Everbridge (EVBG) 9 Nov 232023 Q3 Earnings call transcript

Good afternoon. Welcome to the Everbridge Third Quarter 2023 Earnings Conference Call. My name is Jason, and I'll be your operator today. [Operator Instructions]. 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.

to Relations, call Nandan like President to would Investor of Amladi. I turn over the Vice Now Sir, please proceed.

of on Thank recorded, closed, and you, on This Relations and release of and Call quarter earnings CFO, Earnings on Welcome CEO, to supplementary With Jason, a and being the call Executive After page our can good available for accessed event. materials, afternoon, David today's the Wagner; Patrick the Vice issued Everbridge's be Brickley. call we website of are today's everyone. and Everbridge's XXXX. President me ir.everbridge.com. President IR third market at is be conclusion teleconference and replay which at will the Investor the our

statements or only statements Relations our earnings GAAP release, website. our perspective of Investor measures. A is might financial such our as refer considered not Factors financial update forward-looking regarding outlook. company find disclaim described explicitly actual today other statements. our during well the our any make Information not reconciliation will but with in our future of subsequent or those non-GAAP subsequent reasonably as non-GAAP discussed can on results from which We financial forward-looking uncertainties. the we representative provided should are press Also views call, call to involve available to, may today's filings limited measures, certain that to The included call be of in the the the cause XX-Q as you our projections to such XX-K risks performance certain extent and of date. reflects this of and in company's materially to events SEC. will differ that forms as any any and today's During on differences include, obligation

call financial from our After highlights, financial review our quarter in results our and earnings includes of that, business we Dave? the for let to open Our third call XXXX outlook. turn Dave. and release questions. With highlights over the we press will addition to me

good of Nandan, approximately results, annual EBITDA from of profitably efficiently XXXX results our afternoon, of Rule value QX XX of our our million increasing the million, the solid growing quarter. million context, go-to-market increase ago a up enhancing by and of X% and $XXX.X million of QX enhancing $XXX reaching the revenue quarter-over-quarter evidenced shareholder and of to and $XXX.X delivered an year These X% Thanks, XX% recurring with revenue part and of everyone. increase year-over-year, revenues an million by adjusted $X of prioritizing to strategy subscription more X% in year-over-year. million, approach We and In recurring $XX.X ARR align including business, valuable grew of third achieve our goal $X this improvements. and by

However, million decline licenses down by the XX% services professional large the due or million, wise, revenue revenues revenues onetime we revenues absorbing year-over-year environment also from in steel adjusted EBITDA professional changes the and The decrease onetime opportunities. Efficiency and growth prioritizing and recurring $X.X affecting revenues. in $X.X to X%. macro while were total improved services in is onetime XX%, or $X.X to services, bringing perpetual software million

and follows: third allowing one, transactions quarter-over-quarter demonstrate progress increased of our remains improvements year; our we of are XX% number to year; and productivity average total total Our efforts the five, two, the was pipeline both are continuing believe four, seeing the build. sales year, are size three, we results as portfolio. to bookings; transaction is quarter bookings highest to last are while our continuing increase level growth enhance the rate reduce our quarter enhance product to recurring in for making our efficiency and QX quarter-over-quarter of we our XX% to our our again us to XXXX onetime highest that consistent ARR costs year-over-year; with in improved

of the to Idalia critical a states supported and to critical recently, of geopolitical keep the intelligence wild including more events, delivered unrest. value situational unprecedented as millions after we customers running of in geopolitical Hurricane risk of and the safety up We range the in been their supported recovery summer. hurricanes leading the businesses has with to, to heat of their QX, and During wildfires, multinational heat this face to East employees businesses during Everbridge efficiently. and ways we're more platform apparent. countries waves, and life world keep of alerts our through around We buyers support their life-saving travelers and messages and awareness never with Middle the conflict a The goals. result And result unrest, and and assisting safe Floridians

page. IR operations progress We with new our our especially inaugural showing this posted with published the sustainability demonstrated improved key commitment report align in also with the quarter. is making I'm and just our Again, progress, to is that developing pleased and our in traction Everbridge am strategy policies third our principles. we area bookings to delighted on processes sustainability I

CFO, results our Now financial I'll call on outlook. turn Brickley, the details and over to Patrick our further Patrick? to provide

Thanks, Dave.

