The Massachusetts-based company says it has pioneered a response system called critical event management, or CEM, that simplifies emergency communications systems for enterprises.
“One of the things we’ve really gotten good, if you look at the last quarter, we had a breakout quarter for CEM. We doubled quarter over quarter our CEM deals,” Meredith said in a “Mad Money” interview. “And what’s happening is we’re replacing three or four or five other vendors with one platform, and it’s a cost saving.”
“Usually when we go into a company, they’re trying to piece it together themselves,” Meredith said. “They’re getting five or six different pieces, they’re trying to do it. We mainly have point solution providers.”
Demand for CEM is rising due to an increase in cyberattacks, along with natural disasters and even public health crises such as the coronavirus outbreak, Meredith said. Everbridge’s services look to protect people and ensure business operations can be up and running in the event of emergencies.
“So increasingly it’s not a question of if a company will be impacted by some sort of a critical event, but when and how severe and how prepared can they be,” he explained. He said demand for critical event services is increasing because its unified operating system can help companies “be more efficient, in addition to protecting your employees.”
Beyond the enterprise, Everbridge has its sights set on protecting countries, Meredith said.
“In the fourth quarter, we actually won the country of Peru. So now we’ve won four countries in Europe, Australia, Singapore, [and] Peru,” he said. “And the European Union is going to mandate that all EU countries have to have a platform like this in place by June of 2020. So we’re very well positioned.”
The company reported Tuesday that it beat Wall Street estimates in the fourth quarter, including turning its first quarterly profit since going public in 2016. The company grew the top line quarter over quarter by 37% to $57.1 million and produced earnings of 5 cents per share, according to FactSet.
Everbridge’s business grew more than 40% in 2019, up from 36% the prior year. Wall Street expects growth to slow to 23% in the current year, according to FactSet.
Shares of Everbridge surged more than 13% in Wednesday’s session to close at $104.21. The stock is up 33% year to date.
Disclosure: Cramer’s charitable trust owns shares of Goldman Sachs.