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Everbridge, Inc.  (NASDAQ:EVBG)
Q1 2019 Earnings Call
May. 06, 2019, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good afternoon, ladies and gentlemen, and welcome to Everbridge's 2019 Q1 Earnings Conference Call. At this time, all participants are in listen-only mode. There will be a presentation followed by question-and-answers session, and instructions will follow at this time. (Operator Instructions) As a reminder, this conference call is being recorded.

I'd now like to turn the conference over to your host Patrick Brickley, CFO. Mr. Brickley, you may begin sir.

Patrick Brickley -- Chief Financial Officer

Good afternoon and welcome to Everbridge's earnings conference call for the first quarter of 2019. This is Patrick Brickley, Senior Vice President and Chief Financial Officer of Everbridge. With me on the call today is Jaime Ellertson, CEO and Chairman.

After the market closed today, we issued a press release with details regarding our first quarter results, which can be accessed on the Investor Relations section of our website at ir.everbridge.com. This call is being recorded and a replay will be available on our IR website, following the conclusion of the call.

During today's call, we will make statements related to our business that may be considered forward-looking under Federal Securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. These risks are summarized in the press release that we issued today. For a further discussion of the material risks and other important factors that could affect our actual results, please refer to our filings with the SEC, including our recent 10-Q and 10-K filings.

Also during the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release. Finally, at times in our prepared comments or responses to your questions, we may offer metrics that are incremental to our usual presentation, to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.

With that, let me turn the call over to Jaime for his prepared remarks.

Jaime Ellerston -- Chief Executive Officer

Thanks, Patrick, and welcome to those of you joining our first quarter earnings conference call. We delivered a strong start to 2019 with revenue of $42.8 million for the quarter, an increase of 40% from a year ago and exceeding the top end of our guidance range.

Revenue upside fell to the bottom line to produce an adjusted EBITDA that was also better than our guidance. Our first quarter 2019 results were driven by our continued momentum with our most strategic product suite, that we call Everbridge Critical Event Management as well as significant wins across all our key solutions and geographies.

Our continued success is driven by consistent execution of our three-pronged growth strategy anchored by Population Alerting solutions, Mass Notification, Incident Communication and Population Alerting, followed by several of our newer applications such as IT Alerting and Safety Connection, which we've had great success selling into our large base of over 4,500 existing customers. And finally, the expansion of our strategic CEM suite in to the Global 1,000 space. And in the first quarter, we saw strong proof points indicating how large an overall growth opportunity our CEM strategy represents for the future.

As I have stated in previous calls, we are still in the very early stages of our full CEM go-to-market roll-out. Today, we sell CEM into the North American geography and only into the corporate and healthcare verticals, less than 50% of our total markets. This means we'll be extending our selling motion in coming years to address a number of additional markets like the public market spaces, market where we have historically been very strong with 9 of the 10 top US cities, almost all the top transportation hubs and more recently in the federal space with new customers like the US Army as well as expanding to geographic markets outside the US, including Europe and Southeast Asia, where we're growing today at over 150% year-over-year. And our expansion of CEM is also occurring through the addition of new products into the suite itself.

In the first quarter, we released our newest application Crisis Management, Crisis Management or I may refer to it as CM brings the number of applications within the CEM suite to five. But more importantly dramatically expands our CEM value proposition for customers and along with it our average selling price.

We believe crisis management could be the killer app for CEM and it enables our customers to actually manage and automate all the responses in organization employees, when responding to a critical event. From standard operating procedures to communications, helping an organization move from reactive response, which is often manual and time-consuming into a proactive even fully automated response that can assist major organizations to protect new people as well as limiting the business cost of these impactful events.

We have already seen early success Crisis Management being included in some of the larger new CEM deals that we closed in Q1 and the early customer feedback around our Crisis Management value proposition is very encouraging. Overall, the expansion of our CEM sales continue to generate strong proof points that this is a very large market, witness are signing of our largest CEM deal in our history during Q1, at $1.7 million annual recurring contract value for this multi-year deal. This is a monster win for our CEM suite.

Just as ERP software revolutionize the back office functions through a software solution that integrated managing functions from HR to production, CEM has the opportunity to become the system of record for managing safety and security across organizations, from companies to countries.