we in the across continue increase healthy reflects results towards metrics. This and a profitable improvements substantial as year-over-year will discuss of increase drive intend to detail. making XXXX. I growth areas to saw work we all of business, quarter, that XX our Rule our by quarter more ongoing our operational that profitability for the we we are During the in efficiency now

million, increased year revenue up X% while ago. revenue was $XXX.X up quarter, X% Subscription was million, to the XX% X% $XXX.X was ARR from $XXX down up from year Revenue a million million, year of a ago, a ago. year-over-year. $X.X For from third nonsubscription

rate revenue was gross year-over-year. Our retention consistent

net partially earnings gain a from seen contraction ago. year retiring loss recent as We rebounded from which That and dipped what to XXXX, down deals was primarily average per first This in in we've quarter was million certain XX compared of negative million offset QX, $XX to of or our our generated million by signed net However, first to XXXX. GAAP margin more to a quarters. million Dave a of a Anvil. XX% benefited legal GAAP net due than from relative discount. said, of margin slightly of size diluted of deal bit year of $X.XX of XX in the gross net relative early per share. it an the margin or the of in million mentioned, $X.XX net half income of compared half the saw we diluted dispute over $XXX,XXX, ago at $X income a period's million to share to third was a year-ago period gross debt year ago. result Adjusted earnings share. diluted nearly income with was share nearly $XX shareholders we GAAP $X.XX XX% was $X.XX margin. earnings period negative to $XX or earnings $XX Non-GAAP $XX per XX% million compared to compared XX% income the a per or million gain ago or in charge related $XX year $X or former renewal a the

period operations $XX.X flow Our of compared result Cash year adjusted a $XX.X XX% to flow $XX compared million of the year an inflow million to ago from an of million of ago $XX.X $XX.X to $XX margin. was of free represents adjusted XX% compared or margin period million the EBITDA cash inflow of and the year-ago million period's was million.

equivalents repurchase In from a Our roughly liquidity million healthy desirable net $XXX We down a doing so, with debt. from restricted convertible the cash, million to of the year down end we a used remains to quarter, cash cash $XXX of third yield QX ended and in million in $XXX.X we and we in position. XXXX. ago. at $XXX outstanding million In debt XX% cash reduced of million to maturity, our locked $XXX.X

Our to drive flow. increasing cash in our positive ability our debt repurchase reflects confidence

XXX% adjusted in flow our quarters year-to-date, continue year-over-year increased has the cash cash to free in further improvements example, and we For flow see will nearly year-over-year, ahead.

will to legal potential have address in investments more will retire the debt enough Anvil than continue to to dispute in and fund to related XXXX any growth. $XX that mature of to We outflows the million cash December

to Moving guidance.

our which we Relations guidance guidance remainder to of last the is are quarterly gave presentation find website. for revising our the A We XXXX. Investor on the on guidance updated Slides reconciliation Relations earnings provided which our XX can quarter of of you Investor and XX

in anticipate improvement in The QX. the year-over-year results continued in we that growth subscription revenue, and quarter, the experienced nonsubscription we fourth which pattern revenues same reflect in For continued continued profitability. decrease will

and million nonsubscription between subscription from and We up year-ago we of since revenue were quarter, This This subscription that our illustrated year. of describe and X% the divested bridge timing I talk subscription will separately Slide subscription annual is million, the will million. reflects fourth of revenue for during recognized $XXX.X Investor As that revenue an $X.X the I growth included subscription amounts about quarterly entities between $X.X ago period, have presentation. period sequential same anticipate and this QX outlook year million million roughly basis $X Relations our on $XXX year-over-year. The revenue of not have on outlook but XX for revenue.

no GAAP $X.X $XX that also of provided year is included quarter decrease $XX.X revenue than XXXX. subscription is quarter to an the of $XX the in $X.XX and Slide $XXX August. a is million recognized share revenue in earnings opportunities, are anticipate on-premise deliver sales owing fourth in there million nearly we than is Relations recent reflects Therefore, We few factors, or such to anticipate which in down outlook larger subscription rather Investor million between of our macroeconomic year-over-year what our of range Our $XX.X between basis, roughly QX $X.X projection particular, outlook and between in of X% subscription We presentation. on quarter quarterly on we and our for In nonsubscription reflected of million to a and the for the that summary, $X.XX. we net illustrated diluted annual of bridge to third ago of million, per a of expect between This and million total nonsubscription from quarter. income XXXX revenue the revenue now XX fourth period. This million loss $X.X between in $XXX.X fourth million and revenue revenue net in anticipate non-GAAP X%. and included is $X million decrease which million,

for outlook be improvement EBITDA plan margin adjusted EBITDA quarterly to revenue. adjusted our that's to pressure of generate between non-subscription EBITDA despite in and XX%. $XX.X $XX.X with year-over-year million remain track We created well the by adjusted and revised expect on million, We our a continuous margin

