Everbridge Announces First Quarter 2019 Financial Results

Everbridge,
Inc. (NASDAQ: EVBG), the global leader in critical event management and
enterprise safety software applications to help keep people safe and
businesses running, today announced its financial results for the first
quarter ended March 31, 2019.

“We delivered a strong start to 2019 with results that were above our
guidance ranges for both revenue and profitability, and generating 40%
revenue growth,” said Jaime Ellertson, Chief Executive Officer and
Chairman of Everbridge. “In the first quarter we saw continued momentum
and expansion with our most strategic product suite – Critical Event
Management – as well as significant wins across all our key solutions
and geographies. We believe that with our industry-leading solutions to
protect people and assets across organizations – from companies to
entire countries – we are well-positioned to continue delivering strong
growth as we further penetrate this multi-billion dollar market.”

First Quarter 2019 Financial Highlights

• Total revenue was $42.8 million, an increase of 40% compared to $30.5
  million for the first quarter of 2018.
• GAAP operating loss was $(13.3) million, compared to a GAAP operating
  loss of $(10.9) million for the first quarter of 2018.
• Non-GAAP operating loss was $(3.9) million, compared to non-GAAP
  operating loss of $(3.4) million for the first quarter of 2018.
  Non-GAAP operating loss/income excludes stock-based compensation and
  amortization of intangible assets related to acquisitions.
• GAAP net loss was $(14.1) million, compared to $(12.3) million for the
  first quarter of 2018. GAAP net loss per share was $(0.44), based on
  32.3 million basic and diluted weighted average common shares
  outstanding, compared to $(0.43) for the first quarter of 2018, based
  on 28.4 million basic and diluted weighted average common shares
  outstanding.
• Non-GAAP net loss was $(4.7) million, compared to $(4.8) million in
  the first quarter of 2018. Non-GAAP net loss per share was $(0.15),
  based on 32.3 million basic and diluted weighted average common shares
  outstanding, compared to $(0.17) for the first quarter of 2018, based
  on 28.4 million basic and diluted weighted average common shares
  outstanding. Non-GAAP net loss excludes stock-based compensation and
  amortization of intangible assets related to acquisitions.
• Adjusted EBITDA was a loss of $(1.9) million, compared to a loss of
  $(1.8) million in the first quarter of 2018. Adjusted EBITDA
  represents net loss before interest income and interest expense,
  income tax expense and benefit, depreciation and amortization expense
  and stock-based compensation expense.
• Cash flow from operations was an inflow of $8.7 million compared to an
  inflow of $7.5 million for the first quarter of 2018.
• Free cash flow was an inflow of $3.9 million compared to an inflow of
  $5.3 million for the first quarter of 2018. Free cash flow is cash
  flow from operations, less cash used for capital expenditures and
  additions to capitalized software development costs.

Recent Business Highlights

• Ended the first quarter with 4,532 global enterprise customers, up
  from 3,539 at the end of the first quarter of 2018.
• Launched Crisis Management, a new software application designed to
  help organizations dynamically manage the lifecycle of a critical
  event and accelerate response and recovery times. Crisis Management,
  which is fully integrated with the Everbridge Critical Event
  Management (CEM) suite, centralizes incident response tasks,
  activities and resources through a common operating picture and
  accompanying mobile application. Crisis, business continuity, security
  and resiliency teams can utilize the solution to create and launch
  response plans, add tasks on the fly, and collaborate with all
  stakeholders, no matter their location, to quickly restore operations,
  mitigate brand and financial impacts, and help ensure employee safety.
• Announced the integration of IT Alerting with IBM security
  intelligence technology to enable joint customers to automate
  communications, collaboration, and orchestration tasks to streamline
  the overall information security incident response process. The
  Everbridge IT Alerting integration for the IBM QRadar Security
  Intelligence Platform helps InfoSec teams to automatically identify
  the required IT personnel and engage with them in a matter of minutes,
  wherever they might be.
• Closed a public offering of 2,645,000 shares of common stock in
  January at a price to the public of $55.25 per share. All of the
  shares were offered by Everbridge.
• Promoted Patrick Brickley, formerly Everbridge Vice President of
  Finance & Accounting, to the role of Senior Vice President & Chief
  Financial Officer in a planned succession upon the retirement of
  Kenneth Goldman.

Business Outlook

Based on information available as of today, Everbridge is issuing
guidance for the second quarter and full year 2019 as indicated below.

Conference Call Information

About Everbridge, Inc.

