Everbridge Inc (EVBG) 2023 Q1 法說會逐字稿

Good morning, and welcome to the First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like the conference over to Nandan Amladi. Please go ahead.

早上好，歡迎來到 2023 年第一季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想把會議交給 Nandan Amladi。請繼續。

Thank you, Sandra. Thank you, operator, and good morning, everyone. Welcome to Everbridge's earnings call for the first quarter of 2023. With me on today's call are Everbridge's President and CEO, David Wagner; and Executive Vice President and CFO, Patrick Brickley. Before the market opened, we issued our earnings release, which can be accessed on the Investor Relations section of our website at ir.everbridge.com.

謝謝你，桑德拉。謝謝接線員，大家早上好。歡迎來到 Everbridge 的 2023 年第一季度財報電話會議。今天和我一起參加電話會議的有 Everbridge 的總裁兼首席執行官大衛瓦格納；執行副總裁兼首席財務官 Patrick Brickley。在開市前，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。

This call is being recorded, and a replay of the teleconference will be available on our IR page at the conclusion of today's event.

此通話正在錄製中，電話會議的重播將在今天的活動結束時在我們的 IR 頁面上提供。

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. 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 other subsequent filings with the SEC.

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。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其他文件中討論的因素。

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.

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.

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。

Our earnings press release includes highlights from our first quarter of 2023, in addition to our financial results and outlook. After we review our business and financial highlights, we will open the call for questions.

我們的收益新聞稿包括我們 2023 年第一季度的亮點，以及我們的財務業績和展望。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？

Thank you, Nandan. Good morning, everyone, and welcome to Everbridge's earnings call for the first quarter of 2023. I am pleased with the strong financial results that we released earlier this morning. For the first quarter, we achieved revenue of $108.3 million, an increase of 7.9% year-over-year, adjusted EBITDA of $15.9 million, an increase of $13.3 million from a year ago, and annual recurring revenue of $388 million, which is up $4 million quarter-over-quarter and 10% year-over-year.

謝謝你，南丹。大家早上好，歡迎來到 Everbridge 的 2023 年第一季度財報電話會議。我對我們今天上午早些時候發布的強勁財務業績感到滿意。第一季度，我們實現收入 1.083 億美元，同比增長 7.9%，調整後 EBITDA 為 1590 萬美元，同比增長 1330 萬美元，年度經常性收入為 3.88 億美元，同比增長環比增長 400 萬美元，同比增長 10%。

The impact of our 2022 restructuring is evident in our financial results, and we are continuing to improve our execution across the organization. In the quarter, we had the opportunity to celebrate our company's 20th anniversary with some of our customers and partners in New York City as we officially unveiled Everbridge's evolved brand. It was a special day that allowed us to highlight our long-standing commitment to keeping people safe and organizations running.

我們 2022 年重組的影響在我們的財務業績中顯而易見，我們正在繼續改善整個組織的執行力。在本季度，我們有機會與紐約市的一些客戶和合作夥伴一起慶祝公司成立 20 週年，因為我們正式推出了 Everbridge 的進化品牌。這是一個特殊的日子，讓我們能夠強調我們對確保人員安全和組織運行的長期承諾。

In the 2 decades since the company's inception, we've captured a market-leading share of the critical event management market and scaled our platform to reach billions of people globally. We are honored to count 6,500 of the world's leading organizations as our customers, including 25 countries who use us for their countrywide alerting systems. One of the keys to our success is that we offer a comprehensive resilience platform that is incredibly powerful. It has the ability to notify millions of people nearly instantaneously when a critical event occurs.

自公司成立以來的 2 年裡，我們在關鍵事件管理市場佔據了市場領先的份額，並擴展了我們的平台以覆蓋全球數十億人。我們很榮幸有 6,500 家世界領先的組織成為我們的客戶，其中包括 25 個使用我們作為其全國警報系統的國家/地區。我們成功的關鍵之一是我們提供了一個非常強大的綜合彈性平台。當關鍵事件發生時，它能夠幾乎立即通知數百萬人。

As many of you listening today are likely aware, several weeks ago, there was an incident that occurred leading to an emergency test alert being sent out to the phones of many Florida State residents very early in the morning. The alert was the result of a human procedural error. It was not a failure of our software platform. Our software system delivered the message as designed and instructed. That's the good news. The bad news is a live message was inadvertently sent to millions of residents' cell phones instead of a notification sent only to Florida broadcasters. We regret the inconvenience this test caused to residents of Florida, and we are committed to the state of Florida and to Florida Department of Emergency Management as a partner as we are with all of our customers to continue to improve and ensure best practices are applied.

今天收聽的許多人可能都知道，幾週前發生了一起事件，導致緊急測試警報很早就被發送到許多佛羅里達州居民的電話中。該警報是人為程序錯誤的結果。這不是我們軟件平台的故障。我們的軟件系統按照設計和指示傳遞消息。這是個好消息。壞消息是一條實時消息被無意中發送到數百萬居民的手機上，而不是僅發送給佛羅里達州廣播公司的通知。我們對這次測試給佛羅里達州居民帶來的不便深表遺憾，我們致力於作為合作夥伴與佛羅里達州和佛羅里達州應急管理部合作，因為我們與所有客戶一起繼續改進並確保應用最佳實踐。

We further demonstrated this commitment as we agreed with DEF DEM to rescind the early termination of our agreement and extend our contract through the end of the calendar year to ensure that the people of Florida are protected through the upcoming hurricane season.

我們進一步證明了這一承諾，因為我們與 DEF DEM 同意撤銷我們提前終止的協議，並將我們的合同延長至日曆年年底，以確保佛羅里達州人民在即將到來的颶風季節中得到保護。

Our core mission is to keep people safe. We remain focused on the mission as job 1 for the residents of Florida and all of our customers globally.

我們的核心使命是確保人們的安全。我們仍然專注於佛羅里達州居民和我們全球所有客戶的首要任務。

Switching back to our results, evidenced by our strong year-over-year EBITDA growth and double-digit ARR growth, we are making solid progress on our long-term growth and profitability goals as we execute toward the Rule of 40. Accordingly, we remain confident in our financial outlook for the year, including delivering on our baseline 6% to 7% revenue growth and $85 million in adjusted EBITDA in 2023. I will now turn the call over to our CFO, Patrick Brickley, to provide details on our financial results. Patrick?

回到我們的結果，我們強勁的 EBITDA 同比增長和兩位數的 ARR 增長證明了我們在執行 40 條規則的過程中在長期增長和盈利目標方面取得了穩步進展。因此，我們對我們今年的財務前景保持信心，包括在 2023 年實現 6% 至 7% 的收入增長和 8500 萬美元的調整後 EBITDA。我現在將電話轉給我們的首席財務官 Patrick Brickley，以提供我們的詳細信息財務結果。帕特里克？

Thanks, Dave. I'm pleased to report solid execution, which produced revenue and adjusted EBITDA that were above our guidance ranges. As Dave mentioned, the strategic alignment program that we implemented during 2022 is continuing to show results as we pursue profitable organic growth. I will now recap our results for the first quarter of 2023, followed by our outlook for the second quarter and full fiscal year. For full details of our P&L and reconciliation of GAAP to non-GAAP measures, please refer to our press release.

謝謝，戴夫。我很高興地報告穩健的執行情況，這產生了超出我們指導範圍的收入和調整後的 EBITDA。正如 Dave 提到的，我們在 2022 年實施的戰略調整計劃在我們追求盈利性有機增長的過程中繼續顯示結果。我現在將回顧我們 2023 年第一季度的業績，然後是我們對第二季度和整個財政年度的展望。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 first quarter, our ARR increased to $388 million, up 10% year-over-year. Revenue was $108.3 million, up 8% from a year ago and all organic. Revenue from subscription services was $99 million, also up 8% from a year ago, but down sequentially from $101 million in Q4 of 2022 due to fewer calendar days in Q1 as well as timing of invoicing for subscription services on some of our non-SaaS contracts.

