Earnings call transcript Q2 2023

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Operator

Hello, and welcome to the Everbridge, Inc.

Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note today's event is being recorded.

to Young. conference like host to now Jeff today would turn over the your I Mr.

go please Young ahead.

Jeff Young

of operator Welcome call quarter to you, Everbridge's Thank and earnings for good the morning, everyone. XXXX. second

are Everbridge me and Vice and President today's With Patrick President Executive Brickley. on CFO, CEO, David and Wagner; call

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

During materially of today's will the from in such the statements actual and forward-looking performance involve events that company's regarding risks projections certain described future call, we company uncertainties. statements. financial differ or may the The make results

Factors call our the as include cause in subsequent be Forms are of will our XX-Q subsequent on to measures. measures date. Investor to, as any obligation we or our our find our our should and limited Information which XX-K, non-GAAP any SEC. considered as to certain differences provided filings our disclaim representative is not views not reflects other GAAP of Relations earnings those outlook. of to Also in as We perspective this non-GAAP well only discussed A and can of today's today included call, any reconciliation forward-looking with financial during that website. release, you might update but explicitly statements refer financial on press

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

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

David Wagner

earlier of everyone morning, released solid We delivered quarter, morning. quarter results XXXX. Jeff. earnings Thanks, second which and for welcome we the this for financial Everbridge's the call to Good

$XX.X of EBITDA reflect X% up These operating $X million, long-term $XX.X million improve the increase million achieved execute results our year-over-year. and the X% from of team million For an solid we an of as work ago our adjusted the second $XXX towards $XXX.X efficiency quarter-over-quarter of objectives. revenue is year-over-year; revenue million, year of doing overall to of quarter, we the recurring increase annual

I saw first of made. rated Everbridge, the progress as am CEO of the my reflect and year just on as anniversary proud have we I I

customer We several we've our are on as and much organization, aligned platform core milestones product we more key focused development achieved have satisfaction. an value CEM and are improving delivery our that efforts

our year-over-year streamlined $XX.X sales go-to-market to first our reducing by the which million net from and we simplified XX in to to by $XX in our a the expense last EBITDA have million XX-month X% the this contributor half, approximately non-GAAP trailing $XX.X We is reduced period increase adjusted for million over months, year past million. And $XXX period. major the XX-month ago debt

notwithstanding the we are accomplishments bookings deeply primarily to last greater I of to which our what Everbridge overall are these done one lower deals as continuing noted $XXXk. goals together am to than above growth. longer-term for and deliver to important we've grateful in than results achieve experience These year,

with $XX and XXXX, momentum net strength on track and containment of our positive adjusted continuing track model based careful on of of in in of Rule by our million XXXX. to deliver are the transactions, reaching remain On the long-term on smaller side, retention we XX the cost EBITDA

people and a none in in Today a increasing impact at and global and social their ever. increasingly management delivering that and our Everbridge our for need can. are in for more teams way And to managing of business competition globally intensity frequency the than their customers operations. both resilience of proactive events is alike our be these looking level solutions and investors organizational Directors Boards are unrest risks Weather of

we incredible with lives and and strong of enterprises of of are becoming leading continuity us synonymous every day stories With protected. resilience saved base are resolve assets and customer of our governments, sharing our with customers

turn the call to will Brickleyto details Patrick Patrick? financial CFO, provide results. our I Now, over our of

Patrick Brickley

guidance revenue growth. deliver Thanks, Programs Dave. solid to streamline Strategic operations the execution which is report end to I'm pleased and of Alignment the above during high implemented XXXX we adjusted continuing profitable that to produced organic high end at EBITDA The our our range.

fiscal now XXXX. by will the for for results quarter our our recap Followed year. full second of I quarter third and outlook the

of and of refer release. full please to For reconciliation P&L our details press GAAP measures, non-GAAP to our

ago. For million, $XXX the $XXX was Revenue up X% from year-over-year. $XXX.X second quarter, Revenue to million, year X% from a Services X%. our up up ARR Subscription was million, increased

XX our quarters. Our QX, the rate revenue $XXX,XXX remained target ago size retention recent in what gross and gross that within experienced was in in year than QX higher our a revenue Like ago. We we year average from the seen meaningfully range, in lower retention signed XX over than down deal deals we've period.

