Everbridge Q3 Earnings: Can NasdaqGM:EVBG Hit Its -$0.11 EPS Target?

in EARNINGS/INVESTING IDEAS by

Everbridge, Inc. (NasdaqGM:EVBG) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of -$0.11/share on revenue of $68.432 million. The consensus earnings per share (EPS) of -$0.11/share is based on a poll of 13 analysts and represents a decline in eps of -185.3% over the same quarter last year, when the company reported earnings of -$0.04/share.

The revenue forecast of $68.432 million based on a poll of 12 analysts implies a year-over-year (YoY) growth in revenue of 30.2%. Last year the company reported $52.547 million in revenue for the quarter.

Expected to report EPS of -$0.11/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $68.43 $52.55 30.2%
EPS -$0.11 -$0.04 -185.3%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Everbridge, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.21 $0.06 128.9% Beat
Q1, 2020 -$0.37 -$0.16 56.2% Beat
Q4, 2019 $0.04 $0.05 20.7% Beat
Q3, 2019 -$0.05 -$0.04 23.8% Beat
Q2, 2019 -$0.08 -$0.07 17.3% Beat
Q1, 2019 -$0.18 -$0.15 17.8% Beat
Q4, 2018 -$0.10 -$0.09 14.0% Beat
Q3, 2018 -$0.12 -$0.10 17.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −12.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $150.28 $131.77 −12.3% Decline
May 5, 2020 $110.17 $139.66 26.8% Increase
February 18, 2020 $91.88 $104.21 13.4% Increase
November 4, 2019 $71.01 $80.27 13.0% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.48, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.48 implies a 0.7% chance of earnings manipulation.

Fundamentals And Technical Analysis

Everbridge, Inc. is currently trading at $110.25/share, down −14.3% for the day. The company is trading at approximately 68.2% of its 52-week high of $165.79/share. The company’s stock price is down −16.3% since the last earnings report and down −11.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 54.94 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGM:EVBG Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −62.99 and a forward P/E multiple of −1,185.84.

Everbridge, Inc.’s current share price also implies a price-to-book (P/B) multiple of 19.01. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $110.25
P/E Ratio −63.0x
P/E Ratio (Fwd) −1,185.8x
PEG Ratio 1.4
Total Debt / Total Capital 9.4%
Levered Free Cash Flow $8.168 million
EV / EBITDA −105.4x

Finbox

Everbridge, Inc. is a mid-cap stock with a market capitalization of $4.45 billion and a total enterprise value of $4.428 billion. The company operates in the Information Technology sector and the Software industry.

Everbridge, Inc. operates as a software company in the United States and internationally. The company’s Critical Event Management, a software as a service based platform with various software applications that address tasks an organization has to perform to manage a critical event, including Mass Notification that enables enterprises and governmental entities to send notifications to individuals or groups to keep them informed before, during, and after natural or man-made disasters, and other emergencies; Safety Connection that enables organizations to send notifications based on last known location of an individual; Incident Management for organizations to automate workflows and make their communications relevant; and IT Alerting that enables IT professionals to alert and communicate with members of their teams during an IT incident or outage. Its software applications also include Visual Command Center that enables customers to monitor and integrate threat data, as well as information on internal incidents; Public Warning that is used to reach international mobile populations; Community Engagement that integrates emergency management and community outreach; Crisis Management that provides mobile access to crisis, recovery, and brand protection plans; Risk Intelligence that aggregates data to assess incidents and provide incident information and analysis; and Secure Messaging for employees to communicate and share nonpublic information. The company provides customer support services. It serves enterprises, small businesses, non-profit organizations, educational institutions, and government agencies in technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, higher education, and professional services industries. The company was formerly known as 3n Global, Inc. and changed its name to Everbridge, Inc. in April 2009. The company was founded in 2002 and is headquartered in Burlington, Massachusetts.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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