Company Delivers Solid Third Quarter Revenue
and Improved Profitability
Everbridge, Inc. (Nasdaq: EVBG), the global leader in critical
event management (CEM) and national public warning solutions, today
announced its financial results for the third quarter ended
September 30, 2023. Revenue for the third quarter was up 3%
year-over-year to $114.2 million, and GAAP net income was $1.7
million, compared to a net loss of $(22.1) million for the third
quarter of 2022.
“We delivered solid third quarter results as we continue to
improve our go-to-market execution and overall operating
efficiency,” said David Wagner, President and CEO of Everbridge.
“We saw healthy year-over-year improvements, including our
strongest recurring bookings quarter of the year, and efficiency
improvements across the business allowing us to increase adjusted
EBITDA by $8.5 million in the third quarter compared to last
year.”
Patrick Brickley, Executive Vice President and Chief Financial
Officer of Everbridge, added, “Our improving profitability is
supported by continued strength in our subscription revenue growth
despite challenges associated with one-time services and perpetual
software license revenue, which were down year-over-year. In the
fourth quarter, we expect to further improve our earnings while, at
the same time, our one-time revenues are now expected to decrease
by about $6 million compared to the fourth quarter of 2022. Our
2023 full-year guidance represents an approximately 100%
year-over-year improvement in adjusted EBITDA.”
Wagner continued, “As we look forward, we believe consistent
growth in our subscription revenues, strong expense management, and
our streamlined product portfolio have us positioned for meaningful
growth in profitability in 2024, which will keep us on track
towards our goal of reaching the ‘Rule of 40’ by 2027.”
Third Quarter 2023 Financial Highlights
- Total revenue was $114.2 million, an increase of 3% compared to
$111.4 million for the third quarter of 2022. Revenue from
subscription services was $104.3 million, an increase of 8%
compared to $96.8 million for the third quarter of 2022. Revenue
from professional services, software licenses and other was $9.8
million, a decrease of 33% compared to $14.6 million for the third
quarter of 2022.
- GAAP operating loss was $(12.7) million, compared to $(19.2)
million for the third quarter of 2022.
- Non-GAAP operating income was $18.6 million, compared to $9.8
million for the third quarter of 2022.
- GAAP net income was $1.7 million, compared to GAAP net loss of
$(22.1) million for the third quarter of 2022. GAAP basic net
income per share was $0.04, based on 40.8 million basic weighted
average common shares outstanding, GAAP diluted net loss per share
was $(0.23) taking into the account the dilutive effect of
convertible notes, based on 43.8 million diluted weighted average
common shares outstanding, compared to $(0.56) of basic and diluted
net income per share for the third quarter of 2022, based on 39.7
million basic and diluted weighted average common shares
outstanding.
- Non-GAAP net income was $20.2 million, compared to $12.3
million in the third quarter of 2022. Non-GAAP diluted net income
per share was $0.46, based on 44.0 million diluted weighted average
common shares outstanding, compared to $0.27 for the third quarter
of 2022, based on 46.1 million diluted weighted average common
shares outstanding.
- Adjusted EBITDA was $23.7 million, compared to $15.2 million in
the third quarter of 2022.
- Cash flow from operations was an inflow of $17.0 million,
compared to $18.0 million for the third quarter of 2022.
- Adjusted for one-time cash payments related to our 2022
Strategic Realignment program, adjusted free cash flow was an
inflow of $15.5 million, compared to $15.4 million for the third
quarter of 2022.
Recent Business Highlights
- Annualized Recurring Revenue (ARR) was $399 million, up 8%
year-over-year.
- CEM customer count increased to 405, up 32 sequentially and 59%
year-over-year.
- Unveiled Everbridge 360TM, new product innovation for customers
to automate and simplify the management of critical events across a
powerful, unified dashboard.
- Awarded new patent in the field of Artificial Intelligence
(AI), relevant to technology used in analytics dashboards for
critical event management software systems.
- Provided cell broadcast emergency alerting capabilities to
successfully power the German government’s nationwide public
warning system on Nationwide Warning Day, in conjunction with
leading German mobile network operators (MNOs).
