Everbridge (NASDAQ:EVBG) Reports Q3 In Line With Expectations, But Stock Falls
Critical event management software company Everbridge (NASDAQ reported results in line with analyst expectations in the third quarter of fiscal 2023, with revenue increasing 2.5% year-over-year to $114.2 million. On the other hand, the next quarter’s revenue forecast of $114.8 million was less impressive, 3% below analyst estimates. In terms of EPS, Everbridge posted a non-GAAP profit of 0.46 dollars per share, improving its earnings of $0.27 per share in the same quarter last year.
Is it time to buy Everbridge? Find out by reading the original article on StockStory.
Everbridge (EVBG) Q3 FY2023 Highlights:
- Revenue: $114.2 million vs. analyst estimates of $113.7 million (small beat)
- EPS (non-GAAP): $0.46 vs. analyst estimates of $0.42 (8.8% beat)
- Fourth Quarter 2023 Revenue Guidance is $114.8 million at the midpoint, below analyst estimates of $118.3 million.
- Free cash flow of $10.23 million, compared to $9,000 in the previous quarter
- Customers: 405, compared to 373 in the previous quarter
- Gross Margin (GAAP): 71%, compared to 68.4% in the same quarter last year
“We delivered strong results in the third quarter as we continued to improve our marketing execution and overall operational efficiency,” said David Wagner, president and CEO of Everbridge.
Founded in reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) provides software that helps governments and businesses keep people and infrastructure safe in emergencies.
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Sales Growth As you can see below, Everbridge’s revenue growth has been lackluster over the past two years, going from $96.75 million in the third quarter of fiscal 2021 to $114.2 million this year. quarter.
Everbridge’s quarterly revenue rose just 2.5% year over year, which could disappoint some shareholders. However, we can see that the company’s revenue grew by $3.62 million quarter over quarter, reaccelerating from $2.30 million in Q2 2023.
Next quarter, Everbridge expects a 2% year-over-year decline in revenue to $114.8 million, a further slowdown from the 13.9% year-over-year decline it posted in the same quarter last year. Looking ahead, analysts covering the company expected sales to grow 3.9% over the next 12 months before the earnings results were announced.
Cash is King If you’ve followed StockStory for a while, you know that we emphasize free cash flow. Why do you ask? We believe that in the end, cash is king and you can’t use accounting profits to pay the bills. Everbridge’s free cash flow totaled $10.23 million in the third quarter, down 25% year over year.
Everbridge has generated $26.51 million in free cash flow over the trailing 12 months, a decent 6% of revenue. This FCF margin is derived from your asset-light business model and provides you with a decent amount of cash to reinvest in your business.
Key Takeaways from Everbridge’s Third Quarter Results With a market capitalization of $844.6 million, Everbridge is among the smallest companies, but its more than $99.76 million in cash on hand and cash flow positive free over the last 12 months put it in an attractive position to invest in growth. .
We were impressed by Everbridge’s adjusted EBITDA and adjusted earnings per share (EPS) this quarter. That stood out as a positive in these results. On the other hand, its revenue, adjusted EBITDA, and EPS guidance for the next quarter missed Wall Street estimates. Overall, this was a mixed quarter for Everbridge. The company is down 9.4% based on results and is currently trading at $18.28 per share.
The author has no position in any of the stocks mentioned in this report.
