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-
Fourth Quarter Revenue Exceeds High-End of Guidance by Record
$2.9 million - Full Year 2020 Revenue Increases 35% Year-over-Year
- Operating Cash Flow Reaches Record for Fourth Quarter and Full Year 2020
“We posted strong financial performance during 2020 despite challenges caused by the COVID-19 pandemic, increasing our top-line guidance every quarter and delivering 35% revenue growth for the full year,” said
Fourth Quarter 2020 Financial Highlights
-
Total revenue was
$75.6 million , an increase of 32% compared to$57.1 million for the fourth quarter of 2019. -
GAAP operating loss was
$(18.3) million , compared to a GAAP operating loss of$(10.2) million for the fourth quarter of 2019. -
Non-GAAP operating income was
$1.3 million , compared to non-GAAP operating income of$2.6 million for the fourth quarter of 2019. -
GAAP net loss was
$(24.6) million , compared to$(13.1) million for the fourth quarter of 2019. GAAP net loss per share was$(0.70) , based on 35.1 million basic and diluted weighted average common shares outstanding, compared to$(0.39) for the fourth quarter of 2019, based on 33.8 million basic and diluted weighted average common shares outstanding. -
Non-GAAP net income was
$1.0 million , compared to non-GAAP net income of$3.2 million in the fourth quarter of 2019. Non-GAAP diluted net income per share was$0.03 , based on 36.1 million diluted weighted average common shares outstanding, compared to non-GAAP net income per share of$0.09 for the fourth quarter of 2019, based on 34.8 million diluted weighted average common shares outstanding. -
Adjusted EBITDA was
$4.1 million , compared to$5.0 million in the fourth quarter of 2019. -
Cash flow from operations was an inflow of
$19.4 million , reaching a record level, compared to an inflow of$1.5 million for the fourth quarter of 2019. -
Free cash flow was an all-time high of
$15.9 million compared to an outflow of$(1.3) million for the fourth quarter of 2019.
Full Year 2020 Financial Highlights
-
Total revenue was
$271.1 million , an increase of 35% compared to$200.9 million for 2019. -
GAAP operating loss was
$(72.2) million , compared to a GAAP operating loss of$(47.2) million for 2019. -
Non-GAAP operating loss was
$(1.7) million , compared to non-GAAP operating loss of$(3.9) million for 2019. -
GAAP net loss was
$(93.4) million , compared to$(52.3) million for 2019. GAAP net loss per share was$(2.70) , based on 34.6 million basic and diluted weighted average common shares outstanding, compared to$(1.58) for 2019, based on 33.2 million basic and diluted weighted average common shares outstanding. -
Non-GAAP net loss was
$(0.2) million , compared to$(1.8) million in 2019. Non-GAAP net loss per share was$(0.01) , based on 34.6 million basic and diluted weighted average common shares outstanding, compared to$(0.05) for 2019, based on 33.2 million basic and diluted weighted average common shares outstanding. -
Adjusted EBITDA was
$8.0 million , compared to$5.2 million in 2019. -
Cash flow from operations was an inflow of
$15.8 million compared to an inflow of$10.3 million for 2019. -
Free cash flow was an inflow of
$2.9 million compared to an outflow of$(2.8) million for 2019. -
Cash, cash equivalents, and short-term investments as of
December 31, 2020 totaled$467.2 million , compared to$531.6 million as ofDecember 31, 2019 . -
Total deferred revenue increased 27% from
$133.5 million as ofDecember 31, 2019 to$170.1 million as ofDecember 31, 2020 .
Recent Business Highlights
- Ended the fourth quarter with 5,613 global enterprise customers, up from 5,024 at the end of the fourth quarter of 2019.
- In 2020, Everbridge customers used its software-as-a-service (SaaS) platform to send more than 5 billion interactions, an increase of greater than 40% compared to 3.5 billion interactions in 2019.
-
Continued Public Warning momentum with another statewide win in
Oregon to power public alerts and warning system for all residents and visitors. -
Announced COVID-19 Shield™: Vaccine Distribution, an extension to its CEM platform offering risk insights, logistics awareness and vaccine appointment management. Deployed its CEM Platform to power the digital vaccination distribution system for a variety of municipalities and organizations, including the entire state population of
West Virginia , and the County ofSarasota, Florida , among others. - Launched its enhanced Public Warning Center, the first-of-its-kind modular and multi-channel front-end interface featuring the ability to create and transmit a combination of cell broadcast and address-, group-, and location-based SMS alerts for countrywide alerting from a single console.
