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(6) EVBG – Hilton Case Study:
– Communication and monitoring 6,700 properties in 107 countries, 10,000 properties in a few years – Hilton is the safety and security backbone of Hilton;
– Environment and physical security – rated for each and every Hilton property, not done prior to Everbridge;
– At Everbridge it is possible to say “here is our data, we want this in the tool” – that feature is just not there with other providers
– Hilton can elevate security in a group of hotels in 10 minutes, pre-Everbridge might have taken a day
– Duty of care – “security can be a revenue driver” – Everbridge can be a selling point for corporate clients choosing a hotel chain

(7) Platform Engineering and Resiliency:
– Jim Totten – “category creators” – Dell, Microsoft, Red Hat – Everbridge is the leader in safety and security
– Multi-tenant (no customization)
– Unified and comprehensive enterprise-scale platform
– Out-of-the-box, no developers needed
– Large, dynamic, and rich communications data asset
– Robust security, industry certification, and compliance
– Globally “local” (can target mobile phone users in their language, for example)
– Next generation, open architecture “anticipating future change”
– Engineering today in Burlington, CA, Lansing – but also in the UK, Oslo, Beijing, Amsterdam, Bangalore
– How scalable is Everbridge’s platform – to deal with simultaneous situations globally? Peak usage example provided was 10% of capacity
– Two network operating centers taking care of the day-to-day operations of the Everbridge platform, 24/7/365 teams (a “follow the sun” model)
– Running on an “AWS Cloud” infrastructure – running on numerous Amazon zones (redundancy) and “if we know there is a hurricane coming we can add additional capacity”
– TODAY: have a complete EU stack that is parallel to the one in the US.
– Scale: 25MM critical events in 2018, more than 2.8B messages delivered, 99.99% transactional uptime, 150+ worldwide core patents, 200+ countries and territories
– Security and compliance: now done with the FedRAMP process & got the first annual FedRAMP renewal; also added ISO27001 and Germany C5 certifications this year

(8) Go-to-Market:
– Bob Hughes – President Go-to-Market, communicates very well
– “Top of the first innings today” – we don’t know how big the market is
– 25% of the F1000 are customers; 50% of EVBG F1000 customers have purchased a strategic product (i.e. non-mass notification)
– “Keeping people safe AND BUSINESSES RUNNING” – many use cases, multiple buyers, one platform – not just security, also supply chain disruption (e.g., in a hurricane – advance purchase key components, ship things out of harm’s way, etc.), HR, traveling employees
– This is a hard ROI conversation: “keeping your people safe – AND working” – ROI conversation helps sell EVBG – “very different from the value prop a few years ago” – a more business-oriented value prop
– Global software company: “improve the safety of their campus following well-publicized ‘active shooter’ incidents” – can reduce the g&a required for customers
– “We make money, we save money, and we keep employees safe”
– CEM growth opportunity: life safety, security, IT
– Corporate 57% rev (creeping up over time, being led by CEM), healthcare 13% rev, public sector 30% rev
– Federal opportunity: 200%+ growth in civilian and military federal recurring revenue
– Sales expansion: since 2018, Sydney, Bangalore, Madrid, Paris, Amsterdam, Munich, Oslo, DC
– Saas and population alerting businesses – two different businesses; Asia – “just on the ground now in a few select markets”
– # multi-product deals per quarter: 70 in 2018Q1, 91 in 2019Q1
– 95%+ renewals (GROSS revenue retention rate)

(9) Financial Review:
– Patrick Brickley – new CFO
– Ken Goldman’s first hire; Ken had two direct reports – HR ?(?) and finance and accounting w/Patrick; the new role for Patrick today is IR
– Strong revenue
– No material impact of M&A in 2019 but the “new executive chairman will be focused on M&A” – focus on new products and geographic expansion wrt M&A
– Still only 42 CEM customers!
– 110% annual NET rev retention rate, 2.3yr avg. length of customer contract (creeping up gradually over time, used to be 2 years), 90% of rev contracted prior to quarter start, 93% of revenue is recurring subscription revenue
– 2015: was a mass notification point solution – today a platform, continue to expand products and ASPs
– 80/20 US/intl. rev; 30% of employees are ex-US
– Projecting positive EBITDA
– $1 of revenue, 71% GM% in 2018 (COGS is roughly half people, half infrastructure) – “won’t need to build for GDPR and FedRAMP compliance over and over again” – “expect gradual gross margin improvement over time”
– $1 spent to acquire $1 of revenue, $0.06 spent to retain every dollar of revenue
– Opportunity to lever G&A, S&M, R&D over time
– Strong SaaS metrics
– Pure play SaaS
– Unit economics
– Long-term model

Questions:
– Customers are now “writing RFPs for CEM” – starting to spec to EVBG as the category leader
– Advanced Analytics – will be able to go into production next year – “at the beginning” of this – making predictive models, etc.
– Channel partners – difficult to have a middleman in the CEP space but could be very helpful for selling the I.T. alerting product

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Posted by misvalueinvestor (Questions: 7, Answers: 0)
Asked on June 19, 2019 9:45 pm
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Posted by Liberty (Questions: 0, Answers: 2)
Answered on June 22, 2019 10:55 pm