Everbridge, Inc. (NASDAQ:EVBG) Q3 2018 Earnings Conference Call Transcript

Nov 05, 2018 • 04:30 pm ET

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Everbridge, Inc. (NASDAQ:EVBG) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Everbridge Q3 2018 Earnings Conference Call. (Operator Instructions). As a reminder, this conference call is being recorded.

I would now like to turn the call over to Mr. Ken Goldman. Please, sir, go ahead.

Executive
Ken Goldman

Good afternoon, and welcome to Everbridge's earnings conference call for the third quarter of 2018. This is Ken Goldman, SVP and CFO of Everbridge. With me on the call today is Jamie Ellertson, CEO and Chairman, in addition to Bob Hughes, President of Go-to-Market, and Jim Totton, EVP of Product Management, Engineering and Operations, who will be available during Q&A.

After the market close today, we issued a press release with details regarding our third quarter results, which can be accessed on the Investor Relations section of our website at ir.everbridge.com. This call is being recorded, and a replay will be available on our IR website following the conclusion of the call.

(Forward-Looking Cautionary Statements)

Also during the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release. Finally, at times in our prepared remarks or responses to your questions, we may offer metrics that are incremental to our usual presentation to provide greater insight into the dynamics of our business of our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.

With that, let me turn the call over to Jamie for his prepared remarks.

Executive
Jamie Ellertson

Thanks, Ken. Welcome to those of you joining our third quarter earnings conference call. We're excited to share our strong results with you today. Our most recent quarterly results highlight our continued momentum with our Critical Event Management strategy. Our Q3 results exceeded our guidance for both revenue and adjusted EBITDA. Third quarter revenue of $39.8 million represents 43% year-over-year growth. We also continue to invest in our efforts to deliver two new major products to the market as well as complete several major infrastructure projects while simultaneously managing to deliver positive adjusted EBITDA ahead of our guidance at $153,000.

We are pleased that our Q3 results mark our 9th consecutive quarter of better-than-expected results since our IPO in 2016. Our positive operational metrics in the quarter also reflect our continued success in the marketplace as we, one, continue to penetrate the mass notification market, two, drive multiproduct sales with newer products and, three, expand adoption of our strategic Critical Event Management suite. In the quarter, we added 109 net new enterprise customers, bringing our total enterprise customer count to 4,267, a 29% increase from a year ago. Dollar-based retention remained consistent with past quarters in the mid-90% range and net retention continued to be over 110%. In Q3, we saw a strong contribution from our new products, such as IT Alerting, Safety Connection and our Visual Command Center, which together totaled a record 50% of all new and growth sales in the quarter with the