Earnings call transcript Q3 2022

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Operator

Good morning. Welcome to the Everbridge Third Quarter 2022 Earnings Conference Call. My name is Vaishnavi, and I will be your conference operator today. All participants will be in a listen-only mode. [Operator Instructions] Following managements’ remarks, we will open the call for your questions. section like and everyone via made in Investor would will this a I website. the recorded company’s be available Relations Instructions] to that remind call link [Operator the of for replay

Now, I call Vice please of President Sir, turn Relations, Amladi. over Nandan to Investor proceed. like would to the

Nandan Amladi

Vice the call Vaishnavi, XXXX. Executive With of and Welcome and are Thank Dave quarter President President afternoon, you, CEO, to Everbridge’s Brickley. on today’s Patrick third everyone. good earnings Everbridge’s and call for CFO me Wagner;

Investor the Before being earnings of conclusion the at market release, replay available which opened, Relations event. is Relations today’s our teleconference we and recorded issued can website our be section the at accessed Investor call be of website the our of a ir.everbridge.com. This will on on

described materially Factors that call, in such The limited and are today’s performance the cause in financial risks the During regarding statements other filings such will but actual XX-K forward-looking with to, company’s included or results the XX-Q Forms subsequent our and we future involve the SEC. statements. events differ well company from differences not certain uncertainties. as projections that those include, as of make might may

We our statements perspective disclaim on this forward-looking representative date. call of any as Information any considered provided and obligation update or reflects only explicitly not as today subsequent any be our to should of of outlook. views our

release, can non-GAAP on GAAP measures. non-GAAP included website. to Relations in earnings during is we Also to which find reconciliation A financial today’s call, you our of Investor refer press financial our will measures certain our

for outlook. in and questions. third call highlights from open results our Our we our business financial earnings press review we financial our the addition will quarter your After to highlights, includes release and

let call me turn over that, the Dave. to With

David Wagner

rigorous for marked at and my It has you today. first morning a Nandan. joining thank been Everbridge. everyone Thanks, Okay. days XXX Good us exciting and time. Last week

analysts. nights for phase I meaningful Over our months, to many we aligning heading I’ve the had of and XXX our and operations, growth interactions and senior of and I’ve on days nearly strategic team face well met XXX that one will with value our and investors reviewing implementing I X of on compelling. last with my over The face is leadership our our colleagues. drive customers, spent beyond. beginning of business our a next the believe one met dozens into opportunity process the and plan investors, ahead The prospective of with XXXX drivers

To begin Everbridge today’s an to to planning our of how discussion, and the with how strategic like came plan, to set future. our team we are overview today, the for and where foundation new leadership be, start is of I’d

Everbridge years ago platform founded XX, CEM as September company on As situations. people the XX the a aftermath deliver enhancing to during businesses and of world’s Event resilience keep customers, safe in for built premier enterprise Critical their our critical to work they mission of or Management our

share leading of over CEM of revenue million to so, X $XXX scaled platform globally automation intelligent we’ve the people our us deliver a over annually. to In technologies capture billion helped and market. Our to doing reach

become the As a stage CEM Everbridge and a public pioneer warning, early market. in has growing Leader in

rapidly company Over and its the several expanded years, the past capabilities global presence.

And and predictable profitability. a the maturation, characterized been growth which into now for changes Everbridge. are profitable discontinuity our has stable, year we However, and by will expanding growth corporate of stage maturing XXXX be major of

a As I’ve going. the fresh at we’re look a and see forward. clear team where taken and are where we path We

for integrating serve delivering Management our their our Platform to And Critical leading to and continue innovate. support requirements we Event building will will customers maturing We by enterprise out resilience.

rate growth in lower also on we we XXXX, revenue a focus as However, growth. organic foresee

action result quarter. in to financial decision now we end future, whereby will extend us a allow control strategic the the expect slower we growth, realignment the keep of This announced of that be difficult predictable shareholders. positions As our May, will the cost made that growth we to this by XXX structure, eliminated our and adjust revenue our of fourth deliver for more

even M&A We earlier as and us platform The is expect modernize in to focus on to customer baseline and expectation execution, optimization, to forward cost X% of will for marketing pause revenue growth earnings integration, $XX XXXX and come processes. the of make for optimize optimization. simplify, solid to year opportunities the and grow for a back which years decision We in a see in internal our path revenue million faster to total than better range. X% adjusted office our we sales in to experiences with and material headway and EBITDA drive integration, product clear helping

our on further lap opportunities, products. from we and M&A As of to portfolio our core sharpen continue growth rationalize our growth focus previous

