quick Everbridge (EVBG) update

I will post Part 2 of my PayPal/Square series either later this week or early next. Before then, I want to talk about Everbridge.

Please read my last 2 posts on Everbridge (here and here) to get up to speed.

There are 4 relevant pieces of information from a statement that management released after the close last Thursday.

1) David Meredith, who was hired as CEO 2.5 years ago, is resigning. 

2) The resignation, while sudden and unexpected, “is not related to any matter regarding the Company’s financial condition, reported financial results, internal controls or disclosure controls and procedures”

3) Chief Financial Officer Patrick Bradley and Chief Revenue Officer Vernon Irvin will assume the reigns as co-CEOs, with Everbridge initiating “a search for a permanent CEO” that “will consider both internal and external candidates.”

4) Management affirms financial guidance for 4q21 and 2021 while anticipating “revenue growth of 20% to 23% in 2022, not including the impact of any potential future acquisitions” (emphasis mine).  By comparison, the consensus estimate for 2022 revenue growth was 26%.

Everbridge dropped this news in a skittish market that has been unforgiving of SMID-cap tech names deviating from expectations.  Its stock collapsed nearly 50%.