Everbridge Announces Fourth Quarter and Full Year 2021 Financial Results

Continued Penetration of Critical Event Management Opportunity Enables Full Year 2021 Revenue Increase of 36% Year-over-Year

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 fourth quarter and full year ended December 31, 2021.

“We exceeded our fourth quarter and full year 2021 guidance, driven by the continued success of our strategic CEM and Population Warning solutions,” said Vernon Irvin, co-Chief Executive Officer and Chief Revenue Officer of Everbridge. “We are taking decisive actions to streamline, integrate and reduce complexity in our key offerings, which we expect to drive sustainable growth in the years ahead.”

Patrick Brickley, co-Chief Executive Officer and Chief Financial Officer of Everbridge, added, “In addition to enabling us to drive attractive, sustainable growth, by focusing our efforts on our greatest assets – our CEM and Public Warning platforms – we believe we can achieve meaningful increases in profitability and cash flow in 2022 and beyond.”

Fourth Quarter 2021 Financial Highlights

  • Total revenue was $102.8 million, an increase of 36% compared to $75.6 million for the fourth quarter of 2020.
  • GAAP operating loss was $(11.5) million, compared to a GAAP operating loss of $(18.3) million for the fourth quarter of 2020.
  • Non-GAAP operating loss was $(1.4) million, compared to non-GAAP operating income of $1.3 million for the fourth quarter of 2020.
  • GAAP net loss was $(10.5) million, compared to $(24.6) million for the fourth quarter of 2020. GAAP net loss per share was $(0.27), based on 39.0 million basic and diluted weighted average common shares outstanding, compared to $(0.70) for the fourth quarter of 2020, based on 35.1 million basic and diluted weighted average common shares outstanding.
  • Non-GAAP net loss was $(2.1) million, compared to non-GAAP net income of $0.6 million in the fourth quarter of 2020. Non-GAAP diluted net loss per share was $(0.05), based on 39.0 million diluted weighted average common shares outstanding, compared to non-GAAP net income per share of $0.02 for the fourth quarter of 2020, based on 36.1 million diluted weighted average common shares outstanding.
  • Adjusted EBITDA was $0.6 million, compared to $4.1 million in the fourth quarter of 2020.
  • Cash flow from operations was an inflow of $10.2 million, compared to an inflow of $19.4 million for the fourth quarter of 2020.
  • Free cash flow was an inflow of $3.5 million compared to an inflow of $15.9 million for the fourth quarter of 2020.

Full Year 2021 Financial Highlights

  • Total revenue was $368.4 million, an increase of 36% compared to $271.1 million for 2020.
  • GAAP operating loss was $(76.2) million, compared to a GAAP operating loss of $(72.2) million for 2020.
  • Non-GAAP operating income was $1.3 million, compared to non-GAAP operating loss of $(1.7) million for 2020.
  • GAAP net loss was $(94.8) million, compared to $(93.4) million for 2020. GAAP net loss per share was $(2.50), based on 38.0 million basic and diluted weighted average common shares outstanding, compared to $(2.70) for 2020, based on 34.6 million basic and diluted weighted average common shares outstanding.
  • Non-GAAP net income was $9.5 million, compared to non-GAAP net loss of $(0.9) million in 2020. Non-GAAP diluted net income per share was $0.21, based on 45.0 million diluted weighted average common shares outstanding, compared to non-GAAP net loss per share of $(0.03) for 2020, based on 34.6 million diluted weighted average common shares outstanding.
  • Adjusted EBITDA was $11.2 million, compared to $8.0 million in 2020.
  • Cash flow from operations was an inflow of $22.2 million compared to an inflow of $15.8 million for 2020.
  • Free cash flow was $2.4 million compared to $2.9 million for 2020.
  • Cash, cash equivalents, and restricted cash as of December 31, 2021 totaled $492.8 million, compared to $475.6 million as of December 31, 2020.
  • Total deferred revenue increased 40% to $237.8 million as of December 31, 2021 from $170.1 million as of December 31, 2020.