We XX I At coming are in continue to we strategy, of as XXXX our time, will a years. the exit refining while of to the with plan toward same QX. XX Rule we driving Rule the the reach execute team in and

as strong grew can you of delivered solid a XX% XX% the from across generating revenue performance adjusted while EBITDA earnings in health bookings, We of of we and board. release, our delivered our the another period. As business the margin financial strong, see remained quarter

solid this I Overall, in team positioning made and proud for towards our beyond. of growth XXXX Everbridge am quarter strides the

the and will Patrick? year. for I our over outlook further, financial turn CFO, to for call go Patrick the details the provide I Brickley, of to results Before our remainder now QX on

Patrick Brickley

solid to and into for go-to-market realign work began year has foundation organization created start profitable of at the both this Thanks, growth a strategically our Dave. heading sustainable we product The XXXX.

business, groundwork platform. do an our to more we continue even scale our structure, are and we As acquisitions prior integrated optimizing cost up the integrating to creating CEM

a margin to of the in we quarter. QX adjusted guiding beginning the so margin Our the resulted in mid-teens And with efforts EBITDA far year. reflecting we had that third EBITDA are year have adjusted year of XX%, at exit this the target this XX% communicated a exit

cash EBITDA in million was $X.X above quarter May. third quarter XX% significantly from to ago. flow, strategic well that guidance produced adjusted up $XX.X In million, year million, strong optimize initiated revenue and the execution actions as that had million expense was realignment quarter, from we as third a our the to solid $XXX.X Adjusted in Our in structure. range. up $X.X were Revenue we EBITDA last the related cost our continue incurred we QX, as of

program, XXXX operations with $XX.X and cash million, from generated $XX of flow for related Strategic one-time adjusted free of we We positive ended balance cash cash Realignment generated the adjusted payments million. flow of million. to We our $XXX quarter

of September non-GAAP and a GAAP sequentially release. measures, business. details of please timing XX, in million of Total invoicing our than SaaS revenue quarters our flat $XXX was $XXX seen press of full and to reflecting our recent higher refer in XXXX, deals For from reconciliation at million, deferred license had perpetual to P&L and mix up we

and Total million, year view RPO a was million, ago. represents was forward million $XXX $X which year up X% $XXX our from a XX% sequentially, RPO, ago. up from XX-month Current

for the deal quarter attrition planned we the above in beginning as some XX-month of retention net during large with expand the to to XXX%, it’s customers because customer satisfaction, a within additional base. we however, year, trailing We on that reflects revenue this metric track Everbridge revenue. customer that or Our demand existing that to reflecting terminated at technology rate this know, continues combined are progress through The weigh XXXX. metric, and continued first

were again Our momentum in with record in transactions large months XX $XXX,XXX ASPs above were and a in deals the QX, that in over resulting $XXX,XXX continued trailing quarter contract value. that annual XX

posted our can website. Investor Relations in presentation metrics business on found Additional our be

turn I’ll to our Now, guidance.

anticipate For between $XXX.X the growth $XXX million, XX%. year-over-year million we revenue and of fourth representing quarter, of

headwind $X to in January FX currencies guidance, of As months relative roughly quarter headwind reflected we the XXXX, will were to fourth ago. to roughly rates X, which discussed provided on that pose million the revenue X earlier, $X.X of and relative million

cost continue to or $XX.X We income optimize per our share. $XX million, non-GAAP We anticipate expect $X.XX will and $X.XX $XX.X million of between million, adjusted $XX.X and as be and EBITDA structure. million between we between net

million, anticipate of roughly For established million growth headwinds, the in full since revenue FX and year, of absorbs $X.X we representing This between February. XX%. $XXX.X million $XXX.X in our we guidance XXXX

in will $XX.X an adjusted range the $XX.X million than tripling roughly of anticipate be more EBITDA and XXXX, adjusted to XX%. of million, EBITDA We representing from margin

and on $X.XX net between million, between We diluted based XX.X shares weighted share million income average $X.XX or expect non-GAAP per and $XX.X outstanding. $XX.X of million

we it of up, another priorities end of delivered our we the To on as sustained progress quarter fiscal year XXXX. approach sum

frame thinking to our XXXX. like I’d Now, on

restructuring that improvements reduce profitability XXXX run we’ve actions by million with XXXX month enter will approximately than we profitability, this of XXXX, ever. expenses and incremental a is beyond. our structure leaner terms sustained enabling and The announced in will cost rate annual $XX in In that

to to regards are salesforce. revenue, tenure With of we our the improve continuing

improved anticipate However, areas event critical recurring out. investments management, calling revenue ratable considerations optimize there settlement of revenue, earlier productive, growth in laughing year. XXXX, in and less terminated flat this the capacity that on are worth go-to-market are we Number that some X, as year-over-year focus X, additional the contract albeit, will efficient. non-recurring reducing efficiency, to we several Number we we subscription are of our be was and sales large