Moving to guidance. full year

now we million growth between of to XXXX, year-over-year and of the representing $XXX.X revenue For in revenue million representing million million year-over-year X%. nonsubscription growth million $XX.X to of to decline of that, we $XXX million, anticipate Within representing $XXX.X year-over-year revenue between $XX.X range of XX%. anticipate total anticipate a XX% we of and X%, subscription $XXX.X

We $X.XX earnings and $X.XX expect million $XX.X and a million between between of million million income $XX and of $XX.X of diluted loss share. GAAP between and net per $XX.X net non-GAAP or

expect committed expect We representing increasing XXXX, And to the million Day, more first margin to EBITDA look grow progress out by will laid Investor targets the XX%. we to back ARR making at year We goal our expanding for million, now over the our are soon summary, we call EBITDA steady of confident by an profitably. Taking to EBITDA Rule to December adjusted XX in deliver of progress growth the roughly an XXXX. I adjusted too investments ahead can we full deliver continue profitability, XXXX at profitability. turn $XX.X although that midpoint. that we drive early GAAP of will of our our disciplined to the In forecasting towards Dave. $XX remain make to XX% range adjusted towards

we've which improvements sales while long delivered year, bookings year. continued still $X recovery also was progressed. Notably, has and compared to expand of a one sequential the productivity. year recent we quarter our more deal best pipeline improvement. performance Thanks, in Patrick. successfully a to we the especially as QX, closed than closed In QX, over to last made underscores down pipeline last the Furthermore, our X field our marking ongoing over $XXX,XXX, we million, the X and has deals

large department, in port and international client client CEM charitable the smart X an security new in shipping government win. a deal significant remaining bank a Australian top Our Mass including Notification an Middle bit largest quarter a the Among East. customers, X new general was the enterprise organization. were for a with deals, new A

win largest level deals other our emergency deals, add-ons, U.S. state in one federal at the growth notification the were government space. X Regarding and

security account. added to cross-sell In QX, new ad-on a our bringing tap also round We X large in had customer top extensions CEM into the smart a total XX X total, out CEM deals. CEM we XXX. customers CEM

While CEM average smaller customer we healthy are growth mix maintaining this and deal are new of sizes year, wins. a

In our than made the consistent due renewal Patrick our affirm noted. growth slightly executing with terms was churn was pleased A period with as we've past strategy. sequential We're metrics lower quarters retention progress of underlying in path. the contraction slight gross The year. retention, same increased was increase few last primarily to go-to-market and the

Our ] sales [ represented rising. productivity is

and CEM adding We're traction. market on our Customer position. the enhancements all And to show a our feedback customers. Our high strong assures strong balanced growth right and our satisfaction, rates reinforcing forward mix customer solid of that indicators. and renewal new product indicators track response we're positive pipeline also we're successfully are

growth As current increase growth further steadfast rates we sales deal our and In emphasize will our XXXX. environment, closing, XXXX, in in summary, the as a to productivity. grow time bookings execution confident in that of our the is year-over-year. in adjusted that XX% the are million stronger corresponding ARR improves, and our are to we achieving I We confident growth positioned $X in anticipating market contribute also a Everbridge and a in improved in demonstrated commitment In year-over-year increasing well We're third bookings market delivered remains sequentially to step-up of later quarter EBITDA size XXXX. of we assisting resilience. can leader. which in profitability another by want score customers a XXXX result the improving are bookings or we to deliver In XX%

when the their their uncertain times of We organizations and the prioritizing people are governments are continuity living in and safety of operations.

and over Our a risk facilitate [indiscernible] Everbridge our turn to world. I situational for innovating will organizations to monitor managing team market-leading to events the combine in critical a to question-and-answer the empower the with that more call now is comprehensively resilient platform period. Jason. more awareness operator

[Operator Instructions].