Everbridge,
Inc. (NASDAQ: EVBG) is a global software company that provides
enterprise software applications that automate and accelerate
organizations’ operational response to critical events in order to keep
people safe and businesses running. During public safety threats such as
active shooter situations, terrorist attacks or severe weather
conditions, as well as critical business events including IT outages,
cyber-attacks or other incidents such as product recalls or supply-chain
interruptions, over 4,500 global customers rely on the company’s
Critical Event Management Platform to quickly and reliably aggregate and
assess threat data, locate people at risk and responders able to assist,
automate the execution of pre-defined communications processes through
the secure delivery to over 100 different communication devices, and
track progress on executing response plans. The company’s platform sent
over 2.8 billion messages in 2018 and offers the ability to reach 500
million people in more than 200 countries and territories including the
entire mobile populations on a country-wide scale in Sweden, the
Netherlands, the Bahamas, Singapore, Greece, and a number of the largest
states in India. The company’s critical communications and enterprise
safety applications include Mass Notification, Incident Management,
Safety Connection™, IT Alerting, Visual Command Center®, Population
Alerting, Crisis Management, Community Engagement™ and Secure Messaging.
Everbridge serves 9 of the 10 largest U.S. cities, 9 of the 10 largest
U.S.-based investment banks, all 25 of the 25 busiest North American
airports, six of the 10 largest global consulting firms, six of the 10
largest global automakers, all four of the largest global accounting
firms, four of the 10 largest U.S.-based health care providers and four
of the 10 largest U.S.-based health insurers. Everbridge is based in
Boston and Los Angeles with additional offices in Lansing, San
Francisco, Beijing, Bangalore, Kolkata, London, Munich, Oslo, Stockholm
and Tilburg. For more information, visit www.everbridge.com,
read the company blog,
and follow on Twitter
and Facebook.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures:
non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin,
non-GAAP sales and marketing, non-GAAP research and development,
non-GAAP general and administrative, non-GAAP operating expenses,
non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP
net income/(loss) per share, adjusted EBITDA, and free cash flow.

We believe that these non-GAAP measures of financial results provide
useful information to management and investors regarding certain
financial and business trends relating to Everbridge’s financial
condition and results of operations. We use these non-GAAP measures for
financial, operational and budgetary decision-making purposes, to
understand and evaluate our core operating performance and trends, and
to generate future operating plans. We believe that these non-GAAP
financial measures provide useful information regarding past financial
performance and future prospects, and permit us to more thoroughly
analyze key financial metrics used to make operational decisions. We
believe that the use of these non-GAAP financial measures provides an
additional tool for investors to use in evaluating ongoing operating
results and trends and in comparing our financial measures with other
software companies, many of which present similar non-GAAP financial
measures to investors.

We do not consider these non-GAAP measures in isolation or as an
alternative to financial measures determined in accordance with GAAP.
The principal limitation of these non-GAAP financial measures is that
they exclude significant expenses and income that are required by GAAP
to be recorded in the Company’s financial statements. In addition, they
are subject to inherent limitations as they reflect the exercise of
judgment by management about which expenses and income are excluded or
included in determining these non-GAAP financial measures. In order to
compensate for these limitations, management presents non-GAAP financial
measures in connection with GAAP results. We urge investors to review
the reconciliation of our non-GAAP financial measures to the comparable
GAAP financial measures, which are included in this press release, and
not to rely on any single financial measure to evaluate our business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding the anticipated opportunity and trends for growth in our
critical communications and enterprise safety applications and our
overall business, our market opportunity, our expectations regarding
sales of our products, our goal to maintain market leadership and extend
the markets in which we compete for customers, and our expected
financial results for the second quarter of 2019 and the full fiscal
year 2019. These forward-looking statements are made as of the date of
this press release and were based on current expectations, estimates,
forecasts and projections as well as the beliefs and assumptions of
management. Words such as “expect,” “anticipate,” “should,” “believe,”
“target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,”
“will,” “could,” “intend,” variations of these terms or the negative of
these terms and similar expressions are intended to identify these
forward-looking statements. Forward-looking statements are subject to a
number of risks and uncertainties, many of which involve factors or
circumstances that are beyond our control. Our actual results could
differ materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited to: the
ability of our products and services to perform as intended and meet our
customers’ expectations; our ability to attract new customers and retain
and increase sales to existing customers; our ability to increase sales
of our Mass Notification application and/or ability to increase sales of
our other applications; developments in the market for targeted and
contextually relevant critical communications or the associated
regulatory environment; our estimates of market opportunity and
forecasts of market growth may prove to be inaccurate; we have not been
profitable on a consistent basis historically and may not achieve or
maintain profitability in the future; the lengthy and unpredictable
sales cycles for new customers; nature of our business exposes us to
inherent liability risks; our ability to attract, integrate and retain
qualified personnel; our ability to successfully integrate businesses
and assets that we have acquired or may acquire in the future; our
ability to maintain successful relationships with our channel partners
and technology partners; our ability to manage our growth effectively;
our ability to respond to competitive pressures; potential liability
related to privacy and security of personally identifiable information;
our ability to protect our intellectual property rights, and the other
risks detailed in our risk factors discussed in filings with the U.S.
Securities and Exchange Commission (“SEC”), including but not limited to
our Annual Report on Form 10-K for the year ended December 31, 2018
filed with the SEC on March 1, 2019. The forward-looking statements
included in this press release represent our views as of the date of
this press release. We undertake no intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. These forward-looking
statements should not be relied upon as representing our views as of any
date subsequent to the date of this press release.

All Everbridge products are trademarks of Everbridge, Inc. in the USA
and other countries. All other product or company names mentioned are
the property of their respective owner

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