may we absorbed create are the to which are second pressure in potential our environment. assets we on that half but effects XXXX. generating, the continued in of number anticipate the non-core. will of are that Number optimize of the similar certain we of result revenue finally, X, uncertain Number half And XXXX portfolio, related first macro divestment X, mostly will we continue weary X, and erosion de-emphasis

work be execution. doing However, are the productivity offset and impact that by its anticipate that internal we we to improve may

productivity while are salesforce tenure. XXXX, more we growth taking judicious continue, profile a the gains our for of sales improving during will work view So, on which the

million. expect revenue clear X% XXXX adjusted Taking of into EBITDA growth to a all line with consideration, $XX sight baseline this of XXXX of to X% we

us meet quarter the to do. annual path XX, we discuss long-term which Rule Our On revenue are of hosting to this confidence Investor we usually growth guidance, or disclose ahead the December when and which of Day our an beat plan to prudent recurring improved are cost we structure our during we providing XX. one gives

outside Washington, Vienna, just Customer Investor Day our D.C. Center will Our held in be New at Virginia, Experience

you invite the to platform CEM see us in to our meet We action. leadership team and new in-person to join

case are in-person. unable will live webcast us to also event join We you the in

Dave? it Dave. I’ll Now, turn to back

David Wagner

Patrick. Thanks,

the as third our we third expand been quarter, As traction In the and From performance we heading lifecycle customers CEM land growth financial focus to XXXX. transition the to next into a company’s count a enterprise XXXX driving bringing land XX enter organic strategy. in the we total phase quarter, Everbridge of on reflects has our continue and new year with see record XXX. solid XX perspective, to our customers a customer CEM landed enabling

to was will implementations This a record in deals customers over year. deals wind million We warning the prior as improvement accrue also third XX software deals, number ever landing Norway the their $XXX,XXX are deals perpetual several from the next QX. software orders key anchored business, in are a signed our quarter couple in up of new we’re record into that steady which in making These XX best by quarter X quarter, strategy. larger over our Network. the XX revenue in over and of public generated these is long-term we in new National last quarter, quarters. to A key services of the the deals and largely into $X our Telecommunications occur in part Within embed our so

over retention gross an XXX% net driven expand quarter. in by sales perspective, strong the and low-XXs revenue at retention From add-on remained

customer these the to material our Although impacted by to customers take not Hurricane a Florida large we financially Ian. base that seriously. have State of the We quarter, was in commitment

affected We state during made after with across that residents with to landfall, Southeast. hurricane of be to event area. of we during the rigor people hundreds the and supported the and and Before, catastrophic in that proved support assets customers an many them worked for

allowing employees customers’ keep safe. our platform flawlessly performed notifications Our and their citizens throughout to

manage to reliably ability events why is at during trust of us to Our support our these critical scale them customers times need.

to Resilience account program. CEM to Best Ian of communicate quarter, the during in underscore became teams implement information CEM ultimately emergency of and very is that Hurricane What leveraged the catastrophic and to mission tragic makes their our one achieve ability first crisis Pharmaceutical Takeda’s Separately purpose to like events customer and for Diamond driven level work way do. the safety. nature improvement to continuous our Everbridge’s the meaningful special coordinate our platform with to in their customers, the we assess the Takeda Although response they in detect risks, employees

situations. they developed team terms of Through and security communication rigorous applying for tested employees. incident Care truly templates what unique our more like than use in best-in-class platform, Duty and of crisis looks Takeda’s their protection of potential XXX for demonstrates

be proud to We a part their are of excellence.

we Officer, new SaaS marketing Officer, third of leading will and global extensive executive, years quarter, his a for who and is team’s David demand experience brands out to and including leadership generation Marketing and recent He the also BXB work During David capability demand team Information build appointments shape veteran Chief category Chief a like global to brings ours. brand generating our transforming come. a Sheila new and our Carpenter. Alexander; continue strategy

systems, decades security operations and security, will support operations Everbridge’s be more Sheila building applications more in than influential experience IT information enterprise companies. efficient joins IT us software and in Her in of information leadership information experience at growth. scaling with of X

We key strategic integration to also platform. on our plan what solid progress the made product call priorities executing pathways our we of building by on

first integration applies only for fulfill Anvil, now quarter organizations an to their for core the workers Our management solution platform the the and our This into its initial travel end-to-end, built to office. solution positions platform returning risk our completed of full-lifecycle to during duty we platform, as protection Travel traveling integration employees, of remote employees, hybrid the Protector. to CEM CEM Everbridge called pathway where

this coming quarters. the integration mature over will to continue We

Our was CEM from customers allow our the core to CEM intelligence core the into of our integration acquired pathway into platform. monitoring platform. our migrating solution us This risk integration second milestone will capabilities begin remaining the

our We this legacy integration end all objective maturing onto will by the migrating of CEM application quarters the customers of platform over the XXX-plus be further XXXX. coming with

years, we over on expand strategy, capabilities we execute of on to as continue which well breadth solid by guided our into time. impactful a XX recent advancements, bolstered outlook well priorities, have to by past ahead In over closing, put are initiatives, developed competition. our the are near-term team machine the The Fueled head path as doubling business of our our learning us by we land and product XXXX. acquisitions have our we including the we

we product a increase provides sales, on opportunity also for the Our focus strong customer expansion continued base XXXX. as with multi particular Global

operational delivered we in summary, financial In performance solid and QX.

