Executive Summary

Q1 2024 revenue was $111.4M (+3% YoY) with non-GAAP diluted EPS of $0.18 and adjusted EBITDA margin of 12.3%; subscription revenue grew 7% but professional services fell 36%, compressing profitability .
Relative to prior quarter, revenues declined vs Q4 2023 ($115.8M) and margins tightened (Q4 adjusted EBITDA margin 23.3% vs Q1 12.3%), driven largely by lower one-time services/licenses and mix .
Versus street expectations, multiple sources cited consensus of ~$112.1M revenue and $0.39 EPS; Q1 delivered $111.4M and $0.18, a miss on both metrics; S&P Global consensus was unavailable via our tool, so we cite third-party sources .
Strategic catalyst: Thoma Bravo raised the acquisition offer to $35/share on March 1, 2024 (closed July 2, 2024), shaping investor focus and overshadowing near-term guidance dynamics .

What Went Well and What Went Wrong

What Went Well

Subscription momentum: Subscription revenue rose to $105.3M (+7% YoY), underpinning ARR at $416M and 26 CEM customers added in the quarter .
Gross efficiency steady: GAAP gross margin of 70.9% and non-GAAP gross margin of 73.5% showed resilience despite mix shifts .
Deal activity: 37 deals >$100K and 6 deals >$500K in Q1 indicate continued enterprise traction in core CEM solutions .

What Went Wrong

One-time revenue decline: Professional services/software licenses fell to $6.1M (-36% YoY), pressuring total growth and margins .
Profitability compression: Adjusted EBITDA declined to $13.7M (from $15.9M YoY) and non-GAAP operating income fell to $8.2M (from $10.1M YoY) .
Higher tax provision and GAAP loss: GAAP net loss widened to $(20.1)M (vs $(14.6)M YoY), with a $5.35M tax provision versus $(0.84)M benefit in Q1 2023, contributing to the EPS miss .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$114.191	$115.760	$111.429
GAAP Diluted EPS ($)	$(0.23)	$(0.47)	$(0.49)
Non-GAAP Diluted EPS ($)	$0.46	$0.47	$0.18
Gross Margin (%)	71.04%	71.19%	70.9%
Adjusted EBITDA ($USD Millions)	$23.691	$27.003	$13.680
Adjusted EBITDA Margin (%)	20.7%	23.3%	12.3%
Net Loss Margin (%)	1.5% (net income)	(16.7)%	(18.0)%

Segment revenue breakdown

Revenue Source ($USD Millions)	Q3 2023	Q4 2023	Q1 2024
Subscription	$104.3	$105.6	$105.3
Professional services, software licenses & other	$9.8	$10.2	$6.1
Total	$114.2	$115.8	$111.4

KPIs and operating metrics

KPI	Q3 2023	Q4 2023	Q1 2024
Annualized Recurring Revenue (ARR) ($USD Millions)	$399	$408	$416
CEM customers added (quarter)	32	55	26
Deals >$100K (quarter)	N/A	48	37
Deals >$500K (quarter)	N/A	3	6
Deals >$1M (quarter)	N/A	1	N/A
Remaining Performance Obligations – Subscription & Other ($USD Millions)	$472	$494	$488
RPO – Next Twelve Months – Subscription ($USD Millions)	$291	$305	$302

Guidance Changes

Management did not provide new Q1 2024 guidance in the May 9 press release; investor focus centered on the amended merger agreement with Thoma Bravo and subsequent transaction closing .

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	Q2/Q3 2024	None stated	None stated	Maintained (no guidance)

Context from prior quarter (for reference): Q3 2023 release provided Q4/FY 2023 guidance ranges for revenue, non-GAAP EPS and adjusted EBITDA, which were subsequently realized in Q4 2023 results .

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not available via our tools; themes are derived from Q1 press materials, prior quarter releases and the Q1 10‑Q.