Recent Business Highlights

  • Ended the fourth quarter with 6,135 global customers, up from 5,613 at the end of the fourth quarter of 2020.
  • In 2021, Everbridge customers used its software-as-a-service (SaaS) platform to send 6.9 billion interactions, an increase of 37% compared to 5.1 billion interactions in 2020.
  • Announced first-of-its-kind collaborations with leading insurance brokerage firms Brown & Brown and Howden to combine public safety technology with property and casualty insurance and parametric insurance offerings, respectively.
  • Acquired Anvil for a purchase price of $161.4 million in cash and stock. The combination of the two companies’ technologies and teams creates a next-generation Travel Risk Management (TRM) solution with medical and security assistance and a 24/7 response center, for business, healthcare and government organizations to meet or exceed the International Organization for Standardization ISO 31030 guidance.
  • Named Patrick Brickley and Vernon Irvin as interim co-CEOs and added David Henshall, former CEO of Citrix, as Vice Chairman of the Board of Directors.
  • Appointed veteran sales and customer relationship executive, Stefica Divkovic, as Senior Vice President of EMEA, leading the company’s enterprise resilience and countrywide population alerting businesses across the region.

Financial Outlook

Based on information available as of today, Everbridge is issuing guidance for the first quarter and full year 2022 as indicated below.

First Quarter 2022 Full Year 2022
Revenue

$

98.8

 

to

$

99.0

 

$

426.0

 

to

$

432.0

 

Revenue growth

 

20

%

 

20

%

 

15

%

 

17

%

GAAP net loss

$

(45.4

)

$

(45.0

)

$

(141.0

)

$

(139.0

)

GAAP net loss per share

$

(1.15

)

$

(1.14

)

$

(3.55

)

$

(3.50

)

Non-GAAP net income (loss)

$

(7.1

)

$

(6.7

)

$

10.2

 

$

12.2

 

Non-GAAP net income (loss) per share

$

(0.18

)

$

(0.17

)

$

0.22

 

$

0.26

 

Adjusted EBITDA

$

(1.9

)

$

(1.5

)

$

33.0

 

$

35.0

 

(All figures in millions, except per share data)

Conference Call Information

What:

 

Everbridge Fourth Quarter and Full Year 2021 Financial

Results Conference Call

When:

Thursday, February 24, 2022

Time:

4:30 p.m. ET

Live Call:

(833) 685-0904, domestic

 

(412) 317-5740, international

Replay:

(877) 344-7529, passcode 4107905, domestic

 

(412) 317-0088, passcode 4107905, international

Webcast (live & replay):

https://edge.media-server.com/mmc/p/xoprwq2c

About Everbridge, Inc.

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 Businesses 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 or other incidents such as product recalls or supply-chain interruptions, over 6,000 global customers 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 devices, and track progress on executing response plans. Everbridge serves 8 of the 10 largest U.S. cities, 9 of the 10 largest U.S.-based investment banks, 47 of the 50 busiest North American airports, 9 of the 10 largest global consulting firms, 8 of the 10 largest global automakers, 9 of the 10 largest U.S.-based health care providers, and 7 of the 10 largest technology companies in the world. Everbridge is based in Boston with additional offices in 25 cities around the globe. 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 and gain/(loss) on extinguishment of debt and capped call modification. 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 first 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 Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021. 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)

 

 

December 31,

 

 

2021

 

 

2020

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

488,035

 

 

$

467,171

 

Restricted cash

 

3,880

 

 

 

4,667

 

Accounts receivable, net

 

120,995

 

 

 

94,376

 

Prepaid expenses

 

13,740

 

 

 

11,774

 

Deferred costs and other current assets

 

28,469

 

 

 

20,464

 

Total current assets

 

655,119

 

 

 

598,452

 

