Everbridge CEO Resigns, Stock Plunges 45%
Everbridge's stock price rocketed more than 10x since going public 5 years ago, the first of a new generation of physical security SaaS companies to achieve astounding valuations in the public markets (followed this year by Latch, SmartRent, Evolv, and Brivo).
But Everbridge's stock plunged 45% after its CEO unexpectedly resigned. What happened? Is this the end of the boom for Everbridge?
Inside this note, we examine:
- The significance of the previous and current valuation of Evolv and how it contrasts to incumbents like ADT
- What happened with the CEO's exit
- How the CEO cashed out significant shares in the months leading up to his exit
- 9 other executives who have left Everbridge in the last year
- What the challenges Everbridge faces going into 2022
Executive *******
*** ***'* ****** ****, ******** **** the *** ******* *** **** **** $10 ******* ***** ** ********** ****** in *** **** *** ****** *** numerous ***** ****** ******* ** *** company ******* **** ****, ******** ******* in *** *******'* ******* ** ***** organic ****** *** ******** ** ********* its **** ************.
*******, ********* *** ***** ****** ******* the *******, ******** ********** ** *** company's ******* ** ****** ** ****** revenue ***** ********** ******** *********** *************. On *** ***** ****, ******* ******** risk ******* ** **** ****** ******* this.
CEO **** ********
*** ***** ********'* *********** ******************** **** ***** ** ********-****** *** exits, **** ** ***********, ** ********** period, ** ***** **** *** ******** CEO, ** ********* ** *** *****, etc. **********'* ********** *-***** ***** * *** ********** ******* saying **** **** ****** *** *** told **** ** *** *********, ** Wednesday **** ******** **, ********** ** 2 **** *****:
** ******** *, ****, ***** ********, the **********’* ***** ********* ******* *** a ****** ** *** ***** ** Directors, ******** *** ********** **** ** intends ** ****** *** ********* **** the **********, ********* ******* **, ****. On ******** *, ****, *** **********’* Board ** ********* ******** **. ********’* resignation.
*** **** ******* ********** ******** **:
**. ********'* *********** ** *** ******* to *** ****** ********* *** *******'* financial *********, ******** ********* *******, ******** controls ** ********** ******** *** **********.
**** ***** ** **** ********** **** the **** *** ******* ** ** with *** *******'* ******* ***********, ****** if **** *** *** ****, ********* companies **** "********" ******* ** *** "spend **** **** **** ***** ****** something********" *********. ** **** *** ********* on **** ****** *** *** ** exit ***, ** ********* **********'* ********, it ** ***** **** ** **** within * ******* ***** ****** *** company.
Turnover ****
********** *** ******** *********** ******** ** the **** ****, ********* **** ** the **** *** ******. *** *******, the ****** **** ***** ******** ****** a *** **** (** ** ******** *********) ********** **** ********** *** ****** ago:
****, ******* **** ***** ****** *** ** *************:
*** ***** & ****** ***** *********** ******** Officer:
*****, ** ******, *** ********** ******** may ** ******** *** **********, *** amount ** ****-***** ******** ** **********.
****** ** * ********** *** **** left **** **** *** * ****** of ****** ******* **** ****.
*** *******,*** ** ** ************ **** ****:
*** **** ******** * *** ****** prior, ********* ** ************ **********:
************,*** ** ** ********** *****, ***** America:
****** ** ** ******* **********:
**** ***** ** ****** ************ *** *********:
$10+ ******* ****** **** ** *** ****** ******* **
*********** ******** *** **** *** ******** sold $**+ ******* ***** ** ****** in *** ****** ******* ** ** the ******** ** ******, ********* ****** $5 *******, **** **** * ***** prior.
** ********, ******** **** ~**,*** ****** at ~$*** *** *****,*** *** **********:
*** ** ******, ******** **** ******* 40,000+ ******, *** *** *** *********** (*,*).
Valuation *****, ***** ****
*** **** **** *** ********** ** that ******* *** ***** ******** **%, the ******* ** ***** ****** ** $2.4 *******, ~*.* ************* **** ******* ~$*** *******. ***** **** ** a ***** **** **** * ******** price ** ***** ********* ** ~*** a *** ****** ***, *** ******* valuation ******* **** ********* ***** ****** the ******* ** **** ******* ************* over *** **** *** *****.
** * ***** ** **********, ***, a ******, ***-****** *******, ****** ** a ***** ** ***** ***** ** the ***** ** * ** *.**, far ***** **** *** ********* ****** that ********** ***.
Growth *********
*** **** ********** *** **** ***** forward ** ** ********* ********. *** company ****** ****** ******* ** ********* new ********* *** *** **** ******** acquisitions **** **** ******* ****** (********* ****). *** *********** ******** ********* ********* over ******* **** ******** ** ***********. Incorporating ************ *** ** ************* ********* and ******** ******* ** ******* *** customers ** * ********* ** **** a ********** ***** ****** **** *** company ***.
Positive $*** ******* **** + **** ************
*** ******* *** *********, *.*., ** has $*** ******* **** ** **** and *** ****** ** ************ ********* with **** ********** *********, ** ** has *** **** *** ********* ** rebound **** ****. ** **** ** interesting ** *** **** ******** *** company *****.
