IPO of the Week: Everbridge

Josef Schuster
Dr. Josef Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. The IPOX methodology is implemented in an IPO and spin-off strategy at Catalyst Funds. Before founding IPOX, Dr. Schuster pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.

Company Description

Everbridge

Incorporated in 2008 under the name 3n Global, Everbridge is a Burlington, MA-based software company. The company provides critical event management (CEM) and enterprise safety solutions. Everbridge offers a SaaS-based platform that enables rapid delivery of Mass Notification, Incident Management, IT Alerting, Safety Connection, Community Engagement, Secure Messaging and Internet of Things.

Business Model

Everbridge generates revenue primarily from the sale of its critical communications applications on a subscription basis. The company also recognize revenues from set-up fees and professional services such as on-site project management, consultation, creation of client-specific message and scenarios, development of ad-hoc report templates and on-site emergency and incident management reviews.

IPO History

On 9/16/2016, Everbridge debuted on Nasdaq led by Credit Suisse and BofA Merrill Lynch. The software company offered 6.25 million new shares and the selling stockholders offered 1.25 million shares. Everbridge priced at $12.00 per share, midpoint of the expected range of $11.0 – $13.0/share and was valued at $323 million at offer. The shares opened at a lukewarm $12.30/share but closed the first day with a 27.03% initial return. Everbridge was included in the IPOX® 100 U.S. Portfolio on 6/21/2019 and currently weighs approximately 0.2% of the portfolio.

Historical Performance

Growth Outlook

Industry Comparison

Company

Stock

Symbol

IPO

Date

Initial
Return

Offer to Date

2019

YTD

Beta to S&P

EPS

2018

Revenue

(in millions)

2018 Net Income

(in millions)

P/S
ratio

Everbridge

EVBG US

9/16/2016

27.03%

597%

47.36%

1.62

-$1.63

$147.09

-$47.52

15.0x

BlackBerry AtHoc

BB US

Acquired AtHoc in 2015

-4.64%

1.31

0.00

$904.00

$93.00

3.2x

Pagerduty

PD US

4/11/2019

59.38%

53.75

53.75%

1.35

-$1.91

$117.82

-$40.74

17.8x

Nuance

NUAN US

Nuance went public on 12/11/1995

17.08%

0.99

-$0.55

$2,051.66

-$159.93

2.3x