count up sequentially year-over-year. and increased XX% XX% to Our CEM customer up XXX,

We and our continue efficiency, sales profitability and improvements all our of to the to and particular ongoing making see areas and we that healthy flow. in across Reflecting substantial development. operational marketing business research and year-over-year cash are improvements in within

or a demonstrating basis, of which year share. million, efficiencies ago million negative $X.XX $X.XX loss to or net from per year we the $XX.X year optimization. share ago, growing the million $XX.X result margin and per was On XX% negative net GAAP or period a compared to $XX.X a platform margin. was integration margin loss was generated $XX.X to ago gross compared in profit million XX% XX% of an gross compared XX% GAAP period of adjusted

we generated ago diluted period million income generated $X.XX share. net or $XX.X per million an year adjusted basis, $X.X Compared of which $X.XX income On per or to of we net in share. the of earnings

$X.X ago year adjusted in improvement was the of adjusted $XX.X from which margin. XX% a a period EBITDA EBITDA margin, Our X% or million, represents significant million

of flow to be inflow which our year $X.X ago an was was million. We collections. in the we an QX the $XXX compared $X.X year operations which free in for restricted cash, $X.X million, tends to quarter million. that had period the of ended compared of cash had in $XXX from note at ago equivalents cash million end period, an seasonally from $X.X slowest the XXXX. Adjusted We second we invoicing with cash, inflow of and outflow of to up an outflow flow million, cash Cash and million

intended the changes our are to our year. turn second guidance. and quarter changes of reflected we've I full to I'd third guidance go-to-market outcomes to half our these Before in like the the past recap The deliberate made for year, over

our as focus at we internally discussed Investor key and our revenue introduced to First ARR strategy Day externally and to represent recurring both increased metric we a the focus. in XXXX, December, on

year. non-recurring this our non-recurring mandates. public of of million follows safety of revenue and services EU license Second, selling than view perpetual we highest half timing particular, We've uncertainty period. and of changed revenue and cautious revenue XXXX by non-recurring second our in professional favor such in sales revenue inherent as quarterly driven licenses subscription rather deals talked the ever perpetual two the of services. on the included non-recurring half years for And second quarters that record prior associated over incentives of on the with in This $XX two calls about the

Considering of that deals softer lowering we for macro to XXXX. these second Dave as in the earlier, non-recurring slower factors, large our sales described the due are as expectations a well of revenue environment half

$X expect despite which we the third allows to taken quarter, addition, second revenue we EBITDA to million a the in us structure actions, million an million adjusted have expectations. reduced In additional quarter, will reaffirm by expense $XX the our $X.X of our cost in reduce target which half

reflection the that we million $XXX.X in revenue. anticipate of of growth representing anticipate between is This of for million largely quarter, So third the X%. decline year-over-year onetime $XXX rate and we year-over-year of growth revenue a

We to anticipate $X.X earnings between net and of net between and $X.XX loss a $XX share GAAP income million of million or $X.XX. and million per $XX.X non-GAAP diluted million $X.X of

a expenses. million EBITDA We $XX.X drive and margin as our to million, of continue expect XX% be $XX we efficiencies in the at operating adjusted to midpoint between

range the of to in is Again largely to that X% million we in a XXXX growth For of to year-over-year reflection of $XXX anticipate rate year one-time revenue the XXXX. this full million, growth we representing be over decline X% $XXX anticipate revenue. of the

between expect diluted share. of non-GAAP $XX.X negative million a On of net a and million between expect $X.XX $X.XX million We loss GAAP $XX.X and and or $XX.X share. between million per or $X.X income basis net we [indiscernible] $XX.X a to

expense quarterly EBITDA continuous million million. us adjusted noted midpoint margin. of in delivering remain the We million on XX% year-over-year This an of to range improvement in adjusted trend the representing EBITDA $XX of $XX $XX confident and above and of EBITDA reflects adjusted quarterly our EBITDA outlook the margin in at keeps adjusted savings

In a summary, first delivered we half. solid

through we return we As growth driving and on our progress remain execution maximizing profitable on focused ARR organic of XXXX investments.

out towards we investments and XXXX further, Investor XX first Looking our deliver laid disciplined confident at the targets progress making XXXX. can growth steady are December Day of by we the making Rule

over back turn to the now will I Dave. call

David Wagner

Patrick. Thanks

from closed QX demonstrates, year. XX year-over-year $XXX,XXX, As a we over X% and environment. in three one quarter QX, from from XX closed last $XXX,XXX, grow In up difficult in XX% nicely quarter macro last XXXX. X% ARR down QX continue over increase our deal to last deals in we We down and of of

nearly steady and Our to QX from down size XX% overall is transaction QX remained year-over-year.

