Shares of Everbridge experienced a 20% decrease on Tuesday after the company revised its revenue guidance for the year. This drop in stock value brought the price down to $23.42 during midday trading, representing a 21% decline since the beginning of the year.
Everbridge, a Burlington, Mass.-based software company, specializes in providing crisis-event notifications. The company explained that it has been facing difficulties in securing large and perpetual revenue contracts, which led to the decision to adjust its guidance.
The revised full-year revenue expectation stands at $450 million to $452 million, compared to the previous guidance range of $456 million to $462 million. Industry analysts, according to FactSet, hold a slightly more optimistic view, with median revenue expectations of $458.8 million.
Despite the revision, Everbridge has implemented cost-cutting measures, resulting in a smaller anticipated loss than previously forecasted. The new loss projection ranges from $41.7 million to $43.7 million, in contrast to the earlier guidance of $45.6 million to $47.6 million.
During the second quarter, Everbridge recorded a loss of $15.1 million, equivalent to 37 cents per share. FactSet analysts' predictions anticipated a slightly higher loss of 40 cents per share. Revenue for this period surpassed forecasts, reaching $110.6 million compared to the expected $110.2 million.
PREVIOUS POST
