ) Accretion of interest on convertible senior notes 1,158 6,313 Loss on extinguishment of convertible notes and capped call modification — 2,888 Provision for credit losses and sales reserve 213 1,562 Stock-based compensation 6,084 12,685 Other non-cash adjustments (52 ) (147 ) Changes in operating assets and liabilities: Accounts receivable 11,420 11,482 Prepaid expenses (2,447 ) (1,221 ) Deferred costs (6,221 ) (3,450 ) Other assets 1,819 (2,768 ) Accounts payable (6,124 ) (911 ) Accrued payroll and employee related liabilities (1,862 ) (2,130 ) Accrued expenses 3,246 3,012 Deferred revenue 8,036 8,373 Other liabilities (1,339 ) (1,955 ) Net cash provided by operating activities 7,702 19,808 Cash flows from investing activities: Capital expenditures (1,847 ) (1,812 ) Payments for acquisition of business, net of acquired cash (47 ) (32,401 ) Additions to capitalized software development costs (4,330 ) (2,495 ) Net cash used in investing activities (6,224 ) (36,708 ) Cash flows from financing activities: Proceeds from issuance of convertible notes — 375,000 Payments of debt issuance costs — (9,562 ) Purchase of convertible notes capped call hedge — (35,100 ) Repurchase of convertible notes — (58,641 ) Proceeds from termination of convertible notes capped call hedge — 10,650 Stock award shares withheld to settle employee tax withholding liability (571 ) (1,610 ) Proceeds from employee stock purchase plan 1,702 2,451 Proceeds from stock option exercises 17 1,604 Other (19 ) — Net cash provided by financing activities 1,129 284,792 Effect of exchange rates on cash, cash equivalents and restricted cash (356 ) (315 ) Net increase in cash, cash equivalents and restricted cash 2,251 267,577 Cash, cash equivalents and restricted cash—beginning of period 492,758 475,630 Cash, cash equivalents and restricted cash—end of period $ 495,009 $ 743,207 Reconciliation of GAAP measures to non-GAAP measures (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2022 2021 Cost of revenue $ 31,857 $ 25,280 Amortization of acquired intangibles (3,151 ) (2,604 ) Stock-based compensation (817 ) (999 ) Non-GAAP cost of revenue $ 27,889 $ 21,677 Gross profit $ 68,518 $ 56,930 Amortization of acquired intangibles 3,151 2,604 Stock-based compensation 817 999 Non-GAAP gross profit $ 72,486 $ 60,533 Non-GAAP gross margin 72.2 % 73.6 % Sales and marketing $ 41,816 $ 34,527 Stock-based compensation (1,295 ) (3,742 ) Non-GAAP sales and marketing $ 40,521 $ 30,785 Research and development $ 23,559 $ 18,079 Stock-based compensation (1,723 ) (2,028 ) Non-GAAP research and development $ 21,836 $ 16,051 General and administrative $ 22,336 $ 22,562 Amortization of acquired intangibles (8,387 ) (5,255 ) Change in fair value of contingent consideration 52 (42 ) Stock-based compensation (2,249 ) (5,916 ) Non-GAAP general and administrative $ 11,752 $ 11,349 Total operating expenses $ 87,711 $ 75,168 Amortization of acquired intangibles (8,387 ) (5,255 ) Change in fair value of contingent consideration 52 (42 ) Stock-based compensation (5,267 ) (11,686 ) Non-GAAP operating expenses $ 74,109 $ 58,185 Operating loss $ (19,193 ) $ (18,238 ) Amortization of acquired intangibles 11,538 7,859 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Non-GAAP operating income (loss) $ (1,623 ) $ 2,348 Net loss $ (19,073 ) $ (21,789 ) Amortization of acquired intangibles 11,538 7,859 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Accretion of interest on convertible senior notes 1,158 6,313 Loss on extinguishment of convertible notes and capped call modification — 2,888 Income tax adjustments (250 ) (36 ) Non-GAAP net income (loss) $ (595 ) $ 7,962 Non-GAAP net income (loss) per share: Basic $ (0.02 ) $ 0.22 Diluted $ (0.02 ) $ 0.18 Weighted-average common shares outstanding: Basic 39,429,686 36,386,819 Diluted 39,429,686 43,554,183 Reconciliation of GAAP measures to non-GAAP measures (Continued) (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Net loss $ (19,073 ) $ (21,789 ) Interest and investment expense, net 1,238 6,427 Benefit from income taxes (1,078 ) (5,813 ) Depreciation and amortization 15,434 10,843 EBITDA (3,479 ) (10,332 ) Loss on extinguishment of convertible notes and capped call modification — 2,888 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Adjusted EBITDA $ 2,553 $ 5,283 Net cash provided by operating activities $ 7,702 $ 19,808 Capital expenditures (1,847 ) (1,812 ) Capitalized software development costs (4,330 ) (2,495 ) Free cash flow $ 1,525 $ 15,501 Remaining Performance Obligations as of March 31, 2022 (in millions) Remaining Performance Obligations Remaining Performance Obligations Next Twelve Months Subscription and other contracts $ 450 $ 285 Professional services contracts 19 17 Financial Outlook (in millions, except share and per share data) Three Months Ended Year Ended June 30, 2022 December 31, 2022 Low End High End Low End High End Net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) Amortization of acquired intangibles 11.0 11.0 42.0 42.0 Accretion of interest on convertible senior notes 1.3 1.3 5.2 5.2 Strategic realignment 6.5 6.5 16.5 16.5 Stock-based compensation 22.0 22.0 82.0 82.0 Non-GAAP net income (loss) $ (5.2 ) $ (4.2 ) $ 10.7 $ 12.7 Weighted average common shares outstanding: Basic 39,000,000 