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Business and Nature of Operations
3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Business and Nature of Operations

(1) Business and Nature of Operations

Everbridge, Inc., a Delaware corporation (together with its wholly-owned subsidiaries, referred to as “Everbridge” or the “Company”), is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to keep people safe and organizations running. The Company’s SaaS-based platform enables the Company’s customers to manage and mitigate critical events. The Company’s enterprise applications, such as Mass Notification, Safety Connection, Incident Management, IT Alerting, Visual Command Center, Public Warning, Community Engagement, Risk Center, Crisis Management, Secure Collaboration, and Control Center, automate numerous critical event management (“CEM”) processes. The Company generates revenue primarily from subscription fees to the Company’s enterprise applications. The Company has operations in the United States, United Kingdom, Norway, China, Netherlands, India, New Zealand, France and other countries.

Convertible Senior Notes

In March 2021, the Company issued $375 million aggregate principal amount of 0% convertible senior notes due March 15, 2026 (the “2026 Notes”) including $50 million aggregate principal amount of 2026 Notes issued upon exercise in full by the initial purchasers of their option to purchase additional 2026 Notes. The 2026 Notes will mature on March 15, 2026, unless earlier redeemed or repurchased by the Company or converted by the holders pursuant to their terms. In connection with the issuance of the 2026 Notes, the Company entered into capped call transactions with certain counterparties affiliated with the initial purchasers and other financial institutions. The cost of the purchased capped calls was $35.1 million. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the 2026 Notes.

In connection with the issuance of the 2026 Notes in March 2021, the Company paid $58.6 million in cash and issued 1,288,994 shares of common stock to repurchase $58.6 million principal amount of its 1.50% convertible senior notes due November 1, 2022 (the “2022 Notes”). During March 2021, the Company also partially terminated capped call options entered into in connection with the 2022 Notes and received $10.6 million as well as modified a capped call option agreement entered into in connection with the 2022 Notes.