In a world where more disasters are occurring, both natural and man-made, there is an increasing need for innovative solutions to keep people safe when these disasters strike. Everbridge is the market leader in critical event software and provides a suite of products from mass notification to critical event management platforms. The company recently announced its results for the first quarter of 2019 and beat consensus estimates for both revenue and earnings. Guidance was raised and management now expects organic growth of 30% next year. All of this was in keeping with our thesis that the company’s innovative products continue to be adopted around the world. From a sustainability angle, the societal benefits of keeping people safe in emergency situations is a very strong message and there was one topical story that stood out for us.
Earlier this month, Cyclone Fani struck the coastal state of Odisha in India – one of the country’s poorest states which is particularly exposed to natural disasters. With much of the population living in low quality accommodation that is vulnerable to storms, natural disasters can have a significant impact. Twenty years ago, the region was struck by a devastating cyclone which claimed the lives of over 10,000 people. Thankfully this time, the toll was much lower, with current estimates putting the death toll under 90 – less than 0.9% of the 1999 disaster.
The government has implemented a number of measures in recent years to reduce the threat to human life, including building storm shelters and improving coordination between emergency services. It has also become one of four Indian states to purchase Everbridge’s mass notification system to enable it to alert a large proportion of the population to impending emergencies in a matter of minutes. During Cyclone Fani, 2.6 million text messages were sent through the system and 1 million people were quickly moved to shelters – undoubtedly contributing to the significantly lower death toll compared to previous storms.
This is the latest in a growing line of success stories for Everbridge which adds to its excellent reputation. For example, its mass notification product was also credited with helping the fast and efficient evacuation of exposed parts of Florida in advance of Hurricane Irma. This reputation and the technological leadership of its products means Everbridge is far ahead of anything its competitors can offer, and there is a huge market out there still to be captured. As mentioned earlier, four Indian states are already customers but Everbridge wants to win all 29 of them. In addition, an EU Directive issued last year requires all Eurozone countries to establish a national emergency alerting solution over the coming years. This presents a huge opportunity in an area where Everbridge is the market leader and winning the business of some of these nations could prove extremely rewarding.
This is a company that is growing fast by leveraging technology to create an innovative product with tangible benefits for society. Success stories like its contribution to Cyclone Fani should help demonstrate the effectiveness of Everbridge’s solutions and lead to their increasing adoption by both public and private sector institutions.
Disclaimer – At the time of writing, we held a position in Everbridge.
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