leadership As maximizing is on team we XXXX, our focused laser revenue execution, on driving conclude growth, return and our investments.

and our We growth these sustainable areas success are confident in increasing that will deliver cash profitability and expanding flow. top-line

That concludes our remarks. prepared

ready call questions. now for We’re Operator? to open the

Operator

Thank you.

now Ryan [Operator session. go question ahead. Please with will question-and-answer from comes Instructions] begin Our Barclays. the MacWilliams We first

Ryan MacWilliams

related that to is macro Patrick, targets of appreciate Hey, it of headcount guide really next objectives guys. and Thanks for restructuring Thanks. effects? year versus much year. the X% be X% to taking the clarity I for margin and my around growth the growth for next the I question. know revenue but difficult how impacts might separate,

Patrick Brickley

are moving think XXXX parts we of about a in lot far so advance. Ryan. There as Thanks,

the We are internally but to work macro improve a efficiency. productivity lot we are and weary of doing environment, of

we think we’re the So offset that’ll – macro optimistic that impact.

headwind optimize less continued into of it that’ll next so product work at still go some elements year, albeit year, of fair next with out has well more year. amount as, a half have the And to been to we importantly, chipping year-over-year, the as the capacity, drag continuing the non-recurring this but that into productive away FX do may to flat and We’ve existing portfolio. of revenue whether capacity, reducing it’s efficient first that other relate

Ryan MacWilliams

or top-line, that I next that for revenue revenue for that side then does guidance what new net do year? you And in the for the the with retention on the just imply Dave, on mentioned that Thanks. figures, more just margin upside see side? then, you of And know XXXX? kind what your remarks. on these guidance prepared Is

Patrick Brickley

Yeah.

we’ll Patrick. going this trailing – upcoming retention. the Day. about talk align definition revenue about more probably revenue forward. talking be We’ll at that Historically, Investor is our our revenue the the take we’ve retention metric, ARR, of I net which So we’ll with Day XX-month at used will net Investor

more clear, everyone. XX to of be on and unpack it’ll December So we’ll more that

David Wagner

your a structure. to modernize, Ryan. so optimize path baseline so really and clear a the clear question chose cost We to $XX our that is Yeah, X%. EBITDA one, opportunities carefully, good driven a and to X% by then is words million of And path

And about and so especially tougher optimistic look environment. a be we improvements, ability into to dig really could drive the macro to what as team’s I’m potentially operational continue in

I’d baseline, in we’re we’re focused out be But, X the going business. as getting comment revenue we’re value – upside, the deliver. on diligently indicated what see the to in Patrick to primary we key that’s working as On course, areas, really SaaS and of growth – the the driver

so to our drive we Day, And leads at plan have beginning metric. that to and disclose and as revenue Investor primary our that really to recurring the

areas Patrick of balances we that as the working off mitigating So dig that were in that or that baseline into those projection. kind growth that identified

Ryan MacWilliams

Really forward Day. that time, great ARR a for the and for to long hear Thanks, looking about guys. but metric Investor looking to potential a

David Wagner

Thanks. I to you. forward seeing look

Operator

from Fargo. Wells Please Turrin question with Michael go ahead. next Our comes

Michael Berg

Can the optimizations Michael G&A and on sales maybe but G&A, through is quarter, R&D, could marketing, forward? across Turrin. like that structure what cost looks some R&D it walk this Michael the Hi, the walk question. looks the where Berg you in and took Thanks us biggest through even in for like us taking for and guys my cuts of moving

Patrick Brickley

question. Patrick. Sure. Thanks the This is for

structure, and sort has each to G&A. cost R&D, area action whether related of continue it’s or And P&L, revenue, that headcount incremental area for sales marketing, an launched of our we to room cost every continued optimization. the of week impacted last and So optimize

As evolve focus We’ll head organization our SaaS of subscription to XXXX, and each areas recurring holding basis. those into ratable the flat revenue, we on critical management. we $X in event anticipate and investment continue on and

order existing within be optimizing we’ll dollar-based that. levels in we’ll that, the take to of And investment, and do

again, So sales and exiting continuing and efficiency areas. we’ll in continue while some the there, we’ll all particular, core areas drive areas P&L. to in year. invest and dollars year the of hits growth investment And opportunity, And marketing, this to non-core de-emphasize incremental and more in of of to throughout next continue more that

