Everbridge Inc (EVBG) 2022 Q4 法說會逐字稿

Good morning, and welcome to the Everbridge Inc. Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference to Nandan Amladi, VP of Investor Relations. Please go ahead.

早上好，歡迎來到 Everbridge Inc. 2022 年第四季度收益電話會議。 （操作員說明）請注意正在記錄此事件。我現在想把會議轉給投資者關係副總裁 Nandan Amladi。請繼續。

Thank you, Anthony, and good morning, everyone. Welcome to Everbridge's Earnings Call for the Fourth Quarter and Full year 2022. With me on today's call are Everbridge's President and CEO, Dave Wagner; and Executive Vice President and CFO, Patrick Brickley.

謝謝你，安東尼，大家早上好。歡迎來到 Everbridge 的第四季度和 2022 年全年收益電話會議。今天和我一起參加電話會議的有 Everbridge 總裁兼首席執行官 Dave Wagner；執行副總裁兼首席財務官 Patrick Brickley。

Earlier this morning, we issued our earnings release, which can be accessed on the Investor Relations section of our website 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.

今天上午早些時候，我們發布了收益報告，可在我們網站 ir.everbridge.com 的投資者關係部分獲取。此電話會議正在錄音中，電話會議的重播將在今天的活動結束時在我們的投資者關係網站上提供。

During today's call, we will make forward-looking statements regarding future events or the financial performance of the company that involve certain risks and uncertainties. The company's actual results may differ materially from the projections described in such statements.

在今天的電話會議上，我們將就涉及某些風險和不確定性的未來事件或公司的財務業績做出前瞻性陳述。公司的實際結果可能與此類聲明中描述的預測存在重大差異。

Factors that might cause such differences include, but are not limited to, those discussed in our Forms 10-Q and 10-K as well as 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.

可能導致此類差異的因素包括但不限於我們在 10-Q 和 10-K 表格以及隨後向美國證券交易委員會提交的文件中討論的因素。本次電話會議中提供的信息僅反映了我們今天的觀點，不應被視為代表我們在任何後續日期的觀點。我們明確否認有義務更新任何前瞻性陳述或我們的展望。

Also during today's call, we will refer to certain non-GAAP financial measures. A reconciliation of our GAAP to non-GAAP financial measures is included in our earnings press release, which you can find on our Investor Relations website. Our earnings press release includes highlights from our fourth quarter '22 -- fiscal year '22 in addition to our financial results and outlook. After we review our business and financial highlights, we will open the call for questions.

同樣在今天的電話會議中，我們將提及某些非 GAAP 財務措施。我們的 GAAP 與非 GAAP 財務指標的對賬包含在我們的收益新聞稿中，您可以在我們的投資者關係網站上找到該新聞稿。我們的收益新聞稿除了我們的財務業績和展望外，還包括我們 22 年第四季度 - 22 財年的亮點。在我們審查了我們的業務和財務亮點之後，我們將開始提問。

With that, let me turn the call over to Dave. Dave?

有了這個，讓我把電話轉給戴夫。戴夫？

Thanks, Nandan. Good morning everyone, and welcome to Everbridge's Earnings Call for the Fourth Quarter and Full Year 2022. I am very pleased with the financial results we released earlier this morning. For the fourth quarter, we achieved revenue of $117.1 million, an increase of 14% year-over-year, adjusted EBITDA of $19.6 million, an increase of $19 million from $572,000 a year ago, and annual recurring revenue up $384 million, which is up $14 million or 4% quarter-over-quarter, our largest quarter-over-quarter increase of the year.

謝謝，南丹。大家早上好，歡迎來到 Everbridge 的 2022 年第四季度和全年收益電話會議。我對我們今天上午早些時候發布的財務業績感到非常滿意。第四季度，我們實現收入 1.171 億美元，同比增長 14%，調整後 EBITDA 為 1960 萬美元，比去年同期的 572,000 美元增長 1900 萬美元，年度經常性收入增長 3.84 億美元，這是環比增長 1400 萬美元或 4%，這是我們今年最大的環比增幅。

I am also pleased that the team executed these strong results while also executing a 10% headcount reduction in the quarter. We entered Q4 with 1,893 employees and ended the year with 1,713. Our team demonstrated incredible resilience. In addition to the strong operational results, we completed the repurchase of over $300 million in face value of our 2024 notes, reducing our net debt by approximately $28 million in the quarter. Each of these results demonstrates our commitment to execute against the plan we discussed at our Investor Day in December.

我也很高興該團隊在本季度裁員 10% 的同時取得了這些強勁的業績。我們進入第四季度時有 1,893 名員工，到年底時有 1,713 名員工。我們的團隊表現出了令人難以置信的韌性。除了強勁的運營業績外，我們還完成了 2024 年票據面值超過 3 億美元的回購，使本季度的淨債務減少了約 2800 萬美元。這些結果中的每一個都表明我們致力於執行我們在 12 月投資者日討論的計劃。

Our strategy is anchored on our 20-year commitment to keeping people safe and organizations running by digitizing organizational resilience. We deliver our customers' intelligent automation technology that empowers them to anticipate, mitigate, respond to and recover from critical events. We serve customers of all sizes, but our focus for the next 5 years will be on larger enterprises and governments with the resources to fully leverage our solutions. And we are focused on driving annual recurring revenue with the aim of achieving $1 billion in ARR over the long term.

我們的戰略基於我們 20 年的承諾，即通過數字化組織彈性來確保人員安全和組織運行。我們為客戶提供智能自動化技術，使他們能夠預測、緩解、響應關鍵事件並從中恢復。我們為各種規模的客戶提供服務，但我們未來 5 年的重點將放在擁有資源的大型企業和政府上，以充分利用我們的解決方案。我們專注於推動年度經常性收入，目標是長期實現 10 億美元的 ARR。

Our results for the fourth quarter demonstrate strong initial steps on our journey. Entering 2023, we are confident in our baseline with 6% to 7% revenue growth rate and in achieving $85 million in adjusted EBITDA. Before I go further, I will now turn the call over to our CFO, Patrick Brickley, to provide details on our financial results for the fourth quarter and full year as well as our updated outlook for 2023, after which I will return to provide more detailed commentary on the quarter. Patrick?

我們第四季度的業績表明我們邁出了堅實的第一步。進入 2023 年，我們有信心實現 6% 至 7% 的收入增長率，並實現 8500 萬美元的調整後 EBITDA。在我繼續之前，我現在將電話轉給我們的首席財務官 Patrick Brickley，以提供有關我們第四季度和全年財務業績的詳細信息以及我們對 2023 年的最新展望，之後我將返回提供更多信息本季度的詳細評論。帕特里克？

Thanks, Dave. In fiscal year 2022, we exceeded our annual targets for revenue and adjusted EBITDA. And we executed a significant restructuring program, which resulted in reductions and realignment of resources. We entered fiscal year 2023 with a leaner cost structure and an experienced leadership team in place to build a profitable organic growth business for the long term.

謝謝，戴夫。在 2022 財年，我們超出了年度收入目標和調整後的 EBITDA。我們執行了一項重要的重組計劃，從而減少和重新調整了資源。我們以更精簡的成本結構和經驗豐富的領導團隊進入 2023 財年，以建立長期盈利的有機增長業務。

I will now recap our results for the fourth quarter and full year. For full details of our P&L and reconciliation of GAAP to non-GAAP measures, please refer to our press release.

我現在將回顧我們第四季度和全年的業績。有關我們的 P&L 和 GAAP 與非 GAAP 措施的調節的完整詳細信息，請參閱我們的新聞稿。

For the fourth quarter of 2022, our ARR of $384 million was up approximately 11% year-over-year. Share of ARR coming from customers over $250,000 ticked up to 44% from 43% in the September quarter. Revenue grew 14% year-over-year to $117.1 million, reflecting our growth in ARR as well as record deliveries of onetime licenses and services of over $16 million and a modest stub of inorganic contribution from the Anvil acquisition, which was completed in November 2021.

2022 年第四季度，我們的 ARR 為 3.84 億美元，同比增長約 11%。來自 250,000 美元以上客戶的 ARR 份額從 9 月季度的 43% 上升至 44%。收入同比增長 14% 至 1.171 億美元，這反映了我們的 ARR 增長以及超過 1600 萬美元的一次性許可和服務的創紀錄交付，以及 2021 年 11 月完成的 Anvil 收購帶來的少量無機貢獻.

