Everbridge Inc (EVBG) 2023 Q3 法說會逐字稿

Good afternoon. Welcome to the Everbridge Third Quarter 2023 Earnings Conference Call. My name is Jason, and I'll be your operator today. (Operator Instructions). I would like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the company's website.

午安.歡迎參加Everbridge 2023年第三季財報電話會議。我叫Jason，今天將擔任您的接線生。 （接線生指示）。我想提醒大家，本次電話會議將被錄音，您可以透過公司網站「投資者關係」版塊的連結重播。

Now I would like to turn the call over to Vice President of Investor Relations, Nandan Amladi. Sir, please proceed.

現在我想把電話轉給投資人關係副總裁 Nandan Amladi。先生，請繼續。

Thank you, Jason, and good afternoon, everyone. Welcome to Everbridge's Earnings Call for the third 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. After the market closed, we issued our earnings release and supplementary materials, which can be accessed on the IR page 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.

謝謝傑森，大家下午好！歡迎參加Everbridge 2023年第三季財報電話會議。今天與我一同出席電話會議的還有Everbridge總裁兼執行長David Wagner，以及執行副總裁兼財務長Patrick Brickley。收盤後，我們發布了業績報告和補充資料，您可以在投資者關係頁面ir.everbridge.com上取得。本次電話會議將被錄音，會議結束後，我們將在投資者關係網站上提供電話會議的回放。

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.

在今天的電話會議中，我們將就未來事件或公司財務表現做出前瞻性陳述，這些陳述涉及某些風險和不確定性。本公司的實際業績可能與此類陳述中的預測有重大差異。可能導致此類差異的因素包括但不限於我們在10-Q表格和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. Also during today's call will refer to certain non-GAAP financial measures.

本次電話會議中提供的資訊僅反映我們截至今日的觀點，不應被視為代表我們任何後續日期的觀點。我們明確聲明不承擔更新任何前瞻性陳述或展望的義務。此外，今天的電話會議中將提及某些非公認會計準則 (non-GAAP) 財務指標。

A reconciliation of our GAAP to non-GAAP financial measures, to the extent reasonably available is included in our earnings press release, which you can find on our Investor Relations website. Our earnings press release includes highlights from our third 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.

我們的收益新聞稿中包含了我們合理可用的 GAAP 與非 GAAP 財務指標的對帳表，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包含我們的財務表現和展望外，還包含我們 2023 年第三季的亮點。在回顧我們的業務和財務亮點後，我們將開始問答環節。

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

說完這些，讓我把電話轉給戴夫。戴夫？

Thanks, Nandan, and good afternoon, everyone. We delivered solid Q3 results, including revenue of $114.2 million, an increase of 3% year-over-year, adjusted EBITDA of $23.7 million an increase of approximately $9 million and 56% from a year ago and annual recurring revenue of $399 million, up $4 million quarter-over-quarter and 8% year-over-year. These results align with our strategy of enhancing shareholder value by prioritizing increasing ARR to more valuable recurring part of our business, and growing efficiently and profitably to achieve our goal of reaching the Rule of 40 by 2027 and enhancing our go-to-market approach evidenced by the Q3 improvements.

謝謝 Nandan，大家下午好。我們第三季業績穩健，營收達 1.142 億美元，年增 3%；調整後息稅折舊攤銷前利潤 (EBITDA) 達 2,370 萬美元，較去年同期成長約 900 萬美元，增幅達 56%；年度經常性收入達 3.99 億美元，環比美元，成長 400 萬8%。這些業績符合我們提升股東價值的策略，即優先提升年度經常性收入 (ARR)，用於提升業務中更有價值的經常性部分，並實現高效盈利增長，以實現到 2027 年達到“40 規則”的目標，並強化我們的市場營銷策略，而第三季度的改進正是明證。

In this context, subscription revenues of $104.3 million grew 8% in the third quarter. However, revenues from professional services, perpetual software licenses and onetime services were down $4.7 million or 32%, bringing total revenue growth to 3%. The decline in onetime revenues is due to prioritizing recurring revenues and the changes in the macro environment affecting large-scale opportunities.

在此背景下，第三季訂閱收入成長了8%，達到1.043億美元。然而，專業服務、永久軟體授權和一次性服務的收入下降了470萬美元，降幅達32%，使得總收入增幅降至3%。一次性收入的下降是由於公司優先考慮經常性收入，以及宏觀環境的變化影響了大規模業務機會。

Efficiency wise, we improved adjusted EBITDA by 56% year-over-year or $8.5 million, while also absorbing the $4.7 million decrease in professional services and onetime revenues. Our efforts to enhance efficiency are allowing us to reduce costs while continuing to enhance our product portfolio.

效率方面，我們調整後的EBITDA年增56%，達到850萬美元，同時吸收了專業服務和一次性收入470萬美元的下降。我們努力提升效率，這使我們能夠降低成本，同時繼續增強產品組合。

Improvements we are seeing in our third quarter results that we believe demonstrate the progress we are making to increase our ARR growth rate in 2024 are as follows: one, Q3 was our highest bookings quarter of the year, both for recurring and onetime bookings; two, our sales productivity improved 11% quarter-over-quarter and 16% year-over-year; three, our average transaction size increased again quarter-over-quarter to the highest level of the year; four, our total number of transactions remains consistent with last year; and five, our total pipeline is continuing to build.

我們認為，第三季業績的改善顯示了我們在提高 2024 年 ARR 成長率方面所取得的進展，具體如下：第一季度是我們今年預訂量最高的季度，包括經常性預訂和一次性預訂；第二，我們的銷售效率環比提高 11%，年

During Q3, we supported our customers through a range of critical events, including heat waves, wildfires, hurricanes and geopolitical unrest. We supported states and countries around the world with life-saving alerts in the face of unprecedented heat ways and wild buyers this summer. We delivered millions of messages to Floridians leading up to, during and after Hurricane Idalia to support their life safety and recovery goals.

在第三季度，我們幫助客戶度過了一系列重大事件，包括高溫、野火、颶風和地緣政治動盪。面對今年夏季前所未有的高溫和瘋狂的搶購潮，我們向世界各州和國家提供了救生警報。在颶風艾達利亞 (Idalia) 來襲之前、期間和之後，我們向佛羅裡達州居民發送了數百萬條訊息，以支持他們的生命安全和災後復原目標。

And more recently, as a result of the conflict in the Middle East and the result of geopolitical unrest, we're assisting multinational businesses with critical situational awareness and risk intelligence to keep their employees and travelers safe and to keep their businesses running efficiently. The value of the Everbridge platform has never been more apparent.

最近，由於中東衝突和地緣政治動盪，我們正在協助跨國企業提供關鍵的態勢感知和風險情報，以保障其員工和旅客的安全，並確保其業務高效運作。 Everbridge 平台的價值從未如此凸顯。

We also just published our inaugural sustainability report that is posted on our IR page. I'm delighted with the progress Everbridge is making in this area showing our commitment to developing new policies and processes to align our strategy and operations with key sustainability principles. Again, I am pleased with our progress, especially improved bookings traction we demonstrated in the third quarter.

我們也剛發布了首份永續發展報告，該報告已發佈在我們的投資者關係 (IR) 頁面上。我很高興看到 Everbridge 在這方面的進展，這反映了我們致力於制定新政策和流程，使我們的策略和營運與關鍵的永續發展原則保持一致。同樣，我對我們的進展感到滿意，尤其是第三季預訂量的成長。

Now I'll turn the call over to our CFO, Patrick Brickley, to provide further details on our financial results and outlook. Patrick?

現在我將電話轉給我們的財務長 Patrick Brickley，請他提供有關我們財務業績和前景的更多詳細資訊。派崔克？

Thanks, Dave. During the quarter, we saw a healthy year-over-year increase in our profitability metrics. This increase reflects the substantial ongoing improvements that we are making to operational efficiency across all areas of our business, work that we intend to continue as we drive towards profitable growth and Rule of 40 by 2027.

