The analyst notes that Everbridge's sales productivity is rapidly improving, setting up a more predictable future growth outlook benefiting from CEM multi-product sales.

The company's upcoming free cash flow, or FCF generation, is one of the most impressive in the niche space, notes the analyst, with margins quickly jumping above 15%. 

The company looks to generate ~$60 million of FCF in FY23, up rapidly from $1.6 million in FY22. 

The company will deliver $80 million- $100 million in annual FCF generation in FY24 and beyond.

Management's FY27 targets imply ~25% non-GAAP operating margins or 30% adj. EBITDA margins, assuming revenue growth pushes up to 12% in FY27. 

For the second quarter, the analyst expects total revenues to grow 7.1% Y/Y to $110.30 million, with Non-GAAP EPS of $0.27.

For FY23, Berg sees total revenues to jump 6.3% Y/Y to $459.12 million, while for FY24, the total revenues are expected to increase by 8.9% Y/Y to $500.06 million.

The analyst models 8.9%/23.2% revenue growth/adj EBITDA margins in FY24 versus consensus estimates of 7.4%/21.9%.

Price Action: EVBG shares are trading higher by 5.90% to $28.74 on the last check Tuesday.