Emergency notifications provider Everbridge (Nasdaq: EVBG) has recently announced that it has been awarded the contract for deploying Australia’s national early warning system. This news coupled with a strong first quarter has seen its stock soar to all-time high levels. Its valuation has soared almost ten times since its IPO in 2016.
Everbridge was founded in 2002 after the tragic events of 9/11 with a vision to help improve the way that people communicate and locate their people in critical situations. Its SaaS-based communications platform is built on a secure, scalable infrastructure with multiple layers of redundancy to ensure rapid delivery of critical communications, with near real-time verification over numerous devices and contact paths. Communication of critical messages can happen over SMS or email to more than 100 different communication devices over more than 200 countries. Everbridge is based in Boston and Los Angeles with additional offices in Lansing, San Francisco, Beijing, Bangalore, Kolkata, London, Munich, Oslo, Stockholm, and Tilburg. Read more about the company’s genesis in my interview with Everbridge former CEO Jaime Ellertson.
Everbridge’s critical communications and enterprise safety applications include Mass Notification, Incident Management, Safety Connection™, IT Alerting, Visual Command Center®, Population Alerting, Crisis Management, Community Engagement™ and Secure Messaging.
During the first quarter, Everbridge launched Crisis Management, a new software application designed to help organizations dynamically manage the lifecycle of a critical event and accelerate response and recovery times. Crisis Management, which is fully integrated with the Everbridge Critical Event Management (CEM) suite, centralizes incident response tasks, activities and resources through a common operating picture and accompanying mobile application.
Everbridge has announced the integration of Everbridge IT Alerting with IBM QRadar Security Intelligence platform to enable joint customers to automate communications, collaboration, and orchestration tasks to streamline the overall information security incident response process.
Q1 revenues grew 40% to $42.8 million, surpassing analyst estimate of $42.2 million. Net loss was $(14.1) million or $(0.44) per share, compared to $(12.3) million or $(0.43) a year ago. Non-GAAP net loss per share was $(0.15) beating analyst estimate of a loss of $(0.19) per share. Cash, cash equivalents and restricted cash at the end of the first quarter was $235.3 million.
For the current quarter, Everbridge expects revenues of $47.8-$48.1 million and an adjusted loss of $0.09-$0.08 per share. It expects to end the year with revenues of $196.4-$197.4 million and a net loss of $0.28-$0.25 per share. The market was looking for revenues of $47.17 million for the quarter with a loss of $0.10 per share.
For the full year 2018, Everbridge recorded annual revenue of $147.1 million, up 41%. GAAP net loss was $(47.5) million or $(1.63) per share. Adjusted loss per share was $(0.54).
Last month, Everbridge announced a multi-year contract with Emergency Alert Australia, the national telephone warning system for Australia. The public warning platform is expected to be operational in 2020. So far, Everbridge’s platform has the ability to reach entire mobile populations on a country-wide scale in Sweden, the Netherlands, the Bahamas, Singapore, Greece, and a number of the large states in India. In 2018, its platform sent over 2.8 billion messages in 2018.
Everbridge ended the first quarter with 4,532 global enterprise customers, up from 3,539 a year ago. It competes with RaveMobileSafety.com, Alertus Technologies, and ReddiNet.
Its stock is trading at $98.36 with a market capitalization of $3.24 billion. It has been steadily climbing from its 52-week low of $41.94 in November last year.
The stock went public on the Nasdaq exchange in September 2016 when it raised $90 million by selling shares at $12 apiece at a valuation of $329 million. Prior to its IPO, it had raised $17.9 million in six funding rounds from investors including ABS Ventures.
Operating in a niche market, Everbridge is an example of a capital-efficient company that has managed to increase its value with the help of strong customer wins.