Michael Berg

Thank compared size to how’s quick And done you. than year? one earlier restructuring the a in areas the Thank of what it. the you. follow-up. And on any was the year? this are Well, Got different earlier the impacted in

Patrick Brickley

this a is much more related. Yeah, headcount

the $XX is, of we spend out pull So, remove million we from annual the million million our $XX will million and had rate. between right May program, run with $XX beginning announced we we’re to now annual run $XX forecasting million $XX expense. and in the action to million that we May, said spend rate are about $XX to of Where to

the between expense. spend $XX to we’re million forecasting annual November, million recurring in $XX of incremental $XX to and action million out pull Now,

to annual across aggregate million action $XX broader $XX million spend the million of to roughly Most extended in to we’re save So expense. $XX and rate in related. in $XX that beginning million looking order headcount is of in run November, May now to

Michael Berg

you. Thank

Patrick Brickley

You bet.

Operator

with go next Blair. question Matt Please Our ahead. from William comes Stotler

Matt Stotler

behavior but weakness could filling any a the love you’re cycles happen terms there, on in one period? or seeing just the taking So numbers caution specific of macro, above what the given in came things any guidance some around Maybe deal customers, light the in obviously the strength uncertainty? what double in for on click of thing just mentioned you on Thank areas morning. good Hey, for you or questions. we’d out current pipeline XXXX spending from to

David Wagner

question. great Yeah,

areas strength anchored and the really mentioned. bookings of in highlighted their I company warning those really Norway So our that in the history key by public executed of team quarter I proud couple I’m that the script, in wins business, of of best

really XXs enterprise the So we really well that’s Last impacted that into over deal that we XXX,XXX if about, From no so here [ph] business deals were continues execute deal by you was cycles. the government pleased quarter-over-quarter, budget perspective, on a Vernon XXs up really those to from strong. I’m good. something feels spoke the knew so quarter, had and of continue

that been it that that one impacted cycle. This has was by noted quarter, deal, he budget to me

very seeing, feel at what don’t So we’re point. modest for this it’s immune impact We to a it.

impact at So being we’re judicious we not this big in outlook, time. our but are seeing a

Matt Stotler

one from timeline together? update backend coming these together very last Got And how acquisitions of you. CEM couple kind the of into key pieces there on components that core on the years of bringing process just maybe helpful. the – of That’s integrations, the Any on the and obviously, then are the core the offerings. follow-up

David Wagner

Yeah, about That bringing mentioned up. of CEM existing acquisition CEM. into we customers value Protector being integration that for the the and initial two, thanks that of the integration Anvil that the script that those for new excited I’m CEM customers. Travel really unlocks

over the And activity. going to that into of integration customers to expect we’re to to really and ultimately XXXX enable continuing that I XXXX migration Anvil the a CEM, enterprise so, late would be quarters extend coming the be

integration intelligence us CEM up-sell, begin, end across feature to customers across this the customers those on them key move we integration opportunity, allow platform. all them other because parity platform the into customers excited that remaining and by provides to the And not of at about risk cross-sell again the really XXX to legacy of On years represents focus the existing as the work culmination with ago. on of full of completing year. of application objective the the a that the new it the CEM second the for side was kind risk work few And integration, be, into and the but I’m core the customers to that, bring represents into intelligence the on CEM integrated bringing

focus improve on power the more and then is arrived, the experiences the platform, team going examples. product and but leadership opportunity. cross-sell two really were our play Obviously, well those customer demonstrate liked before make which that pathways, and our we’ll execution of on efficient, able the have, really the I they I will us to they team So the in forward

Matt Stotler

it. Got Thanks again.

Operator

Our go Please from Baird. Will ahead. comes question Power next with

William Power

Okay, looks like on great. customer question Yeah, Thanks. particularly strong it CEM, CEM growth.

kind key of CEM And And, double drivers given I the to click in to the of of trying some What the guidance? there. recently think on more CEM guess, part the optimization to you’ve How the on so to are year, growth much front? go-to-market hinder? we’d in how then some love about next reconcile, efforts, perhaps going seen

David Wagner

that organization our been on lower recurring revenue some as SaaS the assets. a do, as and to customers, we’re alignment cases Yeah, is of I reflects in we strategic revenue in growth, leading of is that strength are When our to the acquisitions other whole market retaining driving said, CEMP. you we’re that fact aren’t as are first company, well of And for that is guiding really we stand so the capabilities software capability. forward, faster move the particularly leadership inside on than an and and focused obviously, across doing the though, those growth so pointing as that growth, focus, market. time, Patrick growing the this and set a That growing of there area thanks over CEM revenue recurring also out. that in, that unpack to do alignment, cohorts as and core with back, the company. has team have It some everything we of

some are company cohorts with we’re acquired And leadership so the right strong driving, continue competitive advantages getting that’s modernizing the CEM, really and optimizing the position issue to as time. over in balance that’s balance the exploit balanced we and of our