39,000,000 40,000,000 40,000,000 Diluted 39,000,000 39,000,000 47,000,000 47,000,000 Net loss per share $ (1.18 ) $ (1.15 ) $ (3.38 ) $ (3.33 ) Non-GAAP net income (loss) per share $ (0.13 ) $ (0.11 ) $ 0.23 $ 0.27 Net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) Interest expense, net 1.4 1.4 6.0 6.0 Income taxes, net 0.1 0.1 4.0 4.0 Depreciation and amortization 15.0 15.0 60.0 60.0 EBITDA (29.5 ) (28.5 ) (65.0 ) (63.0 ) Strategic realignment 6.5 6.5 16.5 16.5 Stock-based compensation 22.0 22.0 82.0 82.0 Adjusted EBITDA $ (1.0 ) $ - $ 33.5 $ 35.5 Year Ended December 31, 2022 Issued Feb 24th, 2022 Low End High End Net loss $ (141.0 ) $ (139.0 ) Amortization of acquired intangibles 51.0 51.0 Accretion of interest on convertible senior notes 5.2 5.2 Stock-based compensation 95.0 95.0 Non-GAAP net income $ 10.2 $ 12.2 Weighted average common shares outstanding: Basic 39,700,000 39,700,000 Diluted 47,000,000 47,000,000 Net loss per share $ (3.55 ) $ (3.50 ) Non-GAAP net income per share $ 0.22 $ 0.26 Net loss $ (141.0 ) $ (139.0 ) Interest expense, net 6.0 6.0 Income taxes, net 6.0 6.0 Depreciation and amortization 67.0 67.0 EBITDA (62.0 ) (60.0 ) Stock-based compensation 95.0 95.0 Adjusted EBITDA $ 33.0 $ 35.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005865/en/Contacts Everbridge: Investors: Nandan Amladi Investor Relations nandan.amladi@everbridge.com 617-665-7197 Media: Jeff Young Media Relations jeff.young@everbridge.com 781-859-4116 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Everbridge Announces Strong First Quarter Financial Results By: Everbridge, Inc. via Business Wire May 09, 2022 at 16:11 PM EDT First Quarter Revenue and Adjusted EBITDA Exceed High-End of Guidance Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM) and national public warning solutions, today announced its financial results for the first quarter ended March 31, 2022. “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. “We are seeing early evidence that the actions we took last quarter to streamline, integrate, and reduce complexity in our key offerings are paying off.” Patrick Brickley, co-Chief Executive Officer and Chief Financial Officer of Everbridge, added, “Demand for our CEM technology drove healthy year-over-year growth in average selling prices and the number of six-figure deals. To help us better focus and execute on these demand trends, we are undertaking a strategic realignment of resources to help drive sustainable revenue growth with a meaningful increase in profitability and positive cash flow through 2022 and beyond.” First Quarter 2022 Financial Highlights Total revenue was $100.4 million, an increase of 22% compared to $82.2 million for the first quarter of 2021. GAAP operating loss was $(19.2) million, compared to a GAAP operating loss of $(18.2) million for the first quarter of 2021. Non-GAAP operating loss was $(1.6) million, compared to non-GAAP operating income of $2.3 million for the first quarter of 2021. GAAP net loss was $(19.1) million, compared to ($21.8) million for the first quarter of 2021. GAAP net loss per share was $(0.48), based on 39.4 million basic and diluted weighted average common shares outstanding, compared to $(0.60) for the first quarter of 2021, based on 36.4 million basic and diluted weighted average common shares outstanding. Non-GAAP net loss was $(0.6) million, compared to non-GAAP net income of $8.0 million in the first quarter of 2021. Non-GAAP diluted net loss per share was $(0.02), based on 39.4 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.18 for the first quarter of 2021, based on 43.6 million diluted weighted average common shares outstanding. Adjusted EBITDA was $2.6 million, compared to $5.3 million in the first quarter of 2021. Cash flow from operations was an inflow of $7.7 million, compared to an inflow of $19.8 million for the first quarter of 2021. Free cash flow was an inflow of $1.5 million compared to an inflow of $15.5 million for the first quarter of 2021. Recent Business Highlights Ended the first quarter with 6,224 global enterprise customers, up from 5,748 at the end of the first quarter of 2021. Awarded contracts by two of the largest German mobile network operators (MNOs) to deliver Cell Broadcast emergency alerting capabilities to help power the German government’s nationwide public warning system. Unveiled a unique collaboration bringing together AWS, Sinch, and Kaleyra, among other technology leaders, to offer an out-of-band critical communications platform to support humanitarian efforts in Ukraine. Partnered with Atalait, a leading managed technology services integrator, to deliver enterprise resilience capabilities to organizations across Mexico, leading to wins with international healthcare provider BUPA México Compañía de Seguros S.A. de C.V. and leading health services administrator Vitamédica S.A. de C.V. / Vitamédica Administradora S.A. de C.V., among others. Reflecting network effects, after having already won Saudi Araba’s countrywide public warning system, Everbridge entered a contract to support Saudi Arabia’s future-planned “smart city,” named NEOM, leveraging Everbridge’s Smart Security capabilities to keep Saudi Arabia’s locals, visitors, and assets safe in the face of potential threats. Recognized