-
Announced a partnership with
Paris -based Atos SE (CAC40: ATO), a global leader in digital transformation and cybersecurity with 110,000 employees and annual revenue of € 12 billion, to expand CEM adoption worldwide. -
Announced that the
United States General Services Administration (GSA) selected the company’s Mass Notification platform to better protect the federal agency’s employees, facilities, and operations across more than 700 federally owned and leased locations. -
Received an important new patent related to multi-media capabilities of its world-class Public Warning system, which already serves the entire populations of 11 countries in
Europe ,Asia ,Oceania , theMiddle East ,Africa , and theAmericas , that delivers both traditional text alerts using Cell Broadcast (CB) and multimedia content such as audio, images, and video using Multicast Content Distribution (MCD) on 5G networks. -
Appointed
Stacey Wu , former SVP of Global Marketing at Fortinet, as Everbridge’s Chief Marketing Officer (CMO), andJessica Deckinger , former three-time CMO and veteran branding and communications executive, as Everbridge’s Chief Communications Officer. - Continued to build reputation as an employer of choice with recognition from multiple publications as a top place to work and growth company of the year.
Financial Outlook
Based on information available as of today, Everbridge is issuing guidance for the first quarter and full year 2021 as indicated below.
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First Quarter 2021 |
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Full Year 2021 |
|||||||||||||
|
Revenue |
$ |
75.3 |
|
to |
$ |
75.7 |
|
|
$ |
342.1 |
|
to |
$ |
344.1 |
|
|
|
Revenue growth |
|
28 |
% |
|
|
29 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
GAAP net loss |
$ |
(29.9 |
) |
|
$ |
(29.5 |
) |
|
$ |
(114.5 |
) |
|
$ |
(112.5 |
) |
|
|
GAAP net loss per share |
$ |
(0.84 |
) |
|
$ |
(0.83 |
) |
|
$ |
(3.22 |
) |
|
$ |
(3.16 |
) |
|
|
Non-GAAP net loss |
$ |
(4.1 |
) |
|
$ |
(3.7 |
) |
|
$ |
(8.8 |
) |
|
$ |
(6.8 |
) |
|
|
Non-GAAP net loss per share |
$ |
(0.12 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.19 |
) |
|
|
Adjusted EBITDA |
$ |
(0.6 |
) |
|
$ |
(0.2 |
) |
|
$ |
7.5 |
|
|
$ |
8.5 |
|
|
(All figures in millions, except per share data)
Conference Call Information
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What: |
Everbridge Fourth Quarter and Full Year 2020 Financial Results Conference Call |
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When: |
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Time: |
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Live Call: |
(833) 685-0904, domestic |
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(412) 317-5740, international |
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Replay: |
(877) 344-7529, passcode 10151533, domestic |
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(412) 317-0088, passcode 10151533, international |
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Webcast (live & replay): |
About
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 5,600 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. Everbridge serves 8 of the 10 largest
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.
Non-GAAP operating income/(loss) excludes stock-based compensation, change in fair value of contingent consideration and amortization of acquired intangible assets. Non-GAAP net income/(loss) excludes stock-based compensation, change in fair value of contingent consideration, amortization of acquired intangible assets, accretion of interest on convertible senior notes and loss on extinguishment of convertible notes. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, loss on extinguishment of convertible notes, change in fair value of contingent consideration and stock-based compensation expense. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs.