謝謝，戴夫。本季度，我們的獲利指標較去年同期成長穩健。這一成長反映了我們在所有業務領域持續大幅提升營運效率的舉措，我們將繼續努力，力爭在2027年實現獲利成長和「40規則」。

I will now discuss our results for the quarter in more detail. For the third quarter, ARR increased to $399 million, up 8% year-over-year. Revenue was $114.2 million, up 3% from a year ago. Subscription revenue was $104.3 million, up 8% from a year ago, while non-subscription revenue of $9.8 million was down 32% from a year ago.

現在我將更詳細地討論我們本季的業績。第三季度，年度經常性收入 (ARR) 增至 3.99 億美元，年增 8%。營收為 1.142 億美元，年增 3%。訂閱收入為 1.043 億美元，年增 8%，而非訂閱收入為 980 萬美元，較去年同期下降 32%。

Our gross revenue retention rate was consistent year-over-year. However, it dipped slightly relative to the first half of 2023, primarily due to a bit more renewal contraction than we've seen in recent quarters. We signed 44 deals over $100,000, down from 75 a year ago. That said, as Dave mentioned, in Q3, our average deal size rebounded relative to what we saw in the first half of 2023.

我們的總營收留存率與去年同期持平。然而，與2023年上半年相比略有下降，主要是因為續約規模比最近幾季有所萎縮。我們簽署了44筆超過10萬美元的交易，低於去年同期的75筆。不過，正如戴夫所提到的，在第三季度，我們的平均交易規模相對於2023年上半年有所反彈。

GAAP gross margin was $81 million or 71% margin compared to the year-ago period's result of $76 million or 68% margin. Adjusted gross margin was 74% compared to 73% a year ago. GAAP net income was nearly $2 million or a negative $0.23 of diluted earnings per share compared to the year ago period in which we generated a net loss of $22 million or a negative $0.56 of earnings per share.

GAAP毛利率為8,100萬美元，毛利率為71%，去年同期為7,600萬美元，毛利率為68%。調整後毛利率為74%，去年同期為73%。 GAAP淨利接近200萬美元，每股攤薄收益為-0.23美元，去年同期淨虧損2,200萬美元，每股攤薄收益為-0.56美元。

GAAP net income in the third quarter benefited from a nearly $13 million gain from retiring debt early and at a discount. This gain was partially offset by an $8 million charge related to our legal dispute with certain former shareholders of Anvil. Non-GAAP net income was $20 million or $0.46 of diluted earnings per share compared to the year ago period net income of $12 million or $0.27 of diluted earnings per share.

第三季度，GAAP淨利受惠於提前以折扣價償還債務帶來的近1,300萬美元收益。該收益部分被我們與Anvil部分前股東的法律糾紛相關的800萬美元費用所抵銷。非GAAP淨利為2,000萬美元，即每股攤薄收益0.46美元，去年同期淨利為1,200萬美元，即每股攤薄收益0.27美元。

Our adjusted EBITDA of $23.7 million represents a 21% margin compared to the year-ago period's result of $15.2 million or 14% margin. Cash flow from operations was an inflow of $17 million compared to the year ago period of $18 million and adjusted free cash flow was an inflow of $15.5 million compared to the year ago period of $15.4 million.

我們的調整後息稅折舊攤銷前利潤 (EBITDA) 為 2,370 萬美元，利潤率為 21%，而去年同期的調整後息稅折舊攤銷前利潤 (EBITDA) 為 1,520 萬美元，利潤率為 14%。經營活動現金流流入 1,700 萬美元，去年同期為 1,800 萬美元；調整後自由現金流流入 1,550 萬美元，去年同期為 1,540 萬美元。

Our liquidity remains in a healthy position. We ended Q3 with $100.5 million in cash, cash equivalents and restricted cash down from $201.6 million at the end of 2022. In the third quarter, we used roughly $130 million of cash to repurchase $145 million of outstanding convertible debt. In doing so, we locked in a desirable yield to maturity, and we reduced our net debt to $263 million down 22% from a year ago.

我們的流動性保持健康。截至第三季末，我們持有的現金、現金等價物及限制性現金為1.005億美元，低於2022年底的2.016億美元。第三季度，我們使用約1.3億美元現金回購了1.45億美元未償還的可轉換債券。此舉鎖定了理想的到期收益率，並將淨債務降至2.63億美元，較去年同期下降22%。

Our debt repurchase reflects our confidence in our increasing ability to drive positive cash flow. For example, year-to-date, adjusted free cash flow has increased nearly 300% year-over-year, and we will continue to see further year-over-year improvements in our cash flow in the quarters ahead. We will have more than enough cash to retire the $63 million of debt that will mature in December 2024 to address any potential outflows related to the Anvil legal dispute and to continue to fund investments in growth.

我們的債務回購反映了我們對不斷增強的正現金流驅動能力的信心。例如，年初至今，調整後自由現金流年增近300%，未來幾季我們的現金流將持續年增。我們將擁有充足的現金來償還將於2024年12月到期的6,300萬美元債務，以應對與Anvil法律糾紛相關的任何潛在資金流出，並繼續為成長投資提供資金。

Moving to guidance. We are revising our guidance for the remainder of 2023. A reconciliation of our updated guidance to the guidance which we gave last quarter is provided on Slides 26 and 27 of the quarterly earnings Investor Relations presentation, which you can find on our Investor Relations website.

談到業績指引。我們正在修訂2023年剩餘時間的業績指引。季度收益投資者關係簡報的第26和27張投影片提供了更新的業績指引與上一季業績指引的對比，您可以在我們的投資人關係網站上找到。

For the fourth quarter, we anticipate results which will reflect the same pattern that we experienced in Q3. The continued year-over-year growth in subscription revenue, continued decrease in non-subscription revenues and continued improvement in profitability. As I describe our revenue outlook for the fourth quarter, I will talk separately about subscription and non-subscription revenue. We anticipate subscription revenue of between $104.6 million and $105 million, up 3% year-over-year.

我們預計第四季的業績將與第三季保持相同的模式。訂閱收入將持續年增，非訂閱收入將持續下降，獲利能力將持續提升。在描述第四季的營收前景時，我將分別討論訂閱收入和非訂閱收入。我們預計訂閱收入將在1.046億美元至1.05億美元之間，年增3%。

The year-ago period included roughly $3 million of subscription revenue from entities that we have since divested and subscription amounts that were recognized on an annual basis during the year ago period, but will not have the same timing this year. This bridge is illustrated on Slide 27 of our quarterly Investor Relations presentation. This outlook for Q4 subscription revenue reflects sequential growth of between $0.3 million and $0.7 million.

去年同期包含約300萬美元的訂閱收入，這些收入來自我們後來剝離的實體，以及去年同期按年確認的訂閱金額，但今年的確認時間將有所不同。這部分內容已在我們季度投資者關係簡報的第27張投影片中進行了說明。第四季訂閱收入的預期反映了30萬美元至70萬美元的環比成長。

Our subscription revenue in the third quarter included roughly $1 million of subscription revenue that is recognized on an annual basis, and no such subscription revenue is included in our outlook for the fourth quarter. This bridge is also illustrated on Slide 27 of our quarterly Investor Relations presentation. We anticipate non-subscription revenue of between $9.4 million and $10.5 million, down from nearly $16 million in the year ago period.

