BURLINGTON, Mass.: 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, 2024. Revenue for the first quarter was up 3% year-over-year to $111.4 million, and GAAP net loss was $(20.1) million, compared to $(14.6) million for the first quarter of 2023.

First Quarter 2024 Financial Highlights

• Total revenue was $111.4 million, an increase of 3% compared to $108.3 million for the first quarter of 2023. Revenue from subscription services was $105.3 million, an increase of 7% compared to $98.8 million for the first quarter of 2023. Revenue from professional services, software licenses and other was $6.1 million, a decrease of 36% compared to $9.5 million for the first quarter of 2023.
• GAAP operating loss was $(14.9) million, compared to $(15.4) million for the first quarter of 2023.
• Non-GAAP operating income was $8.2 million, compared to $10.1 million for the first quarter of 2023.
• GAAP net loss was $(20.1) million, compared to $(14.6) million for the first quarter of 2023. GAAP diluted net loss per share was $(0.49) based on 41.3 million diluted weighted average common shares outstanding, compared to $(0.36) for the first quarter of 2023, based on 40.3 million diluted weighted average common shares outstanding.
• Non-GAAP net income was $8.0 million, compared to $10.8 million for the first quarter of 2023. Non-GAAP diluted net income per share was $0.18, based on 43.8 million diluted weighted average common shares outstanding, compared to $0.25 for the first quarter of 2023, based on 43.8 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $13.7 million, compared to $15.9 million for the first quarter of 2023.
• Cash flow from operations was an inflow of $2.1 million, compared to $20.6 million for the first quarter of 2023.
• Adjusted for one-time cash payments related to our 2022 Strategic Realignment program, adjusted free cash flow was an inflow of $1.9 million, compared to $20.0 million for the first quarter of 2023.
• Annualized Recurring Revenue (ARR) was $416 million, and 26 CEM customers were added during the quarter.
• Deal metrics: 37 deals over $100,000; 6 deals over $500,000.

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 LinkedIn. 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 excludes amortization of acquired intangible assets, stock-based compensation and costs related to the 2022 Strategic Realignment. Non-GAAP net income excludes amortization of acquired intangible assets, stock-based compensation, costs related to the 2022 Strategic Realignment, accretion of interest on convertible senior notes and the tax impact of such adjustments. EBITDA represents net 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 and costs related to the 2022 Strategic Realignment. Free cash flow represents cash provided by 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 may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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: our proposed acquisition by entities affiliated with Thoma Bravo, L.P. (“Thoma Bravo”); our expectation regarding the timing and completion of the proposed acquisition by entities affiliated with Thoma Bravo; the effect of recent changes in our senior management team on our business; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures, including our ability to remediate the material weakness in internal control over financial reporting in the anticipated timeframe, if at all; 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, 2023, which we filed with the SEC on February 27, 2024 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 Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (unaudited)
	Three Months Ended
	March 31,
		2024				2023
Revenue	$	111,429			$	108,268
Cost of revenue		32,444				31,981
Gross profit		78,985				76,287
Gross margin		70.88	%			70.46	%
Operating expenses:
Sales and marketing		37,118				42,188
Research and development		22,848				25,004
General and administrative		31,541				24,466
Restructuring		2,344				21
Total operating expenses		93,851				91,679
Operating loss		(14,866	)			(15,392	)
Other income, net
Interest and investment income		1,084				1,737
Interest expense	If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news Tractian Announces Appointment of Hans Robertson to Board of Directors Argentina Prepaid Card and Digital Wallet Business Report 2024: Market to Reach $13 Billion by 2028 - Retail Spend Dynamics Across 11 Categories - ResearchAndMarkets.com Cross Country Chief Human Resource Officer Honored as DE&I Influencer Future Tech Announces Strategic Global Partnership with Iternal Technologies Dion Hinchcliffe joins The Futurum Group, Expanding CIO Strategic Decision-Making Insights and Intelligence Offerings American Society for Gastroenterology and Endoscopy Launches Artificial Intelligence Institute at Digestive Disease Week Huron’s Laura Zimmerman Earns Top Technology Leader Recognition Dialpad Names 2023 Partner Program Award Winners, Honoring Their Contributions to Accelerating Company Growth Last News Gyala: a new "Made in Italy" cybersecurity With a proven track record in the defence field, Gyala now also brings its cybersecurity technologies to the wider enterprise audience ITALIAN PROJECT AWARDS 2023: the best IT projects of the year, awarded Now in its third edition, the initiative is targeted at the ICT professional world and honours projects based on innovative ideas and technologies, realised… I3P launches the Cybersecurity Incubation Program The I3P's initiative is promoted together with the National Cybersecurity Agency in collaboration with Leonardo and C*Sparks. iVis Technologies enables remotely-controlled corneal telesurgery It's based on Italian technologies the first successful intercontinental telesurgery intervention for keratoconus carried out remotely, connecting Bari… Most read Genesys Recognizes Modivcare as Winner of EX Mobilizer Award Genesys®, a global cloud leader in AI-powered experience orchestration, announced Modivcare as the winner of the Employee Experience (EX) Mobilizer category… Gyala: a new "Made in Italy" cybersecurity With a proven track record in the defence field, Gyala now also brings its cybersecurity technologies to the wider enterprise audience MDS Property Management Software Achieves SOC 2 Compliance #newyorkcity--MDS Property Management Software is pleased to announce the successful completion of its System and Organization Controls (SOC) 2 audit,… Global Alternative Data Market Analysis Report 2024-2029: Increasing Penetration… The "Global Alternative Data Market: Analysis By Type, By Industry, By End User, By Region Size and Trends with Impact of COVID-19 and Forecast up to… Newsletter signup Join our mailing list to get weekly updates delivered to your inbox. Sign me up! G11 Media Networks BitCity ChannelCity ImpresaCity SecurityOpenLab GreenCity ImpresaGreen ItalianChannelAwards AgendaIct Home Newsletter Staff Copyright Contact us InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , n. 21/2007 del 11/10/2007- Registration ROC n. 15698 G11 MEDIA S.R.L. Registered office Via NUOVA VALASSINA, 4 22046 MERONE (CO) - P.IVA/C.F.03062910132 Como business register n. 03062910132 - REA n. 293834 CAPITALE SOCIALE Euro 30.000 i.v. Cookie Privacy