by Frost & Sullivan for innovative leadership in earning the top spot in the Frost Radar™: Command and Control Software for Critical National Infrastructure (CNI), Airports, and Safe Cities, Global, 2021. Awarded for Best Global Culture and Best Product & Design Teams by leading workplace culture site Comparably. Strategic Realignment Everbridge’s Board of Directors has approved a strategic realignment program as part of the Company’s effort to accelerate its product and go-to-market integration. This program will help the company realign and optimize resources to drive the top priorities that will better position Everbridge for sustainable growth and an even stronger global presence over the long term. The Company anticipates the strategic realignment program to drive annualized savings of $13 million to $18 million, with $13 million to $21 million in charges associated with these actions. Financial Outlook Based on information available as of today, Everbridge is issuing guidance for the second quarter and full year 2022 as indicated below. Second Quarter 2022 Full Year 2022 Revenue $ 101.8 to $ 102.2 $ 428.2 to $ 432.8 Revenue growth 17 % 18 % 16 % 17 % GAAP net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) GAAP net loss per share $ (1.18 ) $ (1.15 ) $ (3.38 ) $ (3.33 ) Non-GAAP net income (loss) $ (5.2 ) $ (4.2 ) $ 10.7 $ 12.7 Non-GAAP net income (loss) per share $ (0.13 ) $ (0.11 ) $ 0.23 $ 0.27 Adjusted EBITDA $ (1.0 ) $ - $ 33.5 $ 35.5 Full Year 2022 Guidance Issued Feb 24th, 2022 Revenue $ 426.0 to $ 432.0 Revenue growth 15 % 17 % GAAP net loss $ (141.0 ) $ (139.0 ) GAAP net loss per share $ (3.55 ) $ (3.50 ) Non-GAAP net income per share $ 10.2 $ 12.2 Non-GAAP net income per share $ 0.22 $ 0.26 Adjusted EBITDA $ 33.0 $ 35.0 (All figures in millions, except per share data) Conference Call Information What: Everbridge First Quarter 2022 Financial Results Conference Call When: Monday, May 9, 2022 Time: 4:30 p.m. ET Live Call: (833) 685-0904, domestic (412) 317-5740, international Replay: (877) 344-7529, passcode 9087340, domestic (412) 317-0088, passcode 9087340, international Webcast (live & replay): https://edge.media-server.com/mmc/p/frbjpbjf About Everbridge Everbridge, Inc. (NASDAQ: EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to Keep People Safe and Organizations Running™. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events including IT outages, cyber-attacks, product recalls or supply-chain interruptions, over 6,200 customers in 76 countries rely on the Company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication modalities, and track progress on executing response plans. For more information, visit www.everbridge.com, read the company blog, and follow on Twitter and Facebook. Non-GAAP Financial Measures This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow. Non-GAAP operating income/(loss) excludes stock-based compensation, change in fair value of contingent consideration and amortization of acquired intangible assets. Non-GAAP net income/(loss) excludes stock-based compensation, change in fair value of contingent consideration, amortization of acquired intangible assets, accretion of interest on convertible senior notes, gain/(loss) on extinguishment of debt and capped call modification and the tax impact of such adjustments. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, gain/(loss) on extinguishment of debt and capped call modification, change in fair value of contingent consideration and stock-based compensation expense. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge's financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business. Cautionary Language Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the second quarter of 2022 and the full fiscal year 2022. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers’ expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to increase sales of our other applications; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; the impact of the global COVID-19 pandemic on our operations and those of our customers and suppliers; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 and our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners. Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2022 2021 Current assets: Cash and cash equivalents $ 492,054 $ 488,035 Restricted cash 2,088 3,880 Accounts receivable, net 109,484 120,995 Prepaid expenses 16,512 13,740 Deferred costs and other current assets 28,277 28,469 Total current assets 648,415 655,119 Property and equipment, net 12,521 12,185 Capitalized software development costs, net 24,501 22,720 Goodwill 525,264 531,163 Intangible assets, net 208,871 219,319 Restricted cash 867 843 Prepaid expenses 1,591 1,916 Deferred costs and other assets 36,268 35,750 Total assets $ 1,458,298 $ 1,479,015 Current liabilities: Accounts payable $ 9,990 $ 16,002 Accrued payroll and employee related liabilities 34,839 36,725 Accrued expenses 16,509 13,884 Deferred revenue 235,726 223,579 Convertible senior notes 8 8 Other current liabilities 14,281 14,132 Total current liabilities 311,353 304,330 Long-term liabilities: Deferred revenue, noncurrent 10,083 14,261 Convertible senior notes 809,690 665,695 Deferred tax liabilities 5,070 16,082 Other