第一季度，我們的 ARR 增至 3.88 億美元，同比增長 10%。收入為 1.083 億美元，比一年前增長 8%，而且都是有機收入。訂閱服務的收入為 9900 萬美元，也比去年同期增長 8%，但比 2022 年第四季度的 1.01 億美元有所下降，原因是第一季度的日曆天數減少以及我們的一些非 SaaS 訂閱服務的開票時間合同。

Our gross revenue retention rate remains healthy, with Q1 performance that was moderately below recent peaks, but still notably higher than the gross revenue retention that we experienced in the year ago period. We signed 43 deals over $100,000, down from 56 a year ago. Our average deal size in Q1 was lower than what we've seen in recent quarters. However, our volume of new and gross sales transactions increased year-over-year.

我們的總收入保留率保持健康，第一季度的業績略低於近期峰值，但仍明顯高於去年同期的總收入保留率。我們簽署了 43 筆超過 100,000 美元的交易，低於一年前的 56 筆。我們在第一季度的平均交易規模低於我們最近幾個季度的水平。然而，我們的新銷售交易量和總銷售交易量同比增長。

Our total customer count of 6,500 is down sequentially by 13 and up 4% year-over-year. The net decrease in customer count is due to the impact of the latest planned divestitures and end-of-life programs for non-core products, which we have been describing since early 2022. During the first quarter, we otherwise saw relatively normal levels of logo adds and churn.

我們的客戶總數為 6,500，環比下降 13，同比增長 4%。客戶數量的淨減少是由於我們自 2022 年初以來一直在描述的非核心產品的最新計劃資產剝離和報廢計劃的影響。在第一季度，我們看到相對正常的水平徽標添加和流失。

Our CEM customer count increased to 335, up 28% sequentially and up 64% year-over-year. GAAP gross profit was $76 million, a margin of 70.5% compared to $69 million or 68% in the year ago period. On an adjusted basis, gross margin was 74.5% compared to 72% a year ago, demonstrating growing efficiencies from platform integration and optimization.

我們的 CEM 客戶數量增加到 335，環比增長 28%，同比增長 64%。 GAAP 毛利潤為 7600 萬美元，利潤率為 70.5%，而去年同期為 6900 萬美元或 68%。在調整後的基礎上，毛利率為 74.5%，而一年前為 72%，表明平台整合和優化的效率不斷提高。

GAAP net loss was $14.6 million or negative $0.36 per share compared to a net loss of $19.1 million or negative $0.48 per share in the year ago period. On an adjusted basis, we generated net income of $10.8 million or diluted earnings per share of $0.25 compared to the year ago period in which we generated a net loss of $600,000 or negative $0.02 per share.

GAAP 淨虧損為 1460 萬美元或每股負 0.36 美元，而去年同期為淨虧損 1910 萬美元或每股負 0.48 美元。在調整後的基礎上，我們產生了 1080 萬美元的淨收入或 0.25 美元的稀釋每股收益，而去年同期我們產生了 600,000 美元的淨虧損或每股負 0.02 美元。

Adjusted EBITDA of $15.9 million represented a 15% margin, a significant improvement from the year ago period in which adjusted EBITDA was $2.6 million or 3% margin.

調整後的 EBITDA 為 1590 萬美元，利潤率為 15%，與去年同期相比有了顯著改善，去年同期調整後的 EBITDA 為 260 萬美元，利潤率為 3%。

Our Q1 2023 result reflects the substantial ongoing improvements to operational efficiency that we are making across our business, in particular, within sales and marketing, gross margin and R&D.

我們 2023 年第一季度的業績反映了我們在整個業務中對運營效率的持續改進，特別是在銷售和營銷、毛利率和研發方面。

Cash flow from operations was $20.6 million, up from $7.7 million in the year ago period. Adjusted free cash flow was $20 million, up from $1.5 million in the year ago period. The Q1 2023 result is adjusted for cash payments of $4.1 million related to our 2022 strategic realignment program.

運營現金流為 2060 萬美元，高於去年同期的 770 萬美元。調整後的自由現金流為 2000 萬美元，高於去年同期的 150 萬美元。 2023 年第一季度的結果針對與我們 2022 年戰略調整計劃相關的 410 萬美元現金支付進行了調整。

We ended Q1 with $224 million in cash, cash equivalents and restricted cash, up from $202 million, which we reported at the end of fiscal year 2022.

我們在第一季度結束時擁有 2.24 億美元的現金、現金等價物和受限制的現金，高於我們在 2022 財年末報告的 2.02 億美元。

Now I'll turn to our guidance for the second quarter and full year. For the second quarter, we anticipate revenue of between $110 million and $110.5 million, representing growth of approximately 7%. We anticipate a GAAP net loss of between $16.8 million and $16.3 million, and non-GAAP net income of between $11.5 million and $12 million, or diluted earnings per share of $0.26 to $0.27. We expect adjusted EBITDA to be between $16.5 million and $17.2 million as we continue to drive operating efficiencies, in particular in the areas of sales and marketing, R&D and G&A.

現在我將轉向我們對第二季度和全年的指導。對於第二季度，我們預計收入在 1.1 億美元至 1.105 億美元之間，增長約 7%。我們預計 GAAP 淨虧損在 1680 萬美元至 1630 萬美元之間，非 GAAP 淨收入在 1150 萬美元至 1200 萬美元之間，或攤薄後每股收益 0.26 美元至 0.27 美元。隨著我們繼續提高運營效率，特別是在銷售和營銷、研發和 G&A 領域，我們預計調整後的 EBITDA 將在 1650 萬美元至 1720 萬美元之間。

Our full year guidance remains unchanged as we continue to optimize several areas of the business. We anticipate revenue to be in the range of $456 million to $462 million, representing growth of 6% to 7% over 2022. We expect a GAAP net loss of between $47.6 million and $45.6 million or negative $1.17 to $1.12 per share.

隨著我們繼續優化業務的多個領域，我們的全年指引保持不變。我們預計收入將在 4.56 億美元至 4.62 億美元之間，比 2022 年增長 6% 至 7%。我們預計 GAAP 淨虧損在 4760 萬美元至 4560 萬美元之間，即每股負 1.17 美元至 1.12 美元。

On a non-GAAP basis, we expect net income of between $65.8 million and $67.8 million or between $1.48 and $1.52 per share. We anticipate adjusted EBITDA will be in the range of $84 million to $86 million, representing an adjusted EBITDA margin of 18.5% at the midpoint.

在非 GAAP 基礎上，我們預計淨收入在 6580 萬美元至 6780 萬美元之間或每股 1.48 美元至 1.52 美元之間。我們預計調整後的 EBITDA 將在 8,400 萬美元至 8,600 萬美元之間，相當於調整後的 EBITDA 利潤率為 18.5% 的中點。

At a high level, this outlook reflects roughly flat quarterly expense, and therefore, continuous quarterly improvement in adjusted EBITDA and adjusted EBITDA margin.

在較高水平上，這一前景反映出季度支出大致持平，因此，調整後 EBITDA 和調整後 EBITDA 利潤率的季度持續改善。

In summary, we delivered a solid quarter to start off the year. As we progress through 2023, we remain focused on execution, driving profitable organic growth and maximizing return on our investments. Looking further, we believe we can deliver the targets laid out at our December 2022 Investor Day, making steady progress towards the Rule of 40 by 2027.

總而言之，我們在今年年初交付了一個穩定的季度。隨著我們邁向 2023 年，我們將繼續專注於執行、推動盈利性有機增長和最大化投資回報。展望未來，我們相信我們可以實現在 2022 年 12 月投資者日制定的目標，到 2027 年朝著 40 條規則穩步推進。

That concludes my prepared remarks. I'll now turn the call back over to Dave. Dave?

我準備好的發言到此結束。我現在將電話轉回給戴夫。戴夫？

Thanks, Patrick. As our 10% year-over-year increase in ARR demonstrates we had a solid quarter in our recurring business. Our ARR growth came from healthy gross retention and steady recurring bookings performance especially for deals under $100,000. In the quarter, we closed 43 deals over $100,000 and 4 deals over $500,000, which was down from 56 and 8 respectively, from the first quarter of 2022. We added 28 new CEM customers, an increase of 16 from 12 in Q1 2022, bringing our total CEM customer count to 335. All top 5 CEM deals during the period were new customer wins.