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 first quarter of 2021 and the full fiscal year 2021. 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; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; the impact of the global COVID-19 pandemic on our operations and those of our customers and suppliers; 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 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
All Everbridge products are trademarks of
|
Consolidated Balance Sheets (in thousands) (unaudited) |
||||||||
|
|
|
|||||||
|
|
2020 |
|
2019 |
|||||
|
Current assets: |
|
|
||||||
|
Cash and cash equivalents |
$ |
467,171 |
|
$ |
531,575 |
|
||
|
Restricted cash |
|
4,667 |
|
|
4,737 |
|
||
|
Accounts receivable, net |
|
94,376 |
|
|
68,642 |
|
||
|
Prepaid expenses |
|
11,774 |
|
|
6,675 |
|
||
|
Deferred costs and other current assets |
|
20,464 |
|
|
13,501 |
|
||
|
Total current assets |
|
598,452 |
|
|
625,130 |
|
||
|
Property and equipment, net |
|
7,774 |
|
|
6,284 |
|
||
|
Capitalized software development costs, net |
|
16,329 |
|
|
14,287 |
|
||
|
|
|
187,411 |
|
|
91,421 |
|
||
|
Intangible assets, net |
|
113,762 |
|
|
67,100 |
|
||
|
Restricted cash |
|
3,792 |
|
|
3,350 |
|
||
|
Prepaid expenses |
|
1,943 |
|
|
2,009 |
|
||
|
Deferred costs and other assets |
|
31,481 |
|
|
27,715 |
|
||
|
Total assets |
$ |
960,944 |
|
$ |
837,296 |
|
||
|
Current liabilities: |
|
|
||||||
|
Accounts payable |
$ |
9,698 |
|
$ |
7,808 |
|
||
|
Accrued payroll and employee related liabilities |
|
27,674 |
|
|
22,248 |
|
||
|
Accrued expenses |
|
7,246 |
|
|
4,496 |
|
||
|
Deferred revenue |
|
165,389 |
|
|
129,995 |
|
||
|
Contingent consideration liabilities |
|
10,619 |
|
|
— |
|
||
|
Other current liabilities |
|
15,602 |
|
|
4,819 |
|
||
|
Total current liabilities |
|
236,228 |
|
|
169,366 |
|
||
|
Long-term liabilities: |
|
|
||||||
|
Deferred revenue, noncurrent |
|
4,738 |
|
|
3,471 |
|
||
|
Convertible senior notes |
|
441,514 |
|
|
430,282 |
|
||
|
Deferred tax liabilities |
|
10,065 |
|
|
2,002 |
|
||
|
Other long-term liabilities |
|
16,094 |
|
|
11,863 |
|
||
|
Total liabilities |
|
708,639 |
|
|
616,984 |
|
||
|
Stockholders' equity: |
|
|
||||||
|
Common stock |
|
35 |
|
|
34 |
|
||
|
Additional paid-in capital |
|
542,776 |
|
|
425,945 |
|
||
|
Accumulated deficit |
|
(293,316 |
) |
|
(199,920 |
) |
||
|
Accumulated other comprehensive income (loss) |
|
2,810 |
|
|
(5,747 |
) |
||
|
Total stockholders' equity |
|
252,305 |
|
|
220,312 |
|
||
|
Total liabilities and stockholders' equity |
$ |
960,944 |
|
$ |
837,296 |
|
||
|
Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (unaudited) |
||||||||||||||||
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|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
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|
|
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Revenue |
$ |
75,608 |
|
|
$ |
57,111 |
|
|
$ |
271,141 |
|
|
$ |
200,882 |
|
|
|
Cost of revenue |
|
21,831 |
|
|
|
18,361 |
|
|
|
83,028 |
|
|
|
63,535 |
|
|
|
Gross profit |
|
53,777 |
|
|
|
38,750 |
|