- Announced the City of Glendale, Arizona as the latest U.S. city
to deploy Everbridge to safeguard residents and visitors during
emergencies and large-scale events.
- Demonstrated the use of artificial intelligence technology
within public warning capabilities at the 2023 Common Alerting
Protocol (CAP) workshop in Switzerland.
- Joined government and humanitarian leaders to showcase the
technology and commitment to drive innovation and excellence in
public warning systems at the Creating Effective Warnings for All
conference in London.
Financial Outlook
Based on information available as of today, Everbridge is
issuing guidance for the fourth quarter and full year 2023 as
indicated below.
Full Year 2023
Guidance
Fourth Quarter 2023
Full Year 2023
Issued August 8, 2023
Revenue
$
114.0
to
$
115.5
$
447.0
to
$
448.5
$
450.0
to
$
452.0
Revenue growth
(3
)%
(1
)%
4
%
4
%
4
%
5
%
GAAP net loss
$
(6.3
)
$
(5.1
)
$
(34.3
)
$
(33.1
)
$
(43.7
)
$
(41.7
)
GAAP net loss per share
$
(0.15
)
$
(0.12
)
$
(0.84
)
$
(0.81
)
$
(1.07
)
$
(1.02
)
Non-GAAP net income
$
21.5
$
23.0
$
66.0
$
67.5
$
65.8
$
67.8
Non-GAAP net income per share
$
0.48
$
0.52
$
1.48
$
1.52
$
1.48
$
1.52
Adjusted EBITDA
$
25.6
$
27.1
$
83.5
$
85.0
$
84.0
$
86.0
(All figures in millions, except per share data)
Revenue
Based on information available as of today, Everbridge is
issuing detailed revenue guidance for the fourth quarter and full
year 2023. The following table presents disaggregated revenue by
source for the fourth quarter and full year 2022 and guidance for
the fourth quarter and full year 2023.
Fourth Quarter
Fourth Quarter 2023
Full Year
Full Year 2023
2022
Low End
High End
2022
Low End
High End
Subscription services
$
101.4
$
104.6
$
105.0
$
384.6
$
409.5
$
409.9
Professional services
8.7
6.7
7.1
29.3
25.0
25.4
Software licenses and other
7.0
2.7
3.4
18.0
12.5
13.2
Total revenue
$
117.1
$
114.0
$
115.5
$
431.9
$
447.0
$
448.5
(Dollars in millions)
Conference Call Information
What:
Everbridge’s Third Quarter 2023
Financial Results Conference Call
When:
Thursday, November 9, 2023
Time:
4:30 p.m. ET
Live Call:
(833) 685-0904, Domestic
(412) 317-5740, International
Replay:
(877) 344-7529, Passcode 7890007,
Domestic
(412) 317-0088, Passcode 7890007,
International
Webcast:
https://edge.media-server.com/mmc/p/9ogmk8nd (live and replay)
About Everbridge
Everbridge (Nasdaq: EVBG) empowers enterprises and government
organizations to anticipate, mitigate, respond to, and recover
stronger from critical events. In today’s unpredictable world,
resilient organizations minimize impact to people and operations,
absorb stress, and return to productivity faster when deploying
critical event management (CEM) technology. Everbridge digitizes
organizational resilience by combining intelligent automation with
the industry’s most comprehensive risk data to Keep People Safe and
Organizations Running™. For more information, visit
https://www.everbridge.com/, read the company blog, and follow on
Twitter. Everbridge… Empowering Resilience.
Key Performance Metric
Annualized Recurring Revenue (ARR) is defined as the expected
recurring revenue in the next twelve months from active customer
contracts, assuming no increases or reductions in the subscriptions
from that cohort of customers. Investors should not place undue
reliance on ARR as an indicator of future or expected results. Our
presentation of this metric may differ from similarly titled
metrics presented by other companies and therefore comparability
may be limited.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial
measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income/(loss), non-GAAP net income/(loss), non-GAAP net
income/(loss) per share, EBITDA, adjusted EBITDA, free cash flow,
adjusted free cash flow and adjusted EBITDA margin.