Given our growing success in adoption of CEM, it suggests that CEM is a very large addressable market enabling us to become the ERP of safety and security. In fact, given that we are still in the very early innings of this large market of opportunity as we expand our global market strategy and regularly close other seven-figure deals within the global 1,000, you can imagine a massive potential for CEM sales over the next three years. As a system of record for safety and security, Everbridge CEM provides risk data to allow organizations to spot signals that matter, monitoring over 120 different types of risk data globally from large scale natural disasters, like weather, seismic or volcanic to man-made events like cyber threats, crime, or active shooting events.

Now we can take those events with our Visual Command Center, Safety Connection solutions in combination with the release of our Crisis Management solution in Q1, and can automate the actual identification of how an organizations key assets from people to business operations are affected, and immediately without human intervention activates standard operating procedures to mitigate the impact of these events.

Depending on the complexity and scale of the event, think about a very large cyber attack or a natural disaster like this week's Indian cyclone, that affects large amounts of your supply chain and ongoing operations. We can help in organization manage the literally thousands of tasks and activities required to restore the business to normal operations, and keep its most important assets safe, the people. Given the ongoing expansion of our CEM sweet solutions, and our early market success, this is a big market opportunity, ERP big.

Our second strategic growth pillar is Population Alerting, the combination of our Mass Notification, Incident Management solutions and our acquired population and Location-Based Alerting solutions from EMS. Our Population Alerting solutions demonstrated their strength in Q1 with large new U.S. cities, signing up as well as numerous international wins from Europe to Asia.

And our third strategic growth pillar is our over 4,500 enterprise customer base, which we regularly renew a best-in-class mid '90's renewal rates with net dollar retention rates above 110%. The solid customer base of over 4,500 enterprise customers, enables our continuous upsell and cross-sell success with our newer products such as IT Alerting, Safety Connection, Visual Command Center, frequently as part of multi-product transactions.

Combined with our momentum of selling these products into new customers, these new products accounted for 55% of all new in gross sales in the first quarter, consistent with our record performance in Q4. I'll take this opportunity to remind you that this past quarter's number of 55% of all new in gross sales being derived from new products is we believe a healthy target for our business going forward.

During the first quarter, we again blew it out on all our key business metrics, we closed 110 new customer additions, bringing our total customer count to 4,532. Within these new customers we saw strong growth in overall deal sizes, especially for what is usually a seasonally slower first quarter that contributed strong metrics across the board.

In the first quarter, we signed 22 deals over $100,000 or more, up from 19 a year ago, and even more significantly, we saw 80% growth in the number of deals worth $200,000 or more. Newer products like Safety Connection and Visual Command Center continue to turn in stellar results, with Safety Connection growing 65% from a year ago and VCC producing equally solid growth results.

Perhaps our most impressive metric for Q1 was our closure of seven new CEM customers in the quarter, up more than 100% from a year ago and bringing our total CEM customer count to 42. And the size of these CEM deals continues to be between 5 times and 15 times the size of our overall ASP, providing support for CEM's potential to be the ERP's safety and security.

In addition to our seven CEM deals continued strong multi-products sales totaling over 90 in Q1, also contributed to this increase in ASP. Importantly, our CEM and multi-product sales are getting larger, as we continue to grow our overall customer base resulting in an overall trailing 12-month ASP increasing to a new record of 71,000 in Q1.

Our international team continues to run a very impressive results growing over 150% from a year ago, now representing 20% of our total business. And last, our revenue mix for Q1 was 57% corporate, 30% local and state and federal government, and 13% healthcare, all roughly consistent with previous quarter's, as we continue to see growth across all our vertical markets.

As we often state, our individual quarter metrics, even our often record results can fluctuate and should not necessarily be considered indicative of any trend. We still believe a best way to evaluate our performance is look at these in combination with one another and on a trended four quarter basis.

Now, allow me to turn to provide you a little more color on specific new and gross sales in Q1, starting with CEM. We signed our largest CEM deal to date with the new customer, one of the world's largest management consulting, and professional services firms to over 450,000 employees. This deal at over $1.7 million per year replaces the home-grown employee communication solution with our CEM platform that can evaluate risk intelligence data in real time to identify, who or what is impacted, and then communicate to those affected to ensure people are kept safe, and the business global operations continues to run.

In the quarter, we also added another top 10 banks to our list of CEM customers. This US bank with nearly $200 billion in assets made a customer journey that we believe many others will make by initially selecting Mass Notification and then adding Safety Connection last year and then moving to CEM with the purchase of Visual Command Center this past quarter.