long-term liabilities 14,363 15,958 Total liabilities 1,150,559 1,016,326 Stockholders' equity: Common stock 40 39 Additional paid-in capital 675,984 853,664 Accumulated deficit (360,023 ) (388,112 ) Accumulated other comprehensive loss (8,262 ) (2,902 ) Total stockholders' equity 307,739 462,689 Total liabilities and stockholders' equity $ 1,458,298 $ 1,479,015 Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2022 2021 Revenue $ 100,375 $ 82,210 Cost of revenue 31,857 25,280 Gross profit 68,518 56,930 68.26 % 69.25 % Operating expenses: Sales and marketing 41,816 34,527 Research and development 23,559 18,079 General and administrative 22,336 22,562 Total operating expenses 87,711 75,168 Operating loss (19,193 ) (18,238 ) Other expense, net: Interest and investment income 62 133 Interest expense (1,300 ) (6,560 ) Loss on extinguishment of convertible notes and capped call modification — (2,888 ) Other income (expense), net 280 (49 ) Total other expense, net (958 ) (9,364 ) Loss before income taxes (20,151 ) (27,602 ) Benefit from income taxes 1,078 5,813 Net loss $ (19,073 ) $ (21,789 ) Net loss per share attributable to common stockholders: Basic $ (0.48 ) $ (0.60 ) Diluted $ (0.48 ) $ (0.60 ) Weighted-average common shares outstanding: Basic 39,429,686 36,386,819 Diluted 39,429,686 36,386,819 Other comprehensive loss: Foreign currency translation adjustment (5,360 ) (2,597 ) Total comprehensive loss $ (24,433 ) $ (24,386 ) Stock-based compensation expense included in the above: (in thousands) Three Months Ended March 31, 2022 2021 Cost of revenue $ 817 $ 999 Sales and marketing 1,295 3,742 Research and development 1,723 2,028 General and administrative 2,249 5,916 Total stock-based compensation $ 6,084 $ 12,685 Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Cash flows from operating activities: Net loss $ (19,073 ) $ (21,789 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 15,434 10,843 Amortization of deferred costs 3,963 3,722 Deferred income taxes (6,553 ) (6,701 ) Accretion of interest on convertible senior notes 1,158 6,313 Loss on extinguishment of convertible notes and capped call modification — 2,888 Provision for credit losses and sales reserve 213 1,562 Stock-based compensation 6,084 12,685 Other non-cash adjustments (52 ) (147 ) Changes in operating assets and liabilities: Accounts receivable 11,420 11,482 Prepaid expenses (2,447 ) (1,221 ) Deferred costs (6,221 ) (3,450 ) Other assets 1,819 (2,768 ) Accounts payable (6,124 ) (911 ) Accrued payroll and employee related liabilities (1,862 ) (2,130 ) Accrued expenses 3,246 3,012 Deferred revenue 8,036 8,373 Other liabilities (1,339 ) (1,955 ) Net cash provided by operating activities 7,702 19,808 Cash flows from investing activities: Capital expenditures (1,847 ) (1,812 ) Payments for acquisition of business, net of acquired cash (47 ) (32,401 ) Additions to capitalized software development costs (4,330 ) (2,495 ) Net cash used in investing activities (6,224 ) (36,708 ) Cash flows from financing activities: Proceeds from issuance of convertible notes — 375,000 Payments of debt issuance costs — (9,562 ) Purchase of convertible notes capped call hedge — (35,100 ) Repurchase of convertible notes — (58,641 ) Proceeds from termination of convertible notes capped call hedge — 10,650 Stock award shares withheld to settle employee tax withholding liability (571 ) (1,610 ) Proceeds from employee stock purchase plan 1,702 2,451 Proceeds from stock option exercises 17 1,604 Other (19 ) — Net cash provided by financing activities 1,129 284,792 Effect of exchange rates on cash, cash equivalents and restricted cash (356 ) (315 ) Net increase in cash, cash equivalents and restricted cash 2,251 267,577 Cash, cash equivalents and restricted cash—beginning of period 492,758 475,630 Cash, cash equivalents and restricted cash—end of period $ 495,009 $ 743,207 Reconciliation of GAAP measures to non-GAAP measures (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2022 2021 Cost of revenue $ 31,857 $ 25,280 Amortization of acquired intangibles (3,151 ) (2,604 ) Stock-based compensation (817 ) (999 ) Non-GAAP cost of revenue $ 27,889 $ 21,677 Gross profit $ 68,518 $ 56,930 Amortization of acquired intangibles 3,151 2,604 Stock-based compensation 817 999 Non-GAAP gross profit $ 72,486 $ 60,533 Non-GAAP gross margin 72.2 % 73.6 % Sales and marketing $ 41,816 $ 34,527 Stock-based compensation (1,295 ) (3,742 ) Non-GAAP sales and marketing $ 40,521 $ 30,785 Research and development $ 23,559 $ 18,079 Stock-based compensation (1,723 ) (2,028 ) Non-GAAP research and development $ 21,836 $ 16,051 General and administrative $ 22,336 $ 22,562 Amortization of acquired intangibles (8,387 ) (5,255 ) Change in fair value of contingent consideration 52 (42 ) Stock-based compensation (2,249 ) (5,916 ) Non-GAAP general and administrative $ 11,752 $ 11,349 Total operating expenses $ 87,711 $ 75,168 Amortization of acquired intangibles (8,387 ) (5,255 ) Change in fair value of contingent consideration 52 (42 ) Stock-based compensation (5,267 ) (11,686 ) Non-GAAP operating expenses $ 74,109 $ 58,185 Operating loss $ (19,193 ) $ (18,238 ) Amortization of acquired intangibles 11,538 7,859 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Non-GAAP operating income (loss) $ (1,623 ) $ 2,348 Net loss $ (19,073 ) $ (21,789 ) Amortization of acquired intangibles 11,538 7,859 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Accretion of interest on convertible senior notes 1,158 6,313 Loss on extinguishment of convertible notes and capped call modification — 2,888 Income tax adjustments (250 ) (36 ) Non-GAAP net income (loss) $ (595 ) $ 7,962 Non-GAAP net income (loss) per share: Basic $ (0.02 ) $ 0.22 Diluted $ (0.02 ) $ 0.18 Weighted-average common shares outstanding: Basic 39,429,686 36,386,819 Diluted 39,429,686 43,554,183 Reconciliation of GAAP measures to non-GAAP measures (Continued) (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Net loss $ (19,073 ) $ (21,789 ) Interest and investment expense, net 1,238 6,427 Benefit from income taxes (1,078 ) (5,813 ) Depreciation and amortization 15,434 10,843 EBITDA (3,479 ) (10,332 ) Loss on extinguishment of convertible notes and capped call modification — 2,888 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Adjusted EBITDA $ 2,553 $ 5,283 Net cash provided by operating activities $ 7,702 $ 19,808 Capital expenditures (1,847 ) (1,812 ) Capitalized software development costs (4,330 ) (2,495 ) Free cash flow $ 1,525 $ 15,501 Remaining Performance Obligations as of March 31, 2022 (in millions) Remaining Performance Obligations Remaining Performance Obligations Next Twelve Months Subscription and other contracts $ 450 $ 285 Professional services contracts 19 17 Financial Outlook (in millions, except share and per share data) Three Months Ended Year Ended June 30, 2022 December 31, 2022 Low End High End Low End High End Net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) Amortization of acquired intangibles 11.0 11.0 42.0 42.0 Accretion of interest on convertible senior notes 1.3 1.3 5.2 5.2 Strategic realignment 6.5 6.5 16.5 16.5 Stock-based compensation 22.0 22.0 82.0 82.0 Non-GAAP net income (loss) $ (5.2 ) $ (4.2 ) $ 10.7 $ 12.7 Weighted average common shares outstanding: Basic 39,000,000 39,000,000 40,000,000 40,000,000 Diluted 39,000,000 39,000,000 47,000,000 47,000,000 Net loss per share $ (1.18 ) $ (1.15 ) $ (3.38 ) $ (3.33 ) Non-GAAP net income (loss) per share $ (0.13 ) $ (0.11 ) $ 0.23 $ 0.27 Net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) Interest expense, net 1.4 1.4 6.0 6.0 Income taxes, net 0.1 0.1 4.0 4.0 Depreciation and amortization 15.0 15.0 60.0 60.0 EBITDA (29.5 ) (28.5 ) (65.0 ) (63.0 ) Strategic realignment 6.5 6.5 16.5 16.5 Stock-based compensation 22.0 22.0 82.0 82.0 Adjusted EBITDA $ (1.0 ) $ - $ 33.5 $ 35.5 Year Ended December 31, 2022 Issued Feb 24th, 2022 Low End High End Net loss $ (141.0 ) $ (139.0 ) Amortization of acquired intangibles 51.0 51.0 Accretion of interest on convertible senior notes 5.2 5.2 Stock-based compensation 95.0 95.0 Non-GAAP net income $ 10.2 $ 12.2 Weighted average common shares outstanding: Basic 39,700,000 39,700,000 Diluted 47,000,000 47,000,000 Net loss per share $ (3.55 ) $ (3.50 ) Non-GAAP net income per share $ 0.22 $ 0.26 Net loss $ (141.0 ) $ (139.0 ) Interest expense, net 6.0 6.0 Income taxes, net 6.0 6.0 Depreciation and amortization 67.0 67.0 EBITDA (62.0 ) (60.0 ) Stock-based compensation 95.0 95.0 Adjusted EBITDA $ 33.0 $ 35.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005865/en/Contacts Everbridge: Investors: Nandan Amladi Investor Relations nandan.amladi@everbridge.com 617-665-7197 Media: Jeff Young Media Relations jeff.young@everbridge.com 781-859-4116
Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM) and national public warning solutions, today announced its financial results for the first quarter ended March 31, 2022. “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. “We are seeing early evidence that the actions we took last quarter to streamline, integrate, and reduce complexity in our key offerings are paying off.” Patrick Brickley, co-Chief Executive Officer and Chief Financial Officer of Everbridge, added, “Demand for our CEM technology drove healthy year-over-year growth in average selling prices and the number of six-figure deals. To help us better focus and execute on these demand trends, we are undertaking a strategic realignment of resources to help drive sustainable revenue growth with a meaningful increase in profitability and positive cash flow through 2022 and beyond.” First Quarter 2022 Financial Highlights Total revenue was $100.4 million, an increase of 22% compared to $82.2 million for the first quarter of 2021. GAAP operating loss was $(19.2) million, compared to a GAAP operating loss of $(18.2) million for the first quarter of 2021. Non-GAAP operating loss was $(1.6) million, compared to non-GAAP operating income of $2.3 million for the first quarter of 2021. GAAP net loss was $(19.1) million, compared to ($21.8) million for the first quarter of 2021. GAAP net loss per share was $(0.48), based on 39.4 million basic and diluted weighted average common shares outstanding, compared to $(0.60) for the first quarter of 2021, based on 36.4 million basic and diluted weighted average common shares outstanding. Non-GAAP net loss was $(0.6) million, compared to non-GAAP net income of $8.0 million in the first quarter of 2021. Non-GAAP diluted net loss per share was $(0.02), based on 39.4 