Accelerated the deal Digital However Marketing to drive enabled in velocity us programs have tighter [indiscernible]. our

CEM Representing an QX quarter success CEM new XX of customers, XXX. XX increase count of we added bringing increase in last XX% or our customer total across XX an XXXX, multiple industries, from and

same period top new five CEM wins. Four deals of the customer to for

Our the one Warning EXXX one and win. America Canada CEM two in North top in one included deal deal, five deals Perpetual Europe, and RedSky in new Public

year-over-year of increased, Our both a basis. sequential and on logo total number new deals

in financial existing the five One, top retailer, deals sector. Risk the Smart for Our EXXX customers one product digital were in CEM The a included two vertical, to the point smart quarter, in growth add-on. deals add-on $XXX,XXX two, Security Intelligence and CEM a There final for security. growth top add-on our X. and the additional an a year-over-year plus major add-on operations technology other were as the other

of slightly QX down XX% Our and number XXXX. of from quarter up growth about add-on last was deals

retention notwithstanding a saw with noted perspective, relative marketing Patrick leaning some are the and offset QX From weakness in solid. a go-to-market by cost We From creation. internationally. retention in North earlier, good we hard is America pipeline even our efficiencies perspective, digital

that highlight the on to them posture, maturing focusing motivate customers' more. value of buy are help We resilience to programs our

individual to success. optimize each also rep, dedicated We're providing help their sales them support to

sellers three year more that than pleased one of more are of quarters We or our now tenure. have

will productivity to the As they improve. that continue to we continue develop, are optimistic

our new Finally, we optimize customer value and align growth wins add-on are working in to both to pricing better opportunities.

discussed key goal Moving to toward on in milestones major of Engine. platform several we Analysis Day. Investor a our truly executed product. Management Critical In Correlation CEM we a our QX, through Event enhancement as quarter, at delivered integrated technology and We the

apply alerting are Our fine-tune more or them so now allowing and customers workflow further. to able thresholds to variable even complex just

CEM we to customers we product. means Anvil, Everbridge Protector, clinical available to now only And Risk standalone access Anvil an Protector this native [ph], as Travel integrate Travel is have over as but that single the As customers. our Travel time, also and travel same intelligence CEM. transition new risk risk product launched Everbridge to customers CEM not received standard we to the information the will continue which add-on Management this at high-end is

in We July integrated Everbridge fees, and new and customizable our across simplified experience in core events across base data customers. experience configuration featuring platform modernizing the workflows CEM our for user are the refresh into early feedback XXX, customers also a continue launched CEM select we new and on to we the expect over the positive. XXX, out the year all to rest Everbridge customers. been features release of Their And universally rolling date. to has roll four will board

security. turn Finally, smart to I'd to like

XX,XXX provide the from XX,XXX of help keep help operation data control Everbridge devices event. cameras people during over coronation public awareness Our Kingdom. with Police high-profile to the officers Over Kings control largest on actionable, by to relied a police in was center. the product and bringing the access United accessible, situational managed used such history was safe center proud

we further solid adjusted ARR and in the delivered performance we second quarter, sequentially EBITDA as another In expanded our margin. increased summary,

by XXXX. our the goal long-term profitability the progress enhancements us meaningful While quarters. and CEM of we environment, Rule macro our progress a disciplined our to forward first making navigating through look on short-term are and updating steady I are increases cash challenging in you on platform. growth are making core to flow to we make coming our efficiency we in are investments XX And allowing reach to

are the open We questions. Steve? now call to ready for

Operator

question-and-answer question At you. we Raymond [Operator this with session. Thank comes And Yes. James. begin Alex from the Instructions] time will Sklar the first