Adjusted gross margin was 74%, reflecting seasonally higher perpetual license mix in the quarter and improving platform efficiency. Adjusted EBITDA was $19.6 million or 17% of revenue, which is a little higher than the mid-teens adjusted EBITDA that we guided to at the outset of 2022 and is an early reflection of the streamlined cost structure with which we enter fiscal year '23. Cash flow from operations was $4.4 million compared to $10.2 million a year ago. Adjusted free cash flow was $4.6 million. This represents free cash flow adjusted for $4.2 million of onetime cash payments related to restructuring.

調整後的毛利率為 74%，反映了本季度季節性較高的永久許可組合以及平台效率的提高。調整後的 EBITDA 為 1,960 萬美元，佔收入的 17%，略高於我們在 2022 年初指導的調整後 EBITDA 中位數，這是我們進入 23 財年時採用的精簡成本結構的早期反映.運營現金流為 440 萬美元，而一年前為 1020 萬美元。調整後的自由現金流為 460 萬美元。這表示根據與重組相關的 420 萬美元一次性現金支付調整後的自由現金流。

For the full fiscal year 2022, revenue grew 17% year-over-year to $431.9 million. We entered 2023 with a purely organic growth profile, having lapped all of the acquisitions that we made in 2021 and having made no acquisitions in 2022. Adjusted EBITDA was $42.1 million or 10% of revenue compared to $11.2 million or 3% of revenue in 2021. Cash flow from operations was $20.2 million compared to $22.2 million a year ago. Adjusted free cash flow, which adjusts for $12.3 million in onetime cash payments related to our restructuring program, was $13.9 million.

在整個 2022 財年，收入同比增長 17% 至 4.319 億美元。進入 2023 年，我們實現了純有機增長，完成了我們在 2021 年進行的所有收購，並且在 2022 年沒有進行任何收購。調整後的 EBITDA 為 4210 萬美元，佔收入的 10%，而 2021 年為 1120 萬美元，佔收入的 3% . 運營現金流為 2020 萬美元，而一年前為 2220 萬美元。調整後的自由現金流為 1390 萬美元，根據與我們的重組計劃相關的一次性現金支付 1230 萬美元進行調整。

Our net revenue retention rate once again tracked at or above 110%, reflecting continued customer satisfaction combined with demand for additional Everbridge technology to expand within the existing customer base. Our momentum with large transactions continued in Q4, resulted in trailing 12 months ASP's that were again above $100,000 and a record 80 deals in the quarter that were over $100,000 in annual contract value. Additional business metrics can be found in our Investor Relations presentation posted on our website.

我們的淨收入保留率再次達到或超過 110%，反映了持續的客戶滿意度以及對更多 Everbridge 技術的需求，以在現有客戶群中擴展。我們在第四季度繼續保持大宗交易的勢頭，導致過去 12 個月的平均售價再次超過 100,000 美元，本季度創紀錄的 80 筆交易年合同價值超過 100,000 美元。其他業務指標可以在我們網站上發布的投資者關係演示文稿中找到。

In addition, we recently improved our capital structure by repurchasing approximately $316 million principal amount of our convertible debt using cash on hand of approximately $289 million, a discount of 8.75% to face value. Approximately $134 million of principal amount of 2024 notes are still outstanding, which we expect to retire using cash on hand on or before their maturity in December of 2024. We ended the fiscal year with cash and cash equivalents of approximately $199 million.

此外，我們最近通過使用約 2.89 億美元的手頭現金回購約 3.16 億美元的可轉換債券本金來改善我們的資本結構，較面值折讓 8.75%。 2024 年票據的本金中約有 1.34 億美元仍未償還，我們預計將使用手頭現金或在 2024 年 12 月到期之前償還這些票據。本財年結束時，我們的現金和現金等價物約為 1.99 億美元。

Now I'll turn to guidance. We are reiterating the guidance for fiscal year 2023 that we laid out in detail at our recent Investor Day. We expect to grow revenue in the range of 6% to 7% with adjusted EBITDA in the range of $84 million to $86 million, a margin of approximately 18.5%. We don't anticipate any significant growth in headcount during 2023. And as such, we expect that we will be poised to make additional progress towards the Rule of 40 in 2024.

現在我將轉向指導。我們重申了我們在最近的投資者日上詳細制定的 2023 財年指導方針。我們預計收入將增長 6% 至 7%，調整後的 EBITDA 將在 8400 萬至 8600 萬美元之間，利潤率約為 18.5%。我們預計 2023 年員工人數不會有任何顯著增長。因此，我們預計我們將準備在 2024 年朝著 40 條規則取得更多進展。

Our outlook for the first quarter of 2023 is as follows. We expect revenue in the range of $106.3 million to $106.7 million, reflecting year-over-year growth of approximately 6%. This represents a sequential decrease from Q4 2022, which is attributable to a sequential decrease in nonrecurring revenues. We expect adjusted EBITDA in the range of $9.8 million to $10.2 million, a margin of approximately (inaudible). As you've seen in our historical performance, our Q1 profitability tends to be pressured by seasonal patterns of headcount-related costs, primarily the timing of payroll taxes.

我們對 2023 年第一季度的展望如下。我們預計收入在 1.063 億美元至 1.067 億美元之間，同比增長約 6%。這與 2022 年第四季度相比環比下降，這是由於非經常性收入環比下降所致。我們預計調整後的 EBITDA 在 980 萬美元至 1020 萬美元之間，利潤率約為（聽不清）。正如您在我們的歷史業績中看到的那樣，我們第一季度的盈利能力往往受到員工相關成本季節性模式的壓力，主要是工資稅的時間安排。

In summary, the actions we undertook in 2022 to refocus our business and restructure our costs have positioned us well for 2023, both financially and strategically. With that, let me hand the call back over to Dave.

總之，我們在 2022 年採取的重新調整業務重點和重組成本的行動使我們在 2023 年在財務和戰略上都處於有利地位。有了這個，讓我把電話轉回給戴夫。

Thanks, Patrick. As our $14 million increase in ARR demonstrates, we had a good quarter in our recurring business. We also had a good quarter from both a new and existing customer perspective. From a new customer perspective, we added 97 total new enterprise customers in the fourth quarter, of which 50 were CEM customers, bringing our total CEM customer count to 307. Additionally, we generated 80 deals over $100,000 in the period, which is up from 66 in the fourth quarter of 2021.

謝謝，帕特里克。正如我們 1400 萬美元的 ARR 增長所表明的那樣，我們的經常性業務有一個很好的季度。從新客戶和現有客戶的角度來看，我們也有一個很好的季度。從新客戶的角度來看，我們在第四季度新增了 97 家新企業客戶，其中 50 家是 CEM 客戶，使我們的 CEM 客戶總數達到 307 家。此外，我們在此期間產生了 80 筆超過 100,000 美元的交易，高於2021 年第四季度為 66 人。

While we had strong deal velocity, we only had 1 deal over $1 million in the quarter and 4 over $500,000 in the quarter. This compares to 5 deals over $500,000 in Q4 last year. The decline is primarily due to lower perpetual bookings in the quarter. Our top 5 new customer wins in the quarter included 2 SaaS customers and 3 perpetual customers. Two of the new customers were in the government vertical, 1 was in health care, 1 was in retail and 1 was in construction development. Two of the wins were CEM wins, 2 were Smart Security wins and 1 win was in Public Warning.

雖然我們的交易速度很快，但本季度只有 1 筆交易超過 100 萬美元，4 筆超過 500,000 美元。相比之下，去年第四季度有 5 筆交易超過 500,000 美元。下降的主要原因是本季度的永久預訂量減少。我們在本季度贏得的前 5 名新客戶包括 2 名 SaaS 客戶和 3 名永久客戶。新客戶中有 2 位來自政府部門，1 位來自醫療保健行業，1 位來自零售行業，1 位來自建築開發行業。其中 2 場胜利是 CEM 勝利，2 場是 Smart Security 勝利，1 場胜利是在 Public Warning 中。

As noted earlier, our perpetual license bookings, which achieved a record level for the year were lower in Q4. This fact, coupled with the strong perpetual deliveries in the quarter, led to the lowered backlog, which we expected.

如前所述，我們的永久許可預訂量在今年達到創紀錄水平，但在第四季度有所下降。這一事實，加上本季度強勁的永久交付，導致積壓訂單減少，這符合我們的預期。

Moving on to sales to existing customers. We had another strong quarter of solution expansions. Our top 5 growth deals were all SaaS deals and they were all CEM customers. Two of the 5 were digital resilience customers and 3 were people and operational resilience customers. Two were in the finance vertical, 2 in pharmaceutical and 1 in construction development.

