Everbridge, Inc. revenue surged on 35.0% while EBITDA Margin decreased slightly on 1.7 pp from -11.8% to -13.5%
02/18/2021 • About Everbridge, Inc. (
$EVBG) • By InTwits
Everbridge, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Everbridge, Inc. is a fast growth stock: 2020 revenue growth was 35.0%, 5 year revenue CAGR was 35.8% at 2020 ROIC -10.2%
- The company operates at negative EBITDA Margin: -13.5%
- Everbridge, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 4.7% while average EBITDA Margin was -12.6% for the sames years
- Everbridge, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: $13m in 2020, $13m in 2019, $2m in 2018, $2m in 2017, $6m in 2016
- The company has unprofitable business model: ROIC is -10.2%
- It operates with high leverage: Net Debt/EBITDA is 9.7x while industry average is 18.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 35.0%. Revenue growth showed small slowdown in 20Q4 - it was 32.4% YoY. During 2016-2020 Revenue growth topped in 2018 at 41.0% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from -11.8% to -13.5% in 2020.
Gross Margin increased slightly on 1.0 pp from 68.4% to 69.4% in 2020. SG&A as a % of Revenue increased on 6.0 pp from 67.0% to 73.0% in 2020. SG&A as a % of Revenue grew at 2.1 pp per annum in the last 5 years.
Net Income margin decreased on 8.4 pp from -26.0% to -34.4% in 2020. Net Income margin stuck to a declining trend at -4.7 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 4.8%. Everbridge, Inc. showed CAPEX/Revenue growth of 3.2 pp from 1.6% in 2017 to 4.8% in 2020. Average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at negative ROIC (-10.2%) and ROE (-39.5%). ROIC increased slightly on 1.3 pp from -11.4% to -10.2% in 2020. ROE showed almost no change in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.7x and Debt / EBITDA is . Debt increased on 3.3% while cash dropped on 12.1%.
Everbridge, Inc. has no short term refinancing risk: cash is higher than short term debt (10,969.0%).
Management team
Everbridge, Inc.'s CEO is David Meredith. David Meredith has 1 year tenure with the company. Everbridge, Inc.'s CFO Patrick Brickley has spent 2 years with the company.
Financial and operational results
FY ended 12/31/2020
Everbridge, Inc. ($EVBG) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 76.8 | 104.4 | 147.1 | 200.9 | 271.1 | 35.0% |
| Gross Profit | 53.1 | 72.8 | 100.3 | 137.3 | 188.1 | 37.0% |
| SG&A | 47.9 | 69.9 | 101.1 | 134.6 | 197.8 | 47.0% |
| EBITDA | -3.1 | -9.1 | -28.4 | -23.8 | -36.7 | |
| EBIT | -10.8 | -19.3 | -42.1 | | | |
| Tax | -0.0 | 0.0 | 0.8 | | | |
| Net Income | -11.3 | -19.6 | -47.5 | -52.3 | -93.4 | |
| Stock Based Compensation | 3.1 | 9.2 | 25.6 | | | |
Balance Sheet
|
|---|
| Cash | 60.8 | 102.8 | 60.0 | 531.6 | 467.2 | -12.1% |
| Accounts Receivable | 17.8 | 31.7 | 41.1 | | | |
| Accounts Payable | 2.4 | 2.4 | 2.7 | | | |
| Short Term Debt | 0.0 | 0.0 | 0.4 | 3.6 | 4.3 | 19.4% |
| Long Term Debt | 0.0 | 89.5 | 94.1 | 442.1 | 455.9 | 3.1% |
Cash flow
|
|---|
| Capex | 6.5 | 1.7 | 1.7 | 13.1 | 12.9 | -1.4% |
| Acquisitions | 2.3 | 21.2 | 35.9 | | | |
Ratios
|
|---|
| Revenue growth | 30.9% | 35.8% | 41.0% | 36.6% | 35.0% | |
| EBITDA growth | -35.9% | 194.4% | 212.8% | -16.3% | 54.3% | |
|
|---|
| Gross Margin | 69.1% | 69.8% | 68.2% | 68.4% | 69.4% | 1.0% |
| EBITDA Margin | -4.0% | -8.7% | -19.3% | -11.8% | -13.5% | -1.7% |
| EBIT Margin | -14.1% | -18.5% | -28.6% | | |
| SG&A, % of revenue | 62.3% | 67.0% | 68.7% | 67.0% | 73.0% | 6.0% |
| SBC, % of revenue | 4.0% | 8.8% | 17.4% | | |
| Net Income Margin | -14.7% | -18.8% | -32.3% | -26.0% | -34.4% | -8.4% |
| CAPEX, % of revenue | 8.4% | 1.6% | 1.2% | 6.5% | 4.8% | -1.8% |
|
|---|
| ROIC | -55.4% | -20.4% | -29.6% | -11.4% | -10.2% | 1.3% |
| ROE | | -39.9% | -96.8% | -39.8% | -39.5% | 0.3% |
People
|
|---|
| Insider ownership | 1.4% | 1.4% | 1.4% | | | |
| Employees | 467 | 581 | 777 | | | |
| Revenue/Employee, th. $ | 165 | 180 | 189 | | | |
Everbridge, Inc. ($EVBG) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 59 | 65 | 71 | 76 | | 37.6% | 35.1% | 35.6% | 32.4% |
| EBITDA | -14 | -6 | -8 | -8 | | - | - | - | - |
| Net Income | -25 | -19 | -24 | -25 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 498 | 483 | 469 | 467 | | 111.8% | 105.5% | 140.8% | -12.1% |
| Short Term Debt | 4 | 4 | 4 | 4 | | 18.1% | 19.1% | 23.9% | 19.4% |
| Long Term Debt | 452 | 457 | 461 | 456 | | 315.4% | 314.6% | 317.4% | 3.1% |
Ratios
|
|---|
| Gross Margin | 64.5% | 70.3% | 70.7% | 71.1% | | -2.8% | 0.7% | 2.0% | 3.3% |
| EBITDA Margin | -23.6% | -9.2% | -11.8% | -11.0% | | -3.0% | 4.5% | -1.2% | -6.3% |
| Net Income Margin | -43.1% | -29.4% | -34.0% | -32.5% | | -10.1% | -4.5% | -9.4% | -9.5% |
Peers in Application Software
Below we provide Everbridge, Inc. benchmarking against other companies in Application Software industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 14.8% | 15.1% | 19.4% | 14.5% |
|---|
| Everbridge, Inc. ($EVBG) | - | 35.8% | 41.0% | 36.6% | 35.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 63.8% | 64.4% | 65.3% | 67.9% | 70.6% |
|---|
| Everbridge, Inc. ($EVBG) | 69.1% | 69.8% | 68.2% | 68.4% | 69.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -5.3% | -3.3% | -3.3% | 4.5% | 7.7% |
|---|
| Everbridge, Inc. ($EVBG) | -4.0% | -8.7% | -19.3% | -11.8% | -13.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 2.9% | 2.3% | 2.4% | 2.9% | 2.5% |
|---|
| Everbridge, Inc. ($EVBG) | 8.4% | 1.6% | 1.2% | 6.5% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.2% | -10.2% | -9.8% | -4.2% | -1.8% |
|---|
| Everbridge, Inc. ($EVBG) | -55.4% | -20.4% | -29.6% | -11.4% | -10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (54 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.2x |
|---|