謝謝，帕特里克。由於我們的 ARR 同比增長 10%，表明我們的經常性業務有一個穩定的季度。我們的 ARR 增長來自健康的總保留率和穩定的經常性預訂表現，尤其是對於 100,000 美元以下的交易。本季度，我們完成了 43 筆超過 100,000 美元的交易和 4 筆超過 500,000 美元的交易，分別低於 2022 年第一季度的 56 筆和 8 筆。我們增加了 28 個新的 CEM 客戶，比 2022 年第一季度的 12 個增加了 16 個，帶來我們的 CEM 客戶總數達到 335。在此期間，所有排名前 5 位的 CEM 交易都是贏得新客戶。

Our top 5 new business accounts in the quarter were all under $500,000. They included 3 perpetual smart security deals, 2 of which were in the government vertical in the United States, and the third with a port authority in the Middle East. One with a state government Mass Notification deal and the fifth was an enterprise CEM deal. Our total number of new logo deals was consistent with Q1 2022, but the average deal size was down.

我們本季度前 5 大新業務客戶的收入均低於 500,000 美元。其中包括 3 項永久性智能安全交易，其中 2 項涉及美國政府垂直領域，第三項涉及中東港口管理局。一個是州政府的 Mass Notification 交易，第五個是企業 CEM 交易。我們的新徽標交易總數與 2022 年第一季度一致，但平均交易規模有所下降。

From the strong foundation we built during our rebranding, including our refreshed web presence, we are executing focused digital programs and sales plays both to drive full CEM purchases as well as new customer sales of our point solutions, which provide easier on-ramps and shortened sales cycles. In turn, we will lower the cost of acquisition and allow for future cross-sell and upsell as [our] customers experience the value we bring to increasing their situational awareness, reducing the time to notification during a crisis and improving the quality of their communications during an incident.

從我們在品牌重塑期間建立的堅實基礎，包括我們更新的網站，我們正在執行重點數字計劃和銷售活動，以推動完整的 CEM 購買以及我們的單點解決方案的新客戶銷售，這些解決方案提供更容易的入口和縮短銷售週期。反過來，我們將降低採購成本，並允許未來的交叉銷售和追加銷售，因為 [我們的] 客戶體驗到我們為提高他們的態勢感知、縮短危機期間的通知時間並提高他們的溝通質量所帶來的價值在一次事件中。

To that end, our top 5 growth deals in the quarter included a $1 million-plus add-on to a U.S. government contract and a $1 million-plus add-on to a large U.S. medical insurance company. The remaining top 3 growth deals were enterprise CEM add-ons in the pharmaceutical, technology and financial services verticals.

為此，我們在本季度的前 5 大增長交易包括一項超過 100 萬美元的美國政府合同附加合同和一項超過 100 萬美元的附加合同與一家美國大型醫療保險公司的合同。其餘前 3 名增長交易是製藥、技術和金融服務垂直領域的企業 CEM 附加組件。

Our number of add-on growth deals was up more than 10% from Q1 2022, but the average deal size was down.

我們的附加增長交易數量比 2022 年第一季度增長了 10% 以上，但平均交易規模有所下降。

We also recently announced the successful deployment of our Public Warning technology in 6 different European countries over the past 6 months. The wins in Germany, United Kingdom, Spain, Denmark, Norway and Estonia bring us to a total of 25 countries around the world. Within the past several months, each country has tested and implemented the Everbridge public safety technology to inform and protect the combined population of more than 200 million residents.

我們最近還宣佈在過去 6 個月內在 6 個不同的歐洲國家成功部署了我們的公共預警技術。在德國、英國、西班牙、丹麥、挪威和愛沙尼亞取得的勝利將我們帶到了全球 25 個國家。在過去的幾個月裡，每個國家都測試並實施了 Everbridge 公共安全技術，以通知和保護 2 億多居民的總人口。

Now moving to product. We are increasing our investment in innovation and integration, and we are leveraging AI and machine learning technology across our portfolio. On Risk Intelligence, we are delivering improved tooling using innovative AI and ML solutions so that our risk analysts can deliver context and relevance to our customers more efficiently. We continue to enhance our DigitalOps Insights product that we launched last quarter, which also uses AI and ML to enable incident commanders to understand the root cause of outages and resolve incidents faster. And we're making steady progress advancing integrations into our core CEM platform, improving both user experience and speed of delivery for our enterprise customers.

現在轉向產品。我們正在增加對創新和集成的投資，並在我們的產品組合中利用人工智能和機器學習技術。在風險情報方面，我們正在使用創新的 AI 和 ML 解決方案提供改進的工具，以便我們的風險分析師能夠更有效地為我們的客戶提供背景和相關性。我們繼續增強上個季度推出的 DigitalOps Insights 產品，該產品還使用 AI 和 ML 使事件指揮官能夠了解中斷的根本原因並更快地解決事件。我們正在穩步推進與我們的核心 CEM 平台的集成，為我們的企業客戶改善用戶體驗和交付速度。

Our strategy is to provide the most comprehensive end-to-end solution for Critical Event Management. Over the course of the year, our customers will see a series of improvements as we simplify and streamline our user interface and workflow.

我們的戰略是為關鍵事件管理提供最全面的端到端解決方案。在這一年中，隨著我們簡化和精簡我們的用戶界面和工作流程，我們的客戶將看到一系列改進。

Our new Chief Product Officer, Bryan Barney, brings a rich background in creating enterprise-grade platforms from acquired assets and he has been focused on modernizing our platform with an emphasis on usability, reliability and flexibility. His experience is already being felt as we align around a shared product vision and platform architecture.

我們的新任首席產品官 Bryan Barney 在利用收購的資產創建企業級平台方面擁有豐富的背景，他一直專注於使我們的平台現代化，重點是可用性、可靠性和靈活性。當我們圍繞共同的產品願景和平台架構調整時，他的經驗已經被感受到。

In summary, the first quarter marked a solid start to the year as we delivered another sequential increase in ARR and particularly strong growth in our adjusted EBITDA and cash flow. These results have us on track to achieve our long-term operational and financial goals. As we move through the second quarter, we are building a foundation focused on delivering consistent, profitable growth on our way to $1 billion in ARR, and we have a team, strategy and resources in place to get there. I look forward to updating you further on our progress in the coming quarters.

總而言之，第一季度標誌著今年開局良好，因為我們的 ARR 再次連續增長，特別是調整後的 EBITDA 和現金流增長強勁。這些結果使我們走上了實現長期運營和財務目標的軌道。隨著我們進入第二季度，我們正在建立一個基礎，專注於在我們的 ARR 達到 10 億美元的過程中實現持續的、盈利的增長，我們有一個團隊、戰略和資源來實現這一目標。我期待著向您進一步介紹我們在未來幾個季度取得的進展。

We're now ready to open the call for questions. Sandra?

我們現在準備好開始提問了。桑德拉？

(Operator Instructions) The first question comes from Alex Sklar from Raymond James.

（操作員說明）第一個問題來自 Raymond James 的 Alex Sklar。

Great. Dave, I know we don't have a ton of historical data on ARR. But in terms of the $4 million kind of sequential growth versus Q1, should we think about Q1 being kind of seasonally slowest quarter in terms of what's implied within your guidance? And then also just a clarification, if Florida is still included in ARR?

偉大的。戴夫，我知道我們沒有大量關於 ARR 的歷史數據。但就與第一季度相比的 400 萬美元連續增長而言，我們是否應該將第一季度視為您指導中暗示的季節性最慢的季度？然後也只是澄清一下，佛羅里達是否仍包含在 ARR 中？

Great question. So yes, Q1, we would think about it as sequentially lowest quarter. We landed exactly where we planned in terms of the healthy gross retention and steady bookings. So we landed in a good spot. Our ARR metric is still relatively new and is billings based. So there's some quarterly variance as well based on timing of renewals, but we landed right where we expected.

很好的問題。所以是的，第一季度，我們將其視為順序最低的季度。就健康的總保留率和穩定的預訂量而言，我們完全達到了我們的計劃。所以我們降落在一個好地方。我們的 ARR 指標仍然相對較新，並且是基於賬單的。因此，根據續訂時間的不同，也存在一些季度差異，但我們達到了預期。

In terms of the $4 million for State of Florida, it is still in, it will be in based on the current agreement through the end of the calendar year. And we're not counting on that for next year, but we are working really hard, and we will continue to work really hard with the State of Florida on the recompete of that contract, whether that happens in December or whether it happens in June of 2024.