Non-GAAP operating income/(loss) excludes amortization of
acquired intangible assets, stock-based compensation, costs related
to the 2022 Strategic Realignment, Anvil legal dispute accrual and
change in fair value of contingent consideration. Non-GAAP net
income/(loss) excludes amortization of acquired intangible assets,
stock-based compensation, costs related to the 2022 Strategic
Realignment, Anvil legal dispute accrual, change in fair value of
contingent consideration, accretion of interest on convertible
senior notes, gain (loss) on extinguishment of debt, capped call
modification and change in fair value and the tax impact of such
adjustments. EBITDA represents net income/(loss) before interest
income and interest expense, income tax expense and benefit and
depreciation and amortization expense. Adjusted EBITDA represents
EBITDA as further adjusted for stock-based compensation expense,
costs related to the 2022 Strategic Realignment, Anvil legal
dispute accrual, change in fair value of contingent consideration
and gain (loss) on extinguishment of debt, capped call modification
and change in fair value. Free cash flow represents cash provided
by (used in) operating activities minus cash used for capital
expenditures and capitalized software development costs. Adjusted
free cash flow represents free cash flow as further adjusted for
cash payments for the 2022 Strategic Realignment.
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 anticipated impact on financial results for the
fourth quarter of 2023 and the full fiscal year 2023. 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 successfully integrate
businesses and assets that we may acquire; 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;
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 Annual Report on Form 10-K for the year ended
December 31, 2022 filed with the SEC on February 24, 2023 and other
subsequent filings with the SEC. 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)
September 30,
December 31,
2023
2022
Current assets:
Cash and cash equivalents
$
97,697
$
198,725
Restricted cash
2,067
2,046
Accounts receivable, net
92,627
119,986
Prepaid expenses
15,192
13,133
Assets held for sale
22
6,485
Deferred costs and other current
assets
36,112
31,866
Total current assets
243,717
372,241
Property and equipment, net
9,218
8,993
Capitalized software development costs,
net
30,701
27,370
Goodwill
507,420
508,781
Intangible assets, net
137,670
166,177
Restricted cash
783
823
Prepaid expenses
1,141
1,709
Deferred costs and other assets
42,129
39,570
Total assets
$
972,779
$
1,125,664
Current liabilities:
Accounts payable
$
13,244
$
10,854
Accrued payroll and employee related
liabilities
25,072
31,175
Accrued expenses
16,744
13,566
Deferred revenue
223,529
233,106
Liabilities held for sale
170
2,062
Other current liabilities
6,594
10,644
Total current liabilities
285,353
301,407
Long-term liabilities:
Deferred revenue, noncurrent
7,226
9,278
Convertible senior notes
359,153
500,298
Deferred tax liabilities
5,048
6,236
Other long-term liabilities
17,805
19,334
Total liabilities
674,585
836,553
Stockholders' equity:
Common stock
41
40
Additional paid-in capital
761,279
721,143
Accumulated deficit
(430,139
)
(402,124
)
Accumulated other comprehensive loss
(32,987
)
(29,948
)
Total stockholders' equity
298,194
289,111
Total liabilities and stockholders'
equity
$
972,779
$
1,125,664
Consolidated Statements of Operations
and Comprehensive Loss (in thousands, except share and per
share data) (unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Revenue
$
114,191
$
111,401
$
333,028
$
314,762
Cost of revenue
33,069
35,447
98,141
100,543
Gross profit
81,122
75,954
234,887
214,219
Gross margin
71.04
%
68.18
%
70.53
%
68.06
%
Operating expenses:
Sales and marketing
36,699