And other financial services win in the first quarter was one of the largest auto insurers in the US, providing coverage for over 25 million vehicles and home. This insurer shows our CEM solution to support the build out of the new global security operation center in order to evaluate and act upon potential threats that can impact their offices and employees and field locations and our initial contract is not yet cover all employees. So, we still have significant expansion potential with this customer.

Sticking with financial services will be highlight another key CEM win. In Q1, we signed one of the largest online brokerage platforms, with 1,000 of employees in multiple locations across North America and existing Mass Notification customer this financial services leader security team added our Visual Command Center and risk intelligence solution to enable integrated threat assessment and visualization capabilities for their next-generation security operation center for all North American operations.

Switching gears to the hospitality space, allow me to highlight one of the largest casino operators in the US and an Everbridge Mass Notification customer, this customer has more than 30 large properties and 80,000 employees and they chose Visual Command Center combined with our new Crisis Management application to round up their full implementation of our CEM suite. This customer initially evaluated technology after the 2017 Las Vegas shootings to protect employees, guests and their brand and as continue to expand their commitment to Everbridge ever since.

Also in the hospitality space, we're excited about the addition of another of the largest hotel chains in the world, with more than 6,500 properties in 127 countries and over 175,000 employees. This new customer added Visual Command Center and risk intelligence to enable monitor critical events that impact their employees and properties globally.

And finally, let's turn to the technology markets for the addition of one of the leading on-demand entertainment companies, who became a new Everbridge customer by selecting CEM to support their 15,000 employees across hundreds of locations to enable their CE-suite executives to monitor critical events worldwide, understand who or what in their large organizations impacted and to monitor their response to minimize the impact of their employees and their operations.

In Q1, we also continue to see success with our net new and gross sales of our newer individual solutions like IT Alerting and Safety Connection, which are often sold in bundles are into existing customers, including one of the leading payroll and benefits service providers in North America with over 17,000 employees in 100,000 locations like the Everbridge IT Alerting integrated with their ServiceNow application this customer will use Everbridge IT Alerting to ensure the highest levels of IT response automation for major service degradation or system failures. As a newer customer, we believe we can build on our relationship with this industry leader in the years ahead.

Another IT alerting win in Q1 was the cross-sale of a multi-billion dollar international engineering service front, who is an existing Mass Notification and Safety Connection customer and in Q1 shows our IT Alerting solution, so they can build on top of one unified platform for managing critical events across their entire enterprise.

On the Safety Connection side, I would highlight a leading US defense contractor with over 14,000 employees, frequently serving on military bases and dangerous areas around the world, return to the Safety Connection solution to better locate and account for their employees, maybe in harms away. This defense contractors and other customer looking to potentially adopt our CEM vision for the build out of their global security operation center.

Another new Safety Connection customer in the first quarter was a global leader in the digital entertainment space and active shooter occurrence last summer at a gaming tournament created a sense of urgency for the customer to come better prepare for critical events. This customer selected Safety Connection Pro, I'll remind you that this is a bundle of includes our Mass Notification or instant communication and Safety Connection products to build a foundation for a new unified system that enables them to proactively manage critical events around the globe and better protect their employees, again a strong opportunity for growth into our CEM suite.

And representing the energy segment, one of the largest oilfield service companies in the world chose Safety Connection Pro to help protect their 70,000 employees, who operate in over 120,000 different countries around the globe.

Finally, the International Monetary Fund or IMS, which is based in Washington, D.C., selected Everbridge to help their security services division respond on a timely manner to emergencies and threats that may affect its personnel and property. This customer let us know that our advanced mobile capabilities, including our capability to rapidly located employees affected by critical events was key to our being selected as their new platform.

Now let's turn to a brief review of some of the biggest population alerting solution wins in Q1. We signed a number of key state and local government deals, including a regional Mass Notification deal with Los Angeles County, as well as signing another large North American city, City of Phoenix. We also signed new federal customers like our win at NASA's Jet Propulsion Laboratory, who selected Mass Notification, extending our reach with NASA to JPL's sprawling campus of a 150 buildings and thousands of employees and contractors.

On the healthcare side, we signed new Mass Notification deal with one of the largest and most prestigious healthcare system in the country, with 18 hospitals, almost 6,000 beds and 65,000 caregivers. This nationally recognized brand shows our solutions because they liked our platform vision for integrated employee notifications, alerting and CMS response.