就佛羅里達州的 400 萬美元而言，它仍然存在，它將根據當前的協議在日曆年年底之前存在。我們不指望明年會這樣，但我們正在非常努力地工作，我們將繼續與佛羅里達州努力重新競爭該合同，無論是在 12 月還是在 6 月2024 年。

Okay. Great color. And then Patrick or Dave, I don't know who wants to take this one, but can you just talk about what's driving the sub $100,000 ASP booking strength? Are these CEM deals that are coming in below the threshold or another solution? And then how are you thinking about deal sizes for the rest of the year?

好的。很棒的顏色。然後是 Patrick 或 Dave，我不知道誰想接受這個，但你能談談是什麼推動了低於 100,000 美元的 ASP 預訂強度嗎？這些 CEM 交易是否低於門檻或其他解決方案？那麼您如何考慮今年剩餘時間的交易規模？

Yes. So the deal size is, unfortunately, pretty consistently down across the board. So the new business volume was -- in terms of volume of deals is really consistent with the smaller deal size. The existing customer base was up, but also with smaller deal sizes.

是的。因此，不幸的是，交易規模一直在全面下降。因此，新業務量是——就交易量而言，與較小的交易規模確實一致。現有客戶群有所增加，但交易規模也較小。

There are a couple of things going on there. We think that current macro environment has customers being a little more careful about [adds] in the technology vertical, in particular. We know about the reductions in headcounts in many organizations. So we're seeing -- buying pretty consistently across in smaller chunks. That's -- and then the second piece is you kind of heard the first sentence after the end of my introductory remarks that the 2022 restructuring program does have impacts that we're working through. We reduced over 200 positions during the fourth quarter, including quota-bearing reps. So we've got -- we're adjusting to the reduced resources. And we made some really intentional changes as we entered 2023 to focus on ARR as a priority.

那裡發生了幾件事。我們認為，當前的宏觀環境讓客戶對技術垂直領域的 [adds] 更加謹慎，尤其是。我們知道許多組織都在裁員。所以我們看到了——在較小的塊中相當一致地購買。那是——然後第二部分是你在我的介紹性發言結束後聽到的第一句話，即 2022 年重組計劃確實產生了我們正在努力解決的影響。我們在第四季度減少了 200 多個職位，包括配額代表。所以我們已經 - 我們正在適應減少的資源。當我們進入 2023 年時，我們進行了一些真正有意的改變，將 ARR 作為優先事項。

And so the perpetual deals, just the nature of how they're models, as you know, tend to be the larger transactions. And we have the sellers focused on subscription deals and focused on making sure they're meeting the customer where they are. And with retaining a focus on full CEM sales and being willing to meet the customers with a point solution is the right way to bring them in for upsell and cross-sell. So we've got some transitional things going on here in 2022 as well as the slight macro headwinds.

因此，如您所知，永久交易，就其模型的性質而言，往往是更大的交易。我們讓賣家專注於訂閱交易，並專注於確保他們在客戶所在的地方會見客戶。繼續關注完整的 CEM 銷售並願意通過單點解決方案與客戶會面是吸引他們進行追加銷售和交叉銷售的正確方法。因此，我們在 2022 年會發生一些過渡性的事情以及輕微的宏觀逆風。

The next question comes from Mike Walkley from Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Mike Walkley。

Great Dave, a solid start to year hitting a cash and margin target. I just wanted to follow up on the Florida incident. Any changes in the competitive environment? And how do you feel about keeping your position with Florida plus other states as they come up from renewal given some of your competitors feel like there's an opportunity to try to go after some market share with this event?

偉大的戴夫，今年實現現金和利潤目標的良好開端。我只是想跟進佛羅里達事件。競爭環境有什麼變化？考慮到您的一些競爭對手覺得有機會嘗試通過這次活動爭取一些市場份額，您對保持在佛羅里達州和其他州的位置有何看法？

Yes. So I am certain that our competitors would be looking to take advantage of this. And the good news, again, is that the platform performed as expected, and we have the best scalability, delivery throughput of anybody in the market. And so we think that our success in Florida and our success in national alerting, that remains really strong. The feedback we're getting from many of the customers within Florida is really strong, really supportive of the Everbridge solution. And so we're going to continue to service those -- the entire State of Florida account with great diligence and rigor through the course of this year.

是的。所以我確信我們的競爭對手會希望利用這一點。好消息是，該平台的表現符合預期，我們擁有市場上任何人中最好的可擴展性和交付吞吐量。因此，我們認為我們在佛羅里達州的成功以及我們在國家警報方面的成功仍然非常強大。我們從佛羅里達州的許多客戶那裡得到的反饋非常強烈，非常支持 Everbridge 解決方案。因此，我們將在今年期間以極大的勤奮和嚴謹態度繼續為這些——整個佛羅里達州的客戶提供服務。

And our existing customers really understand the process for issuing test messages and live messages. And so that, our existing customers -- it's pretty clear. And we're working aggressively, both in informing existing customers and potential new customers of the power of our platform and its capability. So I [think] we do expect lots of noise in the market off of this event and our job is going to be to mitigate the negatives and really emphasize the positives of our scalability and the positives of building out even deeper relationships with our existing customers and new customers.

我們現有的客戶真正了解發布測試消息和實時消息的過程。因此，我們現有的客戶——這很清楚。我們正在積極努力，讓現有客戶和潛在的新客戶了解我們平台的強大功能及其功能。所以我[認為]我們確實預計市場會因這次活動而引起很多噪音，我們的工作將是減輕負面影響並真正強調我們可擴展性的積極因素以及與現有客戶建立更深層次關係的積極因素和新客戶。

And just a quick follow-up question. Just on the realigned sales force, how do you feel about where they are now to execute on intermediate plans? And any products that you wanted to call out that added to the strong sequential CEM growth that your customers are achieving?

只是一個快速的後續問題。就重新調整的銷售隊伍而言，您如何看待他們現在執行中間計劃的位置？您想推薦的任何產品都有助於您的客戶實現 CEM 的強勁連續增長嗎？

On the sales force, thanks for asking that. The good thing is our sales tenure is improved markedly. So even though the end number of sales reps is down 16% or 17% year-over-year as we ended the year, the tenure is up, and we had a really nice improvement Q1 over Q1 in terms of productivity per rep. So that part is executing as intended. As you saw that in the numbers, the CEM, albeit smaller, remains a real strength. We're continuing to see real strength with our E911 product, particularly here in the U.S. That's definitely a source of strength in that product.

關於銷售人員，謝謝你提出這個問題。好消息是我們的銷售期限顯著提高。因此，儘管我們年底銷售代表的最終人數同比下降了 16% 或 17%，但任期增加了，而且我們在每個銷售代表的生產率方面比第一季度有了非常好的改善。所以那部分是按預期執行的。正如您在數字中看到的那樣，CEM 儘管規模較小，但仍然是一個真正的優勢。我們繼續看到我們的 E911 產品的真正實力，尤其是在美國。這絕對是該產品的實力來源。

The next question comes from Matt Stotler from William Blair.

下一個問題來自威廉·布萊爾的馬特·斯托特勒。

Maybe 1 just follow-up on the CEM customer base. You obviously noted smaller deal size, but pretty healthy growth in CEM customers. Can you just touch on the health of that pipeline looking forward? How those deals are moving forward in this environment? And then you mentioned, I think, top 5 were new customer wins. Are you seeing an increasing portion of new CEM deals coming from new customers? Or is that still largely upsell at this point?

也許 1 只是跟進 CEM 客戶群。你顯然注意到交易規模較小，但 CEM 客戶的增長相當健康。您能否談談未來管道的健康狀況？這些交易在這種環境下進展如何？然後你提到，我認為前 5 名是贏得新客戶。您是否看到越來越多的新 CEM 交易來自新客戶？或者在這一點上仍然主要是追加銷售？

Yes, CEM is still largely upsell. We're up quarter-over-quarter, down sequentially as we would have expected in new CEM deals. I'd say that the pipeline remains very healthy. It remains healthiest in the sub $500,000 zone. So the big deal -- consistent big deal Q3, Q4 -- I'm sorry, Q1 -- Q4, Q1 seems consistent where the deal sizes are not as large as they were. Our pipeline for perpetual does include -- continue to include larger deals in the perpetual pipeline, but the CEM is broad and balanced in smaller mid-sized transactions.