question comes first Raymond from James. Sklar Our Alex from

your -- just sequential quarter level realize of confidence macro or little is your color ARR visibility that's going this you there's Dave, outlook, to still quarter. just continue on of again next confidence end this remarks bit of year. a historically, your on kind on some activity important And bookings weeks growth. of assuming But bookings improved an improved terms prepared QX about just improvements. I of year, at terms an the Can bookings your no in had largest then confidence the more in talk

question. Good Yes.

our out, As I pointed improving. has pipeline been

QX we quarter, last ARR So year-over-year those QX a improving. confidence quarter, ARR cognizant year is give strong head improvement, quarter we're sequentially productivity deal that The kinds of into things is still us was and improving. as that our think strong particularly and strongest a size growth. for are average QX is about the

we expecting year, saw So not a we quarter. of expecting same we're last are the kind strength good but

to of forward which As comparables ARR course, down. [indiscernible], sequential that's and that than XXXX sequential rate compares, improvements a XXXX, again those we moving quarters those look takes hit the into the we give we'll growth up of the copper when continue with is us couple improvements where into confidence rather it ARR

follow-up you what and So alluded thank in to that's we the for the ] question. [ remarks,

on the what's or that? And driving the right. just kind And terms October? Dave then related? in Is did macro continue of comments that that can competition? don't kind Patrick, renewal it Is on you know into higher through the All elaborate was contraction, that of there. I color Great third quarter? Or if of isolate

largely of hundred huge within down up the it quarter-over-quarter. -- a consistently were to a an It largely services. quarter. was a say think but that [indiscernible] -- contracted increase and contractions have a calidated, really been hundred thousand constrained band couple It it's quarter some was I'd quarter. of and a was third the thousand third increase, we customers reviewed there third there of band couple in the [indiscernible] but We was with

bit it's throughout some seen clients So our also in the think of the budget a I of we've indicative pressures year.

Our from next question from comes Bathia Arjun William Blair.

as This these want there. most of improvements is that to are great would sales the I about to of some you to delivering Arjun. Chris of circle point to hear improvements. [indiscernible] key the the on back some productivity. It's kind What strategies

Well, effort that it's happens. a team when

about things key of we sale the of talked that's quarter improving. the happened, last tenure One with

continue one we statistically correlated retention of our of great so evidences the have. that's have And and to sales we force strongest

so quarters. a swing gotten in that last And I in think marketing one. The has really much team tighter being the groove is of couple

so I generation John and sales through full sales they've in give as journeying second is [indiscernible] team supporting efficiently it, onboard. quarter journey, more then a getting members aligned. And we're but execution credit we're seeing a a also think those of And lot it's his lot just

Our Brian next question Stephens. comes from from Colley

On in subscription any revenue? Or the guidance, in sales, the XXX% was the outlook there there? was updated the from change reduction onetime

really able the million, call subscription began story been Brian, million, exiting when $XXX $X up down years was it the And could non-subscription. we by which year-over-year, basically just over X% than improved $XXX a the rather in $X the around this offset down roughly brought continue look down year We as looking then it, we with as ASPs and at and from of at from still but about the think our year, subscription, now headwind, Patrick. and $X we're And million by you come pull $XXX million sort million, is -- with guidance, we're midpoint, nonsubscription has year-over-year. you all were of $X is year, but we that But year-over-year. early it you that to the and that together retention million X% the to is at which million.

your made product upsell Perfect. customers well? as needed any the where over that of curious Okay. an of you've terms from completing then platform. that And then, you've kind That's CEM progress over in kind I'm X about the of XXX-plus work of Anvil super today of Dave, GXK or the you CEM some convert Notification stand update those to helpful. to for talked you. some customers to converting And within Mass integration

Those asking. are Thanks both great for questions.

to quarter So RC we up for is is of X, up, ago of talked the market quarter. year-to-date. them had finishing the from go end actually on the around the call, the leveraged remaining picking The about and half. more will coming you road force the for momentum The QX, life, at to customers up. and the a But we the this migrations that cohort [indiscernible] as work It was fourth which highest will [indiscernible] by drive this migration good then with year. with year product end the of be map customers remember,

