Everbridge(US:EVBG)2023-08-07 16:00Revenue and Growth - Revenue for Q2 2023 was $110.6 million, a 7% increase from $103.0 million in Q2 2022[153]. - Revenue for the first half of 2023 reached $218.8 million, up 8% from $203.4 million in the same period of 2022[153]. - Revenue for the three months ended June 30, 2023, was $110,569,000, representing a 7.4% increase from $102,986,000 in the same period of 2022[176]. - Revenue for the six months ended June 30, 2023, increased by $15.5 million, or 7.6%, to $218.8 million compared to $203.4 million in 2022, driven by an increase in the customer base from 6,345 to 6,498[186]. - The number of customers increased from 6,345 as of June 30, 2022, to 6,498 as of June 30, 2023, contributing to the revenue growth[176]. - The Critical Event Management platform serves over 6,400 customers, up from 867 in 2011, indicating significant customer base growth[150]. Profitability and Losses - Net losses for Q2 2023 were $15.1 million, compared to $36.2 million in Q2 2022[153]. - The net loss for the three months ended June 30, 2023, was $15,050,000, compared to a net loss of $36,182,000 in the same period of 2022[176]. - The net loss for the six months ended June 30, 2023, was $29.7 million, an improvement from a net loss of $55.3 million in the same period of 2022[210][211]. - The company reported a net loss of $15,050,000 for Q2 2023, an improvement from a net loss of $36,182,000 in Q2 2022, with non-GAAP net income of $13,424,000 compared to $1,485,000[201]. Expenses and Cost Management - Total operating expenses decreased to $92,909,000 for the three months ended June 30, 2023, down from $105,813,000 in the same period of 2022[177]. - Sales and marketing expenses decreased by $2,690,000, or 5.9%, to $42,669,000 for the three months ended June 30, 2023[180]. - Research and development expenses decreased by $2,006,000, or 7.5%, to $24,613,000 for the three months ended June 30, 2023[181]. - General and administrative expenses decreased by $2,130,000, or 7.9%, to $24,963,000 for the three months ended June 30, 2023[182]. - Restructuring expenses significantly decreased by $6,078,000, or 90.2%, to $664,000 for the three months ended June 30, 2023[183]. - Sales and marketing expenses decreased by $2.3 million, or 2.7%, to $84.9 million, representing 39% of revenue compared to 43% in 2022[189]. - Research and development expenses decreased by $0.6 million, or 1.1%, to $49.6 million, accounting for 23% of revenue, down from 25% in 2022[190]. - General and administrative expenses remained flat at $49.4 million, representing 23% of revenue, compared to 24% in 2022[191]. - Restructuring expenses significantly decreased by $6.1 million, or 89.8%, to $0.7 million, primarily due to higher expenses in the prior year related to the 2022 Strategic Realignment[192]. Cash Flow and Liquidity - Cash and cash equivalents totaled $218.9 million as of June 30, 2023, with significant losses expected to continue in the foreseeable future[202]. - Operating activities generated net cash of $5,370,000 in Q2 2023, a recovery from a negative cash flow of $9,924,000 in Q2 2022[206]. - Operating activities generated $25.9 million in cash for the six months ended June 30, 2023, compared to a cash usage of $2.2 million in the same period of 2022[210][211]. - Free cash flow for Q2 2023 was $9,000, compared to a negative $13,909, while adjusted free cash flow was $1,570, up from a negative $7,590 in Q2 2022[196]. - Cash and cash equivalents totaled $218.9 million as of June 30, 2023[225]. Strategic Initiatives and Future Outlook - The company plans to continue investing in research and development and expanding its sales force to drive growth[154]. - The 2022 Strategic Realignment program aims to streamline operations and focus on growth opportunities, including workforce reduction[155]. - The company expects to incur losses in the near term while pursuing growth objectives[154]. - The company expects a reduction in operational costs following the completion of the 2022 Strategic Realignment[190][191]. - Future capital requirements will depend on various factors, including operational performance and market conditions, with no assurance of raising additional capital on favorable terms[204]. Economic and Market Conditions - Rising interest rates and economic uncertainty may impact the company's ability to secure financing and affect operations[156]. - The impact of the March 2023 bank closures on liquidity remains a concern, although the company has not been materially affected to date[203]. - The company does not currently engage in hedging activities to reduce foreign currency exposure, which could significantly affect future net earnings[226]. - A hypothetical 10% change in foreign exchange rates would not have had a material impact on the consolidated financial statements[226]. - The company has not experienced significant inflationary pressures affecting its business or financial condition historically[227].