Everbridge, Inc.

Good afternoon. Welcome to the Everbridge third quarter 2023 earnings conference call. My name is Jason, and I'll be your operator today. Following management's remarks, we will open the call for your questions. I would like to remind everyone that this call will be recorded and made available for replay via a link in the investor relations section of the company's website. Now, I would like to turn the call over to Vice President of Investor Relations, Nandan Amladi. Sir, please proceed.

Thank you, Jason, and good afternoon, everyone. Welcome to Everbridge's earnings call for the third quarter of 2023. With me on today's call are Everbridge's President and CEO, David Wagner, and Executive Vice President and CFO, Patrick Prithee. After the market closed, we issued our earnings release and supplementary materials, which can be accessed on the IR page 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 predictions described in such statements. Factors that might cause such differences include, but are not limited to, those discussed in our forms 10Q and 10K, 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'll refer to certain non-GAAP financial measures. Reconciliation of our GAAP to non-GAAP financial measures to the extent reasonably available is included in our earnings press release, which you can find on our Investor Relations website. Our earnings press release includes highlights from our third 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, Nandai, and good afternoon, everyone. We delivered solid Q3 results, including revenue of $114.2 million, an increase of 3% year-over-year, Adjusted EBITDA of $23.7 million, an increase of approximately $9 million and 56% from a year ago, and annual recurring revenue of $399 million, up $4 million quarter over quarter, and 8% year over year. These results align with our strategy of enhancing shareholder value by prioritizing increasing ARR, the more valuable recurring part of our business, and growing efficiently and profitably to achieve our goal of reaching the rule of 40 by 2027 and enhancing our go-to-market approach, evidenced by the Q3 improvements. In this context, subscription revenues of $104.3 million grew 8% in the third quarter. However, revenues from professional services, perpetual software licenses, and one-time services were down $4.7 million, or 32%, bringing total revenue growth to 3%. The decline in one-time revenues is due to prioritizing recurring revenues and the changes in the macro environment affecting large deal opportunities. Efficiency-wise, we improved the adjusted EBITDA by 56% year-over-year, or $8.5 million, while also absorbing the $4.7 million decrease in professional services and one-time revenues. Our efforts to enhance efficiency are allowing us to reduce costs while continuing to enhance our product portfolio. Improvements we are seeing in our third core results that we believe demonstrate the progress we are making to increase our ARR growth rate in 2024 are as follows. One, Q3 was our highest bookings quarter of the year, both for recurring and one-time bookings. Two, our sales productivity improved 11% quarter over quarter and 16% year over year. Our average transaction size increased again quarter over quarter to the highest level of the year. Four, our total number of transactions remains consistent with last year. And five, our total pipeline is continuing to build. During Q3, we supported our customers through a range of critical events, including heat waves, wildfires, hurricanes, and geopolitical unrest. We supported states and countries around the world with life-saving alerts, in the face of unprecedented heat waves and wildfires this summer. We delivered millions of messages to Floridians leading up to, during, and after Hurricane Idalia to support their life safety and recovery goals. And more recently, as a result of the conflict in the Middle East and the result of geopolitical unrest, we're assisting multinational businesses with critical situational awareness and risk intelligence to keep their employees and travelers safe and to keep their businesses running efficiently. The value of the Everbridge platform has never been more apparent. We also just published our inaugural sustainability report that is posted on our IR page. I'm delighted with the progress Everbridge is making in this area, showing our commitment to developing new policies and processes to align our strategy and operations with key sustainability principles. Again, I am pleased with our progress especially improved booking traction we demonstrated in the third quarter. Now, I'll turn the call over to our CFO, Patrick Brickley, to provide further details on our financial results and outlook. Patrick?