So that make worked down date. to us slow retention that did We progress. program good continues focus has on to for to

and doing will with end pleased So parity of be where feature The done then. I'm we're in life before that's going. QX,

about think size that nice nice customers. government nice exciting new A On a that wins, had opportunity We've [indiscernible] on we X We are in -- cohort really nice those there federal anchor I were a really got the bank Global a top of XXXX, accounts. upgrades. from X. is department. quarter, mix region, the U.S. account mass a Australian good an is new really deal Those second another the of the talked notification new

side, on also side. real On it the just -- the upgrade balance was upgrade

more a a migrations down add-ons had we quarter, real customer as year-over-year we CEM. customers CEM little we customer a bit of for mix think I and if CEM to the both see So last few new good think continue

from comes Berg from Scott Needham. The next question

downsell how is commentaries? making that's you X you date, not had kind of year some pretty did guess ARR, those the kind at talked pressure we there's seem but I anything the there. you're bookings know about, couple that to so on of probably up of that improvements the only $X from the the company comprising guess a I million else obviously, of do reconcile highest though didn't the if that save of quarter, least on My is positive of gap. is which seeing in far,

That's exactly it. and the primary drivers that It's there. those offsets X

million QX? Okay. revenue of but recognized why by And I'm not confused then subscription what QX. for But then back the trying it downsell in sure guess that that not little And quarter, I'm recognized help in revenue, in to you that's that Patrick, for it's just is actually that And does won't be a then is, maybe QX recognized not reason? understand follow-up, QX I convert $X all talked some about. this annual QX. a it does being come the in

Yes.

In it year. the that it recognized a to So million QX. provide the service requires was $X we primarily recognize that QX, taken recognize related QX. was and we but a subscription, recognized I we is what of XXXX, XXX only it's to talking that that it about in And has ratably, we year-over-year, us onetime ASC in annually, part something in XXXX, but

timing the that already so QX of a recognized There XXXX. other different have this of year-over-year. couple were last earlier in -- it's like been So year in is that year items

[indiscernible] ASC et customer, subscription just uniquely. couple So ongoing of will a It a of 'XX. it's revenue come XXX in next back our little year treats subscription cetera. around dollars million

in And 'XX. QX probably in

in QX Yes. 'XX. in Probably

question Berg Wells Fargo. next comes The Michael from from

on of kind a want different I take angle this. to

off, think those come very And think Your perpetual adjusted as high deal $X I of margin. by went I EBITDA guidance down about million. about when to

guidance? primarily? in you there. it the help takes some on lower perpetual the strengths set puts Is what offset some give EBITDA driving quarter the and maybe just me lower can help So Or is by level

of productivity. high a is is on our that's revenue on margin, [indiscernible] making continued much we're licenses, our back the and we've $XX-plus million of which half in the It's pressure very EBITDA. and efficiency lot a way But of it. created Look, of non-subscription -- through offset XXXX, adjusted Yes. particularly removed focus

are at at areas delivered are you revenue key coming our XX% quarter XXX, as bookings just from If and renewal time, of we've of year. same from that R&D are like the down Look productivity time, of that other percent productivity. brought up Dave improved talk deal XX%. and the We yet expansion. a a marketing, a of improving. is at couple best a look And as sales metrics Everbridge XX% couple same customer percent we've is as part just you down at XX% that up, delivered to the revenue, to sizes But of critical that's year-over-year of about adoption we our which heard to come and

improving are absorb productivity our helped and profitability we So improving of that while the our to has the impact reduction.

[indiscernible] point case. that OpEx to there's in that that, addition for accrual, and Minor

absorbing further that. for the we're so OpEx And

what doing that team the we work quarter million of of $X of think when about for just Yes. really additional last team. on talked management the that way did. the So been that thinking that is doing team But or in my about. Patrick as [indiscernible] expense next has I to I'm this proud the $X.X guidance we $X million in a bringing [indiscernible] still the about amount that related targeting we can XX%. We're management down, quarter, are million, maybe everything OpEx plan

doing of that's think [indiscernible], good what and it. I we're job been a So we've

it. Got

that off, that more I profile the normal like think EBITDA of you that you because or the it come how could originally flow the and deals through had quick Reason today one expected? as would basis. we things investor normal million OpEx to Could community you should could us adjusted gave non-GAAP the is a EBITDA be have understand part quantify $X follow-up million is ask about So a would the across the on how to what that's think just helpful I maybe perpetual help you look took like sounds EBITDA. with for it $X or

existing anticipating to to gradual Well, Yes. we continuing we EBITDA think that with XXXX, increase make and forward we're that -- can our I mentioned we're as XX% adjusted our structure it. cost we by to optimizations look exiting

et So will got related seasonality, anticipate in we would around is year There and the over with. That's margin be our EBITDA of expenses revenue then million. we've next XX% subscription whereas cetera. very QX, to is payroll of But and $XX what tax, continuing there high. on run will adjusted gross into seasonality, [indiscernible] that

we're margin. And of most million. that about half $XX.X the more a thought of talking lot So yes, licenses $XX we million -- margin than year. onetime this licenses, on last $XX The software came originally high. around there'd year. $XX reduction with to but be is be going was the million That's really to the to And out back that the million year, million really $XX.X other and the high of