Property and equipment, net

 

12,185

 

 

 

7,774

 

Capitalized software development costs, net

 

22,720

 

 

 

16,329

 

Goodwill

 

531,163

 

 

 

187,411

 

Intangible assets, net

 

219,319

 

 

 

113,762

 

Restricted cash

 

843

 

 

 

3,792

 

Prepaid expenses

 

1,916

 

 

 

1,943

 

Deferred costs and other assets

 

35,750

 

 

 

31,481

 

Total assets

$

1,479,015

 

 

$

960,944

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

16,002

 

 

$

9,698

 

Accrued payroll and employee related liabilities

 

36,725

 

 

 

27,674

 

Accrued expenses

 

13,884

 

 

 

7,246

 

Deferred revenue

 

223,579

 

 

 

165,389

 

Convertible senior notes

 

8

 

 

 

 

Contingent consideration liabilities

 

59

 

 

 

10,619

 

Other current liabilities

 

14,073

 

 

 

15,602

 

Total current liabilities

 

304,330

 

 

 

236,228

 

Long-term liabilities:

 

 

 

 

 

 

 

Deferred revenue, noncurrent

 

14,261

 

 

 

4,738

 

Convertible senior notes

 

665,695

 

 

 

441,514

 

Deferred tax liabilities

 

16,082

 

 

 

10,065

 

Other long-term liabilities

 

15,958

 

 

 

16,094

 

Total liabilities

 

1,016,326

 

 

 

708,639

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock

 

39

 

 

 

35

 

Additional paid-in capital

 

853,664

 

 

 

542,776

 

Accumulated deficit

 

(388,112

)

 

 

(293,316

)

Accumulated other comprehensive income (loss)

 

(2,902

)

 

 

2,810

 

Total stockholders' equity

 

462,689

 

 

 

252,305

 

Total liabilities and stockholders' equity

$

1,479,015

 

 

$

960,944

 

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

$

102,828

 

 

$

75,608

 

 

$

368,433

 

 

$

271,141

 

Cost of revenue

 

30,961

 

 

 

21,831

 

 

 

114,216

 

 

 

83,028

 

Gross profit

 

71,867

 

 

 

53,777

 

 

 

254,217

 

 

 

188,113

 

 

 

69.89

%

 

 

71.13

%

 

 

69.00

%

 

 

69.38

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

42,901

 

 

 

33,606

 

 

 

161,337

 

 

 

123,330

 

Research and development

 

20,120

 

 

 

16,455

 

 

 

81,647

 

 

 

62,512

 

General and administrative

 

20,352

 

 

 

22,009

 

 

 

87,482

 

 

 

74,485

 

Total operating expenses

 

83,373

 

 

 

72,070

 

 

 

330,466

 

 

 

260,327

 

Operating loss

 

(11,506

)

 

 

(18,293

)

 

 

(76,249

)

 

 

(72,214

)

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and investment income

 

74

 

 

 

92

 

 

 

390

 

 

 

2,007

 

Interest expense

 

(9,942

)

 

 

(6,107

)

 

 

(35,949

)

 

 

(24,089

)

Gain (loss) on extinguishment of debt and capped call modification

 

10,106

 

 

 

(402

)

 

 

7,181

 

 

 

(446

)

Other expense, net

 

(1,474

)

 

 

(211

)

 

 

(2,748

)

 

 

(921

)

Total other expense, net

 

(1,236

)

 

 

(6,628

)

 

 

(31,126

)

 

 

(23,449

)

Loss before income taxes

 

(12,742

)

 

 

(24,921

)

 

 

(107,375

)

 

 

(95,663

)

Benefit from income taxes

 

2,234

 

 

 

335

 

 

 

12,579

 

 

 

2,267

 

Net loss

$

(10,508

)

 

$

(24,586

)

 

$

(94,796

)

 

$

(93,396

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.27

)

 

$

(0.70

)

