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(1) New CEO introduction and CEM in Action:
– New CEO – David Meredith – has scaled businesses before, has acquired businesses, has released new products
– Why? “There is a difference between a several hundred million dollar company and a multi-billion dollar company”
– Jaime Ellertson’s focus going forward as Executive Chairman will be more on strategy, while Meredith will be more focused on operations
– David Meredith: “Everbridge is setting the standard for CEM”; “when it comes to CEM you will not get fired for picking Everbridge”;
– Fit: Meredith has experience scaling “multiple billion-dollar cloud based businesses”; experience “managing multiple global PnLs”;
“EVBG is the de facto standard”
– CTO, Imad Mouline: has been a CTO for 18 (?) years – started in software in the 80s at Sun Microsystems;
– “Over 5,000 customers”
– Real-time monitoring; correlates risks to employees, assets, suppliers, etc.; facilities and employees receive instructions; ***proactively reroute people or adjust supply chains, drive an enterprise-wide unified platform for managing critical events***
– CEM – “the system is always working 24/7 – there is no need for anyone to watch screens – the system is watching when people aren’t”
– Alert feeds that TELL US that something is happening (protest, earthquake, flood, etc.) + CONTEXT (traffic, weather, CCTV – and integrate with other company software, e.g. who key-carded into a building, etc.) that can inform your reaction to the CRITICAL EVENT + REFERENCE with other response organizations (police, etc.)
– EVBG keeps track of every single task with regard to a critical event – “timeline of every communication with employees and stakeholders, what’s left to be done”

(2) EVBG Growth Drivers:
– 835+ employees
– Over 270MM contacts – i.e., people/places/things tracked by Everbridge
– $41B market opportunity in 2020 ($6B mass notification; $10B IT and IOT – critical alerting suite expansion, e.g. IT alerting, safety connection; $24B critical event management – e.g. risk intelligence, crisis management, visual command center)
– Take the base of 5,000 enterprise customers – renew at 90% renewal rates (best-in-class)
– 1.8 average products per $100k customer
– 29,000 addressable organizations with 1,000+ employees – at average sale price, the sales opportunity (TAM) is $25 billion on a bottom-up basis
– Mass notification continues to grow 20% Y/Y (still the driver of international growth); IT alerting is growing 40% Y/Y (PD says the IT alerting TAM is 10x what EVBG says…); safety connection is growing >75% Y/Y
– Platform: emphasis scale, trustworth, platform (i.e., new products)
– New products: crisis management this quarter (to bring the CEM suite to 5 products) and next year EVBG will release Analytics – “you have assets, you have threats, and when they come together you have a critical event”
– “A couple years ago a big contract would be $50-$100k for mass notification or safety connection – now $500k-$750k deals are common”
– Among Everbridge’s clients: 8/9 of the top US cities; all 4 of the top consulting and accounting firms; 8/9 of the top investment banks; once you have critical mass in a geography, easier to bring in incremental customers
– “Don’t be surprised to see us execute almost without a miss in population warning” – especially internationally
– Virtually the only other competitor in mass-alerting is a one-way, hardware-centric solution
– Everbridge’s Australia contract: roughly a $10MM opportunity over 3 (?) years; Everbridge won the front-end opportunity and now Australia is considering whom to run the back-end;
– EU-Alert Regulation: 31 EU member states, all have to choose a mass notification solution by ’22; EVBG has three clients, no one else has even one;
– No other competitors in India currently;
– IT alerting: EVBG is the ENTERPRISE PLAY not the DEV-OPS PLAY – early days;
– CEM: “our competitive here is homegrown tools that have put companies into a reactive mode” (e.g., tiger teams in conference rooms) – EVBG makes companies PROACTIVE
– CEM opportunity: Global 2000 + F1000, $210k to $1.7MM deal sizes (working on larger deals today…), over the next two years can build a CEM business that is $242MM BY ITSELF (double-check these numbers)
– “Continue to grow mid-30s” and add-on anywhere from “3-7% with M&A” – “hasn’t happened this year but that doesn’t mean” it won’t happen

(3) EVBG – Dow Case Study (Scott Whelchel, Chief Security Officer of Dow Chemical, couldn’t be at EVBG in person due to an ongoing critical event – tele-presenting):
– Scott: over two decades of security management
– Re: Everbridge – Scott was looking to integrate security globally for Dow
– Not much from this presentation other than it underscored how bureaucratic and hierarchical Dow is as a company – can understand how Everbridge would really be able to streamline its responses to critical events

(4) EVBG – TIF Global Protection Services Case Study:
– Mission: protect “customers, employees, inventories, assets”
– Tiffany’s old security environment: lots of data, workstreams, monitors, workstations, a heavy labor component, CNN on all the time to help track threats
– Today: Everbridge
– Case study: NYC flagship is next door to Trump Tower – use Everbridge to respond more rapidly to events in NYC;
EVBG: “vital role THEY ARE GOING TO PLAY” to support Tiffany’s goal of being the next generation jeweler – “the more data we put through Everbridge the more value we get”

(5) Q&A and Product Overview:
– Barriers to replicability: scale, customer base, over 100 global patents
– France has twice failed with homegrown solutions
– Australia: back-end sales (e.g., selling each carrier the in-carrier telco communication infrastructure) allows Everbridge to double or even triple the front-end sale
– The max deal size is $1.7MM – we don’t know where CEM tops out, but it is “reliably growing” every quarter – and we have deals in the pipeline that are larger than this
– “Australia will be a multi-quarter implementation”
– “Currently four RFPs out there in the EU presently” – priced based on the population, # of devices, assets you are covering
– Everbridge Public Warning (from the UMS acquisition): creates a geo-fence, lets you send two-way messages with users in an area; alternatives like cell broadcast are one-way and require newer phones (often 90%+ coverage for EVBG Public Warning vs. 50-60% for cell broadcast)
– EU regulation: “any system deployed in the EU has to be able to reach tourists and visitors”
– Future direction of CEM – top-down and bottom-up opportunities, “outside” and “inside” opportunities (worth watching again): “country-level communications and country-level intelligence such as crowd insight”; “medical staff safety is one of the biggest reasons for turnover”

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Posted by misvalueinvestor (Questions: 7, Answers: 0)
Asked on June 19, 2019 9:44 pm
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