William Power

Okay. I optimistic just And as macro by there turmoil in the uncertainties and opportunity. feeling with Europe, you’re or much Or more or sounds everything EU Norway to population be kind like having warning of as talking you’re planned on clear – want follow-up, guess the broadly? the ahead maybe on opportunity still? all the just an it But, about of better is impact one and and either moving large is mandate that positive,

David Wagner

well that Patrick’s been say it the have I’d to very it all majority those of came we’re wasn’t Europe. warning opportunities Well, in as decision, perhaps winning opportunities. executed But that roughly not robust will yet the countries had wasn’t a smaller There we – the we’ve have continuing are on, be and hoped. clear their in as, ourselves the position still been to public succeeded for pass made opportunity when EU countries awarded as those that dozen in well

as to not As on earlier, mentioned that our are built we in guide, is perpetual the we’re south I where on growth side. expecting much the as side

off having come XXXX. delivered quarter or probably been that will wins and And said, these be in into nice record revenue XXXX a primarily in

time quite for next expecting are we So a continued year will year, This warning. we’re gaining but balancing wouldn’t we all be public be record share in public opportunity of all and good an in those record things, we a continue to warning. success see expecting

William Power

forward Analyst to and the Day. Yeah, look you. Thank also

David Wagner

Yeah.

We are too. Thanks.

Operator

Brian go from ahead. Colley The next question Stephens. comes with Please

Brian Colley

Hi, for my guys, question. taking thanks

new not or motion. could productivity, selling you’re maybe up-sell? talk and whether But you improving know traction are any evidence relatively or that improving a the to your I these about sales product if curious you’re ability of I’m bundles still there, are So, seeing the kind seeing

David Wagner

in understand to steady large really – enterprise from Resilience as continuing CEM our our and the looking we talked to to and as and the our a journey improvement platform risk through Takeda’s the to sure, it’s to customers go-to-market integrate eyes into motions of the Thanks, is management officers organization. security the the Program, across in Diamond sellers buying point Brian. see I and lot platform risk the Yeah, for back to our to in customers. easier and see They’re for a persona. officers Everbridge, the way personas, a simplification for made we’re the enterprise

Officer. And so with that’s us or Chief Officer, the Security CEM comes, Human helps with either really buying Information Chief where journey with Resource Chief align the or the power Officer of the persona the

that power focus and And of gives hopefully in, platform the then our the and of out Pharmaceutical insight course, value as on their workflows from an CEM that reach into as examples the really into Care. Takeda customers breadth, and enterprise you the proposition investor’s expands Duty that support of

it. a good So seeing we’re market. It’s work maturing with

so this to at events we their the continue and carefully larger change organization the on grow and their seeing clients, focus see more primarily And more events. to CEM a people organizations from enterprise runway and we’re long safety climate more critical as of protecting and maturation other

Brian Colley

helpful. total wanted super I customer ask about just adds, bit Got to they last quarter. it. a from were you. Thank down That’s the

was is what I secondly, of – into facing to that technology. your wanted guidance? of non-core So any the the And de-emphasis non-core de-emphasis baked then, of drove XXXX from headwind continued is ask kind that technology curious I

Patrick Brickley

QX, platforms. had It’s adds Brian. in end-of-lifing in what continued Yes, to the Patrick. to QX Hi, you reflect de-emphasis [ph] non-core similar Thanks. of saw QX – legacy net

tend So to be small they dollar customers.

we On work those continuing platforms, these to that of few still we’re have customers a through. XXX

metric initial divestment or a continue And adds. reflected to in in impact the dollar anticipated for of is our be de-emphasis impact guide headwind to that of customer net So potential that XXXX. will dollar continued

that’s only so going about of $X part million that we year, XXXX, made range of of to it’s far and on the We’ve to mentioned potential the upwards $XX into of had so but carry of million the guide. to this ARR, In a de-emphasis. related million progress XXXX next tune $X year, to

Brian Colley

it. there. you for Thank Got leave time. the I’ll it helpful. That’s

Patrick Brickley

Thank you.