|
|
188,113 |
|
|
|
137,347 |
|
|
|
|
|
71.13 |
% |
|
|
67.85 |
% |
|
|
69.38 |
% |
|
|
68.37 |
% |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
|
Sales and marketing |
|
33,606 |
|
|
|
23,742 |
|
|
|
123,330 |
|
|
|
87,731 |
|
|
|
Research and development |
|
16,455 |
|
|
|
12,860 |
|
|
|
62,512 |
|
|
|
50,024 |
|
|
|
General and administrative |
|
22,009 |
|
|
|
12,363 |
|
|
|
74,485 |
|
|
|
46,820 |
|
|
|
Total operating expenses |
|
72,070 |
|
|
|
48,965 |
|
|
|
260,327 |
|
|
|
184,575 |
|
|
|
Operating loss |
|
(18,293 |
) |
|
|
(10,215 |
) |
|
|
(72,214 |
) |
|
|
(47,228 |
) |
|
|
Other expense, net: |
|
|
|
|
|
|
|
|||||||||
|
Interest and investment income |
|
92 |
|
|
|
958 |
|
|
|
2,007 |
|
|
|
4,499 |
|
|
|
Interest expense |
|
(6,107 |
) |
|
|
(2,492 |
) |
|
|
(24,089 |
) |
|
|
(7,478 |
) |
|
|
Loss on extinguishment of convertible notes |
|
(402 |
) |
|
|
(1,406 |
) |
|
|
(446 |
) |
|
|
(1,406 |
) |
|
|
Other expense, net |
|
(211 |
) |
|
|
(83 |
) |
|
|
(921 |
) |
|
|
(212 |
) |
|
|
Total other expense, net |
|
(6,628 |
) |
|
|
(3,023 |
) |
|
|
(23,449 |
) |
|
|
(4,597 |
) |
|
|
Loss before income taxes |
|
(24,921 |
) |
|
|
(13,238 |
) |
|
|
(95,663 |
) |
|
|
(51,825 |
) |
|
|
Benefit from (provision for) income taxes |
|
335 |
|
|
|
106 |
|
|
|
2,267 |
|
|
|
(425 |
) |
|
|
Net loss |
$ |
(24,586 |
) |
|
$ |
(13,132 |
) |
|
$ |
(93,396 |
) |
|
$ |
(52,250 |
) |
|
|
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|||||||||
|
Basic |
$ |
(0.70 |
) |
|
$ |
(0.39 |
) |
|
$ |
(2.70 |
) |
|
$ |
(1.58 |
) |
|
|
Diluted |
$ |
(0.70 |
) |
|
$ |
(0.39 |
) |
|
$ |
(2.70 |
) |
|
$ |
(1.58 |
) |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||
|
Basic |
|
35,100,789 |
|
|
|
33,813,978 |
|
|
|
34,581,144 |
|
|
|
33,161,656 |
|
|
|
Diluted |
|
35,100,789 |
|
|
|
33,813,978 |
|
|
|
34,581,144 |
|
|
|
33,161,656 |
|
|
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|||||||||
|
Foreign currency translation adjustment |
|
9,279 |
|
|
|
1,077 |
|
|
|
8,557 |
|
|
|
(679 |
) |
|
|
Total comprehensive loss |
$ |
(15,307 |
) |
|
$ |
(12,055 |
) |
|
$ |
(84,839 |
) |
|
$ |
(52,929 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Stock-based compensation expense included in the above: |
|
|
|
|
|
|
|
|||||||||
|
(in thousands) |
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Cost of revenue |
$ |
801 |
|
|
$ |
610 |
|
|
$ |
2,954 |
|
|
$ |
1,966 |
|
|
|
Sales and marketing |
|
4,026 |
|
|
|
2,645 |
|
|
|
15,946 |
|
|
|
9,983 |
|
|
|
Research and development |
|
1,960 |
|
|
|
2,260 |
|
|
|
8,703 |
|
|
|
7,820 |
|
|
|
General and administrative |
|
5,029 |
|
|
|
3,880 |
|
|
|
19,152 |
|
|
|
13,720 |
|
|
|
Total stock-based compensation |
$ |
11,816 |
|
|
$ |
9,395 |
|
|
$ |
46,755 |
|
|
$ |
33,489 |
|
|
|
Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|||||||||
|
Net loss |
$ |
(24,586 |
) |
|
$ |
(13,132 |
) |
|
$ |
(93,396 |
) |
|
$ |
(52,250 |
) |
|
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|||||||||
|
Depreciation and amortization |
|
8,643 |
|
|
|
6,479 |
|
|
|
30,759 |
|
|
|
19,671 |
|
|
|
Amortization of deferred costs |