********** ***** ** ** ~*% **** morning:
****** ** ** ***** **** ~**% for *** **** ****:
****'* *** ** ******* **. ****** rarely ** ** ** **** ** a ******** ****. *** *** **** up **** ** * ****** ******** trend *** **** *****. ********* ****** thinking ** "****** *** ***" **** wait * *** **** ** ***** to *** ** ** ****** ** the *** ** *** ***.
**** ** *****, *** ***** ** is ** $** * *** ***** on **/** ***** *:** **. (*** 12/17 **** ****** **** **** ********, though.)
*'* ********** ******* ** *** ***** the ***** ***** ****. *******, *** that **'* * **** ***** *** the ***** ** ***** ******* *** down ********* **** *** ******* *** not **** ** ******** ***** ********* that **** *** * **************** ** a ***** *****.
**** *** ********** **** **** ** leaving, ******** **** ***** **** ******* left, **** ****** *** ******* ******* most ** *** ** *** ********* and ***** **** *********** *** ******** it *** ******* ** ** ******* status.
******* **** ********** ******** * ********** future ** ************ ** ****.
* *** ******* ******* ********* *** job ***** *********** *** ***** ******* could **** ******* ***** ************* ** it ***** *** ** *** *** prior ********* ** ****** ********* *** companies *********, **** ***** ***** ******* did *** ****.
** ***** ******* **** ***** ** competitors, ** ******* *** **** ‘****** IPO’ ********, **** **** *** ******* has ****** ********* ** *** ******* in *****.
********* *** ******** ******* *********** ** solid, *** ********* *** *********. **** would ******* ** ***** ** ***** and ****** ******* ******* *****, ********* on *** **** **** *** ** create *** *****, *** ******* ******** ones?
********** **** ********** ******* ******* **** can ****** ******* ** *** ******** vision ** ********** *** *************.
********* **** *** **** ** ****** an *********** ******** *** *** ***** competitor, *** ***** ******* ********** ******* and **********. ** **, ********* ***** holders *** ***** *** **** ****** on **********.
**** ** ********. ********, *** **-********** CEO*** ********* ** *** ***** * *** ******* *********:
** *** **** **** **** ** gave ****** ** **********, **'* ******* announced ** *** *** ** ******* company. **** *** ******* ***** *********, 2-week ****** ** ******* *** * CEO **** ** *** ******** **** effectively ** ****** *** ********** ** really ***.
****, ******* ********** ********* *** ****, I ***** ** *************** ***** ** ** ********, ***** *** ********** '*********' **** "Later *******":
************ **** ******** ** ** *********** Security * ****** *** *** *** now **** ** ** "****** & *&* ********" ** *******:
*'** ***** **** ***** ***** ** balloons. *'** **** ** *** **** for *** **** ****** **** ****** my *******. * ***** **'* ***** as ****.
* ***** **'* ***** ** ****.
* ******* *** * ** *** sure **** ******* ***** ** **** executives ** ******** ****** ********* ****** be ***** ***.
****, ******** *** *******. *** *******'* stock ****** ******* * *** **** ago *** **** ** ***** * picture ** ****? *** *** *** who **** **** ***** ** ** LinkedIn? ***** ****** ***** ** * cultural *******.
****** - *** ******* ** *** good. *** ********* ******** ** ***** should ** ********** ** ******** ******** (employees, *********, *********, ***...). ** *****'* mean **** *** ******* ** ******, but ** ***** ** **** ** a ******* ****'** ** *** * bumpy **** *** * *** ********.
**** ******** ***** *** *** ******., and ****** *** ***** **** ***.
** ** ******* ********** ******.
** ** ***** *****.
** ***** **** ** ********* ***** feel ********.
******* ** ********* ******* ******* *** profits *** *** *** ** ***** future.
******** ********* *** **** ******* ***** their ******* **** *** (***?)
*** ***** ** ** *** ******* with ****** ******* ** *** ****** a ******** ** ******* * ********** IPO, ***** ** *********, *** *** profits ** ****** **** ******.
*** *** ******* ****** *********** ********** with ***** ****, *** *** **** provide *********** ******* *** ******** ******* the ******** **** ** ******** *** plan. *** ***** * ****, ** was *** *** ******* *** **** plan?
***** **** ****** ** *********** ****** now *** * ********** **** ***** how ** **** ********, ******* ********, AND **** * ******.
*** ******* ** **** ******** ** short **** ******** ********* ******** ****** legacy ********. ** ***** ** **** for *********** ** **** ** *** products ******* **** ***** ******* *** customer **** *** ******* ******** ** no ****** ***** **.
* *** *** ***** *** ************* suing ********** **** *** ***** ******
- ********** *****: ****** ***** & ******, P.C. ** ************* **********, ***. ** Behalf ** ********** ************ *** ********** Investors ** ******* *** **** | Business ****
- *********, ******* & ********, *** ******** Shareholders **********, ***. (****) *************
******* **** **** *****, ** *** a ***** ** ******, ** * suit ** *****. **** ************** ********* a ***** ***** ***** **** *** common.