繼續向現有客戶銷售。我們有另一個強勁的解決方案擴展季度。我們排名前 5 位的增長交易都是 SaaS 交易，它們都是 CEM 客戶。 5 個中的 2 個是數字彈性客戶，3 個是人員和運營彈性客戶。兩個在金融垂直領域，2 個在製藥領域，1 個在建築開發領域。

Another exciting fourth quarter expansion was the Port Authority of New York and New Jersey, which oversees much of the regional transportation infrastructure, including bridges, tunnels, airports and seaports for one of the most populous regions in the country. Closing out our commentary on ARR growth, we had our largest ARR quarter-over-quarter growth of the year, driven by our strongest quarterly gross retention rate in over 2 years. We are very pleased with both gross and net retention in the quarter. Putting new wins, growth deals and retention together, our ARR in Q4 reached $384 million, up $14 million sequentially, positioning us well for 2023.

另一個令人興奮的第四季度擴張是紐約和新澤西港務局，它負責監督該國人口最多地區之一的大部分區域交通基礎設施，包括橋樑、隧道、機場和海港。在結束我們對 ARR 增長的評論時，我們獲得了今年最大的 ARR 環比增長，這得益於我們兩年多來最強勁的季度毛保留率。我們對本季度的總保留率和淨保留率感到非常滿意。將新的勝利、增長交易和保留結合在一起，我們在第四季度的 ARR 達到 3.84 億美元，比上一季度增長 1400 萬美元，為 2023 年做好了準備。

The share of total ARR coming from customers of $250,000 or more ticked up slightly to 44%, reflecting a nice growth in agreements with existing customers.

來自 250,000 美元或以上客戶的總 ARR 的份額略微上升至 44%，反映出與現有客戶的協議增長良好。

In addition to our go-to-market successes, we continue to focus on simplifying our product offerings and making strategic product integrations in order to increase our efficiency and velocity to improve profitability.

除了我們的上市成功之外，我們繼續專注於簡化我們的產品供應和進行戰略性產品整合，以提高我們的效率和速度，從而提高盈利能力。

From an innovation perspective, we recently introduced a new AI-powered situational awareness tool, DigitalOps Insights to our digital operations solutions bundle. This solution enables incident commanders and resolvers to gain deep visibility into IT service disruptions. And it helps organizations save time, maintain customer satisfaction, deliver continuous service uptime and innovate.

從創新的角度來看，我們最近在我們的數字運營解決方案包中引入了一種新的人工智能態勢感知工具 DigitalOps Insights。該解決方案使事件指揮官和解決者能夠深入了解 IT 服務中斷。它還可以幫助組織節省時間、保持客戶滿意度、提供持續的服務正常運行時間和創新。

From an implementation perspective, we are very proud of the fact that we successfully deployed the Norwegian Public Safety System in December that we were just awarded in September. Along with the Norwegian government and our partners, we implemented the system in record time, strengthening our reputation as the undisputed leader in this market. This public safety solution will help keep Norway's more than 5 million residents and nearly 7 million annual visitors safe and informed in case of an emergency. Norway is an innovative country and one of the first countries in the world to implement location-based technology to inform and protect its people.

從實施的角度來看，我們感到非常自豪的是，我們在 12 月成功部署了挪威公共安全系統，而我們在 9 月剛剛獲得獎勵。我們與挪威政府和我們的合作夥伴一起，以創紀錄的時間實施了該系統，鞏固了我們作為該市場無可爭議的領導者的聲譽。這一公共安全解決方案將有助於確保挪威超過 500 萬居民和每年近 700 萬遊客的安全，並在緊急情況下及時通知。挪威是一個創新的國家，也是世界上最早實施基於位置的技術來通知和保護其人民的國家之一。

We accomplished all of the above while meaningfully improving our profitability and building our leadership team for the future. We added several key individuals to the leadership team and to our Board this past quarter. Let me briefly introduce you to each of them. In December, Noah Webster joined as our Chief Legal and Compliance Officer and Corporate Secretary. He has over 20 years of legal experience, including negotiating agreements security, compliance, litigation and M&A. Noah is responsible for leading and managing all legal, compliance and risk management programs at the company as well as our ongoing ESG efforts. I've known Noah for several years from our time together at Zix, and I am incredibly excited to have him on board with us.

我們實現了上述所有目標，同時顯著提高了我們的盈利能力，並為未來打造了我們的領導團隊。上個季度，我們在領導團隊和董事會中增加了幾位關鍵人物。讓我向您簡要介紹一下他們中的每一個。 12 月，Noah Webster 加入我們，擔任我們的首席法律與合規官兼公司秘書。他擁有超過 20 年的法律經驗，包括談判協議安全、合規、訴訟和併購。 Noah 負責領導和管理公司的所有法律、合規和風險管理計劃以及我們正在進行的 ESG 工作。從我們一起在 Zix 開始，我就認識 Noah 好幾年了，我非常高興他能加入我們。

In January, we announced the appointment of Bryan Barney as our new Chief Product Officer. Bryan is responsible for leading Everbridge's global product development strategy, strengthening our platforms and integrating our products. His extensive background in enterprise software and cybersecurity leadership positions, working for companies like RedSeal, Symantec, Sophos and McAfee position him well to lead our product vision.

一月份，我們宣布任命 Bryan Barney 為我們的新首席產品官。 Bryan 負責領導 Everbridge 的全球產品開發戰略，加強我們的平台並整合我們的產品。他在企業軟件和網絡安全領導職位方面擁有廣泛的背景，曾在 RedSeal、賽門鐵克、Sophos 和 McAfee 等公司工作，這使他能夠很好地領導我們的產品願景。

And last week, we announced the appointment of John Di Leo as our new Chief Revenue Officer. John is an extraordinarily customer-focused leader who brings out the best in his teams and works to align the entire organization in support of the customer. He also brings extensive international experience to his role. John and I worked together both at Zix and Entrust. At Everbridge, John will spearhead our go-to-market motions and focus our sales teams on growth and improving our overall go-to-market efficiency.

上週，我們宣布任命 John Di Leo 為我們新的首席營收官。 John 是一位非常以客戶為中心的領導者，他在他的團隊中發揮了最好的作用，並努力使整個組織協調一致以支持客戶。他還為自己的角色帶來了廣泛的國際經驗。 John 和我曾在 Zix 和 Entrust 一起工作。在 Everbridge，John 將帶頭推動我們的上市行動，並讓我們的銷售團隊專注於增長和提高我們的整體上市效率。

We also added 2 new Board members, David Benjamin and Rohit Ghai. Both bring additional skills and experiences to help shepherd our company through its next phase of growth. David Benjamin is currently the Executive Vice President and Chief Commercial Officer for Blackbaud. His international experience and track record in accelerating public companies' commercial offerings will be invaluable to our go-to-market expansion efforts.

我們還增加了 2 名新的董事會成員，David Benjamin 和 Rohit Ghai。兩者都帶來了額外的技能和經驗，以幫助我們公司度過下一階段的發展。 David Benjamin 目前是 Blackbaud 的執行副總裁兼首席商務官。他在加速上市公司商業產品方面的國際經驗和往績對於我們的上市擴張工作將是無價的。

Rohit Ghai is the CEO of RSA Security and brings a deep cybersecurity understanding to Everbridge, which will further bolster us in one of our top focus areas of board governance and risk management. Rohit also has a strong product management background, delivering technologies to market at scale which will also be a valuable addition. These leadership and Board appointments further strengthen us as a team.

Rohit Ghai 是 RSA Security 的首席執行官，他為 Everbridge 帶來了深刻的網絡安全理解，這將進一步支持我們在董事會治理和風險管理的首要關注領域之一。 Rohit 還擁有強大的產品管理背景，可以將技術大規模推向市場，這也將是一個有價值的補充。這些領導層和董事會任命進一步加強了我們的團隊實力。

In summary, we delivered a solid financial performance in Q4 as we continue to make progress on our long-term financial goals. We are implementing the strategy outlined during our Investor Day in December. And we are entering the year with a strong foundation to achieve our goals for 2023. We are building a foundation focused on delivering consistent, profitable growth on our way to $1 billion in annual recurring revenue. I look forward to updating you on our progress in the coming quarters. We're now ready to open the call for questions. Anthony?

