Why Everbridge Shares Are Plunging Today

Everbridge, Inc EVBG reported second-quarter FY23 a revenue increase of 7.4% year-over-year to $110.6 million, marginally missing the consensus of $110.76 million.

Adjusted EPS was $0.31, compared to $0.03 in 2Q22, beating the consensus of $0.27.

Annualized Recurring Revenue (ARR) was $395 million (+9% Y/Y); the CEM customer count increased to 373, up 38 sequentially and 67% Y/Y.

Gross profit increased by 11% Y/Y to $77.49 million, and margin expanded by 235 bps to 70.1%. Adjusted gross margin was 74% vs. 72.6% in 2Q22.

Adjusted operating income improved to $12.66 million, compared to $0.99 million a year ago. Adjusted operating margin was 11.5%.

Also Read: Everbridge's Accelerating Sales Productivity And Impressive Future Growth: Analyst Outlook

Adjusted EBITDA was $18.3 million, compared to $4.8 million in 2Q22.

EVBG's cash from operations was $5.4 million for Q2, compared to an outflow of $(9.9) million in 2Q22.

Patrick Brickley, Everbridge's CFO, commented, "We also continue to experience headwinds booking large and especially perpetual revenue contracts. This dynamic is reflected in our updated revenue guidance for the second half of 2023. In addition, we further tightened our cost structure, giving us confidence in our adjusted EBITDA target of $85 million dollars for 2023."

3Q23 Outlook: Everbridge expects revenue of $113.5 million-$114 million versus the consensus of $117.52 million.

It sees an adjusted EPS of $0.42-$0.43 versus the consensus of $0.43.

FY23 Outlook: Everbridge sees revenue of $450 million-$452 million (down from the prior view of $456 million-$462 million) versus the consensus of $458.89 million.

It continues to see Adjusted EPS of $1.48-$1.52 versus the consensus of $1.49.

Price Action: EVBG shares traded lower by 19.35% at $23.54 on the last check Tuesday.