我們第三季的訂閱收入包含約100萬美元的按年確認的訂閱收入，而我們對第四季的展望並未包含此類訂閱收入。我們季度投資者關係簡報的第27張投影片也對此進行了說明。我們預計非訂閱收入將在940萬美元至1,050萬美元之間，低於去年同期的近1,600萬美元。

This Q4 decrease of non-subscription revenue is larger than what is reflected in the outlook that we provided in August. In particular, owing to macroeconomic factors, there are a few on-premise sales opportunities, which we now expect to deliver in 2024 rather than our recent projection of fourth quarter 2023.

第四季非訂閱收入的降幅大於我們8月預測的降幅。特別是，由於宏觀經濟因素，存在一些本地銷售機會，我們目前預計這些機會將在2024年實現，而不是我們先前預測的2023年第四季。

Therefore, in summary, we anticipate total revenue for the fourth quarter to range between $114 million and $115.5 million, which reflects a year-over-year decrease of between 3% and 1%. We anticipate a GAAP net loss of between $6.3 million and $5.1 million and non-GAAP net income of between $21.5 million and $23 million or diluted earnings per share of $0.48 to $0.52.

因此，綜上所述，我們預計第四季總營收將在1.14億美元至1.155億美元之間，年減3%至1%。我們預計GAAP淨虧損將在630萬美元至510萬美元之間，非GAAP淨利潤將在2,150萬美元至2,300萬美元之間，或每股攤薄收益將在0.48美元至0.52美元之間。

We expect adjusted EBITDA to be between $25.6 million and $27.1 million, a margin of 23%. We remain well on track with our plan to generate continuous year-over-year improvement in quarterly adjusted EBITDA and adjusted EBITDA margin despite the pressure that's created by our revised outlook for non-subscription revenue.

我們預計調整後EBITDA將在2,560萬美元至2,710萬美元之間，利潤率為23%。儘管非訂閱收入預期調整後帶來了壓力，但我們仍有望繼續推進實現季度調整後EBITDA和調整後EBITDA利潤率同比持續提升的計劃。

Moving to full year guidance. For 2023, we now anticipate total revenue in the range of $447 million to $448.5 million, representing year-over-year growth of 4%. Within that, we anticipate subscription revenue of between $409.5 million to $409.9 million representing year-over-year growth of 7%, and we anticipate non-subscription revenue of between $37.5 million and $38.6 million, representing a year-over-year decline of 18% to 21%.

轉向全年業績指引。對於2023年，我們目前預計總營收將在4.47億美元至4.485億美元之間，年增4%。其中，我們預計訂閱收入將在4.095億美元至4.099億美元之間，年增7%；非訂閱收入將在3,750萬美元至3,860萬美元之間，年減18%至21%。

We expect a GAAP net loss of between $34.3 million and $33.1 million and non-GAAP net income of between $66 million and $67.5 million or between $1.48 and $1.52 of diluted earnings per share. We expect to deliver adjusted EBITDA in the range of $83.5 million to $85 million, representing an adjusted EBITDA margin of 19% at the midpoint. In summary, we continue to make progress towards our goal of increasing ARR more profitably.

我們預計，GAAP淨虧損在3,430萬美元至3,310萬美元之間，非GAAP淨利在6,600萬美元至6,750萬美元之間，或每股攤薄收益在1.48美元至1.52美元之間。我們預計調整後EBITDA將在8,350萬美元至8,500萬美元之間，調整後EBITDA利潤率（中位數為19%）。總而言之，我們正朝著以更獲利的方式提升ARR的目標不斷邁進。

Taking an early look ahead to 2024, we are committed to expanding our profitability. And although too soon for forecasting GAAP profitability, we expect to grow our full year adjusted EBITDA by roughly 25%. We remain confident that we can deliver the targets laid out at our December 2022 Investor Day, making disciplined growth first investments that will drive steady progress towards the Rule of 40 by 2027.

展望2024年，我們致力於提升獲利能力。雖然現在預測GAAP獲利能力還為時過早，但我們預計全年調整後EBITDA將成長約25%。我們仍有信心實現2022年12月投資者日所訂定的目標，並進行嚴謹的成長優先投資，以穩步推進，到2027年實現「40法則」。

I will now turn the call back over to Dave.

我現在將電話轉回給戴夫。

Thanks, Patrick. In Q3, we delivered our best bookings performance of the year. while still down compared to last year, the recent recovery underscores the ongoing improvements we've made to our sales productivity. Furthermore, our pipeline and especially a long field pipeline has continued to expand as the year has progressed.

謝謝，派崔克。第三季度，我們的訂單量創下了年度新高。雖然與去年相比仍有所下降，但近期的復甦凸顯了我們銷售效率的持續提升。此外，我們的產品線，尤其是長期產品線，也隨著今年的進展而持續擴張。

Notably, in Q3, we successfully closed 4 deals over $500,000, which was 3 more than last quarter and we closed 1 deal over $1 million, also marking a sequential improvement. Our largest new client in the quarter was a smart security deal for a shipping port in the Middle East. Among the remaining top 5 deals, 3 were new CEM customers, including a federal general government department, an Australian bank and a large international charitable organization. A bit significant new client with an enterprise Mass Notification win.

值得注意的是，在第三季度，我們成功完成了4筆超過50萬美元的交易，比上一季增加了3筆；此外，我們還完成了1筆超過100萬美元的交易，這也標誌著業績環比增長。本季我們最大的新客戶是一筆為中東某航運港口提供的智慧安防交易。在其餘5筆交易中，有3筆是新的客戶體驗管理 (CEM) 客戶，其中包括一個聯邦政府部門、一家澳洲銀行和一個大型國際慈善機構。此外，我們還獲得了一個重要的新客戶，即企業級大眾通知 (Mass Notification) 專案。

Regarding growth deals, our 2 largest deals were government add-ons, one at state level emergency notification win and the other in the U.S. federal space. We also had a large smart security cross-sell into a CEM account. Two CEM extensions round out the top 5 add-on deals. In total, we added 32 new CEM customers in Q3, bringing our total CEM customer tap to 405. While average deal sizes are smaller this year, we are maintaining a healthy mix of new and growth CEM customer wins.

在成長型交易方面，我們最大的兩筆交易是政府附加服務，一筆是州級緊急通知服務，另一筆是美國聯邦領域的服務。我們還完成了一筆大型智慧安防交叉銷售，涉及一個客戶體驗管理 (CEM) 客戶。兩筆客戶體驗管理擴展服務構成了前五名附加服務交易。第三季度，我們總共新增了 32 位客戶體驗管理 (CEM) 客戶，使我們的客戶體驗管理 (CEM) 客戶總數達到 405 位。雖然今年的平均交易規模較小，但我們仍然保持著新客戶和成長型客戶的健康組合。

In terms of retention, gross retention was slightly lower than the past few quarters and was consistent with the same period last year. A slight sequential increase in churn was due primarily to increased renewal contraction as Patrick noted. We're pleased with the progress we've made executing our go-to-market strategy. The underlying metrics affirm our growth path. Our sales represented productivity is rising. Our forward pipeline indicators show traction.

就留存率而言，總留存率略低於前幾季度，與去年同期持平。客戶流失率較上季略有上升，主要原因是正如派崔克所指出的，續約收縮加劇。我們對執行市場策略所取得的進展感到滿意。各項指標都印證了我們的成長軌跡。我們的銷售額代表率正在提升。我們的前瞻管道指標顯示出強勁成長勢頭。

We're successfully adding a balanced mix of new and growth CEM customers. And we're also reinforcing our strong market position. Customer feedback assures that we're on the right track and our high customer satisfaction, solid renewal rates and positive response to our product enhancements are all strong indicators.

我們成功地實現了新客戶和成長型客戶體驗管理 (CEM) 客戶的均衡成長。同時，我們也在鞏固強大的市場地位。客戶回饋證明我們正朝著正確的方向發展，而我們較高的客戶滿意度、穩定的續約率以及客戶對我們產品改進的積極響應，都是強有力的佐證。

As the market improves, we are anticipating a corresponding growth in bookings in 2024. In the current environment, our execution is improving and Everbridge remains the market leader.