是的，CEM 仍然主要是追加銷售。正如我們在新的 CEM 交易中所預期的那樣，我們環比增長，環比下降。我會說管道仍然非常健康。它在低於 500,000 美元的區域中仍然是最健康的。所以大交易 - 一致的大交易 Q3，Q4 - 對不起，Q1 - Q4，Q1 似乎是一致的，交易規模不像以前那麼大。我們的永久管道確實包括 - 繼續在永久管道中包括較大的交易，但 CEM 在較小的中型交易中廣泛且平衡。

Got it. That's helpful. And then maybe 1 on the partner channel. I'd love to just maybe get an update on the -- your partner channel optimization initiatives. How it's impacting performance? And then how you think about incremental opportunities in the ecosystem looking forward?

知道了。這很有幫助。然後也許 1 在合作夥伴頻道上。我很想知道您的合作夥伴渠道優化計劃的最新情況。它如何影響性能？然後你如何看待未來生態系統中的增量機會？

Yes. We've got Titan. So partners are a huge part of our strategy going forward. We've -- we're focused on -- we're being more focused since November, focusing on key partnerships that we believe can really move the needle. An example of 1 of those key partnerships is with Deloitte & Touche, where we're collaboratively rolling out resilience workshops where they're offering complementary workshops, reviews, enterprise resilience in large global enterprises with us. And that's an example of a kind of partnership that we think can really move the needle.

是的。我們有泰坦。因此，合作夥伴是我們未來戰略的重要組成部分。我們已經 - 我們專注於 - 自 11 月以來我們更加專注，專注於我們認為可以真正發揮作用的關鍵合作夥伴關係。這些重要合作夥伴之一的一個例子是與 Deloitte & Touche 合作，我們正在合作推出彈性研討會，在那裡他們與我們一起在大型全球企業中提供互補的研討會、評論和企業彈性。這是我們認為可以真正發揮作用的一種夥伴關係的例子。

We're continuing to build out distribution partnerships at the lower levels, again, but more focused -- in a more focused way. So the partner channel is making good progress. It's more focused. And I think if you look to the numbers, the actual percentage of deals through the channel was down a bit year-over-year as a result of that focus.

我們將繼續在較低級別建立分銷合作夥伴關係，但更加專注——以一種更加專注的方式。因此，合作夥伴渠道正在取得良好進展。它更專注。而且我認為，如果您查看這些數字，由於這種關注，通過該渠道進行的實際交易百分比同比有所下降。

The next question comes from Brian Colley from Stephens.

下一個問題來自 Stephens 的 Brian Colley。

In regards to the pathways to the platform strategy, could you just provide an update on the progress you've made in kind of migrating the NC4 and Risk Intelligence customers to the core CEM platform. And how that's going relative to your expectations?

關於平台戰略的途徑，您能否提供有關您在將 NC4 和風險智能客戶遷移到核心 CEM 平台方面取得的進展的最新進展。與您的期望相比情況如何？

Thanks for that question. It's going well, but slower than I had indicated last October. So it was a single-digit movement in number of customers this year. And what I talked about last quarter is we've lowered our expectation as we engage with -- in terms of timing, as we engaged with the customers who are on-prem and talked to them about -- they're just remained customers with a strong bias towards on-prem as opposed to cloud. And we don't want to prematurely cause a disruption to their preference. So the accounts that moved are moving well. We're continuing to execute that program, but it's -- we're not expecting to be done at year-end this year. We expect it will extend into next year as well.

謝謝你的問題。進展順利，但比我去年 10 月表示的要慢。因此，今年的客戶數量出現個位數變動。我在上個季度談到的是，我們降低了我們的期望——在時間方面，當我們與本地客戶接觸並與他們交談時——他們仍然是客戶強烈偏向本地而不是雲。我們不想過早地破壞他們的偏好。因此，移動的帳戶運行良好。我們將繼續執行該計劃，但它 - 我們預計不會在今年年底完成。我們預計它也將延續到明年。

Got it. And then how should we think about the pace of ARR growth throughout the remainder of the year? I'm just curious if we should expect relatively stable trends or a deceleration? And then, Patrick, one for you, apologies if I missed it, but I'm curious just what net retention rates look like for the quarter as well?

知道了。那麼我們應該如何考慮今年剩餘時間的 ARR 增長速度？我只是好奇我們是否應該期待相對穩定的趨勢或減速？然後，帕特里克，給你一個，如果我錯過了，我深表歉意，但我很好奇這個季度的淨保留率是什麼樣的？

In terms of pace of growth, the double-digit growth we're seeing in Q4 and Q1, we think is healthy, and we're focused on maintaining ARR growth in that neighborhood and consistent with our 6% to 7% overall guide and emphasis on the recurring piece and not a deemphasis of perpetual.

就增長速度而言，我們在第四季度和第一季度看到的兩位數增長，我們認為是健康的，我們專注於保持該地區的 ARR 增長，並與我們 6% 至 7% 的總體指導和強調反復出現的部分，而不是強調永久性的部分。

But when you focus on one thing, you're not much focused on the other. And so we're going to continue through the year to see a focus on the ARR growth and continuing to execute on our pipeline of perpetual deals.

但是當你專注於一件事時，你就不會太專注於另一件事。因此，我們將在今年繼續關注 ARR 增長，並繼續執行我們的永久交易渠道。

And this is Patrick, in terms of net revenue retention. So we're evolving our focus to annual recurring revenue. That's the #1 metric by which we are running the business and not -- and we're retiring the net revenue retention metric that we had been disclosing in the past because that was revenue based, that was looking backwards. It's -- it wasn't ARR based. Some color on Q1. You heard Dave and I mentioned in the prepared remarks that we had healthy gross revenue retention, not quite at the peaks that we were experiencing in particular in Q4 of last year, but it was healthy gross revenue retention in Q1. It's a large dollar-based quarter of renewals in Q1, and so we had healthy results. And then on top of that, in terms of growth, I think you heard Dave say that the transaction volume was up, but we were notably down in deal size.

就淨收入保留而言，這是帕特里克。因此，我們正在將重點轉移到年度經常性收入上。這是我們經營業務的第一大指標，而不是——我們正在取消過去披露的淨收入保留指標，因為它是基於收入的，它是向後看的。它是 - 它不是基於 ARR 的。 Q1上的一些顏色。你聽到戴夫和我在準備好的評論中提到，我們有健康的總收入保留，雖然不是我們在去年第四季度特別經歷的高峰期，但第一季度的總收入保留是健康的。這是第一季度以美元為基礎的大續約季度，因此我們取得了健康的結果。然後最重要的是，就增長而言，我想你聽到戴夫說交易量增加了，但我們的交易規模明顯下降了。

So we had a pretty healthy net revenue retention quarter building off of the gross revenue retention.

因此，在總收入保留的基礎上，我們有一個相當健康的淨收入保留季度。

The next question comes from Scott Berg from Needham.

下一個問題來自 Needham 的 Scott Berg。

Congrats on a good quarter. I guess, I got a couple of -- Patrick, I wanted to start with the off-balance sheet backlog you talked about completing a number of large countrywide deals here in the quarter. How does that, I guess, shape up or size maybe relative to the last 3 or 4 quarters?

祝賀一個好的季度。我想，我有幾個 - 帕特里克，我想從資產負債表外積壓開始，你談到在本季度在這裡完成一些大型全國交易。我猜，與過去 3 或 4 個季度相比，它的形狀或規模如何？

Yes. It's -- I think when you think about the -- just pulling together a couple of dots. As Dave mentioned, and as I mentioned, focus on ARR, focus on the recurring business that we think that, that and doing that much more profitably drives long-term shareholder value. The perpetual deals in that backlog are still strategically important, but we aren't -- we're shifting our focus towards the recurring. So that backlog is not as large as it has been, and that also shows up in our full year revenue guide where we're confident in our full year range and our ability to drive increasingly profitable organic growth.