46,580
121,556
133,755
Research and development
23,852
25,177
73,469
75,355
General and administrative
31,204
23,357
80,633
72,786
Restructuring
2,109
37
2,794
6,779
Total operating expenses
93,864
95,151
278,452
288,675
Operating loss
(12,742
)
(19,197
)
(43,565
)
(74,456
)
Other income (expense), net
Interest and investment income
2,140
2,054
6,162
2,795
Interest expense
(724
)
(1,312
)
(2,258
)
(3,919
)
Gain (loss) on extinguishment of
convertible notes, capped call modification and change in fair
value
12,658
(4,770
)
12,658
(4,770
)
Other income (expense), net
(573
)
1,170
173
1,261
Total other income (expense), net
13,501
(2,858
)
16,735
(4,633
)
Income (loss) before income taxes
759
(22,055
)
(26,830
)
(79,089
)
(Provision for) benefit from income
taxes
924
(25
)
(1,185
)
1,754
Net income (loss)
$
1,683
$
(22,080
)
$
(28,015
)
$
(77,335
)
Net income (loss) per share attributable
to common stockholders:
Basic
$
0.04
$
(0.56
)
$
(0.69
)
$
(1.95
)
Diluted
$
(0.23
)
$
(0.56
)
$
(0.87
)
$
(1.95
)
Weighted-average common shares
outstanding:
Basic
40,782,696
39,746,242
40,537,922
39,583,684
Diluted
43,844,334
39,746,242
43,734,429
39,583,684
Other comprehensive loss:
Foreign currency translation
adjustment
(7,776
)
(19,879
)
(3,039
)
(48,424
)
Total comprehensive loss
$
(6,093
)
$
(41,959
)
$
(31,054
)
$
(125,759
)
Stock-based compensation expense included
in the above:
(in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Cost of revenue
$
1,285
$
1,978
$
4,757
$
4,276
Sales and marketing
2,398
6,415
13,346
14,320
Research and development
2,810
3,994
10,306
9,367
General and administrative
2,105
5,020
9,768
11,739
Total stock-based compensation
$
8,598
$
17,407
$
38,177
$
39,702
Consolidated Statements of Cash
Flows (in thousands) (unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Cash flows from operating activities:
Net income (loss)
$
1,683
$
(22,080
)
$
(28,015
)
$
(77,335
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
14,630
14,562
44,288
45,253
Amortization of deferred costs
4,986
4,625
14,478
13,365
Deferred income taxes
(332
)
436
(1,037
)
(7,132
)
Accretion of interest on convertible
senior notes
684
1,168
2,122
3,492
(Gain) loss on disposal of assets
—
6
(352
)
940
(Gain) loss on extinguishment of
convertible notes, capped call modification and change in fair
value
(12,658
)
4,770
(12,658
)
4,770
Provision for credit losses and sales
reserve
(123
)
(990
)
2,203
(712
)
Stock-based compensation
8,598
17,407
38,177
39,702
Other non-cash adjustments
—
—
—
(57
)
Changes in operating assets and
liabilities:
Accounts receivable
4,362
5,729
25,439
28,760
Prepaid expenses
(955
)
2,085
(1,567
)
17
Deferred costs
(5,567
)
(5,627
)
(18,815
)
(16,157
)
Other assets
1,749
1,368
(2,080
)
7,591
Accounts payable
2,870
1,015
1,936
(3,172
)
Accrued payroll and employee related
liabilities
90
1,052
(6,103
)
(6,919
)
Accrued expenses
6,651
(2,474
)
2,139
(637
)
Deferred revenue
(6,712
)
(152
)
(11,885
)
(4,678
)
Other liabilities
(2,947
)
(4,865
)
(5,316
)
(11,278
)
Net cash provided by operating
activities
17,009
18,035
42,954
15,813
Cash flows from investing activities:
Capital expenditures
(1,945
)
(225
)
(4,124
)
(2,951
)
Proceeds from landlord reimbursement
88
1,219
88
1,219
Proceeds from sale of assets
—
—
4,368
—
Payment for acquisition of business, net
of acquired cash
—
(1,202
)
—
(1,249
)
Additions to capitalized software
development costs
(4,835
)
(4,173
)
(12,704
)
(11,609
)
Net cash used in investing activities
(6,692
)
(4,381
)
(12,372
)
(14,590
)
Cash flows from financing activities:
Repurchase of convertible notes
(129,579
)
—
(129,579
)
—
Payments associated with shares withheld
to settle employee tax withholding liability
(2,529
)
(1,913
)
(6,218
)
(4,208
)
Proceeds from employee stock purchase
plan
1,745
1,463
4,291