總而言之，隨著我們在長期財務目標方面繼續取得進展，我們在第四季度實現了穩健的財務業績。我們正在實施 12 月投資者日期間概述的戰略。進入新的一年，我們為實現 2023 年的目標打下了堅實的基礎。我們正在建立一個專注於實現持續盈利增長的基礎，從而使我們的年度經常性收入達到 10 億美元。我期待著向您通報我們在未來幾個季度的進展情況。我們現在準備好開始提問了。安東尼？

(Operator Instructions) Our first question will come from Alex Sklar with Raymond James.

（操作員說明）我們的第一個問題將來自 Alex Sklar 和 Raymond James。

David or Patrick, I want to ask how you're thinking about bookings velocity for 2023, given the macro as part of that 6% to 7% revenue guide outlook. Should we think of ARR or RPO growth that should track -- that track kind of that revenue growth framework?

大衛或帕特里克，我想問你如何看待 2023 年的預訂速度，因為宏觀是 6% 到 7% 的收入指導前景的一部分。我們是否應該考慮應該跟踪的 ARR 或 RPO 增長——跟踪那種收入增長框架？

So that's a good question. The first thing I think about it in terms of the bookings is the normal seasonality. And so we're entering Q1, which tends to be our lower quarter of the year. When I think about it, I think about the ARR velocity that we're generating in these deals more than $100,000 and below, and those are things that really give me confidence looking forward. And I combine that with -- for me, the highlight of the quarter personally was that gross retention rate returning to its highest level in 2 years.

所以這是一個很好的問題。就預訂而言，我首先想到的是正常的季節性。所以我們正在進入第一季度，這往往是我們今年下半年的季度。當我想到它時，我想到了我們在這些交易中產生的 ARR 速度超過 100,000 美元及以下，這些確實讓我充滿信心。我將其與 - 對我而言，本季度的亮點個人是總保留率恢復到 2 年來的最高水平。

But from a bookings velocity perspective, we're really focused on the recurring bookings, our pipeline for perpetual deals remains solid. But as you know, those large government deals are more inconsistent in their timing.

但從預訂速度的角度來看，我們真正專注於經常性預訂，我們的永久交易渠道仍然穩固。但如您所知，那些大型政府交易在時間上更加不一致。

Okay, great. And I guess Patrick, kind of a somewhat of a related question, but given the increased focus on CEM, can you help frame kind of the embedded growth in the 2023 outlook that you're thinking about from CEM versus maybe Mass Notification or other parts of the business?

好的，太好了。我想帕特里克，這是一個有點相關的問題，但鑑於對 CEM 的關注度越來越高，你能否幫助構建你正在考慮的 2023 年前景中的嵌入式增長，而不是 Mass Notification 或其他部分業務？

Well, Alex, you see in the results from Q4, CEM is really helping to propel the business. This evolution of the ways in which businesses approach resilience is driving a more digitized approach and we're the leader in the space. So we had a great CEM quarter. We're continuing to focus on platform adoption and moving customers up the CEM stack. Mass Notification is also very important but that's a piece of CEM and we really want to be focused on CEM as we move forward.

好吧，亞歷克斯，你在第四季度的結果中看到，CEM 確實有助於推動業務發展。企業應對彈性的方式的這種演變正在推動一種更加數字化的方法，而我們是該領域的領導者。所以我們有一個很棒的 CEM 季度。我們將繼續專注於平台採用和將客戶提升到 CEM 堆棧。 Mass Notification 也非常重要，但這是 CEM 的一部分，我們真的希望在前進的過程中專注於 CEM。

Our next question will come from Matt Stotler with William Blair.

我們的下一個問題將來自 Matt Stotler 和 William Blair。

Maybe first on the CEM net adds. Obviously, very strong in the quarter, above 50, nearly 2x anything you've seen prior in terms of quarterly adds and acceleration in terms of the year-over-year growth rate. I would love to get some more color on what's working there on the CEM standpoint. And then is this something that's attributable more to Q4 seasonality? Or is this a structurally higher capacity when you think about the ability to grow the CEM cohort with the recent changes you've made to the business?

也許首先在 CEM 網上添加。顯然，本季度非常強勁，超過 50，幾乎是你之前看到的季度增長和同比增長率加速的兩倍。我很樂意從 CEM 的角度了解更多關於在那里工作的內容。那麼這是否更多地歸因於第四季度的季節性？或者當您考慮通過最近對業務所做的更改來增加 CEM 隊列的能力時，這是結構上更高的容量嗎？

So that's a good question. Those adds are probably the focus area of our go-to-market strategy, especially as we're aligning into 2023. We're paying particular attention to propensity models, account-based marketing for new CEM wins as well as driving the expansions of our existing point solution customers up into CEM.

所以這是一個很好的問題。這些增加可能是我們進入市場戰略的重點領域，尤其是在我們調整到 2023 年的時候。我們特別關注傾向模型、基於客戶的營銷以贏得新的 CEM 以及推動 CEM 的擴張我們現有的單點解決方案客戶進入 CEM。

One of the things that worked well in Q4, as I noted before, the migrations of the Risk Center customers into CEM. That program kicked in, in Q4. We expect that to be a steady contributor throughout the course of 2023. And then related to that, at a more macro level, I'm not so concerned about CEM versus new customer wins. We know from experience that once we get a customer win into the Everbridge family, the expansion happens as they mature their resilience strategy. So we remain also excited about point solution wins that will grow into CEM over time.

正如我之前提到的，在第四季度運作良好的事情之一是風險中心客戶向 CEM 的遷移。該計劃於第四季度啟動。我們預計這將在整個 2023 年期間成為一個穩定的貢獻者。然後與此相關，在更宏觀的層面上，我不太關心 CEM 與新客戶的勝利。我們從經驗中知道，一旦我們贏得客戶加入 Everbridge 家族，隨著他們的彈性戰略成熟，擴張就會發生。因此，我們仍然對點解決方案的勝利感到興奮，這些勝利將隨著時間的推移發展成為 CEM。

So it's a really important indicator. I won't be surprised if we have quarters that move around a little bit as we continue to execute the strategy. And I'm probably answering somebody else's question, but one of the things I think you were asking about is just overall capacity for delivering CEM deals in particular but deals of all kinds. And we highlighted in November the fact that we did take some sellers out of the organization in early, mid-Q4.

所以這是一個非常重要的指標。如果我們在繼續執行該戰略時有一些季度變動，我不會感到驚訝。我可能正在回答其他人的問題，但我想你問的其中一件事就是提供 CEM 交易的總體能力，特別是各種交易。我們在 11 月強調了一個事實，即我們確實在第四季度初、中期將一些賣家從組織中移除。

And we talked about that 6% to 7%, allowing for some reduction in capacity, theoretical capacity from those sellers. As we lean into 2023, we're really focused on retention of our -- of everybody in the company, of course, but those quota-bearing reps that retention and the expansion of capacity that's going to come through tenure. And so we're making good progress on that [OKR] as we kind of hit the midpoint of Q1. So that's a really long answer to a straightforward question. Does that help you, Matt?

我們談到了 6% 到 7%，允許這些賣家的產能和理論產能有所減少。當我們進入 2023 年時，我們真正關注的是保留我們公司的每個人，當然，但那些配額代表將通過任期保留和擴大能力。因此，當我們達到第一季度的中點時，我們在 [OKR] 方面取得了良好進展。所以這是對一個簡單問題的非常長的回答。這對你有幫助嗎，馬特？

Yes. That's super helpful. I appreciate that. As a follow-up, obviously, at this point, you mentioned that you're substantially done with the workforce restructuring as we've talked about so far. When you look at the technology side of things and the continued efforts to integrate everything, both in the back and the front end and kind of continue moving towards this true platform model, do you have an update on where you are in that process and maybe the updated time line for completion on that front as well?

是的。這非常有幫助。我很感激。作為後續行動，很明顯，在這一點上，你提到你已經基本上完成了我們目前所討論的勞動力重組。當您審視事物的技術方面以及在後端和前端集成一切的持續努力以及繼續朝著這個真正的平台模型邁進時，您是否了解您在該過程中所處的位置，也許在這方面完成更新的時間表？

Yes. I'll hit that in 2 ways. One, I'm really pleased with the teammates who worked with me in that brief interim, Chief Product Officer that I did with -- along with Happy Wang who you met at Investor Day. Also very pleased with the addition of Bryan Barney to the leadership team. His experience, particularly at McAfee but also the other companies where he's been. He has so much pattern recognition from those experiences with building platforms, incorporating acquired technologies.