 

$

(2.50

)

 

$

(2.70

)

Diluted

$

(0.27

)

 

$

(0.70

)

 

$

(2.50

)

 

$

(2.70

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

39,009,233

 

 

 

35,100,789

 

 

 

37,962,793

 

 

 

34,581,144

 

Diluted

 

39,009,233

 

 

 

35,100,789

 

 

 

37,962,793

 

 

 

34,581,144

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(1,251

)

 

 

9,279

 

 

 

(5,712

)

 

 

8,557

 

Total comprehensive loss

$

(11,759

)

 

$

(15,307

)

 

$

(100,508

)

 

$

(84,839

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense included in the above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

$

591

 

 

$

801

 

 

$

3,669

 

 

$

2,954

 

Sales and marketing

 

1,084

 

 

 

4,026

 

 

 

16,152

 

 

 

15,946

 

Research and development

 

601

 

 

 

1,960

 

 

 

8,297

 

 

 

8,703

 

General and administrative

 

(3,812

)

 

 

5,029

 

 

 

15,977

 

 

 

19,152

 

Total stock-based compensation

$

(1,536

)

 

$

11,816

 

 

$

44,095

 

 

$

46,755

 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(10,508

)

 

$

(24,586

)

 

$

(94,796

)

 

$

(93,396

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

15,088

 

 

 

8,643

 

 

 

53,168

 

 

 

30,759

 

Amortization of deferred costs

 

3,975

 

 

 

3,457

 

 

 

14,373

 

 

 

12,609

 

Deferred income taxes

 

(1,740

)

 

 

(1,168

)

 

 

(12,972

)

 

 

(3,478

)

Accretion of interest on convertible senior notes

 

9,801

 

 

 

5,634

 

 

 

35,271

 

 

 

22,161

 

(Gain) loss on extinguishment of debt and capped call modification

 

(10,106

)

 

 

402

 

 

 

(7,181

)

 

 

446

 

Provision for credit losses and sales reserve

 

2,071

 

 

 

1,629

 

 

 

4,750

 

 

 

3,071

 

Stock-based compensation

 

(1,536

)

 

 

11,816

 

 

 

44,095

 

 

 

46,755

 

Change in fair value of contingent consideration obligation

 

 

 

 

2,165

 

 

 

(7,046

)

 

 

3,665

 

Payment of contingent consideration in excess of acquisition date fair value

 

 

 

 

 

 

 

(2,653

)

 

 

 

Other non-cash adjustments

 

(335

)

 

 

159

 

 

 

(322

)

 

 

78

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(34,207

)

 

 

(14,685

)

 

 

(18,187

)

 

 

(22,614

)

Prepaid expenses

 

(571

)

 

 

769

 

 

 

(478

)

 

 

(3,983

)

Deferred costs

 

(5,406

)

 

 

(6,902

)

 

 

(16,793

)

 

 

(18,902

)

Other assets

 

5,353

 

 

 

3,394

 

 

 

(1,172

)

 

 

146

 

Accounts payable

 

7,307

 

 

 

(739

)

 

 

3,772

 

 

 

1,547

 

Accrued payroll and employee related liabilities

 

6,499

 

 

 

(466

)

 

 

2,687

 

 

 

3,499

 

Accrued expenses

 

252

 

 

 

1,058

 

 

 

3,088

 

 

 

1,057

 

Deferred revenue

 

22,851

 

 

 

23,857

 

 

 

26,595

 

 

 

24,964

 

Other liabilities

 

1,424

 

 

 

4,962

 

 

 

(4,006

)

 

 

7,419

 

Net cash provided by operating activities

 

10,212

 

 

 

19,399

 

 

 

22,193

 

 

 

15,803

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(885

)

 

 

(1,135

)

 

 

(5,055

)

 

 

(3,257

)

Payments for acquisition of business, net of acquired cash

 

(62,405

)

 