3,165
Proceeds from stock option exercises
25
17
1,300
99
Other
(19
)
(17
)
(57
)
(55
)
Net cash used in financing activities
(130,357
)
(450
)
(130,263
)
(999
)
Effect of exchange rates on cash, cash
equivalents and restricted cash
(1,295
)
(1,010
)
(1,366
)
(3,309
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(121,335
)
12,194
(101,047
)
(3,085
)
Cash, cash equivalents and restricted
cash—beginning of period
221,882
477,479
201,594
492,758
Cash, cash equivalents and restricted
cash—end of period
$
100,547
$
489,673
$
100,547
$
489,673
Reconciliation of GAAP measures to
non-GAAP measures (unaudited) The following table reconciles
our GAAP gross profit to non-GAAP gross profit (in thousands):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Gross profit
$
81,122
$
75,954
$
234,887
$
214,219
Amortization of acquired intangibles
1,980
2,790
6,530
9,055
Stock-based compensation
1,285
1,978
4,757
4,276
2022 Strategic Realignment
125
259
790
694
Non-GAAP gross profit
$
84,512
$
80,981
$
246,964
$
228,244
The following table reconciles our GAAP
gross margin to non-GAAP gross margin(1):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Gross margin
71.0
%
68.2
%
70.5
%
68.1
%
Amortization of acquired intangibles
margin
1.7
%
2.5
%
2.0
%
2.9
%
Stock-based compensation margin
1.1
%
1.8
%
1.4
%
1.4
%
2022 Strategic Realignment margin
0.1
%
0.2
%
0.2
%
0.2
%
Non-GAAP gross margin
74.0
%
72.7
%
74.2
%
72.5
%
(1) Columns may not add up due to
rounding.
The following table reconciles our GAAP
operating loss to non-GAAP operating income (in thousands):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Operating loss
$
(12,742
)
$
(19,197
)
$
(43,565
)
$
(74,456
)
Amortization of acquired intangibles
8,979
10,328
27,988
33,128
Stock-based compensation
8,598
17,407
38,177
39,702
2022 Strategic Realignment
5,732
1,224
10,736
10,818
Anvil legal dispute accrual
8,064
—
8,064
—
Change in fair value of contingent
consideration
—
—
—
(57
)
Non-GAAP operating income
$
18,631
$
9,762
$
41,400
$
9,135
The following table reconciles our GAAP
net income (loss) to non-GAAP net income (in thousands):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net income (loss)
$
1,683
$
(22,080
)
$
(28,015
)
$
(77,335
)
Amortization of acquired intangibles
8,979
10,328
27,988
33,128
Stock-based compensation
8,598
17,407
38,177
39,702
2022 Strategic Realignment
5,714
1,227
10,718
10,821
Anvil legal dispute accrual
8,064
—
8,064
—
Change in fair value of contingent
consideration
—
—
—
(57
)
Accretion of interest on convertible
senior notes
684
1,168
2,122
3,492
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value
(12,658
)
4,770
(12,658
)
4,770
Income tax adjustments
(841
)
(510
)
(1,918
)
(1,321
)
Non-GAAP net income
$
20,223
$
12,310
$
44,478
$
13,200
Reconciliation of GAAP measures to
non-GAAP measures (Continued) (unaudited) The following table
reconciles our GAAP net income (loss) per basic share to non-GAAP
net income per basic share(1):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net income (loss) per basic share(a)
$
0.04
$
(0.56
)
$
(0.69
)
$
(1.95
)
Amortization of acquired intangibles per
basic share(b)
0.22
0.26
0.69
0.84
Stock-based compensation per basic
share(b)
0.21
0.44
0.94
1.00
2022 Strategic Realignment per basic
share(b)
0.14
0.03
0.26
0.27
Anvil legal dispute accrual(b)
0.20
—
0.20
—
Change in fair value of contingent
consideration per basic share(b)
—
—
—
—
Accretion of interest on convertible
senior notes per basic share(b)
0.02
0.03
0.05
0.09
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value per basic
share(b)
(0.31
)
0.12
(0.31
)
0.12
Income tax adjustments per basic
share(b)
(0.02
)
(0.01
)
(0.05
)
(0.03
)
Non-GAAP net income per basic share(b)
$
0.50
$
0.31
$
1.10
$
0.33
(1) Amounts may not add up due to
rounding.
