Author: Lindsey Boycott
Estimated read time: 3 minutes
Publication date: 17th Mar 2020 12:26 GMT+1
Despite a worldwide pandemic and consequent market spiral dive, there are still companies that are coming out on top. One such firm is Everbridge (NASDAQ: EVBG), a maker of crisis management software, that is up 17 percent while the S&P 500 foundered at a 4.9 percent loss. It was one of a rarified few who soared while other premium tech firms sank along with the rest of the Nasdaq.
Everbridge is a software startup that was borne out of the 9/11 crisis and the need for a communication system that ensures "messages are received without fail when life safety is at risk." The firm has expanded its offerings to include a Critical Event Management platform that uses tools to automate processes and leverage disparate data streams to deliver meaningful intelligence. It folds that information in with locations of human assets and other resources to assure a more accelerated and exhaustive incident analysis and proposed solutions.
For example, energy producers can rely on the software to divert people away from unsafe areas, and hospitals utilize the tech to respond to prepare staff for an influx of patients. In October 2019, Everbridge signed a $25 million five-year deal with the state of California to modernize its 911 system for emergencies and natural disasters. With the frequency of severe weather that occurs in both California and Florida – where it holds another state contract – demand for its services is growing.
"Our system is lighting up with a tremendous amount of activity like we've never seen before, and on a persistent basis," said Everbridge CEO David Meredith. "With critical events, they happen, and they're over pretty quickly. In this case, it's persistent and ramping up across our customer base. And it's everywhere it's global."
Everbridge has grown into a global firm with 4,500 customers and reaches over 500 million people. With a $4 billion market cap and a growing Coronavirus problem in the US, analysts at Raymond James (NYSE: RJF) state that based on “C-level interest in protecting employees/assets,” it’s probable that Everbridge will see “potential bookings tailwinds in 2020.” Since Covid-19 arrived on North American shores, the cities of Tampa, New York, New Orleans, San Francisco, Houston, and New York have all signed on with Everbridge to help them manage the communication of vital information.
The disaster management firm reports a five-year annual growth rate of 37 percent and runs a positive free cash flow. It’s well-positioned to respond to the emergent nature of the Coronavirus situation and is a market leader in the automation and acceleration of response to critical events. Currently, the company is getting ready to support its 1,500 healthcare, medical device maker, and drug manufacturer clients as the number of those affected start to climb, and demand on resources increases accordingly.
Meredith says he is also mindful of his own 1,000 employees and their safety. "Our No. 1 priority is keeping people safe," he said. "At the same time, we view ourselves as an extension of our first responders. This is the time we're needed."
Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.org. The observations he makes are his own and are not intended as investment or trading advice.
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