-- able it. manage So we've to we've been unfortunately, had through

just call quarter you can press time core guidance, break put just so the not and on that for as forecasted. $X probably they're are the [indiscernible] the underlying my that subscription operating the inter-correction an we that it's in for services the in between that Mike, our our to coming software, out, table, versus for And And guide. so split release and damages in into you P&L have fourth first the not take historical to million the on trial for out QX for -- the just the in Anvil, in there to expenses addition through in thing that the EBITDA is that But quarter QX. just over well. adjusted accrual the then get expenses that professional of on potential

Baird. from from Power William comes question next The

is This Will [indiscernible] on for Power.

for at framework nonsubscription to So XXXX? out might do we revenue, to expect just early Or there that that piece? shake is next any decline non-subscription year? how looking Should about in you think think revenue how

in revenues. not position guide the those a to on We're do

quarterly Patrick trend deck, the As seen of guide again went of a went X maybe narration deal and couple years, there past warning a numbers we season period the those of we're public public you globally through a But a the over the record in awarded to year. going the of not investor time. with a we look been a and This at 'XX has gave awarding the script deals. quarters 'XX, last year where year, in through date this through you've

the some and we're year make ways, everything more customers those with doing this low, growing We're those this, to but So revenue. is them contextually, products working subscription. feels also it in around recurring

revenues to year time we're be demonstrated deal table to going business [ run I model. intention manage getting our on holding be is subscription onetime. on]. One is those I we've drive onetime their want to don't around will able this for expenses over a So our to thing think

laser-focused growth. we're to So in from and building way revenue nonsubscription tailwind we're on do business that run way, that the to a trying model the I'm And expecting subscription not the ARR business.

Terry Truist. The from from comes Tillman next question

This on Terry. for is [indiscernible]

Just to what curious changes of they're base? of made also, what And on better existing value the in serve customer I kind around enable with cross-sell, the your customer organization the having opportunity. upsell resilience. conversations success you've then that existing base And guess organizational

Yes.

renewal on account success a specialists. some ] [ great that's great really area managers Customer focused is question. we're and an So

We're that even the an area the that further X expecting clients, those is customers some that Now and is John work a that on. attention to teams better. make alignment lot spending of our to support with dry changes

state messages RAS deliver doesn't feedback. on like getting of clinical Everbridge journey, geo and On [indiscernible] deliver troubled really I'm just delivering services them a how messages pleased I'm XXX locations. to our time our We're on we're right service in now. the the to and And engaged into our and hard ability the and their on the -- employees clients' team environment ease to to with customer and able with in the we're use integration. clients them get deeply need. good The really

Next from Barclays. question MacWilliams comes Ryan from

year continue how I think about is return your a it's there? comments for What or early your on but focus we to know early, should any color the cash on next improvement? priorities your and flow growth

early we're year-over-year. I that ahead at of and follow-up good a that's looking a a XX% was and pointed but Ryan, focus thing more the Yes. detail EBITDA growing question most on Patrick with little mentioned

so we're will to deal much operating our performance, has quarter. we last to for as beginning the we come year, a time to with this ARR down real build, through We to be last we expect quarters. into it our year improvement pipeline next are still and productivity, on ARR rates that's can which bookings more we QX stronger this really where salespeople bigger why When important some year, quarter-over-quarter. we lapping delivering lot this had year-over-year at team the strong deliver grow. time think renewal we compares a So think later improvements you had start as in full sales rates next look continue At growth, continue year, improvements drive growth look forward strong recurring because in sizes with some I

think we what for Okay. how investors, about And I then convertible few Patrick, past to accomplish retirement. next the debt over capital plan just for [indiscernible] quarters. ahead the structure, average see few helpful slides should path guess you the glad years? The were the there. to

Sure.

