Hey everyone,
I know this name has been discussed before but I’ve been digging into it. Here are some takeaways from its latest earnings call.
The numbers:
Revenue growth: 40%
Margin improvement: 5000 bps
Gross margins: 67%
Customer growth: 19%
Average selling price: 20% growth
Free cash flow margins: 9% of sales
Now for some quotes from the earnings call:
Quote #1:
As I stated in previous calls, we are still in the very early stages of our full CEM (critical event management) go-to-market rollout. Today, we sell CEM into the North American geography and only into the corporate and health care verticals, less than 50% of our total markets.
In the first quarter, we released our newest application, Crisis Management. Crisis Management or I may refer to it as CM, brings the number of applications within the CEM Suite to 5. But more importantly, dramatically expands our CEM value proposition for customers, and along with it, our average selling price.
This is a bullish sign that a higher-priced product is just being rolled out and the CEM suite now has a lot of opportunities for upsells.
Quote #2:
Our signing of our largest CEM deal in our history during Q1, a $1.7 million annual recurring contract value for this multi-year deal. This is a monster win for our CEM Suite.
Biggest contract so far. The company is gaining traction with serious enterprises.
Quote #3:
There are a couple of reasons why we’re so excited about our population alerting technology. First, it’s simply the best solution in the planet, with proven scale to manage critical events and communications in the most severe situations across the globe, from cities or states to entire countries.
Population alert, what used to be known as Mass Notifications, is the entry-level product and this will be mandatory internationally by 2022.
https://en.wikipedia.org/wiki/EU-Alert
Everbridge is one of the only players so I feel that a lot of business will pick up then.
Quote #4:
Just remember, our deals that we’re announcing are typically three year or longer year terms. So you’re talking about a $5 million commitment to Everbridge with these big deals.
The contracts are very sticky. Even longer than ZScaler’s average.
Quote #5:
We continue to be the only player that’s of scale, that’s why we bring up things like The New York Times boasting about saving one million people because at scale, we don’t know of anyone else that does what we do as consistently across multiple geographies across any type of event.
And that - the competition is almost nonexistent there, that’s why we built out the roughly over 100 global patents in place, and it’s why we feel so strongly.
The last time I heard comments like this were on Alteryx’s conference call a year and a half ago. Good signal.
Conclusion:
Everbridge looks promising. Wish I had taken it more seriously earlier on. I like that the competition is nowhere to be seen. I’m finding that is one of the most underrated aspects of an investment.
Hope that was helpful.
All the best,
Fish