|
3,457 |
|
|
|
2,496 |
|
|
|
12,609 |
|
|
|
7,982 |
|
|
|
Deferred income taxes |
|
(1,168 |
) |
|
|
(92 |
) |
|
|
(3,478 |
) |
|
|
109 |
|
|
|
Accretion of interest on convertible senior notes |
|
5,634 |
|
|
|
2,044 |
|
|
|
22,161 |
|
|
|
5,711 |
|
|
|
Loss on extinguishment of convertible notes |
|
402 |
|
|
|
1,406 |
|
|
|
446 |
|
|
|
1,406 |
|
|
|
Provision for credit losses and sales reserve |
|
1,629 |
|
|
|
19 |
|
|
|
3,071 |
|
|
|
661 |
|
|
|
Change in fair value of contingent consideration |
|
2,165 |
|
|
|
(550 |
) |
|
|
3,665 |
|
|
|
(550 |
) |
|
|
Stock-based compensation |
|
11,816 |
|
|
|
9,395 |
|
|
|
46,755 |
|
|
|
33,489 |
|
|
|
Other non-cash adjustments |
|
159 |
|
|
|
7 |
|
|
|
78 |
|
|
|
(241 |
) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|||||||||
|
Accounts receivable |
|
(14,685 |
) |
|
|
(17,153 |
) |
|
|
(22,614 |
) |
|
|
(25,558 |
) |
|
|
Prepaid expenses |
|
769 |
|
|
|
1,663 |
|
|
|
(3,983 |
) |
|
|
(3,481 |
) |
|
|
Deferred costs |
|
(6,902 |
) |
|
|
(6,855 |
) |
|
|
(18,902 |
) |
|
|
(15,293 |
) |
|
|
Other assets |
|
3,394 |
|
|
|
834 |
|
|
|
146 |
|
|
|
1,758 |
|
|
|
Accounts payable |
|
(739 |
) |
|
|
(2,006 |
) |
|
|
1,547 |
|
|
|
5,312 |
|
|
|
Accrued payroll and employee related liabilities |
|
(466 |
) |
|
|
2,574 |
|
|
|
3,499 |
|
|
|
4,548 |
|
|
|
Accrued expenses |
|
1,058 |
|
|
|
(1,012 |
) |
|
|
1,057 |
|
|
|
(1,308 |
) |
|
|
Deferred revenue |
|
23,857 |
|
|
|
17,331 |
|
|
|
24,964 |
|
|
|
29,704 |
|
|
|
Other liabilities |
|
4,962 |
|
|
|
(1,985 |
) |
|
|
7,419 |
|
|
|
(1,353 |
) |
|
|
Net cash provided by operating activities |
|
19,399 |
|
|
|
1,463 |
|
|
|
15,803 |
|
|
|
10,317 |
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|||||||||
|
Capital expenditures |
|
(1,135 |
) |
|
|
(852 |
) |
|
|
(3,257 |
) |
|
|
(5,269 |
) |
|
|
Proceeds from landlord reimbursement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,143 |
|
|
|
Payment for acquisition of business, net of acquired cash |
|
(381 |
) |
|
|
— |
|
|
|
(55,138 |
) |
|
|
(58,419 |
) |
|
|
Purchase of short-term investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,975 |
) |
|
|
Maturities of short-term investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
47,765 |
|
|
|
Purchase of intangibles |
|
(17,139 |
) |
|
|
— |
|
|
|
(17,139 |
) |
|
|
— |
|
|
|
Additions to capitalized software development costs |
|
(2,355 |
) |
|
|
(1,952 |
) |
|
|
(9,651 |
) |
|
|
(7,819 |
) |
|
|
Net cash used in investing activities |
|
(21,010 |
) |
|
|
(2,804 |
) |
|
|
(85,185 |
) |
|
|
(24,574 |
) |
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|||||||||
|
Restricted stock units withheld to settle employee tax withholding liability |
|
(2,095 |
) |
|
|
(71 |
) |
|
|
(6,364 |
) |
|
|
(4,602 |
) |
|
|
Proceeds from public offering, net of costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
139,110 |
|
|
|
Proceeds from issuance of convertible notes |
|
— |
|
|
|
450,000 |
|
|
|
— |
|
|
|
450,000 |
|
|
|
Payments of debt issuance costs |
|
— |
|
|
|
(12,686 |
) |
|
|
(131 |
) |
|
|
(12,686 |
) |
|
|
