Everbridge (EVBG) Reports
Everbridge (EVBG) reported yesterday that Q2 revenue grew by 35% to $65.4 million (beating by $2.4 million) while adjusted EPS of $0.06 beat by $0.27. Part of the earnings beat was due to cost savings (marketing, travel, etc.) and isn’t expected to be a new trend – Everbridge still isn’t likely to achieve full-year profitability until next year.
The growth in new products (like COVID-19 Tracing) is working to bring in new customers who can eventually be upsold (hopefully) to higher priced products (CEM). Expansion of CEM into Europe also expands the opportunity in that continent. Not surprisingly, customers are tightening their wallets a little and focusing on things they can do right now, so deal sizes declined by 14.6% versus a year ago and 9% versus the prior quarter. This may change if/as it gets easier to implement more complex solutions.
All in all, this was a fine quarter—nothing outstanding, but nothing concerning either. The opportunity remains big in the near-term there’s not likely to be a lot of excited buyers of the stock, at least until meaningful news is released and/or the environment for ramping up spending improves. Let’s move back to hold. HOLD