Everbridge, Inc. revenue jumped on 41.0% while EBITDA Margin dropped on 10.6 pp from -8.7% to -19.3%
02/19/2019 • About Everbridge, Inc. (
$EVBG) • By InTwits
Everbridge, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Everbridge, Inc. is a fast growth stock: 2018 revenue growth was 41.0%, 5 year revenue CAGR was 37.4% at 2018 ROIC -29.6%
- The company operates at negative EBITDA Margin: -19.3%
- Everbridge, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 9.3% while average EBITDA Margin was -10.0% for the sames years. In 2018 SBC/Revenue was even higher: 17.4%
- Everbridge, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: $2m in 2018, $2m in 2017, $6m in 2016, $3m in 2015, $2m in 2014
- In the last 5 years the company invested considerably less than D&A: $15m vs. $40m. In 2018 this situation was still the same: CAPEX was 2 while D&A was 14
- The company has unprofitable business model: ROIC is -29.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Everbridge, Inc.'s Revenue surged on 41.0%. Revenue growth showed acceleration in 18Q4 - it increased 43.4% YoY. During the last 5 years Revenue growth bottomed in 2016 at 30.9% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.9 pp from 18.2% to 22.1% in 2018. EBITDA Margin stuck to a declining trend at -5.0 pp per annum in the last 5 years.
Gross Margin decreased slightly on 1.6 pp from 69.8% to 68.2% in 2018. SG&A as a % of Revenue increased slightly on 1.7 pp from 67.0% to 68.7% in 2018. Stock Based Compensation (SBC) as a % of Revenue increased on 8.6 pp from 8.8% to 17.4% in 2018. SBC as a % of Revenue stuck to a growing trend at 3.9 pp per annum in the last 5 years.
Net Income margin dropped on 13.5 pp from -18.8% to -32.3% in 2018. Net Income margin stuck to a declining trend at -6.2 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2018 Everbridge, Inc. had CAPEX/Revenue of 1.2%. The company showed decline in CAPEX/Revenue of 3.1 pp from 4.3% in 2015 to 1.2% in 2018. Average CAPEX/Revenue for the last three years was 3.7%.
Accounts receivable as a % of Revenue decreased on 2.4 pp from 30.4% to 27.9% in 2018. Accounts payable as a % of Revenue decreased slightly on 2.0 pp from 7.8% to 5.8% in 2018.
Everbridge, Inc. has spent
$36m on M&A in 2018 which accounts for 24.4% of revenue.
Return on investment
The company operates at negative ROIC (-29.6%) and ROE (-96.8%). ROIC decreased on 9.2 pp from -20.4% to -29.6% in 2018. ROE dropped on 56.9 pp from -39.9% to -96.8% in 2018.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2018. Debt increased on 5.6% while cash dropped on 41.6%.
Everbridge, Inc. has no short term refinancing risk: cash is higher than short term debt (14,046.4%).
Management team
Insider ownership is 1.4%. Insider ownership didn't change in 2018.
The company has 777 employees. The number of employees jumped on 33.7%. Average revenue per employee in 2018 was
$189,310 and it increased on 5.4%.