隨著市場好轉，我們預計 2024 年的預訂量將隨之成長。在當前環境下，我們的執行力正在提升，Everbridge 仍然是市場領導者。

In summary, the third quarter demonstrated another step-up in profitability of $9 million or 56% year-over-year. We delivered a stronger bookings score sequentially as a result of increase in deal size and improved sales productivity. We're confident that we are well positioned to deliver year-over-year recurring bookings growth in 2024, which will contribute to increasing ARR growth rates later in 2004, and we are also confident that we can grow our adjusted EBITDA by a further 25% in 2024.

綜上所述，第三季獲利能力再次提升，年增900萬美元，達56%。由於交易規模擴大和銷售效率提升，我們的訂單量較上季成長。我們有信心，2024年我們有能力實現經常性訂單量的年增長，這將有助於2024年下半年ARR（年度經常性收入）的成長速度。我們也相信，2024年調整後的EBITDA（息稅折舊攤提前利潤）能夠再成長25%。

In closing, I want to emphasize our steadfast commitment to assisting our customers in achieving resilience. We are living in uncertain times when organizations and governments are prioritizing the safety of their people and the continuity of their operations. Our Everbridge team is innovating to help organizations monitor risk more comprehensively than ever before and to combine that situational awareness with a market-leading platform for managing critical events to empower a more resilient world.

最後，我想強調我們堅定不移地致力於幫助客戶實現韌性。我們生活在一個充滿不確定性的時代，各組織和政府都將員工安全和業務連續性放在首位。我們的 Everbridge 團隊正在創新，幫助各組織比以往任何時候都更全面地監控風險，並將這種態勢感知與市場領先的重大事件管理平台相結合，從而建立一個更具韌性的世界。

I will now turn the call over to the operator to facilitate the question-and-answer period. Jason.

現在我將把電話轉給接線員，以便進行問答環節。傑森。

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

（操作員指示）我們的第一個問題來自 Raymond James 的 Alex Sklar。

Dave, just on your confidence on an improved bookings outlook, I realize there's still some important weeks ahead this quarter. But historically, Q4 is your largest bookings quarter in terms of kind of sequential ARR growth. Can you just talk about your level of confidence or visibility that's going to continue again this year. And then just a little bit more color on your confidence at the end of the prepared remarks in terms of an improved bookings activity next year, assuming no macro improvements.

Dave，關於您對預訂前景改善的信心，我知道本季接下來還有幾週很重要。但從歷史上看，第四季是貴公司預訂量最大的季度，就年度經常性收入（ARR）的環比增長而言。您能否談談您對今年將繼續保持這種勢頭的信心或預見性？然後在準備好的發言最後，請您稍微闡述您對明年預訂活動改善的信心，前提是宏觀經濟沒有改善。

Yes. Good question. As I pointed out, our pipeline has been improving. So productivity is improving. The average deal size is improving. Q4 is sequentially our strongest quarter, and those are the kinds of things that give us confidence as we head into Q4 and think about year-over-year ARR improvement, we're still cognizant that Q4 last year was a strong quarter, particularly a strong quarter for ARR growth. So we're not expecting the same kind of strength we saw last year, but we are expecting a good quarter.

是的，問得好。正如我指出的，我們的業務管道一直在改善。也就是說，我們的生產力正在提高。平均交易規模也在擴大。第四季是我們環比表現最強勁的一個季度，這些因素讓我們在進入第四季度並考慮年度經常性收入（ARR）同比增長時充滿信心。我們仍然意識到，去年第四季是一個強勁的季度，尤其是ARR成長強勁的季度。因此，我們預計第四季度的業績不會像去年那樣強勁，但我們預計第四季度會是一個不錯的季度。

As we look forward into 2024, that's where the comparables and the sequential improvements give us confidence that we'll continue those sequential improvements into 2024 when we hit those top for compares, which again with ARR (inaudible), works of course, it takes a couple of quarters to the ARR growth rate is moving up rather than down. So that's what we're alluded to in the remarks, and thank you for the follow-up question.

展望2024年，可比較數據和環比成長讓我們有信心，我們將持續維持這些環比成長，直到2024年達到可比較高峰。當然，ARR（聽不清楚）的成長需要幾個季度才能真正實現。 ARR成長率的上升而不是下降。這就是我們在評論中提到的內容，感謝您的後續提問。

All right. Great color there. And then I don't know if Dave or Patrick, in terms of the comments on the higher renewal contraction, can you just elaborate on what's driving that? Is that macro related? Is it competition? And did that continue through kind of October? Or was that kind of isolate into the third quarter?

好的。顏色很棒。然後，我不知道戴夫或帕特里克，關於續約率下降的評論，您能否詳細說明一下造成這一現象的原因？這與宏觀經濟因素有關嗎？是競爭嗎？這種情況持續到了十月嗎？還是說這種情況一直持續到第三季？

I'd say it was isolated into the third quarter have been really consistently run contractions with band of a couple of hundred thousand -- within a band of a couple of hundred thousand up and down quarter-over-quarter. It was a huge increase, but there was an increase in the third quarter. We reviewed that -- and we think it's largely constrained to the third quarter. It was largely calculated, but there were some customers contracted services. So I think it's also a bit indicative of some of the budget pressures we've seen in our clients throughout the year.

我想說的是，第三季的業績確實持續萎縮，季增幅在幾十萬左右，上下波動幅度在幾十萬左右。這是一個巨大的成長，但第三季確實有所成長。我們對此進行了審查，認為這主要局限於第三季。這主要是經過計算的，但也有一些客戶簽訂了服務合約。所以我認為這也在某種程度上反映了我們全年在客戶身上看到的一些預算壓力。

Our next question comes from Arjun Bhatia from William Blair.

我們的下一個問題來自 William Blair 的 Arjun Bhatia。

This is Chris on for Arjun. I want to circle back to sales productivity. It's great to hear about some of the improvements there. What would you point to as kind of some of the key strategies that are the most effective in delivering these improvements.

我是 Chris，代表 Arjun 發言。我想回到銷售效率的問題。很高興聽到你們在這方面取得了一些進展。您認為哪些關鍵策略對實現這些改進最有效？

Well, it's a team effort when that happens. One of the key things that's happened, we talked about last quarter with the sale of tenure improvement. And so we continue to have great retention of our sales force and that's one of the strongest statistically correlated evidences we have. And so I think that is being one. The marketing team has really gotten in a much tighter groove swing in the last couple of quarters. And so we're seeing a lot more efficiently generation. And I think it's also supporting those sales team members as they've onboarded. And then sales execution is a journey, and we're journeying through it, but just give John a lot of credit in his second full quarter getting team aligned.

嗯，這需要團隊共同努力。我們上個季度討論過的一個關鍵點是銷售人員任期延長。因此，我們的銷售人員保留率仍然很高，這是我們掌握的最具統計相關性的證據之一。我認為，這就是團隊合作的成果。過去幾個季度，行銷團隊的工作節奏確實更加緊湊。因此，我們看到員工的效率顯著提高。我認為這也為新加入的銷售團隊成員提供了支持。銷售執行是一個過程，我們正在經歷這個過程，但約翰在第二個完整季度裡，在協調團隊方面所做的努力值得稱讚。

Our next question comes from Brian Colley from Stephens.

下一個問題來自史蒂芬斯公司的 Brian Colley。

On the updated guidance, was the reduction in sales, 100% from the onetime revenue? Or was there any change in the subscription outlook there?

在更新後的業績指引中，銷售額的下降是全部來自一次性收入嗎？還是訂閱前景有任何變化？

Brian, this is Patrick. We -- at the midpoint, we basically brought it down by about $3 million, and you could think of that as $2 million from non-subscription and $1 million from subscription and the story over the years has really been the non-subscription. But when you look at subscription, we began the year roughly with guidance, call it, around $411 million, which is up 7% year-over-year.