是的。它——我想當你想到——只是把幾個點放在一起。正如戴夫提到的那樣，正如我提到的那樣，專注於 ARR，專注於我們認為的經常性業務，並且這樣做更有利可圖，可以推動長期股東價值。積壓訂單中的永久交易在戰略上仍然很重要，但我們不是——我們正在將重點轉向經常性交易。因此，積壓訂單不像以前那麼大，這也出現在我們的全年收入指南中，我們對全年範圍和我們推動利潤不斷增加的有機增長的能力充滿信心。

We're confident in the direction of our recurring business. And in terms of non-recurring in that backlog, perpetual bookings have not continued to set new records, and that creates a second half headwind to non-recurring revenue.

我們對經常性業務的發展方向充滿信心。就積壓的非經常性訂單而言，永久預訂並沒有繼續創造新的記錄，這對非經常性收入造成了下半年的不利影響。

Got it. Helpful. And then, Dave, you gave a lot of color kind of around pipeline opportunities for the remainder of the year. That was super helpful. But I wanted to drill in maybe to the composition of that a little bit.

知道了。有幫助。然後，戴夫，你在今年餘下的時間裡提供了很多圍繞管道的機會。那非常有幫助。但我想深入了解一下它的構成。

Last year, as you just kind of mentioned it was a big government year, in particular, with some of these large European countrywide deals amongst others. It still seems like you have a pretty healthy government pipeline though given some of the bookings commentary. But just overall, how do we think about the mix of your sales pipeline to stay between maybe government and non-government versus a year ago at this time?

去年，正如你剛才提到的那樣，這是一個重要的政府年，特別是其中一些大型歐洲國家交易。儘管考慮到一些預訂評論，但您似乎仍然擁有相當健康的政府渠道。但總的來說，與一年前相比，我們如何看待您的銷售渠道組合，以保持在政府和非政府之間？

I think, as Patrick said, that I'm not perpetual, we're not looking to set records in 2023 as compared to 2022. And so while it's healthy, it doesn't have 6 European countries of 200 million residents in the pipeline. On the other side of the pipeline -- that would be answering your question, government down a bit in terms of bookings and down in perpetual bookings. In terms of the results, you heard some really good -- the largest deal in the quarter was an upsell to a U.S. government contract. We had a couple of nice smart security sales into the U.S. government. So we had the top 5 Mass Notification win in a state government here in the U.S. So the government vertical in the U.S. is strong and it's shaping up to be a slightly stronger year in North America relative to Europe.

我認為，正如帕特里克所說，我不是永恆的，我們不打算在 2023 年創下與 2022 年相比的記錄。因此，雖然它很健康，但它沒有 6 個擁有 2 億居民的歐洲國家正在籌備中.在管道的另一端——這將回答你的問題，政府在預訂和永久預訂方面有所下降。就結果而言，您聽到了一些非常好的消息——本季度最大的一筆交易是對美國政府合同的追加銷售。我們向美國政府進行了幾次不錯的智能安全銷售。因此，我們在美國的一個州政府中贏得了前 5 名的大規模通知。因此，美國的政府垂直部門很強大，而且北美相對於歐洲來說，今年將略微強勁。

Last year, Europe had really, really strong growth for us. I am sorry, In North American, a slight shift towards North American being stronger than Europe more broadly as a geographic answer to your question.

去年，歐洲為我們帶來了非常非常強勁的增長。對不起，在北美，作為對您問題的地理答案，在更廣泛的範圍內，北美比歐洲更強大。

Next question come from Michael Turrin from Wells Fargo.

下一個問題來自富國銀行的 Michael Turrin。

This is Michael Berg on for Mike turn. Congrats on the quarter and start to the year. I want to dig into the customer quarter-to-quarter decline. I know that was due to divesting and [revising]. And you mentioned it was outside of that relatively in line with past additions. Can I think about that in the 75 to 100 range. And subsequently, how much longer can we expect potential sequential declines or just end of life-ing of customers from this transition?

輪到邁克了，這是邁克爾·伯格。祝賀本季度並開始新的一年。我想深入了解客戶的季度環比下降情況。我知道這是由於撤資和 [修訂]。你提到它超出了與過去的增加相對一致的範圍。我可以考慮在 75 到 100 的範圍內嗎？隨後，我們可以預期這種轉變導致潛在的連續下降或客戶生命週期結束多長時間？

Yes. This is Patrick. Thanks for the question. So we -- there were on the order of 90-or-so customer logos in that bucket of divestitures, end of life, et cetera, in the quarter. So otherwise, we would have been sort of mid-70s in that range that you described, and that's relatively normal activity for us. And we still have -- when you look at the non-core products that we are aiming to divest and/or in the process of end of life-ing, there are still a few hundred customers in that bucket. Now the average ARR of those customers is very low. Most of them, the majority of them are 4-digit ARR. But in terms of customer count, there are still a few hundreds. So that will continue to be a headwind.

是的。這是帕特里克。謝謝你的問題。因此，在本季度的資產剝離、生命週期結束等方面，我們有大約 90 個客戶標識。因此，否則，我們將在您描述的範圍內達到 70 年代中期，這對我們來說是相對正常的活動。而且我們仍然有 - 當您查看我們打算剝離和/或處於生命週期結束過程中的非核心產品時，該桶中仍有數百名客戶。現在這些客戶的平均 ARR 非常低。他們中的大多數，其中大多數是4位數的ARR。但就客戶數量而言，仍有數百人。所以這將繼續是一個逆風。

The timing of it will be a bit lumpy, and we'll just continue to do what we've been doing. We'll just call it out when it has a meaningful impact on the change.

它的時間會有點不穩定，我們將繼續做我們一直在做的事情。當它對更改產生有意義的影響時，我們才會將其調出。

And 1 quick follow-up. Last quarter, you mentioned that about $4 million of plan taken out of Q1 from the same cohort and $4 million to $8 million over the course of this year. Is that -- are those numbers still the same as we stand today?

並進行 1 次快速跟進。上個季度，您提到第一季度從同一隊列中提取了大約 400 萬美元的計劃，而今年則為 400 萬至 800 萬美元。那是——那些數字仍然和我們今天一樣嗎？

Yes, that's right. So we made some incremental progress in Q1. So of that range of $4 million to $8 million, we're targeting -- we're still targeting upwards of $8 million, and we've done $4 million, roughly $4 million as of March 31.

恩，那就對了。所以我們在第一季度取得了一些漸進的進展。因此，在 400 萬到 800 萬美元的範圍內，我們的目標是——我們的目標仍然是 800 萬美元以上，截至 3 月 31 日，我們已經完成了 400 萬美元，大約 400 萬美元。

The next question comes from William Power from Baird.

下一個問題來自 Baird 的 William Power。

I guess a couple of questions. Maybe just to touch base on macro. It sounds like you're seeing lower deal sizes and perhaps that's partly tied to macro. But I wonder if you could just touch on what you're seeing in terms of sales cycles, particularly within CEM, (inaudible) seeing much impact there? And any differences maybe across key geographies?

我猜有幾個問題。也許只是為了觸及宏觀基礎。聽起來您看到的交易規模較小，這可能部分與宏觀有關。但我想知道你是否可以談談你在銷售週期方面看到的情況，特別是在 CEM 中，（聽不清）在那裡看到了很大的影響？關鍵地區之間可能存在任何差異嗎？

Yes. So there's lower deal sizes, from 1 company, it's hard to fully unpack the macro versus the micro. We've shifted the comp plans this year, again, to focus on subscription deals and to focus on incenting the sales force to meet the customer where they are. And if a point product on ramp makes more sense than being ready day 1 for full CEM to make sure that the sales people aren't elongating sales cycles for larger deal sizes. So the sales cycle, I'm not seeing any change in the overall sales cycle. The velocity, as I said, especially on existing deals, was up 10% year-over-year for Q1.

是的。因此，只有一家公司的交易規模較小，很難將宏觀與微觀完全分開。我們今年再次改變了薪酬計劃，將重點放在訂閱交易上，並專注於激勵銷售人員在客戶所在的地方與客戶會面。而且，如果一個單點產品比在第一天就為完整的 CEM 做好準備更有意義，以確保銷售人員不會為了更大的交易規模而延長銷售週期。所以銷售週期，我沒有看到整個銷售週期有任何變化。正如我所說，速度，尤其是現有交易，第一季度同比增長 10%。

And regionally, I already gave the color of that, a little bit stronger North America relative to EMEA this year, largely having to do with the strength of the EMEA perpetual performance in Public Warning in '22 that doesn't have as much opportunity in '23.

