The last few quarters, the gross margin has been down a couple % points each quarter.

Does anyone know why, or if the company has explained this somewhere?

For those that own Everbridge, why does this not worry you?


Jim, from the conference call, they explained it due largely to acquisitions:

“Gross margin for the year was 71% compared to 72% in 2017, primarily due to acquisitions.”

And they may continue on that trend:

“In addition to Asia, which continues to grow at record paces. I want to
remind everyone that our international business, half of that growth of
168%, 2018 was organic, and half was acquired. And in both cases they did
substantially better than they did the previous year. So you’ve got both CEM
and our continued success and maturation there, and expansion of product
set, and then you got a core Population Alerting including the federal
government here to drive continued success and internationally, as strong
drivers with the legislations you could get. I would think that would allow
us to conclude that numbers and trajectory are fairly reasonable at the
roughly 34% year-over-year growth. And that’s organic, obviously, we could
do and continue to believe that M&A is key to our strategy and so could see
certainly 5% to 7% added in that mix, on top of with successful execution of
M&A in 2019.”


Yes largely due to acquisitions. It’s not huge nor long term. Goal is 77-82%.

Non-GAAP gross margin was 70%, compared to 73% a year ago, primarily due to the purchase accounting impact on acquired deferred revenue from recent acquisitions. However, as always, please keep in mind that gross margins can fluctuate from quarter-to-quarter, and should not be considered indicative of any trends.