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.18 for the first quarter of 2021, based on 43.6 million diluted weighted average common shares outstanding. Adjusted EBITDA was $2.6 million, compared to $5.3 million in the first quarter of 2021. Cash flow from operations was an inflow of $7.7 million, compared to an inflow of $19.8 million for the first quarter of 2021. Free cash flow was an inflow of $1.5 million compared to an inflow of $15.5 million for the first quarter of 2021. Recent Business Highlights Ended the first quarter with 6,224 global enterprise customers, up from 5,748 at the end of the first quarter of 2021. Awarded contracts by two of the largest German mobile network operators (MNOs) to deliver Cell Broadcast emergency alerting capabilities to help power the German government’s nationwide public warning system. Unveiled a unique collaboration bringing together AWS, Sinch, and Kaleyra, among other technology leaders, to offer an out-of-band critical communications platform to support humanitarian efforts in Ukraine. Partnered with Atalait, a leading managed technology services integrator, to deliver enterprise resilience capabilities to organizations across Mexico, leading to wins with international healthcare provider BUPA México Compañía de Seguros S.A. de C.V. and leading health services administrator Vitamédica S.A. de C.V. / Vitamédica Administradora S.A. de C.V., among others. Reflecting network effects, after having already won Saudi Araba’s countrywide public warning system, Everbridge entered a contract to support Saudi Arabia’s future-planned “smart city,” named NEOM, leveraging Everbridge’s Smart Security capabilities to keep Saudi Arabia’s locals, visitors, and assets safe in the face of potential threats. Recognized by Frost & Sullivan for innovative leadership in earning the top spot in the Frost Radar™: Command and Control Software for Critical National Infrastructure (CNI), Airports, and Safe Cities, Global, 2021. Awarded for Best Global Culture and Best Product & Design Teams by leading workplace culture site Comparably. Strategic Realignment Everbridge’s Board of Directors has approved a strategic realignment program as part of the Company’s effort to accelerate its product and go-to-market integration. This program will help the company realign and optimize resources to drive the top priorities that will better position Everbridge for sustainable growth and an even stronger global presence over the long term. The Company anticipates the strategic realignment program to drive annualized savings of $13 million to $18 million, with $13 million to $21 million in charges associated with these actions. Financial Outlook Based on information available as of today, Everbridge is issuing guidance for the second quarter and full year 2022 as indicated below. Second Quarter 2022 Full Year 2022 Revenue $ 101.8 to $ 102.2 $ 428.2 to $ 432.8 Revenue growth 17 % 18 % 16 % 17 % GAAP net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) GAAP net loss per share $ (1.18 ) $ (1.15 ) $ (3.38 ) $ (3.33 ) Non-GAAP net income (loss) $ (5.2 ) $ (4.2 ) $ 10.7 $ 12.7 Non-GAAP net income (loss) per share $ (0.13 ) $ (0.11 ) $ 0.23 $ 0.27 Adjusted EBITDA $ (1.0 ) $ - $ 33.5 $ 35.5 Full Year 2022 Guidance Issued Feb 24th, 2022 Revenue $ 426.0 to $ 432.0 Revenue growth 15 % 17 % GAAP net loss $ (141.0 ) $ (139.0 ) GAAP net loss per share $ (3.55 ) $ (3.50 ) Non-GAAP net income per share $ 10.2 $ 12.2 Non-GAAP net income per share $ 0.22 $ 0.26 Adjusted EBITDA $ 33.0 $ 35.0 (All figures in millions, except per share data) Conference Call Information What: Everbridge First Quarter 2022 Financial Results Conference Call When: Monday, May 9, 2022 Time: 4:30 p.m. ET Live Call: (833) 685-0904, domestic (412) 317-5740, international Replay: (877) 344-7529, passcode 9087340, domestic (412) 317-0088, passcode 9087340, international Webcast (live & replay): https://edge.media-server.com/mmc/p/frbjpbjf About Everbridge Everbridge, Inc. (NASDAQ: EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to Keep People Safe and Organizations Running™. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events including IT outages, cyber-attacks, product recalls or supply-chain interruptions, over 6,200 customers in 76 countries rely on the Company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication modalities, and track progress on executing response plans. For more information, visit www.everbridge.com, read the company blog, and follow on Twitter and Facebook. Non-GAAP Financial Measures This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow. Non-GAAP operating income/(loss) excludes stock-based compensation, change in fair value of contingent consideration and amortization of acquired intangible assets. Non-GAAP net income/(loss) excludes stock-based compensation, change in fair value of contingent consideration, amortization of acquired intangible assets, accretion of interest on convertible senior notes, gain/(loss) on extinguishment of debt and capped call modification and the tax impact of such adjustments. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, gain/(loss) on extinguishment of debt and capped call modification, change in fair value of contingent consideration and stock-based compensation expense. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge's financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business. Cautionary Language Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the second quarter of 2022 and the full fiscal year 2022. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers’ expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to increase sales of our other applications; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; the impact of the global COVID-19 pandemic on our operations and those of our customers and suppliers; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 and our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners. Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2022 2021 Current assets: Cash and cash equivalents $ 492,054 $ 488,035 Restricted cash 2,088 3,880 Accounts receivable, net 109,484 120,995 Prepaid expenses 16,512 13,740 Deferred costs and other current assets 28,277 28,469 Total current assets 648,415 655,119 Property and equipment, net 12,521 12,185 Capitalized software development costs, net 24,501 22,720 Goodwill 525,264 531,163 Intangible assets, net 208,871 219,319 Restricted cash 867 843 Prepaid expenses 1,591 1,916 Deferred costs and other assets 36,268 35,750 Total assets $ 1,458,298 $ 1,479,015 Current liabilities: Accounts payable $ 9,990 $ 16,002 Accrued payroll and employee related liabilities 34,839 36,725 Accrued expenses 16,509 13,884 Deferred revenue 235,726 223,579 Convertible senior notes 8 8 Other current liabilities 14,281 14,132 Total current liabilities 311,353 304,330 Long-term liabilities: Deferred revenue, noncurrent 10,083 14,261 Convertible senior notes 809,690 665,695 Deferred tax liabilities 5,070 16,082 Other long-term liabilities 14,363 15,958 Total liabilities 1,150,559 1,016,326 Stockholders' equity: Common stock 40 39 Additional paid-in capital 675,984 853,664 Accumulated deficit (360,023 ) (388,112 ) Accumulated other comprehensive loss (8,262 ) (2,902 ) Total stockholders' equity 307,739 462,689 Total liabilities and stockholders' equity $ 1,458,298 $ 1,479,015 Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2022 2021 Revenue $ 100,375 $ 82,210 Cost of revenue 31,857 25,280 Gross profit 68,518 56,930 68.26 % 69.25 % Operating expenses: Sales and marketing 41,816 34,527 Research and development 23,559 18,079 General and administrative 22,336 22,562 Total operating expenses 87,711 75,168 Operating loss (19,193 ) (18,238 ) Other expense, net: Interest and investment income 62 133 Interest expense (1,300 ) (6,560 ) Loss on extinguishment of convertible notes and capped call modification — (2,888 ) Other income (expense), net 280 (49 ) Total other expense, net (958 ) (9,364 ) Loss before income taxes (20,151 ) (27,602 ) Benefit from income taxes 1,078 5,813 Net loss $ (19,073 ) $ (21,789 ) Net loss per share attributable to common stockholders: Basic $ (0.48 ) $ (0.60 ) Diluted $ (0.48 ) $ (0.60 ) Weighted-average common shares outstanding: Basic 39,429,686 36,386,819 Diluted 39,429,686 36,386,819 Other comprehensive loss: Foreign currency translation adjustment (5,360 ) (2,597 ) Total comprehensive loss $ (24,433 ) $ (24,386 ) Stock-based compensation expense included in the above: (in thousands) Three Months Ended March 31, 2022 2021 Cost of revenue $ 817 $ 999 Sales and marketing 1,295 3,742 Research and development 1,723 2,028 General and administrative 2,249 5,916 Total stock-based compensation $ 6,084 $ 12,685 Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Cash flows from operating activities: Net loss $ (19,073 ) $ (21,789 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 15,434 10,843 Amortization of deferred costs 3,963 3,722 Deferred income taxes (6,553 ) (6,701 ) Accretion of interest on convertible senior notes 1,158 6,313 Loss on extinguishment of convertible notes and capped call modification — 2,888 Provision for credit losses and sales reserve 213 1,562 Stock-based compensation 6,084 12,685 Other non-cash adjustments (52 ) (147 ) Changes in operating assets and liabilities: Accounts receivable 11,420 11,482 Prepaid expenses (2,447 ) (1,221 ) Deferred costs (6,221 ) (3,450 ) Other assets 1,819 (2,768 ) Accounts payable (6,124 ) (911 ) Accrued payroll and employee related liabilities (1,862 ) (2,130 ) Accrued expenses 3,246 3,012 Deferred revenue 8,036 8,373 Other liabilities (1,339 ) (1,955 ) Net cash provided by operating activities 7,702 19,808 Cash flows from investing activities: Capital expenditures (1,847 ) (1,812 ) Payments for acquisition of business, net of acquired cash (47 ) (32,401 ) Additions to capitalized software development costs (4,330 ) (2,495 ) Net cash used in investing activities (6,224 ) (36,708 ) Cash flows from financing activities: Proceeds from issuance of convertible notes — 375,000 Payments of debt issuance costs — (9,562 ) Purchase of convertible notes capped call hedge — (35,100 ) Repurchase of convertible notes — (58,641 ) Proceeds from termination of convertible notes capped call hedge — 10,650 Stock award shares withheld to settle employee tax withholding liability (571 ) (1,610 ) Proceeds from employee stock purchase plan 1,702 2,451 Proceeds from stock option exercises 17 1,604 Other (19 ) — Net cash provided by