Purchase of convertible note capped call hedge |
|
— |
|
|
|
(44,910 |
) |
|
|
— |
|
|
|
(44,910 |
) |
|
|
Repurchase of convertible notes |
|
— |
|
|
|
(57,791 |
) |
|
|
— |
|
|
|
(57,791 |
) |
|
|
Proceeds from termination of convertible notes capped call hedge |
|
— |
|
|
|
5,780 |
|
|
|
— |
|
|
|
5,780 |
|
|
|
Proceeds from employee stock purchase plan |
|
— |
|
|
|
— |
|
|
|
3,389 |
|
|
|
2,337 |
|
|
|
Proceeds from stock option exercises |
|
1,396 |
|
|
|
1,589 |
|
|
|
8,160 |
|
|
|
17,411 |
|
|
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(548 |
) |
|
|
Net cash provided by (used in) financing activities |
|
(699 |
) |
|
|
341,911 |
|
|
|
5,054 |
|
|
|
494,101 |
|
|
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
707 |
|
|
|
(23 |
) |
|
|
296 |
|
|
|
(250 |
) |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(1,603 |
) |
|
|
340,547 |
|
|
|
(64,032 |
) |
|
|
479,594 |
|
|
|
Cash, cash equivalents and restricted cash—beginning of period |
|
477,233 |
|
|
|
199,115 |
|
|
|
539,662 |
|
|
|
60,068 |
|
|
|
Cash, cash equivalents and restricted cash—end of period |
$ |
475,630 |
|
|
$ |
539,662 |
|
|
$ |
475,630 |
|
|
$ |
539,662 |
|
|
|
Reconciliation of GAAP measures to non-GAAP measures (in thousands, except share and per share data) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Cost of revenue |
$ |
21,831 |
|
|
$ |
18,361 |
|
|
$ |
83,028 |
|
|
$ |
63,535 |
|
|
|
Amortization of acquired intangibles |
|
(1,135 |
) |
|
|
(784 |
) |
|
|
(4,157 |
) |
|
|
(2,114 |
) |
|
|
Stock-based compensation |
|
(801 |
) |
|
|
(610 |
) |
|
|
(2,954 |
) |
|
|
(1,966 |
) |
|
|
Non-GAAP cost of revenue |
$ |
19,895 |
|
|
$ |
16,967 |
|
|
$ |
75,917 |
|
|
$ |
59,455 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross profit |
$ |
53,777 |
|
|
$ |
38,750 |
|
|
$ |
188,113 |
|
|
$ |
137,347 |
|
|
|
Amortization of acquired intangibles |
|
1,135 |
|
|
|
784 |
|
|
|
4,157 |
|
|
|
2,114 |
|
|
|
Stock-based compensation |
|
801 |
|
|
|
610 |
|
|
|
2,954 |
|
|
|
1,966 |
|
|
|
Non-GAAP gross profit |
$ |
55,713 |
|
|
$ |
40,144 |
|
|
$ |
195,224 |
|
|
$ |
141,427 |
|
|
|
Non-GAAP gross margin |
|
73.69 |
% |
|
|
70.29 |
% |
|
|
72.00 |
% |
|
|
70.40 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Sales and marketing |
$ |
33,606 |
|
|
$ |
23,742 |
|
|
$ |
123,330 |
|
|
$ |
87,731 |
|
|
|
Stock-based compensation |
|
(4,026 |
) |
|
|
(2,645 |
) |
|
|
(15,946 |
) |
|
|
(9,983 |
) |
|
|
Non-GAAP sales and marketing |
$ |
29,580 |
|
|
$ |
21,097 |
|
|
$ |
107,384 |
|
|
$ |
77,748 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Research and development |
$ |
16,455 |
|
|
$ |
12,860 |
|
|
$ |
62,512 |
|
|
$ |
50,024 |
|
|
|
Stock-based compensation |
|
(1,960 |
) |
|
|
(2,260 |
) |
|
|
(8,703 |
) |
|
|
(7,820 |
) |
|
|
Non-GAAP research and development |
$ |
14,495 |
|
|
$ |
10,600 |
|
|
$ |
53,809 |
|
|
$ |
42,204 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
General and administrative |
$ |
22,009 |
|
|
$ |
12,363 |
|
|
$ |
74,485 |
|
|
$ |
46,820 |
|
|
|
Amortization of acquired intangibles |
|
(4,478 |
) |
|
|
(3,219 |
) |
|
|
(15,979 |
) |