Financial and operational results
FY ended 12/31/2018
Everbridge, Inc. ($EVBG) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 42.4 | 58.7 | 76.8 | 104.4 | 147.1 | 41.0% |
| Gross Profit | 30.3 | 38.9 | 53.1 | 72.8 | 100.3 | 37.7% |
| SG&A | 23.3 | 38.2 | 47.9 | 69.9 | 101.1 | 44.6% |
| EBITDA | 2.2 | -4.8 | -3.1 | -9.1 | -28.4 | |
| EBIT | -0.3 | -10.8 | -10.8 | -19.3 | -42.1 | |
| Tax | -0.1 | -0.6 | -0.0 | 0.0 | 0.8 | 1,593.6% |
| Net Income | -0.6 | -10.8 | -11.3 | -19.6 | -47.5 | |
| Stock Based Compensation | 0.4 | 1.5 | 3.1 | 9.2 | 25.6 | 177.6% |
Balance Sheet
|
|---|
| Cash | 4.4 | 8.6 | 60.8 | 102.8 | 60.0 | -41.6% |
| Accounts Receivable | 11.3 | 15.7 | 17.8 | 31.7 | 41.1 | 29.7% |
| Accounts Payable | 1.7 | 3.5 | 2.4 | 2.4 | 2.7 | 11.2% |
| Short Term Debt | 6.9 | 2.0 | 0.0 | 0.0 | 0.4 | |
| Long Term Debt | 0.0 | 10.0 | 0.0 | 89.5 | 94.1 | 5.2% |
Cash flow
|
|---|
| Capex | 2.2 | 2.5 | 6.5 | 1.7 | 1.7 | 3.2% |
| Acquisitions | 0.3 | | 2.3 | 21.2 | 35.9 | 68.9% |
Ratios
|
|---|
| Revenue growth | 41.2% | 38.4% | 30.9% | 35.8% | 41.0% | |
| EBITDA growth | 8.5% | -316.1% | -35.9% | 194.4% | 212.8% | |
|
|---|
| Gross Margin | 71.5% | 66.3% | 69.1% | 69.8% | 68.2% | -1.6% |
| EBITDA Margin | 5.2% | -8.2% | -4.0% | -8.7% | -19.3% | -10.6% |
| EBIT Margin | -0.7% | -18.4% | -14.1% | -18.5% | -28.6% | -10.1% |
| SG&A, % of revenue | 54.8% | 65.0% | 62.3% | 67.0% | 68.7% | 1.7% |
| SBC, % of revenue | 0.9% | 2.5% | 4.0% | 8.8% | 17.4% | 8.6% |
| Net Income Margin | -1.5% | -18.4% | -14.7% | -18.8% | -32.3% | -13.5% |
| CAPEX, % of revenue | 5.1% | 4.3% | 8.4% | 1.6% | 1.2% | -0.4% |
|
|---|
| ROIC | | | -55.4% | -20.4% | -29.6% | -9.2% |
| ROE | | | | -39.9% | -96.8% | -56.9% |
| Net Debt/EBITDA | 1.1x | | | | |
People
|
|---|
| Insider ownership | 1.4% | 1.4% | 1.4% | 1.4% | 1.4% | 0.0% |
| Employees | 303 | 418 | 467 | 581 | 777 | 33.7% |
| Revenue/Employee, th. $ | 140 | 140 | 165 | 180 | 189 | 5.4% |
Everbridge, Inc. ($EVBG) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 31 | 36 | 39 | 42 | | 33.6% | 43.2% | 42.5% | 43.4% |
| EBITDA | -8 | -12 | -3 | -5 | | | | | |
| Net Income | -12 | -17 | -8 | -10 | | | | | |
Balance Sheet
|
|---|
| Cash | 104 | 103 | 76 | 60 | | 161.2% | 212.5% | 222.8% | -41.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 91 | 92 | 93 | 94 | | | | | 5.2% |
Ratios
|
|---|
| Gross Margin | 68.3% | 67.8% | 68.4% | 68.2% | | 1.9% | -3.3% | -2.0% | -2.6% |
| EBITDA Margin | -27.2% | -33.1% | -8.6% | -11.7% | | -12.9% | -28.2% | -1.4% | -2.7% |
| Net Income Margin | -40.4% | -47.2% | -21.7% | -23.4% | | -13.3% | -33.5% | -6.2% | -3.7% |
Peers in Application Software
Below you can find Everbridge, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (151 companies) | -43.3% | 13.5% | 13.6% | 14.8% | 15.2% |
|---|
| Everbridge, Inc. ($EVBG) | | 38.4% | 30.9% | 35.8% | 41.0% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (150 companies) | 62.8% | 61.7% | 63.8% | 64.4% | 65.7% |
|---|
| Everbridge, Inc. ($EVBG) | 71.5% | 66.3% | 69.1% | 69.8% | 68.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (152 companies) | -10.3% | -10.7% | -5.3% | -3.3% | -3.2% |
|---|
| Everbridge, Inc. ($EVBG) | 5.2% | -8.2% | -4.0% | -8.7% | -19.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (153 companies) | 2.8% | 2.7% | 2.9% | 2.3% | 2.4% |
|---|
| Everbridge, Inc. ($EVBG) | 5.1% | 4.3% | 8.4% | 1.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (179 companies) | -14.3% | -12.2% | -9.2% | -10.2% | -9.3% |
|---|
| Everbridge, Inc. ($EVBG) | | | -55.4% | -20.4% | -29.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (70 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.7x |
|---|