是的。我會用兩種方式來解決這個問題。第一，我真的很高興在短暫的過渡期間與我共事的隊友，與我共事的首席產品官 - 以及你在投資者日遇到的 Happy Wang。對 Bryan Barney 加入領導團隊也感到非常高興。他的經歷，尤其是在 McAfee 以及他去過的其他公司。他從構建平台、整合獲得的技術的經驗中獲得瞭如此多的模式識別能力。

And so he's early in his journey, but I'd just tell you, I'm already really impressed with how he's digging into the technology, digging into the platform architecture and further aligning the team to enhance our velocity. So we still have a lot of wood to chop, but I am really confident 6 months into my journey and 6 weeks into Bryan's journey, that we got the right team and the right things moving forward from a product platform perspective.

所以他的旅程還很早，但我只想告訴你，我已經對他如何深入研究技術、深入研究平台架構並進一步調整團隊以提高我們的速度印象深刻。所以我們還有很多事情要砍，但我真的很有信心在我的旅程 6 個月和 Bryan 的旅程 6 週後，從產品平台的角度來看，我們有合適的團隊和正確的事情向前發展。

Our next question will come from Brian Colley with Stephens.

我們的下一個問題將來自 Brian Colley 和 Stephens。

So over the last couple of quarters, your messaging has kind of suggested the macro wasn't really having a material impact on the results. I'm curious whether or not that was still the case in 4Q and today. And kind of how the sales pipeline trended throughout the quarter? And how you would characterize the demand environment today?

所以在過去的幾個季度裡，你的消息有點暗示宏並沒有真正對結果產生實質性影響。我很好奇第四季度和今天是否仍然如此。整個季度的銷售渠道趨勢如何？您如何描述當今的需求環境？

That's a really good question. To me, the key indicators from the script were one, that increasing velocity in $100,000 deal range. The interesting, to me, other number was the 4 deals over $500,000 versus 5 a year ago and actually down quite a bit from the Q2, Q3 quarters. So that larger deal velocity slowed a bit in the quarter. And then the third piece that I'm really -- get to me, the highlight of the quarter was the gross retention number getting back to a multiyear high. So we -- it's 90 days later, we remain really confident in the 6% to 7% baseline growth, which we built, as you'll recall, and not expecting an overly robust outlook as we look forward in 2023.

這真是個好問題。對我來說，腳本中的關鍵指標是一個，即在 100,000 美元的交易範圍內增加速度。對我來說，另一個有趣的數字是 4 筆交易超過 500,000 美元，而一年前只有 5 筆，實際上比第二季度和第三季度下降了很多。因此，本季度較大的交易速度有所放緩。然後是我真正要說的第三點——對我來說，本季度的亮點是總保留率回到多年高位。所以我們 - 90 天后，我們仍然對我們建立的 6% 至 7% 的基線增長充滿信心，正如您所記得的那樣，並且不會像我們期待的 2023 年那樣期望過於強勁的前景。

Got it. And then for a follow-up, I was wondering if you could just provide an update on where you are with regard to divesting or end-of-life-ing the non-core assets that you talked about, the remaining $4 million to $8 million of ARR. And how much of that impacted 4Q '22? And are you including any revenue from those assets in the 1Q guide and for the full year as well?

知道了。然後對於後續行動，我想知道您是否可以提供有關剝離或報廢您談到的非核心資產的最新情況，剩餘的 400 萬至 8 美元萬美元的 ARR。其中有多少影響了 22 年第四季度？您是否將這些資產的任何收入包括在 1Q 指南中以及全年？

Brian, it's Patrick. We -- there was no impact in Q4. We do have a divestiture under LOI that we are on track to execute shortly here over the next couple of weeks, and that's a few million dollars of ARR. We have a couple of smaller opportunities that we're looking to execute on by the end of the quarter. And throughout the year, we'll continue to work through the portfolio analysis. Dave -- as Dave mentioned, Bryan is onboarding, applying a fresh set of eyes, and I anticipate throughout the year, we'll continue to have opportunities that we'll take advantage of in order to find better homes for certain assets.

布賴恩，是帕特里克。我們——第四季度沒有影響。我們確實根據 LOI 進行了資產剝離，我們有望在接下來的幾週內很快在這裡執行，這是幾百萬美元的 ARR。我們有幾個較小的機會，我們希望在本季度末執行。全年，我們將繼續進行投資組合分析。戴夫——正如戴夫提到的那樣，布萊恩正在入職，採用全新的眼光，我預計全年，我們將繼續有機會利用這些機會為某些資產找到更好的住所。

And our guide, it does anticipate that there could be some potential headwind related to divestiture, but these are all relatively small. That was part of the bridge that we provided at the Investor Day from 2022 growth to the guide of 2023 revenue growth of 6% to 7%. There are -- there is $4 million to $8 million of ARR that is up for potential divestiture that we've identified today, and we've got just shy of half of that under LOI as we speak.

而我們的指南，它確實預計可能會有一些與資產剝離相關的潛在逆風，但這些都相對較小。這是我們在投資者日提供的從 2022 年增長到 2023 年 6% 至 7% 收入增長指導的橋樑的一部分。有 - 有 400 萬至 800 萬美元的 ARR 可供我們今天確定的潛在資產剝離，而我們在 LOI 下只剩下一半。

Our next question will come from Michael Turrin with Wells Fargo Securities.

我們的下一個問題將來自富國銀行證券公司的 Michael Turrin。

You got Michael Berg on for Michael Turrin. Congrats on the quarter. I wanted to dive into what's taking the guidance, specifically your Rule of 40 implied for the year, is a tick under what you just performed in fiscal '22. So if you could walk us through if there's any level of conservatism, whether it's from macro or a sales pipeline or even on the cost side that you could walk us through.

你讓 Michael Berg 代替 Michael Turrin。祝賀這個季度。我想深入了解指導的內容，特別是你今年隱含的 40 條規則，是你剛剛在 22 財年所做的事情的一個標記。因此，如果存在任何程度的保守主義，無論是來自宏觀還是銷售渠道，甚至是成本方面，您都可以引導我們通過。

So the biggest contributor to that difference is the acquired revenue, the inorganic growth that we had in the revenue number last year. And so there's not an exact pinpoint on that, but that's where we kind of walked through the [21%, 19%, '17%], 14% ending revenue growth rates. So that's kind of the first big jumpoff is we're entering 2023 with a purely organic growth rate.

因此，造成這種差異的最大因素是收購收入，即我們去年收入數字的無機增長。因此，對此沒有確切的定位，但這就是我們經歷了 [21%、19%、'17%]、14% 的最終收入增長率的地方。所以這是第一個大躍進，我們將以純有機增長率進入 2023 年。

And then, of course, we built in -- we just talked about the $4 million to $8 million, of which $4 million or just under $4 million has already been -- was under LOI. It's out of the ARR number. It's out of the revenue guide. So the remaining would be [0 to 5] in our -- what could come out for future divestitures. So as Patrick said, those would be small. We had that lapping a large customer. So we have that detailed waterfall from the Investor Day that kind of brings you -- and then I guess the other one is we're planning for flat onetime perpetual software and SaaS year-over-year. So the combination of those 5 factors brings that waterfall together from last year's overall growth rate to the baseline 6% to 7% we had guided for 2023.

然後，當然，我們內置 - 我們剛剛談到了 400 萬到 800 萬美元，其中 400 萬美元或略低於 400 萬美元已經在 LOI 之下。它超出了 ARR 號碼。它超出了收入指南。所以剩下的將是我們的 [0 到 5] - 未來資產剝離可能會出現什麼。正如帕特里克所說，那些會很小。我們有一個大客戶。因此，我們從投資者日獲得了詳細的瀑布，這給你帶來了——然後我想另一個是我們正在計劃逐年固定的一次性永久軟件和 SaaS。因此，這 5 個因素的結合使這一瀑布從去年的整體增長率上升到我們為 2023 年指導的 6% 至 7% 的基線。

And just real quick on the cost side, we've -- the restructuring actions that we took already during 2022 will improve our profitability in '23 relative to '22, and we'll continue to be optimizing the business throughout '23. And that will set us up for continued improvement in profitability we expect as we head into '24. So we've taken a lot of cost actions that will improve profitability, cash flow. As Dave said, we have to work through some comps on revenue. But you see with the ARR growth that we do think we're moving in the right direction for the long term.