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Subscription-led growth	CFO flagged strength in subscription with one-time revenues down YoY	Subscription momentum; strong adjusted EBITDA in Q4	Subscription +7% YoY; ARR reached $416M	Improving subscription/ARR; mix shift persists
One-time services/licenses	Down ~33% YoY in Q3	Q4 outlook called for ~$6M YoY decline in one-time revenues	Professional services/licenses down 36% YoY	Continued headwind
Profitability and margins	Non-GAAP OP income $18.6M; adj. EBITDA $23.7M	Non-GAAP OP income $20.7M; adj. EBITDA $27.0M	Non-GAAP OP income $8.2M; adj. EBITDA $13.7M	Margin compression vs Q4/Q3
M&A/Go‑Shop and take‑private	Not applicable	Definitive agreement announced Feb 5	Price raised to $35/share; deal closed Jul 2	Strategic pivot to private ownership
Risk disclosures/regulatory	Standard forward‑looking risks	Standard forward‑looking risks	Transaction-related forward‑looking risks; controls and remediation emphasis in 8‑K/10‑Q	Heightened transaction focus

Management Commentary

“We delivered solid third quarter results as we continue to improve our go-to-market execution and overall operating efficiency,” said CEO David Wagner (Q3 2023) .
“Our improving profitability is supported by continued strength in our subscription revenue growth despite challenges associated with one-time services and perpetual software license revenue,” said CFO Patrick Brickley (Q3 2023) .
“We’re pleased to have negotiated an even higher price for our shareholders,” said David Henshall, Chairman and Lead Independent Director, regarding the $35 per share amended merger agreement (Mar 1, 2024) .

Q&A Highlights

A Q1 2024 earnings call transcript was not available through our document tools; no Q&A highlights could be extracted. Focus for investors shifted to transaction developments and post‑close operating plans under Thoma Bravo .

Estimates Context

S&P Global consensus data was unavailable via our estimates tool for EVBG; therefore, comparisons use third‑party sources. Multiple outlets reported Q1 2024 consensus of ~$112.1M revenue and $0.39 EPS, versus actual $111.4M and $0.18 EPS, implying misses on both .
Given the subscription strength and professional services decline, consensus may need to adjust for continued mix headwinds and lower one‑time revenues in future quarters .

Metric	Q1 2024 Consensus	Q1 2024 Actual
Revenue ($USD Millions)	$112.1	$111.4
EPS (Non-GAAP Diluted, $)	$0.39	$0.18

S&P Global consensus was unavailable via our tool for EVBG in this period.

Key Takeaways for Investors

The quarter’s core dynamic: subscription growth and ARR resilience were offset by a sharp decline in one‑time services/licenses, pressuring total growth and margin profile .
Profitability compressed vs Q4/Q3 as adjusted EBITDA and non‑GAAP operating income fell; mix and lower one‑time revenues drove deleverage .
EPS and revenue missed widely reported street expectations; the widened GAAP net loss was amplified by a higher tax provision in Q1 2024 .
Strategic overhang resolved: Thoma Bravo increased the offer to $35/share and completed the acquisition July 2, 2024; near‑term public market trading implications ceased post‑delisting, with thesis moving to execution under private ownership .
Medium‑term thesis under PE ownership likely centers on: accelerating subscription growth, continued product focus (e.g., Everbridge 360), rationalizing one‑time revenue exposure, and driving operating efficiency to restore Rule‑of‑40 trajectory noted in prior commentary .
For any future benchmarking, monitor ARR growth and RPO conversion, subscription mix, and adjusted EBITDA margin recovery as leading indicators of durable resilience .

Notes on Sources and Process

Read in full: Q1 2024 8‑K with Exhibit 99.1 press release and full financial statements .
Read prior two quarters: Q4 2023 8‑K and press release with full financials ; Q3 2023 8‑K and press release with full financials .
Additional Q1 context: amended merger agreement press releases (Mar 1, 2024) from SEC/Business Wire/Thoma Bravo, and transaction completion (Jul 2, 2024) .
Q1 2024 earnings call transcript was not found via our document tools; estimates via S&P Global were unavailable via our tool.

EVERBRIDGE, INC. (EVBG)·Q1 2024 Earnings Summary