布萊恩，我是派崔克。我們——中間值大概是降低了300萬美元，你可以理解為200萬美元來自非訂閱，100萬美元來自訂閱。多年來，非訂閱收入一直是主要原因。但說到訂閱收入，我們年初的指導價大約是4.11億美元，年增7%。

And then our ASPs continue to come down early in the year, which was a headwind, but we were able to offset that with improved retention year-over-year. And just now as you sort of pull all that together and we're exiting the year, we're looking at $410 million rather than $411 million, so 7% year-over-year, but it is down by $1 million.

然後，我們的平均售價在年初持續下降，這對我們來說是一個阻力，但我們透過逐年提升的留存率抵消了這一影響。現在，綜合考慮所有這些因素，我們即將結束這一年，我們的營收預期是4.1億美元，而不是4.11億美元，也就是說同比增長7%，但下降了100萬美元。

Okay. Perfect. That's super helpful. And then, Dave, 1 for you. I'm curious kind of where you stand today in terms of completing some of the product integration work that you've talked about kind of needed to upsell or convert those 150-plus customers from RC9 and Anvil over to the CEM platform. And then any progress update that you've made converting some of your Mass Notification customers within the G2K over to CEM as well?

好的。太好了。這非常有幫助。然後，戴夫，我來問你一個問題。我很好奇，就你之前提到的一些產品整合工作而言，你目前的進展如何？這些整合工作需要你進行追加銷售，或將 150 多位來自 RC9 和 Anvil 的客戶轉移到 CEM 平台。此外，在將 G2K 中的一些 Mass Notification 客戶轉移到 CEM 方面，你有什麼進展嗎？

Those are both great questions. Thanks for asking. So on the RC9, the momentum is picking up, as you remember, from a year ago at this call, we talked about that cohort of customers and then by Q1, kind of goal and half. But we had good migrations this quarter. It was the highest leveraged fourth quarter of the year-to-date. The road map for them -- for the migration is finishing up. The product work to actually go into market with the end of life, which will drive the remaining customers with more force will be coming up around the end of the year.

這兩個問題都很棒。謝謝你的提問。 RC9 的勢頭正在回升，正如你記得的，從一年前的電話會議開始，我們就討論了這群客戶，到第一季度，我們大概已經完成了目標的一半。本季我們的遷移工作進展順利。這是今年迄今槓桿率最高的第四季。遷移路線圖即將完成。產品生命週期結束後，實際上市工作將在年底左右完成，這將更有力地推動剩餘的客戶。

So that program continues to make good progress. We did slow down to focus on retention that has worked for us to date. So I'm pleased with where that's going. The feature parity will be done in Q1, and we're doing end of life before then.

所以這個項目繼續取得良好進展。我們確實放慢了速度，專注於留存，這對我們來說迄今為止一直很有效。我對目前的進展感到滿意。功能對等將在第一季完成，我們將在此之前結束生命週期。

On the second cohort of the Mass Notification in the Global 2000, the upgrades, we had another good quarter, a nice mix of new customers. Those 3 new customer wins I talked about are really exciting wins, a U.S. federal government department. We've got a really nice opportunity there, it's a nice size deal and we're top 5.

在「全球2000強」榜單的第二批升級中，我們又取得了不錯的季度業績，新客戶組合良好。我之前提到的三個新客戶非常令人興奮，它們來自一個美國聯邦政府部門。我們在那裡獲得了一個非常好的機會，這是一個規模不錯的交易，而且我們位列前五名。

A really nice Australian bank that we think is an anchor account from that region, those were new accounts. On the upgrade side, it was also -- just real balance on the upgrade side. So I think we had a few more CEM customers the last quarter, CEM customer adds were I think down a little bit year-over-year, but we continue to see a real good mix of both new customer add-ons and migrations for CEM.

我們認為一家非常好的澳洲銀行是該地區的主力客戶，這些帳戶都是新開的。在升級方面，也確實有實際的餘額。所以我認為上個季度我們的CEM客戶增加了一些，雖然CEM的客戶增量同比略有下降，但我們仍然看到CEM新增客戶和遷移客戶的組合非常好。

The next question comes from Scott Berg from Needham.

下一個問題來自尼德姆的斯科特·伯格。

I guess a couple (inaudible) on the bookings in the quarter, you seem pretty positive on obviously, the improvements that you're seeing there. Company did though only had $4 million of ARR, which is not the highest of the year so far, at least to date, is how do we kind of reconcile those 2 commentaries? My guess is probably from some of the downsell pressure that you talked about, but I didn't know if there's anything else that's kind of comprising of making up that gap.

我想，關於本季的預訂量，您似乎對看到的改善非常樂觀。但該公司的實際年經常性收入（ARR）只有400萬美元，這並非今年迄今的最高水平，至少到目前為止是如此。我們如何協調這兩種說法？我猜可能是由於您提到的一些銷售下滑的壓力，但我不知道是否還有其他因素可以彌補這一差距。

That's exactly it. It's those 2 offsets and that the primary drivers there.

就是這樣。這兩個抵消因素是主要驅動因素。

Okay. And then Patrick, for a follow-up, the $1 million of revenue, annual subscription revenue recognized in Q3 but not Q4. I guess I'm a little confused by that is I'm not sure why it's not being recognized this quarter, maybe that's the downsell that you all talked about. But just trying to help understand what that is, that won't be recognized in Q3. And then does it actually convert in Q4? And then does it come back in Q1 for some reason?

好的。派崔克，接下來我想問一下，100萬美元的收入，也就是年度訂閱收入，在第三季確認了，但在第四季沒有確認。我對此有點困惑，我不確定為什麼這筆收入在本季沒有確認，也許這就是你們之前提到的降價銷售。我只是想幫助大家理解一下，這筆收入在第三季沒有確認。那麼，這筆營收在第四季真的轉換了嗎？它在第一季會因為某些原因再次確認嗎？

Yes. So what that $1 million is ASC 606 has taken something that -- a service that we provide ratably, but requires us to recognize annually, and it's related to subscription, but we only recognized it primarily onetime a year. In 2022, we recognized it in Q4, that was part of the year-over-year, I was talking about the Q4. And in 2023, we recognized it in Q3. So it's -- so the timing is different year-over-year. There were a couple of other items like that in Q4 of last year that have already been recognized earlier this year in 2023. So it's subscription ASC 606 just treats a couple of million dollars of our subscription revenue a little uniquely. Just to be clear, it's customer, et cetera. It will come back around next year in '24.

是的。那100萬美元是ASC 606規定的收入——我們按比例提供的一項服務，但要求我們每年確認，這與訂閱相關，但我們主要每年只確認一次。 2022年，我們在第四季確認了這筆收入，這是年比的一部分，我指的是第四季。 2023年，我們在第三季確認了這筆收入。所以，時間與去年同期不同。去年第四季還有其他一些類似的項目，在今年早些時候，也就是2023年就已經確認了。所以，訂閱ASC 606對我們幾百萬美元的訂閱收入的處理方式略有不同。需要明確的是，這筆收入是客戶收入等等。它會在明年，也就是2024年左右再次確認。

And probably in Q3 in '24.

可能在 2024 年第三季。

Probably in Q3 in '24. Yes.

可能在 2024 年第三季。是的。

The next question comes from Michael Berg from Wells Fargo.

下一個問題來自富國銀行的麥可‧伯格。

I want to kind of take a different angle on this. Your adjusted EBITDA guidance went down by about $1 million. And when I think about perpetual deal to come off, I think of those as very high margin. So maybe you can help just give me some puts and takes on what is driving the lower EBITDA guidance? Is it some strengths in the quarter offset by the lower perpetual primarily? Or help level set there.