|
|
(8,301 |
) |
|
|
Change in fair value of contingent consideration |
|
(2,165 |
) |
|
|
550 |
|
|
|
(3,665 |
) |
|
|
550 |
|
|
|
Stock-based compensation |
|
(5,029 |
) |
|
|
(3,880 |
) |
|
|
(19,152 |
) |
|
|
(13,720 |
) |
|
|
Non-GAAP general and administrative |
$ |
10,337 |
|
|
$ |
5,814 |
|
|
$ |
35,689 |
|
|
$ |
25,349 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Total operating expenses |
$ |
72,070 |
|
|
$ |
48,965 |
|
|
$ |
260,327 |
|
|
$ |
184,575 |
|
|
|
Amortization of acquired intangibles |
|
(4,478 |
) |
|
|
(3,219 |
) |
|
|
(15,979 |
) |
|
|
(8,301 |
) |
|
|
Change in fair value of contingent consideration |
|
(2,165 |
) |
|
|
550 |
|
|
|
(3,665 |
) |
|
|
550 |
|
|
|
Stock-based compensation |
|
(11,015 |
) |
|
|
(8,785 |
) |
|
|
(43,801 |
) |
|
|
(31,523 |
) |
|
|
Non-GAAP operating expenses |
$ |
54,412 |
|
|
$ |
37,511 |
|
|
$ |
196,882 |
|
|
$ |
145,301 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Operating loss |
$ |
(18,293 |
) |
|
$ |
(10,215 |
) |
|
$ |
(72,214 |
) |
|
$ |
(47,228 |
) |
|
|
Amortization of acquired intangibles |
|
5,613 |
|
|
|
4,003 |
|
|
|
20,136 |
|
|
|
10,415 |
|
|
|
Change in fair value of contingent consideration |
|
2,165 |
|
|
|
(550 |
) |
|
|
3,665 |
|
|
|
(550 |
) |
|
|
Stock-based compensation |
|
11,816 |
|
|
|
9,395 |
|
|
|
46,755 |
|
|
|
33,489 |
|
|
|
Non-GAAP operating income (loss) |
$ |
1,301 |
|
|
$ |
2,633 |
|
|
$ |
(1,658 |
) |
|
$ |
(3,874 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss |
$ |
(24,586 |
) |
|
$ |
(13,132 |
) |
|
$ |
(93,396 |
) |
|
$ |
(52,250 |
) |
|
|
Amortization of acquired intangibles |
|
5,613 |
|
|
|
4,003 |
|
|
|
20,136 |
|
|
|
10,415 |
|
|
|
Change in fair value of contingent consideration |
|
2,165 |
|
|
|
(550 |
) |
|
|
3,665 |
|
|
|
(550 |
) |
|
|
Stock-based compensation |
|
11,816 |
|
|
|
9,395 |
|
|
|
46,755 |
|
|
|
33,489 |
|
|
|
Accretion of interest on convertible senior notes |
|
5,634 |
|
|
|
2,044 |
|
|
|
22,161 |
|
|
|
5,711 |
|
|
|
Loss on extinguishment of convertible notes |
|
402 |
|
|
|
1,406 |
|
|
|
446 |
|
|
|
1,406 |
|
|
|
Non-GAAP net income (loss) |
$ |
1,044 |
|
|
$ |
3,166 |
|
|
$ |
(233 |
) |
|
$ |
(1,779 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Non-GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|||||||||
|
Basic |
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
|
Diluted |
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||
|
Basic |
|
35,100,789 |
|
|
|
33,813,978 |
|
|
|
34,581,144 |
|
|
|
33,161,656 |
|
|
|
Diluted |
|
36,075,177 |
|
|
|
34,815,689 |
|
|
|
34,581,144 |
|
|
|
33,161,656 |
|
|
|
Reconciliation of GAAP measures to non-GAAP measures (Continued) (in thousands) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Net loss |
$ |
(24,586 |
) |
|
$ |
(13,132 |
) |
|
$ |
(93,396 |
) |
|
$ |
(52,250 |
) |
|
|
Interest and investment expense, net |
|
6,015 |
|
|
|
1,534 |
|
|
|
22,082 |
|
|
|
2,979 |
|
|
|
Income taxes, net |
|
(335 |
) |
|
|
(106 |
) |
|
|
(2,267 |
) |
|
|
425 |
|
|
|
Depreciation and amortization |
|
8,643 |
|
|
|
6,479 |
|
|
|
30,759 |
|
|
|
19,671 |
|
|
|