在區域上，我已經給出了它的顏色，今年北美相對於歐洲、中東和非洲要強一些，這在很大程度上與歐洲、中東和非洲在 22 年公共警告中的永久表現的實力有關，而在'23。

Okay. And then maybe just to tie that together with the full year guidance, maintained guidance, you had some upside in Q1. I assume that's a function of perhaps some conservatism, maybe also layering in the smaller deal sizes you're seeing. Or just maybe any thoughts on what you're expecting in the second half of the year versus maybe what you were expecting previously to help kind of frame the full year outlook.

好的。然後也許只是將其與全年指導聯繫起來，保持指導，你在第一季度有一些上行空間。我認為這可能是某種保守主義的結果，也可能是你所看到的較小交易規模的分層。或者可能只是關於您對今年下半年的期望與您之前的期望相比的任何想法，以幫助構建全年展望。

Yes. I think on the positive side, on the year, I'm really pleased with the EBITDA and cash flow performance. So [staying won and just repeat], I think people recognize the outperformance in earnings and cash. I'm really pleased with the execution that we had between November and through the end of March in making that happen.

是的。我認為從積極的方面來說，今年，我對 EBITDA 和現金流量表現感到非常滿意。所以[保持勝利並重複]，我認為人們認識到收益和現金的出色表現。我對我們在 11 月到 3 月底期間為實現這一目標所做的執行感到非常滿意。

I think that positions us well with this clear line of sight to the $85 million we've been talking about since last October. So that all feels really good. Steady performance on the ARR. Double-digit growth feels good. The bookings for perpetual, March perpetual deals both to Q4 and Q1 was lower. And so that's what we're balancing, and I think further, just further derisking the year and lining it up to our focus on ARR, EBITDA and cash flow generation.

我認為這使我們能夠清楚地看到自去年 10 月以來我們一直在談論的 8500 萬美元。所以一切都感覺非常好。 ARR 表現穩定。兩位數的增長感覺很好。第四季度和第一季度的永久、3 月永久交易的預訂量均較低。因此，這就是我們正在平衡的，我認為更進一步，只是進一步降低這一年的風險，並將其與我們對 ARR、EBITDA 和現金流產生的關注聯繫起來。

The next question comes from Terry Tillman from Truist Securities.

下一個問題來自 Truist Securities 的 Terry Tillman。

So my first question, David, just kind of relates a little bit to just the buyer behavior in terms of buying in smaller chunks. I don't know if that surprised you or not. But what I'm curious about is everything is kind of evolutionary or a journey. How well have you recalibrated so to speak, or tuned the selling motion, the product and packaging and just kind of farming motions to address what may be kind of the new norm, which is buying in smaller chunks. So just trying to understand if that's happened, how well you've been able to react and then now just about volume and velocity going forward and dealing with the new environment? And then I had a cash flow question for Patrick.

所以我的第一個問題，大衛，只是有點與購買較小塊的買家行為有關。我不知道這是否讓你感到驚訝。但我很好奇的是，一切都是進化的或一段旅程。可以這麼說，你重新校准或調整銷售動作、產品和包裝以及某種農業動作以解決可能是新規範的問題，即小塊購買。因此，只是想了解是否發生了這種情況，您的反應能力如何，然後現在只是關於前進的數量和速度以及如何應對新環境？然後我有帕特里克的現金流量問題。

Okay. Good. That's a great question. I would say it's happening. And so if we just go back and look at the focus on the rebrand and the messaging and our new Chief Marketing Officer came in, executed, completed that project, building a strong foundation. The marketing, digital marketing muscles were being built at the same time the rebranding was being done, but there were kind of 2 things going on. And of course, our new Chief Revenue Officer just joined on February 13. So we're in the process of building and strengthening those muscles, which are, in my opinion, the right muscles for SaaS to make sure that we're bringing customers in to the Everbridge family to get the experience and generate the cross-sell, upsell.

好的。好的。這是一個很好的問題。我會說它正在發生。因此，如果我們回頭看看對品牌重塑和信息傳遞的關注，我們的新首席營銷官上任、執行、完成了該項目，奠定了堅實的基礎。在進行品牌重塑的同時，正在建立營銷、數字營銷力量，但有兩件事在進行。當然，我們的新首席營收官剛剛於 2 月 13 日加入。因此，我們正在構建和加強這些肌肉，在我看來，這些肌肉是 SaaS 確保我們帶來客戶的正確肌肉加入 Everbridge 家族以獲得經驗並產生交叉銷售、追加銷售。

So we're seeing increasing numbers of opportunities. We're increasingly improving our BDR flow, the feedback loop from sales department, the tech stack. But that is a process that I would still call beginning and executing well. I want to go back and recomplement the sales force. The key OKR we set back in last July when I very first joined was to get the tenured of the sales team up, steady the sales team, and that has certainly happened. We had the North American sales kickoff got pushed off to early May. And so I was with all of our North American sellers and they're feeling good about their opportunity. They're feeling good about where the customers are in the journey, feeling good about their ability to execute their plans for the year.

所以我們看到了越來越多的機會。我們正在越來越多地改進我們的 BDR 流程、來自銷售部門的反饋循環、技術堆棧。但這是一個我仍然稱之為開始和執行良好的過程。我想回去補充銷售人員。去年 7 月我剛加入時，我們設定的關鍵 OKR 是讓銷售團隊的終身職位得到提升，穩定銷售團隊，這確實發生了。我們將北美銷售啟動推遲到 5 月初。所以我和我們所有的北美賣家在一起，他們對自己的機會感覺很好。他們對客戶在旅程中所處的位置感覺良好，對他們執行年度計劃的能力感覺良好。

That's good to hear. And I guess, Patrick, it looks like it was the highest reported OCF or operating cash flow in the history. It looked like ARR was a notable benefit to the business. And so what I'm curious about is, for the full year, how do we think about like cash flow? Does that change your cash flow forecast? And anything you can share on kind of like EBITDA conversion to cash flow?

聽起來還不錯。我想，帕特里克，這看起來像是歷史上報告的最高 OCF 或運營現金流。看起來 ARR 對企業來說是一個顯著的好處。所以我很好奇的是，對於全年，我們如何看待現金流？這會改變您的現金流量預測嗎？還有什麼你可以分享的，比如 EBITDA 轉換為現金流量？

Yes. Thanks for the question, Terry. It's an important one. As we continue to focus on driving cash flow, and we did anticipate a seasonally high Q1 given all the renewals that we had in Q4 and in Q1, and therefore, the collection of those invoices. Q1 is typically a really good operating and free cash flow quarter for us. I know that wasn't exactly the case a year ago, but that was a bit of an anomaly. So back to normal this year in Q1 of 2023, and you should anticipate that seasonality continuing. So Q2 will be lower. What we -- by the end of Q1, we had collected a lot of those Q4 and Q1 renewals. And so Q2 cash flow, you'll see being much lower. And typically, Q3, a little bit stronger than Q2 and Q4 back up to much higher levels. So we try to model in that sort of trough, and we're still thinking of full year free cash flow in the order of around $60 million.

是的。謝謝你的問題，特里。這是一個重要的。由於我們繼續專注於推動現金流，並且考慮到我們在第四季度和第一季度進行的所有續訂，我們確實預計第一季度會出現季節性高位，因此，我們會收集這些發票。第一季度對我們來說通常是一個非常好的運營和自由現金流季度。我知道一年前情況並非如此，但這有點反常。所以今年在 2023 年第一季度恢復正常，你應該預計季節性會持續下去。所以Q2會更低。我們——到第一季度末，我們收集了很多第四季度和第一季度的續訂。因此，第二季度的現金流量會低得多。通常，Q3 比 Q2 強一點，Q4 回升到更高的水平。所以我們嘗試在那種低谷中建模，我們仍在考慮大約 6000 萬美元的全年自由現金流。

The next question comes from Mike Latimore from Northland Capital Markets.