我想換個角度來談談這個問題。你們調整後的EBITDA指引下降了約100萬美元。而考慮到永久合約的取消，我認為這些合約的利潤率非常高。所以，您能否幫我分析一下導致EBITDA指引下降的原因？主要是因為本季的一些優勢被較低的永久合約抵消了嗎？還是說，這能幫助設定一個水平？

Yes. Look, in the back half of 2023, we've removed $10-plus million of non-subscription revenue, much of which is very high margin, and particularly those perpetual licenses, that's created a lot of pressure on our adjusted EBITDA. But we're making our way through it. It's -- the offset is a continued focus on efficiency and productivity. If you look at a couple of areas like sales and marketing, we've brought that down year-over-year as a percent of revenue from 36% to 29% and yet at the same time, we just delivered our best bookings quarter of the year.

是的。 2023年下半年，我們削減了1000多萬美元的非訂閱收入，其中大部分利潤率很高，尤其是那些永久授權，這給我們的調整後息稅折舊攤銷前利潤（EBITDA）帶來了很大壓力。但我們正在努力克服。抵消這一影響的方法是持續關注效率和生產力。從銷售和行銷等幾個領域來看，我們已將其佔收入的百分比從36%同比下降至29%，但同時，我們剛剛實現了今年最好的預訂量。

And as you heard Dave talk about productivity is up, deal sizes are coming up and a couple of other key metrics that are part of that are improving. Look at R&D as a percent of revenue, that's come down from 19% to 17%. But at the same time, we've improved our productivity. We just delivered Everbridge 360, which is critical to customer adoption, renewal, expansion. So we are improving our productivity while improving our profitability and that has helped to absorb the impact of the reduction in the outlook for a non-subscription revenue.

正如你聽到戴夫提到的，生產力提高了，交易規模也在擴大，其他一些關鍵指標也在改善。以研發支出佔收入的百分比來看，它從19%下降到了17%。但同時，我們的生產力也提升了。我們剛剛交付了Everbridge 360​​，這對於客戶的採用、續約和業務擴展至關重要。因此，我們在提高生產力的同時，也提升了獲利能力，這有助於我們消化非訂閱收入前景下降帶來的影響。

If I could just add, it's a minor point that is worth noting in addition to that, that Anvil accrual, there's OpEx for that case. And so we're further absorbing the OpEx for that. So when I think about the work that the team did. I'm really proud of what the team has been doing in expense management that Patrick talked about. But in my way of thinking is that last $1 million quarter or just on this quarter, maybe we plan about that amount for next quarter like that. Additional $1.5 million, $2 million of OpEx related to that Anvil matter. But (inaudible) bringing the guidance down, we are still targeting that 85%. We're doing everything we can as a management team. Yes. So that's what we've been managing, and I think we're doing a good job of it.

補充一下，除了Anvil應計項目之外，還有一個小點值得注意，那就是營運支出。因此，我們正在進一步吸收這部分營運支出。所以，當我思考團隊所做的工作時，我為團隊在Patrick提到的費用管理所做的工作感到非常自豪。但在我看來，上個季度或本季的100萬美元，也許我們計劃在下個季度也達到這個數字。另外，150萬到200萬美元的營運支出與Anvil項目有關。但（聽不清楚）即使下調了預期，我們仍然以85%的目標為目標。作為管理團隊，我們正在盡我們所能。是的。這就是我們一直在管理的，我認為我們做得很好。

Got it. So maybe one quick follow-up to that is you just gave the $1 million or $2 million OpEx with the Anvil and it sounds like that's part of the non-GAAP or adjusted EBITDA on a normal basis. Could you help us quantify how we could think about the perpetual deals that you took off, how that could flow through the EBITDA. Reason I ask is because I think it would be helpful for the investor community to understand what a more normal EBITDA profile would look like today should things have come across as you had originally expected?

明白了。那麼，接下來我想問一下，您剛才提到了 Anvil 的 100 萬或 200 萬美元的營運支出，這聽起來像是正常情況下非 GAAP 或調整後 EBITDA 的一部分。您能否幫助我們量化一下，我們如何看待您完成的永久交易，以及這些交易將如何影響 EBITDA？我之所以問這個問題，是因為我認為，如果事情真的像您最初預期的那樣發展，投資者群體能夠理解現在更正常的 EBITDA 狀況會是什麼樣子，這很有幫助。

Yes. Well, I think we mentioned that we're -- as we look forward to 2024, we're anticipating that we can increase our adjusted EBITDA by 25% with our existing exiting cost structure and continuing to make gradual optimizations to it. So whereas in Q4, we've got adjusted EBITDA related expenses of around $89 million. That's what we would anticipate continuing to run into next year with. There will seasonality, there will be payroll tax, in fact seasonality, et cetera. But -- and then over 90% of our revenue is subscription and the gross margin on that is very high.

是的。嗯，我想我們提到過，展望2024年，我們預計在現有成本結構的基礎上，並持續逐步優化，調整後的EBITDA（息稅折舊攤銷前利潤）將增長25%。因此，在第四季度，我們的調整後EBITDA相關支出約為8,900萬美元。我們預計明年的EBITDA支出將持續維持這個水準。當然，這其中也會有季節性因素，薪資稅等等。但是，我們超過90%的收入來自訂閱業務，這方面的毛利率非常高。

So yes, the margin on the onetime licenses -- software licenses and other is really high. The last year, that was $18 million. This year, that's going to be around $12.5 million to $13 million with really high margin. And -- but we originally thought there'd be a lot more than $12.5 million to $13 million. And most of the reduction that we're talking about came out of the back half of the year. So we've had -- but fortunately, we've been able to manage through it.

是的，一次性許可證（軟體許可證和其他許可證）的利潤確實很高。去年是1800萬美元。今年將在1250萬到1300萬美元左右，利潤率非常高。但我們最初預期利潤會遠高於1250萬到1300萬美元。我們所說的降幅大部分來自下半年。所以，我們確實遇到了一些問題，但幸運的是，我們最終還是克服了。

And Mike, for the first time we put into our guidance, that split between subscription professional services and software, so you have that for the fourth quarter guide. Patrick reviewed on the call as well. But it's in the table, the press release so you can get that break out, not just of our historical core but of the quarter forecasted. And then just on my inter-correction on the Anvil, the $8 million is an accrual for potential damages in addition to that versus the operating expenses to take that thing to trial that are coming in through the P&L in that. They're not adjusted out there in the EBITDA expenses, just underlying for Q3 and probably just over for Q4.

麥克，這是我們第一次將訂閱專業服務和軟體的劃分納入到我們的業績指引中，所以你們在第四季度的業績指引中也看到了這一點。帕特里克也在電話會議上進行了回顧。但這已經在表格和新聞稿中體現了，這樣你們就能看到詳細的數據，不僅是歷史核心數據，還有本季的預測數據。然後，根據我在 Anvil 數據中所做的內部修正，這 800 萬美元是針對潛在損失的應計，除此之外，還有將產品投入試驗的營運費用，這些費用會透過損益表反映出來。這些費用並沒有計入 EBITDA 費用中，只是第三季的基礎費用，第四季可能還會略高一些。

The next question comes from William Power from Baird.

下一個問題來自貝爾德公司的威廉·鮑爾。

This is (inaudible) on for Will Power. So just looking at non-subscription revenue, how do you think that might shake out next year? Should we expect non-subscription revenue to decline in 2024? Or is there any early framework for how to think about that piece?

