The growth drivers include: "(1) a rising threat landscape from natural disasters, active shooters and terrorist plots, (2) healthy new customer adds, (3) robust land-and-expand opportunities, and (4) international expansion."
Everbridge provides mass notification applications and has more than 3,000 enterprise customers. According to a recent data form Frost & Sullivan, the mass notification TAM is expected to grow about 20 percent annually to $6.4 billion by 2020 from $2.4 billion in 2015.
Bracelin believes the company has multiple levers to support 25 percent-plus subscription growth and expand its reach beyond the $6.4 billion mass notification market once it gains more success in alerting in IT and Internet of Things (IoT).
"Healthy net renewals at 116 percent, in addition to strong new customer adds and expansion opportunities across multiple products, give us confidence that subscription revenue (97 percent of sales) could increase by 25+ percent going forward," Bracelin wrote in a note.
At the time of writing, shares of Everbridge were up 0.37 percent to $15.82. The $19 target implies potential upside of 21 percent.
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