Building on past analysis: https://discussion.fool.com/everbridge-evbg-a-saas-buying-its-mo…
My note: I can’t recall who said it, but I thought it was said well, I’m not invested in SaaS companies. I’m invested in companies solving issues in different areas (SQ - financial, AYX - data analytics, ZS - cyber security, TTD - advertising, OKTA - identity and security, EVBG - critical event management, AAXN - law enforcement evidence management, TWLO - communications)
There is no other company that I’m aware of that is competing with EVBG in addressing two issues: improving communications between those impacted by an emergency and those responding to an emergency; improving how quickly and efficiently emergencies can be recognized, evaluated, managed, and coordinated. Every company in the world operates with the goal and responsibility to keep their employees safe and secure, Everbridge continues to be a dominant force in that space.
Current Market Cap: $1.35B
Q3 Revenues: $38.9M (+43% YoY) beating guidance of $38.2
Q3 Gross Margin: 70.2% (down from 72% Q317)
Q3 Customer Count: 4,267 (+29% YoY)
Q3 Deferred Revenues: $88.6M (+30% YoY)
Q3 Net Retention Rate: >110% (historically 110%-112%)
Q4 Revenues: $40.7 to $41.0 (+41% YoY guide)
TAM discussion: $20B new TAM from EVBG
Land-and-Expand Hit Their Marks
The Bull Theory here is that EVBG can grow their market dominant position in Emergency Mass Notifications through federal and state adoption (those texts you get for Amber Alerts… active shooters… etc., etc) and expand their critical event management offerings to companies that grow revenues.
The company seeks to expand beyond Mass Notification and into Critical Event Management (CEM), or in layman’s terms, giving a customer the ability to assess, analyze, communicate, and manage an emergency from a single platform (today, these are all separate solutions)
LAND Wins Continues to Ramp
Everbridge continued to build out its federal presence, including:
- International growth made up 20% of revenues coming in with 150% YoY growth
- Domestically, FedRAMP approval with management stating on the CC “we estimate the federal market opportunity to be in excess of $1B, significantly expanding our TAM”
- Received a Provisional Authorization for Impact Level 2 from the U.S. Defense Information Systems Agency (DISA), the IT combat support organization of DoD. This basically enabled all DoD missions and agencies to leverage Everbridge solutions.
- Announced that their system JARVISS became the "U.S. Army’s enduring enterprise system for threat visibility…Everbridge platform enables JARVISS users to geo-locate DoD assets in a potential impact zone and disseminate and share information through the JARVISS Mobile App, text alerts, e-mails and other modalities…JARVISS is currently being rolled out Army-wide with pilots planned for other services and government agencies over the coming year.
EXPAND shows early evidence of opportunity
Everbridge touted several impressive wins and stats in this area, including:
- 50% new business was non-mass notification products
- 107 multiproduct deals is a 95% expansion YoY and is continued acceleration of multiproduct deals for EVBG
- Signed a number of new CEM deals… with contract values that range from 5x to 15x our overall ASP
- New multi-product deals are driving a higher Average Sales Price (ASP) per customer up to $55K per customer (+33%)
Chevron: Example of how EVBG builds this new market
I thought I would add this color from the conference call because it added great clarity - to me - as to what EVBG is facing as they literally build their own market
"Chevron chose our Risk Data-as-a-Service, our Visual Command Center, our Safety Connection and our core Mass Notification solution, in order words, the full CEM suite, as the centerpiece of their initiative for greater global threat awareness, risk management and resiliency. Chevron chose Everbridge CEM over a number of options for independent situational awareness, visualization of assets and automation of urgent communications due to our ability to provide that common operating environment for all critical events."
This was all released on November 5th, but I just got around to typing it up. I’d welcome any further deep dive into the company.
Price and Valuation things
Market Cap: $1.35B
EV Value: $1.7B
Stock Price: $47.38
52 week High: $63
52 week Low: $23.87
Just a Fool,
Long Pressure on Companies to Coordinate and Communicate with Employees
Long on companies that pull together many pieces of information to offer simple solutions