financing activities 1,129 284,792 Effect of exchange rates on cash, cash equivalents and restricted cash (356 ) (315 ) Net increase in cash, cash equivalents and restricted cash 2,251 267,577 Cash, cash equivalents and restricted cash—beginning of period 492,758 475,630 Cash, cash equivalents and restricted cash—end of period $ 495,009 $ 743,207 Reconciliation of GAAP measures to non-GAAP measures (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2022 2021 Cost of revenue $ 31,857 $ 25,280 Amortization of acquired intangibles (3,151 ) (2,604 ) Stock-based compensation (817 ) (999 ) Non-GAAP cost of revenue $ 27,889 $ 21,677 Gross profit $ 68,518 $ 56,930 Amortization of acquired intangibles 3,151 2,604 Stock-based compensation 817 999 Non-GAAP gross profit $ 72,486 $ 60,533 Non-GAAP gross margin 72.2 % 73.6 % Sales and marketing $ 41,816 $ 34,527 Stock-based compensation (1,295 ) (3,742 ) Non-GAAP sales and marketing $ 40,521 $ 30,785 Research and development $ 23,559 $ 18,079 Stock-based compensation (1,723 ) (2,028 ) Non-GAAP research and development $ 21,836 $ 16,051 General and administrative $ 22,336 $ 22,562 Amortization of acquired intangibles (8,387 ) (5,255 ) Change in fair value of contingent consideration 52 (42 ) Stock-based compensation (2,249 ) (5,916 ) Non-GAAP general and administrative $ 11,752 $ 11,349 Total operating expenses $ 87,711 $ 75,168 Amortization of acquired intangibles (8,387 ) (5,255 ) Change in fair value of contingent consideration 52 (42 ) Stock-based compensation (5,267 ) (11,686 ) Non-GAAP operating expenses $ 74,109 $ 58,185 Operating loss $ (19,193 ) $ (18,238 ) Amortization of acquired intangibles 11,538 7,859 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Non-GAAP operating income (loss) $ (1,623 ) $ 2,348 Net loss $ (19,073 ) $ (21,789 ) Amortization of acquired intangibles 11,538 7,859 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Accretion of interest on convertible senior notes 1,158 6,313 Loss on extinguishment of convertible notes and capped call modification — 2,888 Income tax adjustments (250 ) (36 ) Non-GAAP net income (loss) $ (595 ) $ 7,962 Non-GAAP net income (loss) per share: Basic $ (0.02 ) $ 0.22 Diluted $ (0.02 ) $ 0.18 Weighted-average common shares outstanding: Basic 39,429,686 36,386,819 Diluted 39,429,686 43,554,183 Reconciliation of GAAP measures to non-GAAP measures (Continued) (in thousands) (unaudited) Three Months Ended March 31, 2022 2021 Net loss $ (19,073 ) $ (21,789 ) Interest and investment expense, net 1,238 6,427 Benefit from income taxes (1,078 ) (5,813 ) Depreciation and amortization 15,434 10,843 EBITDA (3,479 ) (10,332 ) Loss on extinguishment of convertible notes and capped call modification — 2,888 Change in fair value of contingent consideration (52 ) 42 Stock-based compensation 6,084 12,685 Adjusted EBITDA $ 2,553 $ 5,283 Net cash provided by operating activities $ 7,702 $ 19,808 Capital expenditures (1,847 ) (1,812 ) Capitalized software development costs (4,330 ) (2,495 ) Free cash flow $ 1,525 $ 15,501 Remaining Performance Obligations as of March 31, 2022 (in millions) Remaining Performance Obligations Remaining Performance Obligations Next Twelve Months Subscription and other contracts $ 450 $ 285 Professional services contracts 19 17 Financial Outlook (in millions, except share and per share data) Three Months Ended Year Ended June 30, 2022 December 31, 2022 Low End High End Low End High End Net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) Amortization of acquired intangibles 11.0 11.0 42.0 42.0 Accretion of interest on convertible senior notes 1.3 1.3 5.2 5.2 Strategic realignment 6.5 6.5 16.5 16.5 Stock-based compensation 22.0 22.0 82.0 82.0 Non-GAAP net income (loss) $ (5.2 ) $ (4.2 ) $ 10.7 $ 12.7 Weighted average common shares outstanding: Basic 39,000,000 39,000,000 40,000,000 40,000,000 Diluted 39,000,000 39,000,000 47,000,000 47,000,000 Net loss per share $ (1.18 ) $ (1.15 ) $ (3.38 ) $ (3.33 ) Non-GAAP net income (loss) per share $ (0.13 ) $ (0.11 ) $ 0.23 $ 0.27 Net loss $ (46.0 ) $ (45.0 ) $ (135.0 ) $ (133.0 ) Interest expense, net 1.4 1.4 6.0 6.0 Income taxes, net 0.1 0.1 4.0 4.0 Depreciation and amortization 15.0 15.0 60.0 60.0 EBITDA (29.5 ) (28.5 ) (65.0 ) (63.0 ) Strategic realignment 6.5 6.5 16.5 16.5 Stock-based compensation 22.0 22.0 82.0 82.0 Adjusted EBITDA $ (1.0 ) $ - $ 33.5 $ 35.5 Year Ended December 31, 2022 Issued Feb 24th, 2022 Low End High End Net loss $ (141.0 ) $ (139.0 ) Amortization of acquired intangibles 51.0 51.0 Accretion of interest on convertible senior notes 5.2 5.2 Stock-based compensation 95.0 95.0 Non-GAAP net income $ 10.2 $ 12.2 Weighted average common shares outstanding: Basic 39,700,000 39,700,000 Diluted 47,000,000 47,000,000 Net loss per share $ (3.55 ) $ (3.50 ) Non-GAAP net income per share $ 0.22 $ 0.26 Net loss $ (141.0 ) $ (139.0 ) Interest expense, net 6.0 6.0 Income taxes, net 6.0 6.0 Depreciation and amortization 67.0 67.0 EBITDA (62.0 ) (60.0 ) Stock-based compensation 95.0 95.0 Adjusted EBITDA $ 33.0 $ 35.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005865/en/
Everbridge: Investors: Nandan Amladi Investor Relations nandan.amladi@everbridge.com 617-665-7197 Media: Jeff Young Media Relations jeff.young@everbridge.com 781-859-4116