Alex Sklar

you. Thank just growth year David implies Great. the of about better year I the on from more I us quarter? I a color to understand in want pressure. think half nonrecurring just growth, you that you to what exit give or some Patrick the all guide, color second on baking the the standpoint at appreciate factors which can But subscription last what growth relative were Thanks. you X%

David Wagner

recurring deal end for is both well. being subscription Yes we've more great are challenges as up deals. the same phenomenon perpetual larger large question. having been The large the the across impacting perpetual deal on bookings and deals primarily The

previous As we X% one times X% of year to year full our think guide and flat. about with the

subscription calling down. a that recurring out subscription relative the one-time on would that large year-over-year. holding relative to we're And die down and how for year not the but of it's here run deals be that playing revenue in range saw to year love have our X% little really we one-time the ARR subscription the been anyway we're to to of would in the seeing side. But X% Obviously now the outlook one-time bolstering to growth is and much bit, deals really further. we down the growth Obviously but beginning

Alex Sklar

color. Great Okay.

mostly deal large phenomenon. offsetting on comment subscription the deal velocity your on So

then just the and a on question And go-to-market. SALESFORCE Okay. two-part

elaborate you as more Can been You talked and pricing. has now. John of this the months seat call? making about changes optimizing -- part tell about six can bit you cost some the for about us separately in little there. changes you what I entails? referenced a know just new on on What then the just structure the referenced you're that

David Wagner

Yes.

Patrick layers and that early those overall [indiscernible] of yes largely -- to A alluded this measures cost savings go-to-market and the the lot in On quarter. fans were taken are improving around efficiency.

the On news improving. is sales our tenure side good

productivity I And -- so we're tenured But by the that. time, first sales went been our year-over-year for have here really pleased down. since

phenomenon deal productivity. productive but really so And productivity, become helping that their improving seller the that's on obviously and large the impact focused in each we're roles

in on more focused collaboration in little So sellers, his both are approach those team in organization on how up the programs. management really sellers our and John the sales market individual a with lining are and focused getting higher segmentation their marketing and

go-to-market walls And So the organization our I believe last four do. we a efficient I to delivering majority alluded of work still I experienced work organization. Obviously, John see what do in trend. there's we and own aligning as more is to macro as do to well. go-to-market have that quarter,

Alex Sklar

you. Thank Great.

Operator

Thank Stotler you. Blair. And comes the Matt next from question with William

Matt Stotler

with start multipart average questions. Hi. taking on my Thanks size. Maybe deal for a question

or historically in if smaller the I versus what kind challenges very an clear. So indication better deals customers spend you've Any the I'd additional there new just you're seen is more that lower the love if that seeing than success guess deal scrutiny coming of are and maybe color of this remain market reducing to understand, would quarter. noted lower the you're you helpful. seeing you be at end is Large enterprise?

David Wagner

size least existing to little I deal XX% deal -- QX of deals similar. down The XX% customer -- bit at size take customer across It's QX size the on a board. the Yeah. new and was feeling the guess

it's think flow average is the what down. of the driving is That pretty in large moving further size deal now largely numbers signed switching of a see the just we're although in I on pretty those drop to topics focus deal it that's $XXX,XXX When being it's do focus. the the -- meaningful one mid-market mid-market. areas that more that's focus deal didn't deals break it's year-over-year. down, and I into a over not meaningful of we in impact you size, of So the

a we're enterprise we've part America. in important one We enterprises the really especially really very cross-selling XX,XXX from enjoy to to employees new today. we're here aligned what in from penetration large customer still where down but a got share large on of dialing base in a that And is strong perspective, segment company, motion the a But doing. that North XX,XXX

Matt Stotler

year? Got the be at lower head hiring for helpful. the count challenges. given there noted the it. That's of down thinking especially productivity you think planning follow-up, situation a And where you the were about up as year-over-year beginning rest you the productivity flattish. of then kind SalesForce associated year that of in I a reflect are or with the deal drop How and Is there? you to large

David Wagner

decisions with called we're growth Yeah. not focusing we year. is disciplined them We made on. this have for next one finality that first And

I XX-month As gone has good turning challenging up environment in all It's we that are now. Not that script, period, we'd turn not folks expect. first their are pleased the many – retention through surprisingly productivity. said to really them of is level – really a the are a our reaching sales

So supporting sales their as to transition we're to to I from salespeople tenured. sellers said, leaning sure seller, to early support make that in marketing company the with we're those manager in

drive there's we're that training management and definitely buying rigor exercise sales exercise higher. a productivity so to And that help

Matt Stotler

Got it. Thanks, again.