在成本方面，我們已經做到了——我們在 2022 年已經採取的重組行動將提高我們在 23 年相對於 22 年的盈利能力，我們將在整個 23 年繼續優化業務。這將使我們在進入 24 世紀時繼續提高預期的盈利能力。因此，我們採取了很多成本措施來提高盈利能力和現金流。正如戴夫所說，我們必須通過一些收入補償來解決問題。但是你看到 ARR 的增長，我們確實認為我們正在朝著正確的方向長期發展。

A quick follow-up on ARR seasonality. We have the last 4 quarters now. In terms of net new ARR additions, can we think of the type of levels being the typical seasonality for ARR progression throughout the year, but pretty similar from Q1 to Q2 and Q2 to Q3 then a nice big jump in Q4?

快速跟進 ARR 季節性。我們現在有最後 4 個季度。就新增 ARR 淨額而言，我們是否可以認為這種水平類型是 ARR 全年進展的典型季節性，但從第一季度到第二季度以及從第二季度到第三季度非常相似，然後在第四季度有一個很好的飛躍？

Q4's seasonality a good quarter, right? So we're pleased that we had the highest quarter-over-quarter growth of the year. Those are -- those being the last 4 quarters printed the 2022 quarters. Those are the only "good numbers" we have going forward as we did that going back and recreating ARR numbers. We did not go back into with the level of time back into the prior year. So we're going to be having good year-over-year compares beginning next quarter.

Q4 的季節性很好，對吧？因此，我們很高興我們實現了今年最高的季度環比增長。這些是 - 過去 4 個季度印製了 2022 年的季度。這些是我們向前推進的唯一“好數字”，因為我們回過頭來重新創建 ARR 數字。我們沒有回到前一年的時間水平。因此，從下個季度開始，我們將進行良好的同比比較。

But at the highest level, we would expect the Q4 bump to be the highest kind of quarter-over-quarter month of the year. And then -- but as you know, ARR, it should be a pretty stable indicator of the predictability of the business as we move that steadily upward throughout the course of the year.

但在最高水平上，我們預計第四季度的增長將是一年中最高的季度環比月份。然後 - 但正如你所知，ARR，隨著我們在全年穩步上升，它應該是業務可預測性的一個非常穩定的指標。

Our next question will come from Terry Tillman with Truist.

我們的下一個問題將來自 Truist 的 Terry Tillman。

Maybe Dave, for you in terms of the Risk Center migrations, it sounds like that was kind of a newer kind of play or a strategy that was unfolding and may have benefited 4Q. Could you give us a sense on just the size and scope of that opportunity as we progress through '23? And is that going to be something that lingers in a positive way into 24? Just a little bit more on how the Risk Center migrations could help some of the KPIs still in '23?

也許戴夫，就風險中心遷移而言，對你來說，這聽起來像是一種新的遊戲或正在展開的戰略，可能使第四季度受益。隨著我們在 23 年的進展，您能否讓我們了解一下這個機會的規模和範圍？這會以積極的方式持續到 24 歲嗎？關於風險中心遷移如何幫助一些仍在 23 年的 KPI 的更多信息？

Yes. That's a good question, Terry. And so we talked about that last quarter, the total population entering last quarter was 175 target customers. We successfully migrated about 10 of them last quarter. That's the pace we expect for the next couple of quarters. As we are digging into those customers, there's a little more reticence to move from on-prem to the cloud than we had expected. We're going to focus on moving that cohort with its retention goal, number one; growth goal number two, and cost savings, getting them gone as objective number three. So I expect to be -- that to be a pretty steady opportunity to move customers and drive ARR growth as those moves that through the course of 2023. And then I also do expect it to linger into 2024.

是的。這是個好問題，特里。所以我們談到了上個季度，進入上個季度的總人口是 175 個目標客戶。我們在上個季度成功遷移了其中的大約 10 個。這是我們對未來幾個季度的預期速度。當我們深入研究這些客戶時，從本地部署到雲的遷移比我們預期的要謹慎一些。我們將專注於以其保留目標（第一個）移動該隊列；增長目標第二，成本節約，將它們作為第三目標。因此，我預計這將是一個相當穩定的機會，可以在 2023 年期間移動客戶並推動 ARR 增長。然後我也確實預計它會持續到 2024 年。

Okay, got it. And Patrick, maybe this is something I missed and it's a really simple question, simple answer. But in terms of the total mix of business that's perpetual licensed, what's the assumption for '23 as opposed to what happened in '22?

好，知道了。帕特里克，也許這是我錯過的，這是一個非常簡單的問題，簡單的答案。但就永久許可的業務總體組合而言，與 22 年發生的情況相比，23 年的假設是什麼？

Yes. Terry, right now, we're anticipating about flat in '23 relative to '22, and '22 was up about 20% from '21. So it was the delivery of nonrecurring licenses as well as a lot of our services, which are nonrecurring. We had record amounts in '22, specifically in Q4. We don't anticipate setting new records as we enter '23.

是的。特里，現在，我們預計 23 年相對於 22 年持平，而 22 年比 21 年增長了約 20%。所以這是非經常性許可證的交付以及我們的許多服務，這些都是非經常性的。我們在 22 年創下了記錄，特別是在第四季度。當我們進入 23 年時，我們預計不會創造新記錄。

Our next question will come from Ryan MacWilliams with Barclays.

我們的下一個問題將來自巴克萊銀行的 Ryan MacWilliams。

Good to see strong wins in CEM, the larger customers, along with the sequential improvement in ARR. Patrick, how should we think about the year-over-year growth in ARR for 2023 as it relates to the revenue guidance?

很高興看到 CEM 和更大客戶的強勁勝利，以及 ARR 的連續改善。帕特里克，我們應該如何考慮與收入指導相關的 2023 年 ARR 的同比增長？

Well, Ryan, we don't guide to ARR but we are -- as we continue to focus the business on -- as we mentioned at our Investor Day, on Critical Event Management and on our sort of BHAG of getting 1,000 customers to 250 ARR or greater and working with their existing base to move them up to the CEM stack. We want to see ARR growth in double digits. And as we work through headwinds in terms of lapping the nonrecurring revenue, we anticipate that will translate into similar pace of revenue growth. But that's going to take a number of quarters as we work through all of that.

好吧，Ryan，我們不指導 ARR，但我們是——因為我們繼續將業務重點放在——正如我們在投資者日、關鍵事件管理和我們將 1,000 名客戶增加到 250 名客戶的 BHAG 上提到的那樣ARR 或更高級別，並與他們現有的基地合作，將他們提升到 CEM 堆棧。我們希望看到 ARR 以兩位數的速度增長。當我們克服非經常性收入方面的逆風時，我們預計這將轉化為類似的收入增長速度。但在我們完成所有這些工作時，這將需要幾個季度。

Excellent. And just on the free cash flow side, anything to think about as we move past the workforce restructuring? Or maybe just any differences of how the free cash flow line to play out in 2023 versus 2022?

出色的。就自由現金流而言，在我們完成勞動力重組時有什麼需要考慮的嗎？或者可能只是自由現金流量線在 2023 年與 2022 年的表現有何不同？

Yes, yes. No major differences. The timing in '22 was a little unique in that. In Q3, we had a lot more operating cash flow than we usually do in Q3, and we -- some things happened in Q3 that would typically happen in Q4. But in terms of the full year, we -- the result was what we had anticipated. And 2023 will be higher. The restructuring cash outflow will be almost entirely wrapped up in the first half of '23.

是的是的。沒有重大差異。 22 年的時機在這方面有點獨特。在第三季度，我們的運營現金流比通常在第三季度多得多，而且我們 - 第三季度發生的一些事情通常會在第四季度發生。但就全年而言，我們 - 結果是我們預期的。 2023年會更高。重組現金流出將在 23 年上半年幾乎全部結束。

And we'll continue to call that out so that you have clear line of sight to it. But beyond that, as our adjusted EBITDA grows, our operating cash flow will grow and our free cash flow will grow. And the major differences between operating and free cash flow will continue to be the capitalized software development. And that's something that will remain relatively static in '23 compared to '22.

我們將繼續大聲疾呼，以便您清楚地看到它。但除此之外，隨著我們調整後的 EBITDA 增長，我們的經營現金流將增長，我們的自由現金流也將增長。經營現金流和自由現金流之間的主要區別將繼續是資本化的軟件開發。與 22 年相比，23 年將保持相對穩定。

Our next question will come from Parker Lane with Stifel.

我們的下一個問題將來自 Stifel 的 Parker Lane。

This is Matthew Kikkert on for Parker. To start, you mentioned record gross retention rates despite reducing headcount. I'm just wondering, kind of what led to that combination of outcomes and you are not seeing a decline in that, right? And do you expect that to continue into 2023?

