Everbridge(US:EVBG)2024-05-09 20:20Financial Performance - Revenue for the three months ended March 31, 2024, was $111.4 million, a 3% increase from $108.3 million in the same period of 2023[170]. - Net losses for the three months ended March 31, 2024, were $20.1 million, compared to $14.6 million for the same period in 2023[170]. - Adjusted EBITDA for Q1 2024 was $13.68 million, down from $15.85 million in Q1 2023, reflecting a decrease of approximately 13.7%[206]. - Non-GAAP net income for Q1 2024 was $7.97 million, compared to $10.83 million in Q1 2023, representing a decrease of approximately 26.3%[210]. - Free cash flow for Q1 2024 was $(2.06) million, compared to $15.89 million in Q1 2023, indicating a significant decline[207]. - Cash and cash equivalents totaled $121.4 million as of March 31, 2024, down from $201.6 million at the beginning of the period[211]. - Net cash provided by operating activities for Q1 2024 was $2.14 million, a decrease from $20.58 million in Q1 2023[215]. - Operating activities generated $2.1 million in cash for the three months ended March 31, 2024, compared to $20.6 million for the same period in 2023, reflecting a decrease in cash generation[219][220]. - The net loss for the three months ended March 31, 2024, was $20.1 million, an increase from a net loss of $14.6 million in the same period of 2023[219][220]. Customer Growth and Revenue Sources - The customer base grew from 867 customers in 2011 to over 6,700 customers as of March 31, 2024[168]. - 18% of customers were located outside of North America, generating 23% of total revenue for Q1 2024[170]. - The average contract duration for subscriptions is 1.7 years, with 95% of revenue recognized from prior contracts or renewals[169]. Expenses and Cost Management - Total operating expenses for Q1 2024 were $93,851,000, representing 84% of revenue, a slight decrease from 85% in Q1 2023[194]. - Sales and marketing expenses decreased by $5,070,000 to $37,118,000, accounting for 33% of revenue, down from 39% in the prior year[200]. - Research and development expenses decreased by $2,156,000 to $22,848,000, representing 21% of revenue, compared to 23% in Q1 2023[201]. - General and administrative expenses increased by $7,075,000 to $31,541,000, which is 28% of revenue, up from 23% in the same quarter last year[202]. - Restructuring expenses rose significantly to $2,344,000, accounting for 2% of revenue, compared to virtually none in Q1 2023[203]. Future Outlook and Strategic Initiatives - A proposed merger with Thoma Bravo is set to close in the second calendar quarter of 2024, with each share of common stock valued at $35.00[172][173]. - The company plans to invest in research and development, data center infrastructure, and hiring additional sales representatives to drive growth[171]. - Rising interest rates and economic uncertainty may impact future financing and operations[177]. - The company expects to continue incurring losses in the near term while pursuing growth objectives[171]. Cash Flow and Financing Activities - The company has $363.7 million in principal amount of indebtedness under convertible senior notes due March 15, 2026[214]. - Cash payments for the 2022 Strategic Realignment in Q1 2024 amounted to $3.92 million[207]. - Investing activities used $2.2 million in cash in Q1 2024, primarily due to a $4.0 million investment in software development, offset by $2.0 million from landlord reimbursement[222]. - Financing activities used $0.3 million of cash in Q1 2024, reflecting $2.2 million payment for employee withholding taxes, partially offset by $1.9 million from stock issuance[226]. Accounting and Financial Reporting - Other income decreased by $1,437,000 to $149,000, primarily due to a decline in interest income and foreign currency transaction gains[204]. - Provision for income taxes increased to $5,351,000 for Q1 2024, compared to $842,000 in Q1 2023, reflecting higher estimated cash taxes[205]. - Non-cash operating expenses for Q1 2024 amounted to $31.6 million, including $14.4 million for depreciation and amortization[219]. - The company recognized a $9.4 million decrease in changes in operating assets and liabilities in Q1 2024, driven by an $18.3 million decrease in accrued expenses[219]. - There have been no changes to critical accounting estimates that have materially impacted the financial statements as of March 31, 2024[229]. - The gross margin for Q1 2024 was 70.9%, slightly up from 70.5% in Q1 2023[210]. - Non-GAAP gross profit for Q1 2024 was $81.86 million, compared to $80.67 million in Q1 2023, showing a slight increase of approximately 1.5%[210].