Operator

Colley you. the And next comes with Thank Stephens. question from Brian

Brian Colley

question. guys. for my Hi, Thanks taking

for also much how kind was of of of your of into for if it you you how subscription? the in quantify curious guidance? growth how non-recurring the the kind of kind year? could we reaccelerate reduction maybe to I'm about And next And X%. context feel we piece? And growth I'm how X% think how guidance was of ability should the implied much XQ. curious updated think about XQ ARR the of So on I'm curious should

David Wagner

flat. morning, with And the looking the of to or at Good we gave know what about the ago. a beginning from again great commentary, way exactly flat from X% kind and you growth that's model you others. year then X% one-time the the I or and one-time Obviously, we was it the start nine Brian, the can with we way were hear the at talking year commentary X% were months of to question. don't the relative your we saw we in our X% have planning XX year to But

running but of noise a revenue we growth. year-over-year primarily We're last way one-time the would bit at on In it lot take a subscription year. playing X% – the There's I now with the step to we're saying But when you little were down. Xs not up in compares. the X% to –

The primarily points the been PF. side. it's one-time the I've XXX on I its more one-time. perpetual software word basis And Patrick So us use deals more both in one-time of carefully. out good a drive And down it using maybe also the subscription carefully, and

we one-time, putting those when our where into Anyway license where the same sentence. majority guide the from PF so the it's saw say perpetual And the the it is not we with shortfall feeling today. one-time the but same for we're of just way in the see we associated year the

Brian Colley

there's or And of curious reduction, product from super of Got seeing the…? Thank areas I'm terms verticals helpful. it. a if perspective That's the business in you. the any you're where specific also

David Wagner

the $X acutely exactly dug-in go that roll me I you metrics over It it down. is known [ph] around over that metrics roll down is strangest from yields across is board. at night $XXX,XXX slowed a I'm and my and It Sunday that roll deals a you've have in for the while. million we're I It giving large question. the on $XXX,XXX -- and matter. thing. are deals bed the around ways million spreadsheets through Brian,

said pleased our transactions I'm We it's it. off of But of velocity, to customer the terms generation deals real year-over-year. the in existing And new on -- new side, business about in in XX% business certainly when five. specifics and both there's no with total they number were

slide thing One State of was and thinking solid. roll point business out, stuff. I'll I'm Florida, around when our this I'm about

slide solid this was Our business quarter.

expect I So that's larger slowdown for not [ph]. what Brian that is impact profitable that, even

Brian Colley

a not report Great. anymore? or the that just for Thank you're question. is that. you something you And housekeeping all reporting that customer total count, Did enterprise

Patrick Brickley

but to you ran related roughly from Brian. last end we saw end headwind, of non-core [indiscernible]. roughly last added it's It sale to quarter, would in shut assets. of headwinds quarter. had similar Without what we a We net life to place had We down roughly million the that as continue have $XX

Brian Colley

time Thank Perfect. for the gentlemen.

Patrick Brickley

bet. You

Operator

the And question from you. Scott with Thank Berg comes Needham. next

Scott Berg

Any taking that's rates or not I of spoken revenues one-time Hi, a pressures? have government obviously questions. really you've couple. change have a ready least guess, verticals Thank reflection verticals, those are just everyone. in I my a aren't government assumption. deals you. made the lot in of this having just general? Good win but there? that at And Thanks any just morning. for to down, on kind of or about decisions especially continued Dave, the the pricing it's in Is pipeline my the

David Wagner

Yes.