下一個問題來自 Northland Capital Markets 的 Mike Latimore。

In terms of your expectations for perpetual license this year, has that changed since the start of the year? And then the second question just is on the Mass Notification business. How did that perform? Is it stable, declining, growing a little bit?

就您今年對永久許可的期望而言，自今年年初以來是否發生了變化？然後第二個問題是關於大眾通知業務。那是如何表現的？它是穩定的，下降的，還是有一點增長的？

So great question. When we did the bridge in Investor Day, we were talking about flat perpetual year-over-year. When you digest our guide and look out for the second half, you'll see that we're not -- really can't give exactly perhaps, but we're not -- we're allowing for that not to be flat. We had $31 million, I think, in perpetual revenue in the second half of last year. And we're not -- our guidance allows for that not to be flat. So I guess, by definition, when you roll through our guide, I think you'll see that we're navigating, risk-adjusting the perpetual, doesn't mean it's not going to happen, but that's where we're -- you'll see us risk-adjusting the outlook.

這麼好的問題。當我們在投資者日做橋時，我們談論的是持平的永久年同比。當你消化我們的指南並留意下半場時，你會發現我們不是 - 也許真的不能準確給出，但我們不是 - 我們允許它不平坦。我認為，去年下半年我們的永久收入為 3100 萬美元。而且我們不是——我們的指導允許這不會是平坦的。所以我想，根據定義，當你翻閱我們的指南時，我想你會看到我們正在導航，風險調整永久性的，並不意味著它不會發生，但這就是我們 -你會看到我們對前景進行風險調整。

Got it. And then on Mass Notification, is that...

知道了。然後在 Mass Notification 上，是……

Real steady, real steady. I'm really pleased with the work we're doing in Mass Notification. It's 1 of the things when you hear me talk about the point product, as companies think about and mature, their ability to predict, respond or recover from critical events, Mass Notification is the most common starting point, the most common on ramp. So we saw a nice steady performance in that part of the business. We're using that as the cross-sell engine -- continues to have a cross-sell engine for CEM. So I feel like the company is putting a little more focus in that core than we had maybe this time last year, and I think that's going to pay us dividends.

真穩，真穩。我對我們在 Mass Notification 中所做的工作非常滿意。當你聽到我談論點產品時，這是其中的一件事，隨著公司思考和成熟，他們預測、響應或從關鍵事件中恢復的能力，Mass Notification 是最常見的起點，最常見的斜坡。因此，我們在這部分業務中看到了良好的穩定表現。我們將其用作交叉銷售引擎——繼續為 CEM 提供交叉銷售引擎。所以我覺得公司比去年這個時候更加關注這個核心，我認為這會給我們帶來紅利。

The last question comes from Koji Ikeda from Bank of America.

最後一個問題來自美國銀行的Koji Ikeda。

This is George McGreen on for Koji. I understand that you reiterated the full year guide and you've highlighted some macro headwinds that are kind of showing up in terms of decreasing deal sizes, but higher volumes. It sounds like this is kind of the new normal for a while. And I kind of was wondering in terms of being able to achieve your ARR goals, given the smaller deal sizes, could you provide a little bit more color on what it is that you're doing to incentivize higher volumes?

這是 George McGreen 的 Koji。據我了解，您重申了全年指南，並強調了一些宏觀逆風，這些逆風在交易規模減少但交易量增加方面有所體現。聽起來這是一段時間的新常態。我有點想知道在能夠實現您的 ARR 目標方面，考慮到較小的交易規模，您能否提供更多顏色來說明您正在做什麼以激勵更高的交易量？

Yes. Sure. The key driver, first of all, which I mentioned, is the maturation and tenure of the sales force. And so getting that steadied, align the year-over-year Q1 performance of the sales force gives me confident we were intentional -- confidence as we were intentional in the design of the comp plan increase territory size to allow higher opportunity for sellers to make their targets, not to deemphasize elephant hunting and emphasizing, again, meeting the customer where they are in their journey towards CEM, if that's -- whether that CEM ready today or whether that's beginning with the point product and moving forward.

是的。當然。首先，我提到的關鍵驅動因素是銷售人員的成熟和任期。因此，穩定下來，使銷售人員的第一季度業績與去年同期相比保持一致，這讓我相信我們是有意的——因為我們有意設計薪酬計劃，所以有信心增加區域規模，讓賣家有更多的機會他們的目標，不是要淡化大象狩獵，而是要再次強調與客戶會面，他們在通往 CEM 的旅程中所處的位置，如果那是——無論 CEM 今天準備好，還是從點產品開始並向前發展。

So those intentional most things intentionally focused on retention of our sellers, focused on SaaS selling motions that increase velocity or the key things that are in place. And with John coming in, he's really -- my experience with him, he's really adept at matching go-to-market motions to the market need in the different subsegments of our market. And so I expect to see improving -- over the course of the next several quarters, improving sales plays to optimize that digital marketing, which is, to me, so key in and meeting the customers again where they are.

因此，那些有意的大多數事情有意地專注於留住我們的賣家，專注於提高速度的 SaaS 銷售動議或現有的關鍵事情。隨著約翰的加入，他真的——我對他的經驗，他真的很擅長將上市動議與我們市場不同細分市場的市場需求相匹配。因此，我希望看到改進 - 在接下來的幾個季度中，改進銷售策略以優化數字營銷，對我來說，這就是關鍵並再次與客戶見面。

So we've got a lot of intentionality in our process that we're beginning to execute to continue to drive velocity.

因此，我們在開始執行以繼續提高速度的過程中有很多意向性。

Okay. That's very helpful. And then if I could ask 1 more question. Could you -- thinking about kind of your 1,000 customers at an average of [250,000] ARR target in the long term, would you be able to kind of speak to what's the ARR uplift for CEM platform customers versus customers who aren't using the CEM platform?

好的。這很有幫助。然後，如果我可以再問 1 個問題。你能否 - 考慮一下你的 1,000 名客戶的長期平均 [250,000] ARR 目標，你能否談談 CEM 平台客戶與未使用 CEM 平台客戶的 ARR 提升情況中電平台？

Yes. We gave good color on that, I thought at the Investor Day, where our average ARR -- and just to go back and [don't get] me exactly I would send $2,000. But $455,000 is the average ARR of our customers over [250,000]. And so it's a meaningful uplift in our overall deal size when we move a customer from Mass Notification to CEM, we're talking 200%, 300% increase in the ASP, and that's what we're -- that's what we're driving to do. Another a little piece of color, we're measuring and focusing on what percent of our ARR is from those customers over 250,000 , and it moved up marginally like 20 basis points quarter-over-quarter. So we're continuing to -- as we see that the intentionality with which were end of life-ing some of the small acquired products with small customers that don't upsell to improve our focus on CEM, despite the deal sizes being down, the number of customers and the percentage from over 250,000 is continuing to improve.

是的。我們對此給出了很好的顏色，我在投資者日想，我們的平均 ARR - 只是回去[不要得到]我確切地我會寄 2,000 美元。但是 455,000 美元是我們超過 [250,000] 的客戶的平均 ARR。因此，當我們將客戶從 Mass Notification 轉移到 CEM 時，我們的整體交易規模有了有意義的提升，我們說的是 ASP 增加了 200%、300%，這就是我們的目標——這就是我們正在推動的目標去做。另一種顏色，我們正在測量並關注我們的 ARR 中有多少百分比來自那些超過 250,000 的客戶，並且它比上一季度略微上升了 20 個基點。因此，我們將繼續 - 正如我們所看到的那樣，儘管交易規模有所下降，但我們看到有意終止一些小客戶的小收購產品，這些產品不會增加銷售，以提高我們對 CEM 的關注度，客戶數量和超過 250,000 的客戶比例正在持續提高。

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

問答環節到此結束。我現在想把會議轉回管理層聽取任何閉幕詞。

Thank you all for joining us on the earnings call. We look forward to speaking with many of the analysts and many of our shareholders in the coming days and weeks and look forward to updating you all again in early August after our Q2 results to be published. Thank you very much. Have a great day.

感謝大家加入我們的財報電話會議。我們期待在未來幾天和幾週內與許多分析師和我們的許多股東交談，並期待在我們公佈第二季度業績後於 8 月初再次向大家更新。非常感謝。祝你有美好的一天。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開線路。再見。