The following table reconciles our GAAP
net loss per diluted share to non-GAAP net income per diluted
share(1):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net loss per diluted share(a)
$
(0.23
)
$
(0.56
)
$
(0.87
)
$
(1.95
)
Amortization of acquired intangibles per
diluted share(b)
0.20
0.22
0.64
0.72
Stock-based compensation per diluted
share(b)
0.20
0.38
0.87
0.86
2022 Strategic Realignment per diluted
share(b)
0.13
0.03
0.24
0.24
Anvil legal dispute accrual(b)
0.18
—
0.18
—
Change in fair value of contingent
consideration per diluted share(b)
—
—
—
—
Accretion of interest on convertible
senior notes per diluted share(b)
0.02
0.03
0.05
0.08
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value per basic
share(b)
(0.29
)
0.10
(0.29
)
0.10
Income tax adjustments per diluted
share(b)
(0.02
)
(0.01
)
(0.04
)
(0.03
)
Non-GAAP net income per diluted
share(b)
$
0.46
$
0.27
$
1.01
$
0.29
(1) Amounts may not add up due to
differences in GAAP and non-GAAP net income (loss) and diluted
shares.
(a) GAAP weighted-average common shares
outstanding:
Basic
40,782,696
39,746,242
40,537,922
39,583,684
Diluted
43,844,334
39,746,242
43,734,429
39,583,684
(b) Non-GAAP weighted-average common
shares outstanding:
Basic
40,782,696
39,746,242
40,537,922
39,583,684
Diluted
44,007,708
46,061,330
43,907,925
45,957,546
GAAP and Non-GAAP diluted weighted-average shares include
dilutive potential common shares related to convertible notes and
stock-based compensation grants.
The following tables reconcile our net income (loss) to EBITDA
and adjusted EBITDA, net cash provided by operating activities to
free cash flow and adjusted free cash flow and net income (loss)
margin to EBITDA and adjusted EBITDA margin (dollars in
thousands):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net income (loss)
$
1,683
$
(22,080
)
$
(28,015
)
$
(77,335
)
Interest and investment expense, net
(1,416
)
(742
)
(3,904
)
1,124
Provision for (benefit from) income
taxes
(924
)
25
1,185
(1,754
)
Depreciation and amortization
14,630
14,562
44,288
45,253
EBITDA
13,973
(8,235
)
13,554
(32,712
)
Stock-based compensation
8,598
17,407
38,177
39,702
2022 Strategic Realignment
5,714
1,227
10,718
10,821
Anvil legal dispute accrual
8,064
—
8,064
—
Change in fair value of contingent
consideration
—
—
—
(57
)
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value
(12,658
)
4,770
(12,658
)
4,770
Adjusted EBITDA
$
23,691
$
15,169
$
57,855
$
22,524
Net cash provided by operating
activities
$
17,009
$
18,035
$
42,954
$
15,813
Capital expenditures
(1,945
)
(225
)
(4,124
)
(2,951
)
Capitalized software development costs
(4,835
)
(4,173
)
(12,704
)
(11,609
)
Free cash flow
10,229
13,637
26,126
1,253
Cash payments for 2022 Strategic
Realignment
5,269
1,760
10,951
8,079
Adjusted free cash flow
$
15,498
$
15,397
$
37,077
$
9,332
Net income (loss) margin
1.5
%
(19.8
)%
(8.4
)%
(24.6
)%
Interest and investment expense, net
margin
(1.2
)%
(0.7
)%
(1.2
)%
0.4
%
Provision for (benefit from) income taxes
margin
(0.8
)%
0.0
%
0.4
%
(0.6
)%
Depreciation and amortization margin
12.8
%
13.1
%
13.3
%
14.4
%
EBITDA margin
12.2
%
(7.4
)%
4.1
%
(10.4
)%
Stock-based compensation margin
7.5
%
15.6
%
11.5
%
12.6
%
2022 Strategic Realignment margin
5.0
%
1.1
%
3.2
%
3.4
%
Anvil legal dispute accrual margin
7.1
%
—
2.4
%
—
Change in fair value of contingent