On I the in as to couple a decisioning that similar people seeing commitment. network thing, getting Government same those slowdown the especially in of it's a larger They're in companies a process in Europe spaces. close talked side,

nice but way year. to things adjusting the are big for the have second a going us couple full deal throughout in -- it's a a the half do So the We way allow opportunities reflect year, we're of the slowdown. year this

Scott Berg

moving maybe these maybe are deal CEM that they're within shift are versus or have what view, that continues it. bought of that higher Is historically trend in size And modules of the seeing down like The The then deals? sounds drive deals. them deals today? CEM is Thank kind the right you're of package comprising that we But just noteworthy? on my maybe Got how little smaller a to to you should with follow-up pricing Helpful. think customers about number what are question you. purchasing some is initial a footprint customers. year-over-year. seeing It bit the combination the as combinations of them the

Dave Wagner

the things, very of I one positive remain on. So,

movement move gross retention larger roll the and as growth when for cross-sell attach focus really I we through big innovation your focus critical strength event us? to notification, CEM of So that to mass be remains responsive a in the more resilience add real which remains risk to goes the from opportunity The digital component the and is posture accounts add-on those the in a intelligence the customers improves strong. The much journey in that, component upsell product.

in That's the step big really the CEM up journey.

-- doing such earlier It's penetration targeting assets win the that job that. I we're in we're that but content highlighted we so employees. a especially to and than on new because got enterprise, seeding the not get And XX,XXX better organizations over user have been and And already smaller to to customer in mid-market and the past. then size we've allowing time over XX,XXX as grow XX,XXX great

Operator

you. from Thank question Michael the Wells next comes And Berg Fargo. with

Michael Berg

environment worse? would large either Scott's are of Hi. earlier down? to the the characterize or on Thanks some deals these the Thank still follow to close deals. you. meaningfully to next? the just to macro Are getting And slowing year QX, that are later for into in wanted you Relative I on potentially taking expect my these deals question is you environment question.

Dave Wagner

That's question. a great

had number QX. over won in So which steady put million size I steady relatively deal deal and $X QX on that for the none we're is If concerned QX, was QX it, about. thing we decline to over a QX the spin positive one on us,

transactions small but side in in were and down we QX that we And the attract over deal volume better you QX into numbers then installed at QX in had base. so want

two I it a had last we of were So from call than deterioration not last steady the June QX QX expected. weeks

challenge a from too some relatively so expect into quarter. and those from stand steady flowing as QX But was seeing of adjusting back And we environment. that we're a again, not there's we're tougher to this year, we've been and the

Michael Berg

quick Got to by Did you second Then in that, impacting quarterly is million say the $X.X million deals it. a half? $X the follow-up. perpetual Thank you. revenue

Dave Wagner

July. million going the on $X you adjustments in say script $X.X did was we to million that's that What EBITDA the to we're help we early proactive Patrick's No. bridge guide. made in cost That's

how you holding services. $X round guide, professional that look XX. the numbers the at Well, $X part million So you in is revenue if of down million that's

don't margin, $X have margins you're you XX% million. So at full

quarter per then get our cost and through have X.X and and through let both been short stay guide, the QX that beats And continues revenue. savings enabling half QX cost in for the in path that three EBITDA evidencing the it to the despite on EBIT discipline discipline we us of first follow-up a

Michael Berg

you. Thank Helpful.

Operator

Thank you. question MacWilliams Ryan And the comes with from Barclays. next

Ryan MacWilliams

Thanks guys. my taking for questions. Hi

opinion love on I'd macro? one deals versus Just deals, is control how in like, to of large more your hear headwind much Everbridge on the to these

more sales then metrics bookings and for just cycle it Like, work purchasing some to efficiency do of software you could later get just improve? to think and time take Everbridge is improved these some to cycle macro through the and for

David Wagner

it’s it's a bed roll question, micro like question. turned and feel Everbridge's specific at night, things. Ryan, to XX-XX spreadsheets to I've around one around I been as my that good answer Hi Again, macro company that your at

on We license based are contacts.

focused the vertical. are turn those on taken And has they this But rate in employee in aren't And profitability. and be expect a they I were. we're employees do companies of XX,XXX well. turn the these companies coming hiring to over everybody as -- so, contacts the back those primarily out the at strongest

the the think And productivity. if I really of cracks, at look they start second term and suggesting get to driving you're to

get our implementing are event security their management efficiencies core that they base by really the metrics We operators in have platform ROI strong customer critical a from really strong.