這是派克的 Matthew Kikkert。首先，您提到了儘管裁員但創紀錄的總保留率。我只是想知道，是什麼導致了這種結果的組合，而你並沒有看到這種情況的下降，對吧？你預計這種情況會持續到 2023 年嗎？

Yes, that's a great question, Matthew. Thank you. So it was not an all-time record but highest in 2 full years. I really point that primary piece to the Board's decision to pause through M&A and then our execution of the leadership team, really getting our arms around every customer renewal, whether it's legacy Everbridge or newly acquired.

是的，這是一個很好的問題，馬修。謝謝。所以這不是歷史記錄，而是兩年來的最高記錄。我真正指出的主要部分是董事會決定暫停併購，然後是我們領導團隊的執行，真正地抓住每一個客戶續約，無論是遺留的 Everbridge 還是新收購的。

And so I do expect -- I think that's the third important piece is that customers are using our solution, liking it and retaining it. So I think there were just a couple of maybe 100 basis points of execution improvement the team was able to gather in as they pause material M&A and got the acquired cohorts really in command in the customer success motions that the company has used for years around its cohorts.

所以我確實期望——我認為這是第三個重要的部分，那就是客戶正在使用我們的解決方案，喜歡它並保留它。因此，我認為團隊在暫停實質性併購時能夠收集到大約 100 個執行改進點，並讓收購的團隊真正掌握公司多年來使用的客戶成功動議同夥。

We had some -- then some real specific great execution by the team that I'm pleased about. But I do expect us to be off the lows we saw mid last year. I don't expect us to be going back there. So I leave the Q4 number, extremely pleased with that and expecting improvement from where we were, obviously, Q2 and Q3 last year to continue.

我們有一些 - 然後是我很高興的團隊的一些真正具體的出色執行。但我確實希望我們能夠擺脫去年年中的低點。我不希望我們回到那裡。所以我離開了第四季度的數字，對此非常滿意，並期待我們在去年第二季度和第三季度的情況下繼續改善。

Got it. And then secondly, is there any other specific product in the portfolio you want to call out that kind of led to your growth in the quarter? Or was it just general excitement in the CEM portfolio?

知道了。然後其次，在投資組合中是否有任何其他特定產品你想指出那種導致你在本季度增長的產品？或者只是對 CEM 產品組合的普遍興奮？

One that bubbled up and when I gave those top 5 existing and top 5 new, digital resilience had a strong performance in the quarter. And so I was pleased by that. But the overall CEM portfolio in that broader need of our customers to digitize enterprise resilience, that's the core driver. But inside the portfolio, I was pleased with the digital resilience, especially on the new win side in the quarter.

一個冒出來的，當我給出前 5 名現有的和前 5 名新的時，數字彈性在本季度表現強勁。所以我很高興。但是，我們的客戶對數字化企業彈性的更廣泛需求是整個 CEM 產品組合，這是核心驅動力。但在投資組合內部，我對數字彈性感到滿意，尤其是在本季度的新勝利方面。

Our next question will come from Mike Latimore with Northland Capital Markets.

我們的下一個問題將來自 Northland Capital Markets 的 Mike Latimore。

In terms of the CEM deals, I think you may have given this, but how many came from new versus existing customers? And then what does the pipeline look like for CEM kind of new versus existing?

就 CEM 交易而言，我想你可能已經給出了這個，但有多少來自新客戶與現有客戶？那麼 CEM 的新管道與現有管道是什麼樣的？

We don't break it new versus existing. I did give a kind of a little lean back towards Terry's question on the (inaudible) that moved from RC-9 to CEM to those migrations. So we're being real intentional. If you remember the wheel from Investor Day, that second quadrant, we now have the 307 existing, which is great. And then the next cohort being those migrations. But still down on that lower left-hand side.

我們不會打破它新的與現有的。對於 Terry 關於從 RC-9 到 CEM 再到那些遷移的（聽不清）的問題，我確實給出了一點回溯。所以我們真的是故意的。如果您還記得第二象限 Investor Day 的輪子，我們現在有 307，這很棒。然後下一個隊列是那些遷移。但仍然在左下方。

New customers are important. We had 2 of our top 5 sized wins in the quarter were CEM wins. I think that's good. Obviously, the perpetual deals are going to tend to be the bigger deals that we'll be calling out on the top 5. But we had some nice large new customer wins and of course, that momentum in -- the velocity in that $100,000 deal range was also a contributor. Over time, at a big average, again, if you remember the Investor Day going around that wheel, we would be expecting 2/3 to 80% of the CEM to be growth of existing, with the remainder coming in through the new customer acquisition. And that will again vary quarter-over-quarter but that's the high-level 5-year pattern that we're expecting.

新客戶很重要。我們在本季度的前 5 大勝利中有 2 場是 CEM 勝利。我覺得這樣很好。顯然，永久交易將傾向於成為我們將在前 5 名中列出的更大的交易。但是我們贏得了一些不錯的大客戶，當然還有這種勢頭——100,000 美元交易的速度範圍也是一個貢獻者。隨著時間的推移，平均而言，如果你還記得圍繞著那個輪子的投資者日，我們預計 2/3 到 80% 的 CEM 將是現有的增長，其餘的將通過新客戶收購獲得.這將再次隨季度變化，但這是我們預期的高水平 5 年模式。

Yes. And then these record CEM deals, presumably they get the full reflection in revenue in the first quarter. So does that suggest maybe first quarter ARR growth sequentially could be as good as what you saw in the fourth quarter?

是的。然後這些創紀錄的 CEM 交易，大概會在第一季度的收入中得到充分體現。那麼，這是否表明第一季度 ARR 環比增長可能與您在第四季度看到的一樣好？

I want to make sure I have that. So the CEM deals, they do get deployed relatively quickly. And so they do go into the ARR snowball and do begin to amortize out relatively quickly. And it's those perpetual deals that can have -- the Norway one was a really strong example where we closed in September and had it fully implemented by December. But that's -- it's probably more -- that' kind of the exception, not the rule. It's more 180 days on those perpetual. So yes, the -- you guys have all been around SaaS businesses for a long time. The CEM ones are going to go into ARR and the ARR is going to come out into Revenue with very little delay.

我想確保我有那個。因此，CEM 交易確實可以相對快速地部署。因此，他們確實進入了 ARR 滾雪球，並開始相對快速地攤銷。正是那些永久性交易——挪威的交易是一個非常有力的例子，我們在 9 月關閉並在 12 月全面實施。但那是——可能更多——那是一種例外，而不是規則。那些永久性的超過180天。所以，是的，你們已經在 SaaS 業務領域工作了很長時間。 CEM 將進入 ARR，ARR 將很快進入收入。

Okay. And then just lastly, you talked about maybe a fewer of the $500,000 deals as a reflection of the macro perhaps. What about just sales cycles generally? Any change in sales cycles?

好的。然後最後，你談到了 500,000 美元的交易可能會減少，這可能是宏觀的反映。一般而言，銷售週期如何？銷售週期有變化嗎？

No. Like I said, the velocity was strong, and so I look at that both the CEM number and the over $100,000 number as indicators of the underlying velocity. But in this one quarter, we were down -- it's one quarter and it's not a huge number, but we were down from 5 deals over $100,000 in the quarter a year ago to 4 -- I'm sorry, over $500,000 from 5 deals down to 4. And so that -- I'm just putting all that in the shaker and we've got really good growth retention. Still good -- very good velocity in the mid-sized larger deals. And again, in this quarter, a little lower on the large deals.

不，就像我說的那樣，速度很快，所以我將 CEM 數字和超過 100,000 美元的數字視為潛在速度的指標。但是在這個季度，我們下降了——這是一個季度，而且數字不是很大，但是我們從一年前那個季度的 5 筆超過 100,000 美元的交易下降到 4 筆——對不起，5 筆交易超過 500,000 美元下降到 4。所以——我只是把所有的東西都放在搖床裡，我們有很好的增長保持力。仍然很好——在中型大型交易中速度非常快。同樣，在本季度，大宗交易略有下降。

Our next question will come from Koji Ikeda with Bank of America.

我們的下一個問題將來自美國銀行的 Koji Ikeda。

I wanted to ask you a question or a follow-up on the sales capacity commentary earlier, just taking into mind the reduction in capacity last year affecting growth this year. But it sounds like the demand in CEM and sales execution was pretty strong. So I guess the question is, what are you looking for from a demand perspective this year where you may accelerate the pace of expanding sales capacity from here?