 

(381

)

 

 

(262,084

)

 

 

(55,138

)

Purchase of intangibles

 

 

 

 

(17,139

)

 

 

 

 

 

(17,139

)

Additions to capitalized software development costs

 

(5,818

)

 

 

(2,355

)

 

 

(14,697

)

 

 

(9,651

)

Net cash used in investing activities

 

(69,108

)

 

 

(21,010

)

 

 

(281,836

)

 

 

(85,185

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible notes

 

 

 

 

 

 

 

375,000

 

 

 

 

Payments of debt issuance costs

 

 

 

 

 

 

 

(10,640

)

 

 

(131

)

Purchase of convertible notes capped call hedge

 

 

 

 

 

 

 

(35,100

)

 

 

 

Repurchase of convertible notes

 

(2

)

 

 

 

 

 

(58,643

)

 

 

 

Proceeds from termination of convertible notes capped call hedge

 

 

 

 

 

 

 

10,650

 

 

 

 

Payments of contingent consideration

 

 

 

 

 

 

 

(2,540

)

 

 

 

Shares withheld to settle employee tax withholding liability

 

(3,684

)

 

 

(2,095

)

 

 

(10,083

)

 

 

(6,364

)

Proceeds from employee stock purchase plan

 

 

 

 

 

 

 

4,587

 

 

 

3,389

 

Proceeds from stock option exercises

 

166

 

 

 

1,396

 

 

 

3,113

 

 

 

8,160

 

Net cash provided by (used in) financing activities

 

(3,520

)

 

 

(699

)

 

 

276,344

 

 

 

5,054

 

Effect of exchange rates on cash, cash equivalents and restricted cash

 

208

 

 

 

707

 

 

 

427

 

 

 

296

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(62,208

)

 

 

(1,603

)

 

 

17,128

 

 

 

(64,032

)

Cash, cash equivalents and restricted cash—beginning of period

 

554,966

 

 

 

477,233

 

 

 

475,630

 

 

 

539,662

 

Cash, cash equivalents and restricted cash—end of period

$

492,758

 

 

$

475,630

 

 

$

492,758

 

 

$

475,630

 

Reconciliation of GAAP measures to non-GAAP measures

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

$

30,961

 

 

$

21,831

 

 

$

114,216

 

 

$

83,028

 

Amortization of acquired intangibles

 

(3,336

)

 

 

(1,135

)

 

 

(12,109

)

 

 

(4,157

)

Stock-based compensation

 

(591

)

 

 

(801

)

 

 

(3,669

)

 

 

(2,954

)

Non-GAAP cost of revenue

$

27,034

 

 

$

19,895

 

 

$

98,438

 

 

$

75,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

71,867

 

 

$

53,777

 

 

$

254,217

 

 

$

188,113

 

Amortization of acquired intangibles

 

3,336

 

 

 

1,135

 

 

 

12,109

 

 

 

4,157

 

Stock-based compensation

 

591

 

 

 

801

 

 

 

3,669

 

 

 

2,954

 

Non-GAAP gross profit

$

75,794

 

 

$

55,713

 

 

$

269,995

 

 

$

195,224

 

Non-GAAP gross margin

 

73.7

%

 

 

73.7

%

 

 

73.3

%

 

 

72.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

$

42,901

 

 

$

33,606

 

 

$

161,337

 

 

$

123,330

 

Stock-based compensation

 

(1,084

)

 

 

(4,026

)

 

 

(16,152

)

 

 

(15,946

)

Non-GAAP sales and marketing

$

41,817

 

 

$

29,580

 

 

$

145,185

 

 

$

107,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

20,120

 

 

$

16,455

 

 

$

81,647

 

 

$

62,512

 

Stock-based compensation

 

(601

)

 

 

(1,960

)

 

 

(8,297

)

 

 

(8,703

)

Non-GAAP research and development

$

19,519

 

 

