Everbridge, Inc.

Hello, and welcome to the EverBridge, Inc. second quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist for pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To answer your question, please press star then two. Please note, today's event is being recorded. I would now like to hand over to your host today, Jeff Young. Mr. Young, please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Everbridge's earnings call for the second quarter of 2023. With me on today's call are Everbridge President and CEO David Wagner and Executive Vice President and CFO Patrick Brickley. Before the market opened, we issued our earnings release which can be accessed on the investor relations section of our website at ir.everbridge.com. This call is being recorded, and a replay of the teleconference will be available on our investor relations website at the conclusion of today's event. During today's call, we will make forward-looking statements regarding future events or the financial performance of the company that involves certain risks and uncertainties. The company's actual results may differ materially from the projections described in such statements. Factors that might cause differences include but are not limited to those discussed in our Forms 10-Q and 10-K, as well as other subsequent filings with the SEC. Information provided on this call reflects our perspective only as of today and should not be considered representative of our views as of any subsequent date. We explicitly disclaim any obligation to update any forward-looking statements or our outlook. Also during today's call, we will refer to certain non-GAAP financial measures. A reconciliation of our GAAP to non-GAAP financial measures is included in our earnings press release which you can find on our investor relations website. Our earnings press release includes highlights from our second quarter of 2023, in addition to our financial results and outlook. After we review our business and financial highlights, we will open the call for questions. With that, let me turn the call over to Dave. Dave.

Thanks, Jack. Good morning, everyone, and welcome to Everbridge's earnings call for the second quarter of 2023. We delivered solid financial results for the quarter, which we released earlier this morning. For the second quarter, we achieved revenue of $110.6 million, an increase of 7% year-over-year, adjusted EBITDA of $18.3 million, an increase of $13.5 million from the year ago, and annual recurring revenue of $395 million, up $7 million quarter-over-quarter, a 9% year-over-year. These solid results reflect the work the team is doing to improve our overall operating efficiency as we execute toward our long-term objectives. I just celebrated my first anniversary at the U of Ever Bridge, and as I reflect on the year, I am proud of the progress we have made. We are much more aligned as an organization. We have focused our product development efforts on our core CEN platform, and we've achieved several key delivery milestones that are improving customer value and satisfaction. We have simplified and streamlined our go-to-market, reducing our non-GAAP sales expense by 9% year-over-year for the first half, which is a major contributor to the increase in trailing 12-month adjusted EBITDA from $12.8 million in the year-ago period to $68.9 million this last 12-month period. And over the past 12 months, we've reduced our net debt by approximately $61 million to $287 million. I am deeply grateful to what we've done together as One Everbridge to achieve these goals and to deliver the results noted above, which are important for our longer-term growth. These accomplishments notwithstanding, we are continuing to experience lower overall bookings than last year, primarily in deals of greater than $250K. On the positive side, based on continuing momentum in smaller transactions, the strength of our net retention, and careful cost containment, we remain on track to deliver $85 million of adjusted EBITDA in 2023 and are on track with our long-term model of reaching the rule of 40 by 2027. Today, Everbridge is delivering organizational resilience at a global level in a way that none of our competition can. And our customers need our solutions more than ever. Weather events and social unrest are increasing in both frequency and intensity globally, and boards of directors and investors alike are looking for their management teams to be increasingly proactive in managing the impact of these risks for their people and business operations. With our strong customer base of leading enterprises and governments, we are becoming synonymous with resilience, and our customers are sharing with us, every day, incredible stories of resolve, of continuity, of lives saved, and assets protected. Now, I will turn the call over to our CFO, Dr. Frifley, to provide details Thanks, Dave.