我想問你一個問題或跟進關於銷售能力的評論，只是考慮到去年的產能減少影響了今年的增長。但聽起來 CEM 和銷售執行的需求非常強勁。所以我想問題是，你今年從需求的角度看什麼，你可能會從這裡加快擴大銷售能力的步伐？

Yes, so that is a really good question. And I think you're asking it the exact way that we're thinking about it as a leadership team and a go-to-market team. And so we took out quota-bearing reps with, I guess, with intentionality and with caution. And the subtractions were largely in the reps who are focused on the smaller deal sizes, which would potentially impact N-number of new customers, especially as we -- sales generated pipeline for those reps comes out quarter-over-quarter.

是的，所以這是一個非常好的問題。我認為你問的正是我們作為領導團隊和上市團隊的思考方式。因此，我猜，我們是有意且謹慎地取消了配額代表。減法主要發生在專注於較小交易規模的銷售代表中，這可能會影響新客戶的 N 數量，尤其是當我們——這些銷售代表的銷售渠道按季度出現時。

But the real opportunity here in the first half is arresting the departures and improving rep retention, which where we are now 6 weeks into the quarter, as well as from beginning July last year. We're making really good progress on that rep retention, that's thing one to address. And that provides all of the expansion of capacity that we'd be planning for.

但上半年真正的機會是阻止離職並提高代表保留率，我們現在已經進入本季度 6 週，從去年 7 月開始也是如此。我們在保留代表方面取得了很好的進展，這是要解決的問題。這提供了我們計劃的所有容量擴展。

As we look forward, we want to grow that capacity. So we want to be back into hiring quota-bearing reps as we turn the page later this year into next, and that we're going to be evaluating those decisions carefully based on how our sales efficiency progresses throughout Q1, Q2 and into Q3.

展望未來，我們希望擴大這種能力。因此，我們希望在今年晚些時候將頁面翻到明年時重新招聘配額代表，並且我們將根據我們的銷售效率在整個第一季度、第二季度和第三季度的進展情況來仔細評估這些決定。

Got it. And just one follow-up here looking at the 1Q revenue guide. It is down sequentially. You mentioned gross retention back is the highest in 2 years. Also mentioned a couple of planned divestitures, so I understand all of that. But maybe help us understand any additional puts and takes beyond that, that would cause the 1Q revenue to be down sequentially. Anything particular to call out from that perspective?

知道了。這裡只有一個跟進，查看 1Q 收入指南。依次下降。您提到的總保留率是 2 年來最高的。還提到了一些計劃中的資產剝離，所以我理解所有這些。但也許可以幫助我們了解任何額外的看跌期權和除此之外的其他看跌期權，這將導致第一季度收入連續下降。從這個角度來看，有什麼特別要指出的嗎？

Yes, I'll let Patrick take the details. We've been disclosing, I think, beginning at Q3, the split between revenue in the quarter, round it to the nearest million between recurring and perpetual. When you look at that stacked bar chart, we had a really strong Q4 and a pretty strong Q3. And so that, combined with the lower perpetual Q4, that's the biggest difference. You're going to see steady growth in our recurring revenues and seasonality in the perpetuals.

是的，我會讓帕特里克了解細節。我認為，從第三季度開始，我們一直在披露本季度收入之間的分配，將其四捨五入到最接近的經常性和永久性之間的百萬。當你看那個堆疊條形圖時，我們有一個非常強大的第四季度和一個非常強大的第三季度。因此，結合較低的永久 Q4，這是最大的區別。您將看到我們的經常性收入和永久性季節性收入穩步增長。

Yes. So in the -- Koji, it's Patrick. In the $117 million, there was well over $16 million of onetime revenue in Q4. And Q1 is just not going to have anywhere near that amount. So you see with the ARR growth, that the subscription, the recurring business is continuing to grow, but that onetime set of revenues is very lumpy. And you'll see in the 10-K that we anticipate filing by the end of this week that in 2022, that onetime revenue amounted to over $35 million. So it's on the one hand, $35 million out of $432 million, it's not a huge percent. But it is lumpy and it creates -- it can create some noise. And just as you saw in the transition from Q4 '21 to Q1 '22, a lot of times, those onetime deliveries, they land in Q4 and they don't land in Q1. So we had a sequential decrease coming into '22 and we'll have another 1 coming into '23.

是的。所以在-- Koji 中，是Patrick。在 1.17 億美元中，第四季度的一次性收入遠遠超過 1600 萬美元。而且第一季度不會有接近這個數量的任何地方。所以你看到隨著 ARR 的增長，訂閱，經常性業務正在繼續增長，但一次性收入非常不穩定。你會在我們預計在本週末提交的 10-K 中看到，到 2022 年，一次性收入將超過 3500 萬美元。所以一方面，4.32 億美元中的 3500 萬美元，這不是一個很大的百分比。但它是塊狀的，它會產生——它會產生一些噪音。就像你在從 21 年第四季度到 22 年第一季度的過渡中看到的那樣，很多時候，那些一次性交付，它們在第四季度著陸，而沒有在第一季度著陸。所以我們在 22 年連續減少，23 年我們將有另一個 1。

Our next question will come from Kash Rangan with Goldman Sachs.

我們的下一個問題將來自高盛的 Kash Rangan。

David, question for you. It's been probably, what, 7, 8 months since you joined as CEO. That's been enough time to connect an extensive review and congrats on the quarter, by the way. I'm curious to get your take on what elements of the old strategy were actually working that you expect to harness and invest in? And what are the elements of the new strategy that you hope to implement that will get the path to the $1 billion in revenue that you have clearly outlined? That's a good start.

大衛，你的問題。自從您擔任 CEO 以來，大概有 7、8 個月了。順便說一句，已經有足夠的時間對本季度進行廣泛的審查和祝賀。我很想知道您對舊戰略的哪些要素實際起作用，您希望利用和投資？您希望實施的新戰略的哪些要素將實現您明確概述的 10 億美元收入？這是一個好的開始。

Yes. Thank you, Kash. I mean, hopefully, it's coming through really loud and clear that it's building out this recurring revenue and focused on the value creation that comes from that is the difference, really to me, the key strategic shift that we made. I remain really bullish, I say that, and remain really bullish on our Public Warning, Public Safety and Smart Security products. Those have really fantastic value. There's definitely synergy with the rest of the portfolio.

是的。謝謝你，卡什。我的意思是，希望它能真正響亮而明確地表明它正在建立這種經常性收入，並專注於由此產生的價值創造，這對我來說真的是我們所做的關鍵戰略轉變的不同之處。我仍然非常看好，我這麼說，並且仍然非常看好我們的公共警告、公共安全和智能安全產品。那些真的很有價值。與投資組合的其餘部分肯定有協同作用。

So thing one is focusing on that recurring revenue and make sure that's the focus. Thing two is strategically bringing together in the right way the full suite of our products. And to me, the good thing -- the bad thing about what the company has done is just a lot of M&A relatively close together. The good thing is that everything hangs together, the customer demand, the customer synergies on seeing how we're going to be able to bring this together, retaining our leadership position with the broadest set of solutions in the CEM space and with this modest divestiture that we've talked about, the 4% to 8%, which should drop to 0% to 4.5% or so with this divestiture under LOI that we pulled out. So anyway, to me, it's that big $1 billion ARR wheel and growing those customers through cross-sell migrations and new customer adds and just staying really focused on that.

所以第一件事就是關注經常性收入，並確保這是重點。第二件事是以正確的方式戰略性地整合我們的全套產品。對我來說，公司所做的好事——壞事只是大量的併購相對緊密。好消息是一切都聯繫在一起，客戶需求，客戶協同效應，看看我們將如何將它們結合在一起，通過 CEM 領域最廣泛的解決方案和這種適度的資產剝離保持我們的領導地位我們已經討論過，4% 到 8%，隨著我們退出的 LOI 下的這次資產剝離，應該下降到 0% 到 4.5% 左右。所以無論如何，對我來說，這是一個價值 10 億美元的大 ARR 輪子，通過交叉銷售遷移和新客戶增加來增加這些客戶，並真正專注於此。

Got it. Really well-balanced business model.

知道了。真正均衡的商業模式。

This concludes our question-and-answer session. I would like to turn the conference back over to Dave Wagner for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Dave Wagner 作閉幕詞。

Well, again, I thank you all for participating with us today, and I look forward to speaking with many of you throughout the course of the quarter and updating you again after our Q1 is complete. Thank you all very much. Have a great day.

好吧，我再次感謝大家今天參加我們的活動，我期待在本季度的整個過程中與你們中的許多人交談，並在第一季度結束後再次為您更新。非常感謝大家。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。