$

14,495

 

 

$

73,350

 

 

$

53,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

$

20,352

 

 

$

22,009

 

 

$

87,482

 

 

$

74,485

 

Amortization of acquired intangibles

 

(8,299

)

 

 

(4,478

)

 

 

(28,350

)

 

 

(15,979

)

Change in fair value of contingent consideration

 

 

 

 

(2,165

)

 

 

7,046

 

 

 

(3,665

)

Stock-based compensation

 

3,812

 

 

 

(5,029

)

 

 

(15,977

)

 

 

(19,152

)

Non-GAAP general and administrative

$

15,865

 

 

$

10,337

 

 

$

50,201

 

 

$

35,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

$

83,373

 

 

$

72,070

 

 

$

330,466

 

 

$

260,327

 

Amortization of acquired intangibles

 

(8,299

)

 

 

(4,478

)

 

 

(28,350

)

 

 

(15,979

)

Change in fair value of contingent consideration

 

 

 

 

(2,165

)

 

 

7,046

 

 

 

(3,665

)

Stock-based compensation

 

2,127

 

 

 

(11,015

)

 

 

(40,426

)

 

 

(43,801

)

Non-GAAP operating expenses

$

77,201

 

 

$

54,412

 

 

$

268,736

 

 

$

196,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

$

(11,506

)

 

$

(18,293

)

 

$

(76,249

)

 

$

(72,214

)

Amortization of acquired intangibles

 

11,635

 

 

 

5,613

 

 

 

40,459

 

 

 

20,136

 

Change in fair value of contingent consideration

 

 

 

 

2,165

 

 

 

(7,046

)

 

 

3,665

 

Stock-based compensation

 

(1,536

)

 

 

11,816

 

 

 

44,095

 

 

 

46,755

 

Non-GAAP operating income (loss)

$

(1,407

)

 

$

1,301

 

 

$

1,259

 

 

$

(1,658

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(10,508

)

 

$

(24,586

)

 

$

(94,796

)

 

$

(93,396

)

Amortization of acquired intangibles

 

11,635

 

 

 

5,613

 

 

 

40,459

 

 

 

20,136

 

Change in fair value of contingent consideration

 

 

 

 

2,165

 

 

 

(7,046

)

 

 

3,665

 

Stock-based compensation

 

(1,536

)

 

 

11,816

 

 

 

44,095

 

 

 

46,755

 

Accretion of interest on convertible senior notes

 

9,801

 

 

 

5,634

 

 

 

35,271

 

 

 

22,161

 

(Gain) loss on extinguishment of debt and capped call modification

 

(10,106

)

 

 

402

 

 

 

(7,181

)

 

 

446

 

Income tax adjustments

 

(1,348

)

 

 

(442

)

 

 

(1,278

)

 

 

(669

)

Non-GAAP net income (loss)

$

(2,062

)

 

$

602

 

 

$

9,524

 

 

$

(902

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.05

)

 

$

0.02

 

 

$

0.25

 

 

$

(0.03

)

Diluted

$

(0.05

)

 

$

0.02

 

 

$

0.21

 

 

$

(0.03

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

39,009,233

 

 

 

35,100,789

 

 

 

37,962,793

 

 

 

34,581,144

 

Diluted

 

39,009,233

 

 

 

36,075,177

 

 

 

45,001,908

 

 

 

34,581,144

 

Reconciliation of GAAP measures to non-GAAP measures (Continued)

(in thousands)

(unaudited)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net loss

$

(10,508

)

 

$

(24,586

)

 

$

(94,796

)

 

$

(93,396

)

Interest and investment expense, net

 

9,868

 

 

 

6,015

 

 

 

35,559

 

 

 

22,082

 

Benefit from income taxes

 

(2,234

)

 

 

(335

)

 

 

(12,579

)

 

 

(2,267

)

Depreciation and amortization

 

15,088

 

 

 

8,643

 