Operator

comes with Scott Needham. question ahead. Our Berg Please next from go

Scott Berg

Patrick. taking Thanks and questions. I Hi, got of – have I for them. two I guess, my Dave

a rationalization. then coming of It just product as for clarify you talked kind announced little And the Thanks. the headwind bit? it’s one? that sounds on today. still those rationalizations Patrick, this just just the what product the a follow-up earlier out you execution previously of all, said the you incremental year announced you next or model new rationalizations that about like what Are XXXX. of year First Can to

Patrick Brickley

of Hey, potential Scott, thanks that divestment, some path, those for on have hasn’t happened example, yet. for what the of question. discussed, we that and execution are previously just More

off peel the divestitures been pretty that’s more why we’ve quickly. the there end of Meantime, then been when and so will progress if sailing and end-of-lifing, So, gradual. has ARR are just related

Scott Berg

million then we from mean define sight wanted Does adjusted the expecting XXXX Thank is XXXX? to $XX line get to a minimum through for you’re EBITDA you. as as what the velocity full me, Thank for just year, follow-up to be Or Helpful. million at exit an you. that $XX I And of calendar that a for in year? means. also

Patrick Brickley

a for would and That $X full move year. year, EBITDA that for clear a timing welcome. to But you’re line be million tend year, down of guidance, the to up The the so full year. Yeah, sight to full year. EBITDA the $XX the QX is of obviously for be bit that full of a focus

Scott Berg

for Thanks Great. question. taking my

Patrick Brickley

Sure. Thanks.

Operator

ahead. The next America. with of Ikeda Please question Bank comes go from Koji

Koji Ikeda

sequentially I And, of revenue you mentioned Hey, earlier But, about would Patrick, revenue year, questions. business? the is, cadence for customer some quarters for pieces the Definitely David next my guys moving a XXXX. I think subscription to revenue some the considering question prepared and attrition, thanks the divestitures any taking how planned decline appreciate you generating color are the all here remarks on you question products. on are anticipating where a guess, all on had maybe here.

David Wagner

that more Yeah, that as it non-recurring that out that’s versus we the and look information clearly and at undertook trend revenue quarter-over-quarter, QXs deck of show website investor point unpacking at we put the start on on the the consistent. performance the And you been been great down – to for visually the little then see when me, at take company, cycle. the you and the some And, historical today, trends at has XX-Q that recurring the you help to display recurring to can non-recurring I XX-K, least of you revenue the minor a quarterly question. more see have impact look clearly, to you’ll presentation, businesses that the of growth out, it, look when when

from QX, unpack see that through pointed the you’ll questions of guys, lot good half. coming we’ve and had smokes second half the guide you to So deliveries a again. the a that holy of lot that half. for like Patrick wins And relative when saw the in think QX, out really looks I about perpetual last quarter, I we got in you second first

be you subject revenue. down steady would so, a de-emphasis, QX our growth And we on – will would minor those probably in trends, historical things But the that concerns be conclude focused really in to would when potential we expecting notwithstanding, out and be look you a recurring that increase ARR we quarter. those at are laid Patrick that of terms FX

Koji Ikeda

it. it. for one And Got just then follow-up me. Got

about there it month I Investor talking for but your just throw wanted next Day, out guys. the how to does growth matters to you might XXXX? guys is, this playing today think, be X algorithm Thanks, at

David Wagner

put DevOps that service up. really is powerful to no for a for thanks to put X bringing optimize and and their Yeah, leaders integration workflows. code matters managers capability

about the optimizing we’re And so, we talked sub-brands. one of is things internally doing the

align we we’re team making I’ll we’re digging for are sub-brands just even But for digging those digging be as And so, focusing in and things to that sales on the be sure not that sub-brands doing of CEM. right optimizing a going terms in, capabilities. the we we those in in that motions, in, for that be more, make and of of should opportunity on go-to-market sure, a getting funnel all role. each doing To pre-sales key have demand, things the resources kinds sales and terms really that plays we’re and on in powerful XXXX

the of bringing our leaning and this of controlled into. managing risk when one one customers, to approach platform the events, key look a playing approach CIO of to the in is other that workflow a idea is way organizations risks enterprise and going enterprise to and in we central role, matters most I be the we’re area along Q&A, to CISO, extensible of where great really across together and a prior dealing that X workflow areas having as in does XX% CSO talk common The alluded one our strategic with really

in into the matters part on and coming also approach execute long-term is take of X our overall And playing strategy that of so platform something years. unpack as we’re the we advantage to excited

Koji Ikeda

for it. my so Really Thank much. much questions. you so Thanks appreciate taking

David Wagner

thanks. Yeah,

Operator

from Tillman Securities. Truist comes ahead. with Please Terry question go next The