more make I is going productive our think teams as productivity and we turn really towards which to gains. software drive back

good spot be this. going in a again I through to think we're we as turn

Ryan MacWilliams

Connection? And Safety product sales the well, doing still perspective, an that. CEM and momentum Mass call pleased for the Notification anything Appreciate to to out on from see individual

David Wagner

to the growth, And and Mass alluded got year-over-year that that growth just positive is improving. things about slightly improved in we've it. Especially from The Patrick, gross retention year-over-year. one negative of pleased improvement I'm the Notification side,

trend, with. a actually that's pleased So I'm

the feel with premise I the investing doing. I good spot the focusing in making I right to really for a should customers. and like and the how executing and our product should We are teams we're deliver -- investments value feedback we're our for I approach for started improvements but is and work that customers. with great that getting core is really a overemphasize, our That emphasize me we're driving more maybe existing more bright on

Ryan MacWilliams

color. the Appreciate

Okay.

Operator

Thank you. comes from And Mike Markets. Capital with Northland question next the Latimore

Mike Latimore

pipeline it flow How pipeline Is Thanks. Yes. growth? Great. nicely? the Is overall growth? growing about just just pipeline

David Wagner

because on aren't -- is well maybe even not or there. velocity deal the the new the improved -- at going slightly But Yes. macro the side. maintaining bigger especially Pipeline we're the is deals

that's in. laying so we're what And them

want to disciplined from customers now. amounts are to want what sell more customers wanting – You smaller right and buy to the buy

Mike Latimore

CEM obviously, out those deal How there? come, into playing were upsells How Global kind the of many the of strong. XXXX. is And pattern that

David Wagner

the question. over year are good sure. North list have there. are a down enterprise XX,XXX. for to front new said From but great deal there I American don't in penetration next size that of -- win, Like of account logos penetrated the is in nicely at the That's looking in very, me. the more very I our as we're And

Mike Latimore

that it like a Got what Notification, product just that enhancement? of it. that change, that? And pricing Is sounds more bit there a little Is just cause good. which that growth is on is focused? would Mass Is

David Wagner

time product itself market. primarily that back as which said I sure of the It's We've in and that segment taken to first has managed organization. make the go focused

flagship The core that've product across the tightening that we're done We're we and improvement work -- integrations to there parts stock building are and country carefully. double proud that down been we're yes has easier in real in -- Emergency some investing even the our that of grow make done really retain customers. make those the and We core sure there. team nice County it Managers We've the use. things the other to to with of I'm platform listening

attention there. putting So some we're definitely

Mike Latimore

Yeah.

Thanks. Okay.

Operator

Kash with Thank the you. And Goldman from next comes question Rangan Sachs.

Unidentified Analyst

quarter has this the versus deals but deals existing been base I the Hi taking of or earlier, how a apologize customers? wanted the touched additions I upselling how for guys. Kash. you question. the CEM [ph] on from for many this CEM is to new and on Jacob CEM This net were if result of ask many of Thank customer

maybe a for bit could been last like dynamic on of few segment, seems we the the if quarters. weakness then around And it's touch little it the International

anything seeing might that you're out? there call willing to be So

David Wagner

Yeah. The little are is new CEM spot deal a of new to deals but smaller, XX%. get the a bit bright

If I were top CEM transactions top the new you of three five deals. run think like transactions, five,

especially the there. where I secret has we something seeing years. have good prior that good We're that that's But business. own growth I so no think same International, not it's the of UK challenges are And feel solid level in bit a we EU its about. the of

more been been but particularly America. strong invested and more were word, disciplined penetrate a little is with making International we North more we're we over-invested investments investments. we've a heavily We've than to our Again, where adjusting disciplined internationally were markets bit cash-based those

Unidentified Analyst

good. you. Thank Sounds

Operator

to like any question-and-answer closing concludes session. for the the comments. to return this management would Thank floor I you. And

David Wagner

activity thank third will day. XX a especially in active the the for profit of next Keith, in to very when great you with results. all and many you in Nandan look be call. you our of connecting hours and days Patrick today we again joining on you, report us in next some two second Thank with I quarter three or and hopefully and quarter and everybody forward Have investors our

Operator

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

disconnect lines. now may your You

Everbridge (EVBG) 8 Aug 232023 Q2 Earnings call transcript