 

 

53,168

 

 

 

30,759

 

EBITDA

 

12,214

 

 

 

(10,263

)

 

 

(18,648

)

 

 

(42,822

)

(Gain) loss on extinguishment of debt and capped call modification

 

(10,106

)

 

 

402

 

 

 

(7,181

)

 

 

446

 

Change in fair value of contingent consideration

 

 

 

 

2,165

 

 

 

(7,046

)

 

 

3,665

 

Stock-based compensation

 

(1,536

)

 

 

11,816

 

 

 

44,095

 

 

 

46,755

 

Adjusted EBITDA

$

572

 

 

$

4,120

 

 

$

11,220

 

 

$

8,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

10,212

 

 

$

19,399

 

 

$

22,193

 

 

$

15,803

 

Capital expenditures

 

(885

)

 

 

(1,135

)

 

 

(5,055

)

 

 

(3,257

)

Capitalized software development costs

 

(5,818

)

 

 

(2,355

)

 

 

(14,697

)

 

 

(9,651

)

Free cash flow

$

3,509

 

 

$

15,909

 

 

$

2,441

 

 

$

2,895

 

Remaining Performance Obligations as of December 31, 2021

(in millions)

 

 

Remaining Performance
Obligations

 

 

Remaining Performance
Obligations
Next Twelve Months

 

Subscription and other contracts

$

425

 

 

$

264

 

Professional services contracts

 

16

 

 

 

13

 

Financial Outlook

(in millions, except share and per share data)

 
Three Months Ended Year Ended
March 31, 2022 December 31, 2022
Low End High End Low End High End
Net loss

$

(45.4

)

$

(45.0

)

$

(141.0

)

$

(139.0

)

Amortization of acquired intangibles

 

13.0

 

 

13.0

 

 

51.0

 

 

51.0

 

Accretion of interest on convertible senior notes

 

1.3

 

 

1.3

 

 

5.2

 

 

5.2

 

Stock-based compensation

 

24.0

 

 

24.0

 

 

95.0

 

 

95.0

 

Non-GAAP net income (loss)

$

(7.1

)

$

(6.7

)

$

10.2

 

$

12.2

 

 
Weighted average common shares outstanding:
Basic

 

39,400,000

 

 

39,400,000

 

 

39,700,000

 

 

39,700,000

 

Diluted

 

39,400,000

 

 

39,400,000

 

 

47,000,000

 

 

47,000,000

 

 
Net loss per share

$

(1.15

)

$

(1.14

)

$

(3.55

)

$

(3.50

)

Non-GAAP net income (loss) per share

$

(0.18

)

$

(0.17

)

$

0.22

 

$

0.26

 

 
Net loss

$

(45.4

)

$

(45.0

)

$

(141.0

)

$

(139.0

)

Interest expense, net

 

1.5

 

 

1.5

 

 

6.0

 

 

6.0

 

Income taxes, net

 

1.0

 

 

1.0

 

 

6.0

 

 

6.0

 

Depreciation and amortization

 

17.0

 

 

17.0

 

 

67.0

 

 

67.0

 

EBITDA

 

(25.9

)

 

(25.5

)

 

(62.0

)

 

(60.0

)

Stock-based compensation

 

24.0

 

 

24.0

 

 

95.0

 

 

95.0

 

Adjusted EBITDA

$

(1.9

)

$

(1.5

)

$

33.0

 

$

35.0

 

 

Contacts

Everbridge Contacts:

Investors:
Garo Toomajanian
ICR for Everbridge
ir@everbridge.com
818-230-9712

Media:
Jeff Young
Media Relations
jeff.young@everbridge.com
781-859-4116

Contacts

Everbridge Contacts:

Investors:
Garo Toomajanian
ICR for Everbridge
ir@everbridge.com
818-230-9712

Media:
Jeff Young
Media Relations
jeff.young@everbridge.com
781-859-4116