**** ************** ********* * ***** ***** price **** *** ******.
***, ** ***** ******** ********* *** to *** * **** ** *** firm *** ****** **** *** ************* a ******* ***** *** ****** ***** dip *** ****** ********* ** "******* them". ***** **** **** ***** ** easier **** ******* **********. 😆
* ***** *****, *** ***** ** still **** **% **** *** **** month *** **** ****** ******** **** the ******* ******:
*** *** ********* ** **** **** like * ********* ** ***** ***** watching *** ******* **** **** **** a ********* **, **** **** *** the **** ****. ** *** ** make **** *************.. ********** **** **** look ****** *** ******** *** ****** crew **** *****..
******: ********** *** *** ********** ***** * few ***** *****:
** ******* **, ****, ***** ********, the *******’* ***** ********* ******* *** a ****** ** *** *****, ******** the ******* **** *** ********** ********* resignation **** *** ***** ***** ** effective ***********, ****** **** ** ******* 30, ****, ** ********** ********* ** a **** *-* ***** ** *** Company ** ******** *, ****.
********* *** ******* ********, *** ****** ** *** ** Citrix * *** ****** *** *** was ********** ** **********'* ***** ***** 2018. ******** ** *** **********'* **** Chair. ** **** ** *********** ** see ** ** ******* **********'* ***, given *** ***** ********** *** *** current ************.
** ***** **** **** ************ *** williness ** **** *** *** ** all *** ************** * ****** ***** need ** **** **** **** *******..
******* *** **** *** ********** *****, now **** ***** **** **** ***** the ****** *** *** ***** *** CEO ******** *********** *** *********:
** *** **** * ***** ***** has ******* **** ~$** ** ~$** (which ** ******* **** **** $***+ pre *** *********). *** ****** *** had * *** *****, ***** ******** headwinds, *** **** **** ******** **, Everbridge's ***** ** ***** ***** ******.
*********** ****** ********** ********* **** ******* 68% ********* *** **% *** ****** quotas:
**********'* ****** *** ***** * **** by ** ********* ** *** *** company ****** *** ** **********, *********** that **** *** ****** ** *** new *******:
** ***** * **** ***** **** left ** *** **** ****:
** ** ********* / ******* *****:
** ** ******* ************** ******:
*** ** ****** ****** ***** & Sales **************** *****:
**** ** ******, ********** ** ******* an ***** *** '**** ******* ****** culture' *** *** ***** ********** ** the *** *** ******* *** ********* a ******* ***** ******* ****** ******** executives *******:
************ *** ** ***** ********* ******* by ***** *** ****** ********* **/*********/******** people ** **** ****************** **/*********/******** ******.
*** '******' *** *** ***** ** info ********* ** ***** *********** ***** who *** ******* ** ***** *** HR/Marketing ****** ** *********** ** *** exercise.
********** **** ************* ** ****** *** ******** ********* rate ** ***** ******* *** **** it ** *********** **** **** ****:
** *** ********* **** ** *** great *********** ** * *** ** the ****-**** ********* *** ************. *** we **** ******** *** * ********* study **** *** ******* ***** **** says **** **'** ***** **** *** market ********* ** ************, ***** ** good **** **** *** ***********.
*** ** *** ******** ***** ****** like ****** ******* *** ********* ********** - *** ** ********* ***** ** have * ****** *******. ****** **** winning, *** **'** ******* **** ******* on - ** ******* *** * have ** ***** *** ***** ************** with *** - **** *** **** on * ****** *****. *** **'** doing ****** **** * ***** ******** our ********* ** ****** ******** **** a ****-****-**** ***********. ** *****, **'** keeping * **** ***** *** ** making **** **** *** ****** **** of *** ******* ** *** **** for *** *********, *** *** *** employees ** ****.
**** ****** ****** ** **** ***** is********** ****** ** **** ********'* ******
***, *** ***** ******* ******* *** has **** ***** **** **** * years** ************ *****, ********** ********* *****:
**** *****, ****** **** ********* *** Chief ******* ******* ** **********, ***. (the “*******”), **** ** ******* *** Company ********* ** ******** **, **** to ****** ***** ******** *************. **. Nigam’s ********* *********** * *********** ***** than *** “*****” ***** *** *******’* Severance ****, ** ***** ** ************, and *** ******** ** **. *****’* outstanding ****** ******
**** ***** - *********, **********, ****** States | ************ ******* | ********
*** *******'* ***** ***** ********* *** of **** **** *** ********* ** this **** *** *** ****** ****:
*** ****** ********* ** *** **** over $* *******, ******** ** *** previous $*+ ******* *********.
*** ***** ******* ******* *** *** been ***** **** **** * ***** is *********
*********?
**. *****’* ********* *********** ***************** **** *** “*****”
********** ** *** ** ***** ********* like *******. *** **** ***** ******* to **** ******** **** **** ***** you **** **** ** ** *** around *** *** *** *** *** of *** ****. *** ***** ********* is *** ***** * ********* ******** to *** ***** *** **** ***** you **** *** *** *** *** of *** ****.