cash to in through matures debt that we've get As enough got the December XXXX. we mentioned,

more Investor We -- that XXXX in in down. have mature obligation our be another December and we march $XXX generate to continue or Day X so that by to we're now that as able then, going out to to exiting satisfy And a with that will XXXX. in then, debt not at leverage profitability that will we X:X. pay flow get year to cash X. to roughly anticipate that of that We're able maybe we -- be 'XX, And then, we 'XX to -- options, to if Between that and [indiscernible] million entirely more March bank we're enough including of down of by have adjusted EBITDA X:X. this we'll pockets, could own driving number we around mentioned our will

going be like what we to late that a that satisfy of -- remaining you're to able debt able we're that don't So late confident XXXX, have know will dilutive but options lot markets be look to in different are not obligation. to we're XXXX or

[Operator And Koji Bank America. question Ikeda from Instructions] next the from comes of

Is I in bit wondering specifically question seats? if be the downsells. I there it sort great. color and on pricing? Any the to could contraction it a understand it that? of a about talk renewals had the Is help of a driving was product? on type you what's little contraction And Is certain would

[indiscernible]. primarily It's Yes.

Of course, we're lots renewals. and of dealing and lots with over customers X,XXX

aggregate the year. last So in but the retention quarter quarter-over-quarter [indiscernible] decline retention, in this the it remains where was

the certainly being in a more increase anecdotal, in of count XX the quarter, a purchased there there So quarter. to spot, the little we consolidation, in -- X reductions than was It's the it. contractions a spot operations are digital to it's but CEM But core just head was and a concentration that in part if there's our generally better not up good a our points churn it lot basis in which to some added business. bit customers want maybe

it. Got

guidance. license the then $X The to It to previous that look $X confidence one and on these and at is of in deals, I the in million the -- That's slide today. that large just deals here. is a the the of the updated reconciliation helpful. these Okay. When the ] is eventually you kind on-prem deck delays is slide a looks then noticed And will that and million It deals. cash it's what what this. reduction follow-up I question there's added additional PS guidance, was the is guide like push [ XX, here gives an due close?

working, programs know closing tell that close control governments and time bottom the nationally we but Well, to approved got at confidence the and we've take to line, can that projects. I ones you where the they're time of we pipeline, all the they -- they it's are the hard we that that national they're know can --

So gives us confidence. that's what

top larger time. next that's In we're onetime of year what the out terms this direction at of guiding all on the after yet position putting be to year and for pipeline next year goes where the

from question Rangan Goldman Kash Sachs. comes next The from

good Kash. of on A lot for This is Jacob questions ahead of me.

ones customers last new So then CEM for adds split XXX sequential total the bps, me. of of quarter on those down comp I in The stock-based customers customers. were many X% think. just many additionally, a provide couple for Can million were a how $X and how you of simple net adopted And QX. of those CEM? was was that and noticed that XX% existing revenue Yes, I versus XX% it

on basis? So we go-forward think how should that a about

I the I on don't split CEM, We in have gave in the to top CBMs a top new X. X X. but had upsells the

on our comp, pretty we roughly Yes, review. stock-based that follow-up with management works, [indiscernible] real XX-XX, up the shared team number program is comp stock-based with on the follow comps, a you're seeing nonmarket intentional others is can on X%. it clear think and to Evergreen On it's you way beginning I -- see focus committee. the

so budgets X% gross that equity years. we've we're working specific got real And that net next to in towards burn for X X% the

So to moves XXXX down we'll in thinking X% a that range. of for forward from several, of the to reasons. Everbridge perspective. high kind becomes be was of good through, new I going for moving my the normal And think, kind as way dilution closer But XXXX

closing to This turn his to over concludes remarks. the Mr. session. for Wagner conference back like question-and-answer our I'd

the remain questions endear our I growth everybody, Well, business. thank driving on the recurring we and onetime forward. on part for revenue focused of and participating. profitable [indiscernible] good you, recurring

be December including UBS you mission XX, for we'll to you on you Tech X Virtual November look on the Thank your it. next in speaking Conference soon. ability the on Needham speak few at confidence Wells and We investors road with we're those to James, rest the November going Consumer Global the Over the Tac achieve TMT December Summit Conference and XX, Barclays Conference and the on events forward Raymond the on with weeks, the Conference of our to Fargo Jason? with November our Tech conferences, several TMT at and many on X. again of supporting XX,

for Third for Conference Quarter XXXX us you today Earnings Thank Call. joining the Everbridge

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