這是關於威爾·鮑爾的（聽不清楚）。那麼，僅從非訂閱收入來看，您認為明年會如何變化？我們是否應該預期非訂閱收入在2024年會下降？或者說，對於如何看待這個問題，有沒有什麼早期的框架？

We're not in a position to do the guide on those revenues. As Patrick went through the narration of the script and you've seen the guide in the past a couple of quarters and maybe you look again at the investor deck, we gave a quarterly trend of those numbers over a period of time. But we went through a season in the last 2 years, '21, '22 with record public warning deals. This year, we're going through a year where there has not been a public awarding deal awarded globally to date this year. So this -- in some ways, this year feels low, but it also contextually, everything we're doing is around growing the recurring revenue. We're working with those products and those customers to make them more subscription. So our intention over time is to drive their subscription revenues up.

我們無法為這些收入提供指引。正如帕特里克所解釋的腳本一樣，你們也在過去幾個季度中看到了這份指引，或許你們還會再看看投資者演示文稿，我們給出了一段時間內這些數字的季度趨勢。但在過去兩年（2021年和2022年）中，我們經歷了創紀錄的公開預警交易。今年，我們正經歷迄今為止全球範圍內尚未達成任何公開獎勵交易的一年。所以，從某種程度上來說，今年的業績感覺很低，但從具體情況來看，我們所做的一切都是為了增加經常性收入。我們正在與這些產品和客戶合作，讓他們更多訂閱。因此，我們的目標是逐步提高他們的訂閱收入。

One thing I think we've demonstrated this year is we're going to be able to manage expenses around those onetime. I don't want to run here what will be holding on getting a onetime deal for our business model. So we're building the business model laser-focused on ARR and subscription revenue growth. And in that way, I'm not expecting a tailwind from non-subscription way we're trying to do that to run the business.

我認為我們今年已經證明了一件事，那就是我們將能夠圍繞這些一次性支出來管理開支。我不想在這裡討論一次性交易會阻礙我們商業模式的進展。因此，我們正在建立一個專注於年度經常性收入 (ARR) 和訂閱收入成長的商業模式。這樣一來，我並不指望非訂閱業務能帶來順風，我們正努力以這種方式來經營業務。

The next question comes from Terry Tillman from Truist.

下一個問題來自 Truist 的 Terry Tillman。

This is (inaudible) on for Terry. Just curious on what changes you've made in the customer success organization to better serve your existing customer base? And enable that cross-sell, upsell opportunity. And then I guess also, what kind of conversations they're having with the existing base around the value of organizational resilience.

這是特里（Terry）的節目。我很好奇，為了更好地服務現有客戶群，你們在客戶成功部門做了哪些改變？以及如何創造交叉銷售與追加銷售的機會？此外，我想，他們與現有客戶就組織韌性的價值進行了哪些對話？

Yes. So that's a great question. Customer success is an area we're focused on and we have some really great account managers and renewal specialists. Now that work with our clients, that is an area that John is spending a lot of attention on. We're expecting to make some changes that the further drive alignment to those 2 teams and support the customers even better.

是的。這個問題問得很好。客戶成功是我們關注的重點，我們擁有一些非常優秀的客戶經理和續約專家。現在，John 非常重視與客戶的合作。我們期待做出一些調整，進一步協調這兩個團隊，為客戶提供更好的支援。

On the customer journey, we're getting really good feedback. The Everbridge 360 doesn't deliver on the ease of use and the integration. (inaudible) like the geo clinical on RAS and our ability to deliver messages in a really troubled hard environment on delivering messages into our clients, employees and services to get them to safe locations. We're deeply engaged with our clients right now. And I'm just -- I'm pleased with the team and how we're able to service them in their time and need.

在客戶旅程方面，我們收到了非常好的回饋。 Everbridge 360​​ 在易用性和整合性方面表現不佳。 （聽不清楚）例如 RAS 上的地理臨床功能，以及我們在非常困難的環境中向客戶、員工和服務傳遞訊息，確保他們安全到位的能力。我們現在與客戶保持著密切的聯繫。我對我們的團隊以及我們如何能夠根據他們的時間和需求為他們提供服務感到非常滿意。

Next question comes from Ryan MacWilliams from Barclays.

下一個問題來自巴克萊銀行的 Ryan MacWilliams。

I know it's early, but any early comments on next year and how should we think about your priorities for next year, like focus on a return to growth or continue the cash flow improvement? What is your color there?

我知道現在還為時過早，但您對明年有什麼初步看法嗎？我們應該如何考慮明年的優先事項？例如專注於恢復成長還是繼續改善現金流？您對此持什麼態度？

Yes. Ryan, that's a good follow-up question of a little more detail and the most pointed thing that Patrick and I mentioned was we're early but looking ahead with a focus on growing EBITDA at 25% year-over-year. So we think we can continue to deliver operating improvements as we continue to grow. When you look at the ARR growth, it has come down quarter-over-quarter. We had some real strong quarters.

是的。 Ryan，這是一個很好的後續問題，需要更詳細地討論。我和Patrick提到的最關鍵的一點是，我們目前處於起步階段，但展望未來，我們專注於實現EBITDA年增25%。因此，我們認為，隨著業務的持續成長，我們能夠繼續實現營運改善。從ARR的成長來看，它環比有所下降。我們經歷了一些非常強勁的季度。

At this time last year, we had a really much bigger team this time last year, and that's why I think the improvements in sales productivity, pipeline build, deal sizes are so important as we look forward into next year, where we expect to be delivering year-over-year improvement beginning in Q1 on our recurring bookings for full performance, which with our strong renewal rates will start to drive ARR growth rates later next year because we're still lapping some stronger compares with a lot more salespeople through this quarter.

去年這個時候，我們的團隊規模要大得多，這就是為什麼我認為，展望明年，銷售效率、通路建設和交易規模的提高非常重要，我們預計明年我們的經常性預訂量將從第一季開始同比增長，實現全面業績，加上我們強勁的續約率，將在明年晚些時候開始推動 ARR 增長率，因為本季度我們仍將與一些更強大的銷售人員進行對比。

Okay. And then Patrick, glad to see the convertible debt retirement. (inaudible) the past few quarters. The slides were helpful there. I guess just for investors, how should we think about the path ahead for average capital structure and what you plan to accomplish over the next few years?

好的。接下來是派崔克​​，很高興看到過去幾季可轉換債券的償還。 （聽不清楚）投影片很有幫助。我想，對於投資人來說，我們應該如何看待平均資本結構的未來發展方向，以及您計劃在未來幾年實現什麼目標？

Sure. As we mentioned, we've got enough cash to get through the debt that matures in December 2024. We have another $300 million or so that will mature in March 2026. Between now and then, we will continue to generate more and more cash flow to be able to pay that down. And as we mentioned at our Investor Day in 2022 -- December 2022, we anticipate that if we're not able to satisfy that obligation in March 2026 entirely out of our own pockets, that by then, we will be driving enough profitability that we could -- we'll have a number of options, including (inaudible) bank debt that we're exiting this year with adjusted EBITDA to leverage of roughly 3:1. We're going to get that down to 2:1. And by then, maybe around 1:1.

當然。正如我們所提到的，我們有足夠的現金來償還2024年12月到期的債務。我們還有大約3億美元的債務將於2026年3月到期。從現在到那時，我們將繼續產生越來越多的現金流來償還這些債務。正如我們在2022年12月的投資者日上提到的，我們預計，如果我們無法在2026年3月完全自掏腰包償還這筆債務，到那時，我們的盈利能力將足夠強——我們將有多種選擇，包括（聽不清）我們今年將以調整後的EBITDA（息稅折舊攤銷前利潤率）達到約3:1的槓桿率償還的銀行債務。我們將把這個比率降到2:1。到那時，可能會達到1:1左右。

So we don't know what debt markets will look like in late 2025, early 2026, but we're confident that we're -- you're going to be able to have a lot of different options that are not dilutive to be able to satisfy that remaining obligation.

