Everbridge 4Q Sales Jump 32% Driven By Customer Demand; Street Is Bullish

Everbridge posted strong 4Q results driven by an 11.7% rise in global enterprise customers. Shares of the critical event management (CEM) solutions provider jumped 14.5% to close at $160.89 on Feb. 19.

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Everbridge’s (EVBG) 4Q revenues increased 32% to $75.6 million on a year-over-year basis topping analysts’ expectations of $72.5 million. Adjusted earnings decreased 66.7% to $0.03 per share, but beat Street estimates of $0.02 per share.

The company recorded an all-time high free cash flow of $15.9 million in the quarter compared with an outflow of $1.3 million in the prior-year period. It finished the quarter with 5,613 total global enterprise customers, up 11.7% year-on-year, driven by high demand for CEM solutions.

Everbridge CEO David Meredith said, “As we look ahead to 2021, we remain excited about our future growth prospects and our ability to gain further traction with our CEM solutions.” (See Everbridge stock analysis on TipRanks)

For 2021, Everbridge forecasted revenue to generate between $342.1 million to $344.1 million. The company expects to incur an adjusted net loss per share of $0.25 to $0.19. Adjusted EBITDA is projected to be in the range of $7.5 million to $8.5 million.

For the first quarter of 2021, revenue is expected to be in the range of $75.3 million to $75.7 million on an adjusted net loss per share of $0.12 to $0.10.

Following the 4Q results, Northland Securities analyst Michael Latimore increased the stock’s price target to $165 (2.6% upside potential) from $155 and reiterated a Buy rating citing the company’s “solid quarter and outlook.”

Latimore views “Everbridge as uniquely positioned to address the growing and evolving need of employee and public safety.”

Everbridge shares have exploded almost 75% over the past year, while the stock still scores a Strong Buy consensus rating based on 7 Buys versus 1 Hold. That’s alongside an average analyst price target of $170.71, which implies upside potential of about 6% to current levels.