EBITDA |
|
(10,263 |
) |
|
|
(5,225 |
) |
|
|
(42,822 |
) |
|
|
(29,175 |
) |
|
|
Loss on extinguishment of debt |
|
402 |
|
|
|
1,406 |
|
|
|
446 |
|
|
|
1,406 |
|
|
|
Change in fair value of contingent consideration |
|
2,165 |
|
|
|
(550 |
) |
|
|
3,665 |
|
|
|
(550 |
) |
|
|
Stock-based compensation |
|
11,816 |
|
|
|
9,395 |
|
|
|
46,755 |
|
|
|
33,489 |
|
|
|
Adjusted EBITDA |
$ |
4,120 |
|
|
$ |
5,026 |
|
|
$ |
8,044 |
|
|
$ |
5,170 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net cash provided by operating activities |
$ |
19,399 |
|
|
$ |
1,463 |
|
|
$ |
15,803 |
|
|
$ |
10,317 |
|
|
|
Capital expenditures |
|
(1,135 |
) |
|
|
(852 |
) |
|
|
(3,257 |
) |
|
|
(5,269 |
) |
|
|
Additions to capitalized software development costs |
|
(2,355 |
) |
|
|
(1,952 |
) |
|
|
(9,651 |
) |
|
|
(7,819 |
) |
|
|
Free cash flow |
$ |
15,909 |
|
|
$ |
(1,341 |
) |
|
$ |
2,895 |
|
|
$ |
(2,771 |
) |
|
|
Remaining Performance Obligations (in millions) |
||||||||
|
|
Remaining Performance Obligations |
|
Remaining Performance Obligations Next Twelve Months |
|||||
|
Subscription and other contracts |
$ |
358 |
|
|
$ |
213 |
|
|
|
Professional services contracts |
|
16 |
|
|
|
13 |
|
|
|
Financial Outlook (in millions, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
Low End |
|
High End |
|
Low End |
|
High End |
|||||||||
|
Net loss |
$ |
(29.9 |
) |
|
$ |
(29.5 |
) |
|
$ |
(114.5 |
) |
|
$ |
(112.5 |
) |
|
|
Amortization of acquired intangibles |
|
6.4 |
|
|
|
6.4 |
|
|
|
25.4 |
|
|
|
25.4 |
|
|
|
Accretion of interest on convertible senior notes |
|
5.7 |
|
|
|
5.7 |
|
|
|
23.4 |
|
|
|
23.4 |
|
|
|
Stock-based compensation |
|
13.7 |
|
|
|
13.7 |
|
|
|
56.9 |
|
|
|
56.9 |
|
|
|
Non-GAAP net loss |
$ |
(4.1 |
) |
|
$ |
(3.7 |
) |
|
$ |
(8.8 |
) |
|
$ |
(6.8 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||
|
Basic |
|
35,450,000 |
|
|
|
35,450,000 |
|
|
|
35,600,000 |
|
|
|
35,600,000 |
|
|
|
Diluted |
|
35,450,000 |
|
|
|
35,450,000 |
|
|
|
35,600,000 |
|
|
|
35,600,000 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss per share |
$ |
(0.84 |
) |
|
$ |
(0.83 |
) |
|
$ |
(3.22 |
) |
|
$ |
(3.16 |
) |
|
|
Non-GAAP net loss per share |
$ |
(0.12 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.19 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss |
$ |
(29.9 |
) |
|
$ |
(29.5 |
) |
|
$ |
(114.5 |
) |
|
$ |
(112.5 |
) |
|
|
Interest expense, net |
|
6.2 |
|
|
|
6.2 |
|
|
|
25.4 |
|
|
|
25.2 |
|
|
|
Income taxes, net |
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
Depreciation and amortization |
|
9.4 |
|
|
|
9.4 |
|
|
|
39.2 |
|
|
|
38.9 |
|
|
|
EBITDA |
|
(14.3 |
) |
|
|
(13.9 |
) |
|
|
(49.4 |
) |
|
|
(48.4 |
) |
|
|
Stock-based compensation |
|
13.7 |
|
|
|
13.7 |
|
|
|
56.9 |
|
|
|
56.9 |
|
|
|
Adjusted EBITDA |
$ |
(0.6 |
) |
|
$ |
(0.2 |
) |
|
$ |
7.5 |
|
|
$ |
8.5 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210218006030/en/
Everbridge Contacts:
Media Relations
jeff.young@everbridge.com
781-859-4116
Investor Relations
joshua.young@everbridge.com
781-236-3695
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