因此，我們不知道 2025 年末或 2026 年初的債務市場會是什麼樣子，但我們相信，您將能夠擁有許多不同的、不會稀釋股權的選擇，從而能夠償還剩餘的債務。

(Operator Instructions) And the next question comes from Koji Ikeda from Bank of America.

（操作員指示）下一個問題來自美國銀行的 Koji Ikeda。

I had a question on renewals and specifically on the contraction in the downsells. And I was wondering if you could talk a little bit about what's driving that? Is it seats? Is it pricing? Is it a certain type of product? Any sort of color there to help understand the contraction would be great.

我有一個關於續訂量的問題，特別是關於降價銷售量萎縮的問題。您能否簡單談談造成這種情況的原因？是座位數？是定價？還是某種產品類型？如果能用具體的例子來說明，有助於理解這種萎縮，那就太好了。

Yes. It's primarily seats. Of course, we're dealing with over 6,000 customers and lots and lots of renewals. So the aggregate in the (inaudible) the quarter-over-quarter decline in retention, but retention remains where it was this quarter last year. So it's in a good spot, not a better spot that we want to in.

是的，主要是座位數。當然，我們服務超過6000名客戶，續約量也非常大。所以整體來看，留存率是季減，但與去年同期相比沒有太大變化。所以，我們目前處於比較好的狀態，而不是我們想要的更好的狀態。

But the contractions in the quarter, head count reductions are certainly part of it. It's anecdotal, but if there's a concentration there was a lot -- there was some consolidation, which customers being purchased and a little bit maybe more in our digital operations than our core CEM business. But just generally it added up to the 80 to 100 basis points increase churn in the quarter.

但本季的業務收縮、員工人數的減少肯定是其中的一部分。這只是傳聞，但如果說業務集中度很高的話，那肯定有很多——有一些整合，比如客戶被收購，而且我們的數位業務可能比核心的CEM業務要多一些。但總的來說，這些因素加起來導致本季客戶流失率增加了80到100個基點。

Got it. Okay. That's helpful. And then just one follow-up here. When I look at the deck and it's a slide -- what is slide is this. It looks like 26, the reconciliation of the guidance, kind of the previous guide versus the guide that is today. I noticed that there's a reduction in the license and PS due to delays in large on-prem deals. It was $8 million and then an additional $2 million added on to the updated guidance. The question here is what gives you the confidence that these deals -- these push deals will eventually close?

明白了。好的，這很有幫助。然後我再問一個後續問題。我看了一下這張PPT，它是一張投影片——這張投影片是什麼？它看起來像是26頁，是指南的對賬，有點像之前的指南和現在的指南。我注意到，由於大型本地部署交易的延遲，許可證和PS有所減少。之前是800萬美元，後來在更新後的指南中又增加了200萬美元。這裡的問題是，是什麼讓您有信心這些交易——這些推動性交易最終會完成？

Well, the ones that are at the bottom of the pipeline, I can tell you that we've got confidence we can -- we know that the national programs where they're working, and they -- they take time to close and it's hard to control all the governments closing time line, but we know that they're nationally approved projects. So that's what gives us confidence. In terms of larger top of all pipeline where the direction goes next year and the year after that's what we're putting out position yet to be guiding on the onetime for next year at this time.

嗯，至於那些處於管道底部的項目，我可以告訴你，我們有信心——我們知道這些項目正在實施的國家級項目需要時間才能完成，而且很難控制所有政府的完成時間表，但我們知道它們是國家批准的項目。所以這給了我們信心。至於所有管道中規模更大的、處於頂部的項目，也就是明年和後年的發展方向，我們目前還在製定中，但目前還無法確定明年的一次性指導。

The next question comes from Kash Rangan from Goldman Sachs.

下一個問題來自高盛的卡什·蘭根 (Kash Rangan)。

This is Jacob on for Kash. A lot of good questions ahead of me. So just a couple of simple ones for me. The 32 sequential adds for the CEM customers. Can you provide a split on how many of those were net new customers and how many of those were existing customers that adopted CEM? And then additionally, I noticed that stock-based comp was down 700 bps, I think. Yes, it was 8% of total revenue versus 15% last quarter, I mean 12% in Q1. So how should we think about that on a go-forward basis?

我是 Jacob，Kash 的提問者。我有很多好問題。所以只問幾個簡單的問題。 CEM 客戶連續新增了 32 位客戶。您能否分別說明一下，其中有多少是淨新增客戶，有多少是採用 CEM 的現有客戶？另外，我注意到股票型收入下降了 700 個基點。是的，它佔總收入的 8%，而上一季是 15%，也就是第一季的 12%。那麼，我們該如何看待這個問題呢？

I don't have a split on the CEM, but I gave in the top 5. We had 3 new CEMs and 2 upsells in the top 5. I think it is roughly 50-50, we can follow up with you on that nonmarket follow-up with you. On stock-based comps, you're seeing -- beginning to see a real intentional focus on the management team and the comp committee just to focus in on stock-based comp, and the number I've shared with others is pretty clear the way our Evergreen program works, it's 3% a year. And so we've got real specific budgets that we're working towards that 3% to 4% net in gross equity burn for the next 3 years. So 2023 becomes kind of -- in my way of thinking kind of new normal for Everbridge going forward from a dilution perspective. And 2022 was high for several, I think, good reasons. But as that moves through, we'll be moving down to the -- closer to the 4% range.

我沒有關於持續營運管理（CEM）的具體分配，但我給了前五名。前五名中有3個新的持續營運管理（CEM）和2個追加銷售。我認為比例大概是各佔一半，我們可以就非市場方面的後續情況與您聯繫。關於股票型薪酬，您會看到—管理團隊和薪酬委員會開始真正有意識地專注於股票型薪酬。我與其他人分享的數字很清楚地表明了我們的Evergreen計劃的運作方式，每年的回報率是3%。因此，我們制定了具體的預算，旨在實現未來三年3%到4%的淨股權消耗目標。因此，在我看來，從股權稀釋的角度來看，2023年將成為Everbridge未來發展的新常態。 2022年的股權消耗率之所以高，我認為有幾個充分的理由。但隨著時間的推移，我們將逐步降至接近4%的水平。

This concludes our question-and-answer session. I'd like to turn the conference back over to Mr. Wagner for his closing remarks.

我們的問答環節到此結束。現在請瓦格納先生致閉幕詞。

Well, thank you, everybody, for participating. I just want to -- lot of good questions on the onetime (inaudible) and we remain focused on profitable growth and driving the recurring revenue and recurring part of our business forward. Over the next few weeks, we're going to be on the road with investors at several conferences, including the Needham Virtual Tech Conference on November 16, the UBS Global Tech Conference on November 28, the Wells Fargo TMT Summit on November 29, the Raymond James, TMT and Consumer Conference on December 4 and the Barclays Tech Conference on December 7.

好的，感謝各位的參與。我只想——關於一次性（聽不清楚）有很多好問題，我們仍然專注於獲利成長，推動經常性收入和經常性業務的成長。接下來的幾週，我們將與投資者一起參加幾場會議，包括11月16日的尼德姆虛擬科技大會、11月28日的瑞銀全球科技大會、11月29日的富國銀行TMT峰會、12月4日的雷蒙德·詹姆斯TMT和消費者大會，以及12月7日的巴克萊科技大會。

We look forward to speaking with many of you at those events and we'll speak with the rest of you again soon. Thank you for your support on our mission and confidence in our ability to achieve it. Jason?

我們期待在這些活動中與各位交流，很快也會再次與各位交流。感謝大家對我們使命的支持以及對我們完成使命能力的信心。傑森？

Thank you for joining us today for the Everbridge Third Quarter 2023 Earnings Conference Call. You may now disconnect.

感謝您今天參加Everbridge 2023年第三季財報電話會議。您現在可以斷開連線了。