Has Everbridge’s Stock Returned To A Buy Zone?

Everbridge (NASDAQ: EVBG), is an enterprise software company that offers applications which provide information about critical events to help with personal safety and business continuity. EVBG has gained 59% – moving from about $78 to $124 since the end of 2019. The stock witnessed a fall post 2020 as investors started moving back to traditional value stocks. Everbridge, being a critical event management platform, hugely benefited due to the Covid-19 pandemic. Revenue in FY 2020 grew by 35% y-o-y to $271 million. The net loss increased as the company continues to invest in research and marketing initiatives. The growth momentum has continued over Q1 2021 as the company ended the quarter with 5,748 global enterprise customers, up from 5,218 in the same period of the previous year. They also signed a new three-year contract with the U.S. Army for its software solutions to power JARVISS, the U.S. DoD’s enterprise system for threat visibility. We expect the growth to continue and the stock price to rise. Our dashboard, ‘Buy or Sell Everbridge Stock?‘ provides the key numbers behind our thinking, and we explain more below.

Everbridge revenues saw a massive growth of 160% from $104 million in 2017 to $271 million in 2020. In the same period, the net income margin has fallen to -34% in 2020 from -19% in 2017 as the company continues to invest in marketing and research. The shares outstanding increased during the same period which partially offset the RPS growth. Everbridge’s P/S was around 10.7x at the end of 2017 and has increased continuously. It reached 20.7x at the end of 2020 but has decreased to 14x currently.

How Is Coronavirus Impacting Everbridge’s Stock?

Everbridge, being a critical event management platform, has continued to gain traction during the pandemic as witnessed by its revenue growth of 35% in 2020. The momentum continued in 2021 as witnessed by its Q1 2021 results. For the first quarter revenue grew by 40% y-o-y to $82 million. Adjusted EBITDA was $5.3 million, compared to a loss of $4.8 million in the first quarter of 2020. The company expanded its presence in Asia Pacific across 18 countries. Everbridge’s stock tapered off in the last few months after a sustained rise over the previous year. We believe this fall has made the stock attractive as consumers increasingly focus on critical event management services and the company continues to improve its operating margin. 

For further comparison among peer groups, it is helpful to see how they stack up. Everbridge Comparison With Peers summarizes how Everbridge compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.

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