Terry Tillman

as Hi, Yeah. Patrick, my thanks well. taking for questions David and

optimizing I capacity, have XXXX, I’m definitely go-to-market XXXX is terms sales for basis, and trying guidance. thing then the there about us pathway and to I few. we to of do already XXXX kind I’m growth? Some up platform targeted tell of growth lot answered, just and I a to tale is cities the think But opportunities. growth go-forward but One it’s them as into picking kind give then, know to Do you second in starts still first been level not give you And that question follow-up guidance, and just, exit The see actually David a share can optimizing is David, a the of on just had isn’t curious you have you to of stronger, organic growth of and you higher XXXX? for some ARR like X a of Patrick. a ARR anything part about,

David Wagner

Okay.

insightful question. very So a that’s

of will be of on inside multi-year unpacking XXXX. the converts a we team how key have even in growth, that a that key growth value we’re time into But driver the aligning particularly ARR that, lots pieces There and We optimizing as that is growth area. are focus over over. but period, revenue and

Patrick most that’s stories this the their keep And in growing our time. building wanted about safe is tempered by organizations about people we’ll – you powerful. customers taking optimizations in on the And a growth thing things way specifically enterprise thing recurring optimistic I’m – advantage very these have are be be CEM the definition of I’m of reading the those non-recurring one over So managing be most means that I and also optimistic I should these baseline the to which running what pieces said faster. pieces, – is will growth

We are area. far in a category in by that leadership position

But most of of market. their our thing, the executing team, Everbridge leadership commitment colleagues of my customers the our second purpose commitment excited about behalf employee to in on I’m and at and is here every

best going so, seller, take to optimize the for best developer, ideas every of of of continue advantage And customers. we’re ideas to the our every to

I like. what I’m And CEM of certainty has you, on optimistic so, look I this itself team that will cannot core tell with manifests aligned time. growth in over the ARR predict can to win about XXX% really opportunity the power

Terry Tillman

just That’s for more one great. real Patrick. one quick Maybe

the to invoicing cash to payment or tougher relationship quarter. forward? you could are about the about the talked little In a Anything the I can about And terms macro, Thank customers in the the dynamics how in going invoicing, there’s share more change bit terms way that that. of think, just flow and you of think demanding you. timing EBITDA just,

Patrick Brickley

invoicing, there’s role, in in deferred the the Terry. Yeah, bit little part thanks, had And voicing with in of change the in much but always plays the it’s bookings, Yeah, that. timing of more calculated so than of why do metric. to noise up QX, the a mix of and a shows timing the billings

customers through or of alter that of in requests. do more But through of Not requests services, that work We types we terms. to do sort we our seeing are receive due just As we first that increase this an anything with the macro, move to macro. that’s option. with invoicing not those with our nature

as about we think of that’s eye yeah, on we what have part So, our XXXX.

Terry Tillman

See December. Okay. in Thanks. you

Patrick Brickley

Thanks.

Operator

comes Sklar Please next ahead. from go with Alex Raymond The question James.

Alex Sklar

long taking? place think of you’ve CEM further we to about think about of of Great, thanks. selling you’ve simplified round that David, past changes me. year making putting talking over the brand just the should bundles? that should Thanks. optimization How about this optimization the one can But you into And the been we this terms core in in up? for on the today, elaborate some go-to-market based of just persona more kind how been any

David Wagner

Thanks question. the for

we to to that word in in of hate at So that optimization, had colleagues I we losing terms what respect will felt, we use, here continue am some using, value of that word and really the to is I do with Everbridge. terms

investors And I when has I’m trap, of can individuals Everbridge to fall what importance to so failing of these done the into recognize to talking today. the

these that of our capital. human great transitions And care empathy we’re trying so, anyway, it’s to painful with and manage

approximately half the X,XXX we’re here moment, a are for clinical eliminate America. of planning more And notifications have becoming and roughly those North positions to in aside that all… Putting

Patrick Brickley

XXX.

David Wagner

the of has America North has affected half are America, is XXX XXX those and in sorry. everyone North I’m notified. XXX. here been been in

in global and large have operate We footprint of lots geographies. very a

intention so our each accordance XXX local being are located. those executed as laws another week And from XXX to total positions, over employees several with to process varies where in eliminate one potentially months. that so geography in And

we the XXX if here the script, have not were implement in no as the to America, you’re first to longer over in expect – path stated January So in plans XXX X. on be internationally us we North November, the who or fully meant employees, with

feathered that end So it’ll that of the by and in will be have the complete the expectation we be year.

Operator

session. like remarks. This would concludes to Wagner closing our any question-and-answer for turn the Mr. I to back conference over

David Wagner

Well, I Day. for all thank Election is today. you Today us joining

moved to we would morning hope And our to so that call enable that the with participate. the people

out And vote. so and get

you plans and unpacking we look the detail forward page opened registration have there future time. that many in Operator? our of We IR day more to our December in and seeing at for

Operator

conference now presentation. for attending Thank The has you today’s concluded.

now disconnect. may You

Everbridge (EVBG) 8 Nov 222022 Q3 Earnings call transcript