consideration margin
—
—
—
—
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value margin
(11.1
)%
4.3
%
(3.8
)%
1.5
%
Adjusted EBITDA margin
20.7
%
13.6
%
17.4
%
7.2
%
Remaining Performance Obligations as of
September 30, 2023 (in millions)
Remaining Performance
Obligations
Remaining Performance
Obligations Next Twelve Months
Subscription and other contracts
$
472
$
291
Professional services contracts
9
9
Financial Outlook (in millions,
except share and per share data)
Year Ended
Three Months Ended
Year Ended
December 31, 2023
December 31, 2023
December 31, 2023
Issued August 8, 2023
Low End
High End
Low End
High End
Low End
High End
Net loss
$
(6.3
)
$
(5.1
)
$
(34.3
)
$
(33.1
)
$
(43.7
)
$
(41.7
)
Amortization of acquired intangibles
9.1
9.1
37.1
37.1
38.0
38.0
Accretion of interest on convertible
senior notes
0.9
0.9
3.0
3.0
3.3
3.3
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value
—
—
(12.7
)
(12.7
)
—
—
Anvil legal dispute accrual
—
—
8.1
8.1
—
—
2022 Strategic Realignment
4.0
4.3
14.7
15.0
11.2
11.2
Stock-based compensation
14.4
14.4
52.6
52.6
58.8
58.8
Income tax adjustments
(0.6
)
(0.6
)
(2.5
)
(2.5
)
(1.8
)
(1.8
)
Non-GAAP net income
$
21.5
$
23.0
$
66.0
$
67.5
$
65.8
$
67.8
Weighted average common shares
outstanding:
Basic
41,100,000
41,100,000
40,700,000
40,700,000
40,750,000
40,750,000
Diluted
44,400,000
44,400,000
44,500,000
44,500,000
44,500,000
44,500,000
Net loss per share
$
(0.15
)
$
(0.12
)
$
(0.84
)
$
(0.81
)
$
(1.07
)
$
(1.02
)
Non-GAAP net income per share
$
0.48
$
0.52
$
1.48
$
1.52
$
1.48
$
1.52
Net loss
$
(6.3
)
$
(5.1
)
$
(34.3
)
$
(33.1
)
$
(43.7
)
$
(41.7
)
Interest expense, net
(1.3
)
(1.3
)
(5.2
)
(5.2
)
(5.1
)
(5.1
)
Income taxes, net
1.4
1.4
2.6
2.6
5.0
5.0
Depreciation and amortization
13.4
13.4
57.7
57.7
57.8
57.8
EBITDA
7.2
8.4
20.8
22.0
14.0
16.0
(Gain) loss on extinguishment of debt,
capped call modification and change in fair value
—
—
(12.7
)
(12.7
)
—
—
Anvil legal dispute accrual
—
—
8.1
8.1
—
—
2022 Strategic Realignment
4.0
4.3
14.7
15.0
11.2
11.2
Stock-based compensation
14.4
14.4
52.6
52.6
58.8
58.8
Adjusted EBITDA
$
25.6
$
27.1
$
83.5
$
85.0
$
84.0
$
86.0
Reconciliation of Basic and Diluted Net
Income (Loss) per Share The following table summarizes the
computations of basic net income (loss) per share and diluted net
loss per share (in thousands, except share and per share data):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net income (loss)
$
1,683
$
(22,080
)
$
(28,015
)
$
(77,335
)
Dilutive effect of convertible notes, net
of tax
(11,611
)
—
(10,132
)
—
Adjusted net loss
$
(9,928
)
$
(22,080
)
$
(38,147
)
$
(77,335
)
Weighted-average common stock outstanding
— basic
40,782,696
39,746,242
40,537,922
39,583,684
Dilutive potential common shares related
to convertible notes
3,061,638
—
3,196,507
—
Weighted-average common stock outstanding
— diluted
43,844,334
39,746,242
43,734,429
39,583,684
Basic net income (loss) per share
$
0.04
$
(0.56
)
$
(0.69
)
$
(1.95
)
Diluted net loss per share
$
(0.23
)
$
(0.56
)
$
(0.87
)
$
(1.95
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109990699/en/
Everbridge Contacts:
Investors: Nandan Amladi Investor Relations
nandan.amladi@everbridge.com 617-665-7197
Media: Jeff Young Media Relations
jeff.young@everbridge.com 781-859-4116
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