And Q1 was a particularly strong quarter for our Population Alerting solutions, where we had numerous wins, including the Indian state of Uttarakhand with a population of 10 million people, who are leveraging our Population Alerting technology in a region that is particularly prone to natural and man-made disasters. Uttarakhand represents our fourth win of an Indian state, we intend to try to win all 29 of them.

There are couple of reasons, why we're so excited about our Population Alerting technology. First, it's simply the best solution on the planet with proven scale to manage critical events and communications in the most severe situations across the globe from cities or states to entire countries. And second, our track record of success, delivering critical communications during the severe situations time after time to keep people safe and business is running. Just this past Friday, a major cyclone landed on India shores, directly impacting our recently won customer to state of addition.

To highlight the relevancy in value of our solutions, let me read from a recent New York Times' article entitled, how do you save a million people from a cyclone? Ask a poor Indian state. Appearing in the Times on May 3, 2019, and I quote flights are canceled, train service was out, one of the largest biggest storms in years was bearing down on Odisha, one of India's poorest states, where millions of people live cheek to jowl in low-lying coastal areas in mud and stick shacks.

The government authorities in addition along with India's -- along India's eastern flank hardly stood still. To warn people of what was coming, they deployed everything they had 2.6 million text messages in local languages in very clear terms, a cyclone is coming, get to shelters. The article goes on to detail, all of these efforts and ends with the following, and I quote, seems to have largely worst cyclone Fani slammed in Odisha on Friday morning with a force of the major hurricane packing 120-mile-per hour winds, trees ripped from the ground, and many coastal shacks smashed. It could have been a catastrophe that is as of early Saturday mass casualty seems to have been averted. While the full extent of the destruction remains unclear, only a few deaths have been reported, what appears to be at early warning success story. Makes you feel good, doesn't it.

And these continuing successes establish our bona fides, which cannot be matched by our competitors or new entrants. The market for our Population Alerting solutions, particularly population and Location-Based solution is very robust. Many of you know that the EU late last year issued or directed that all 31 economic zone countries must establish a National Emergency Alerting solution over the next few years. We believe the largest of these countries could easily represent eight figure deals and more average size countries can represent seven figure deals per year, as we've already seen in Sweden.

As such, the total Population Alerting opportunity for all 31 countries from this directive alone should add up to an eye-popping number. In addition to the EU, we are seeing opportunity to arise from national population alerting solutions and several other regions from Latin America to Southeast Asia, including continued growth in the Indian market. Our products like our original Mass Notification solutions are market leaders and we expect big things from this market this year.

In addition to our wins in India, our international business recorded wins like the expansion of our relationship with the City of London Police Department, as well as new wins with the City of Stockholm, who was using our Population Alerting to notify residents and visitors, who are impacted by major works programs related to the extension of the underground transportation network. Interestingly Sweden is already a full countrywide Population Alerting customer, but Stockholm choose to purchase our solution to manage the specific local scenario. An important proof point for our belief that once we can win a national system, we can follow it up with numerous county, city or local sales, some of the way we penetrated multiple jurisdictions within the states in North America.

Additional major international success in the quarter included a Safety Connection Pro deal with large -- another large global engineering firm this time in Australian market leader with over 50,000 global employees and IT Alerting win at a NASDAQ listed UK based tech firm a banking win, one of the largest banks in Portugal, our first Portugal win with one of the country's largest multinational banks, who selected Mass Notification and Safety Connection and in the Asia Pacific region, we closed our first international crisis management sale with MOC insurance in Australia to help ensure the safety of their 5,000 employees, and increased their operational resilience by managing a full lifecycle of the critical event.

Finally, we signed a large deal with Oversea-Chinese Banking Corporation in Singapore, meaning all three of those top banks are now Everbridge customers. OCBC is also a partner of International SOS. In Q1 our channel partners speaking of International SOS and others like Lenel continued to show success. In the first quarter, we saw partner referrals and resales lead to wins that include a multi-billion dollar enterprise software company, a multi-billion dollar agricultural business and a multi-billion dollar insurance company.

From an operational perspective, we further advanced our technology to lead in all of our key markets. First, we completed our Atlas project, which enables our complete solutions from applications, code to our entire infrastructure platform to be deployed as code consistently to avoid operational mistakes that could impact customers as well as move us virtually in to any geography, enabling greater security, privacy and protection of our entire platform. Our ability to stand up a completely new environment of our solution also enables us to scale geometrically in minutes to address added customer needs such as major events or new regions and equally reduce our cost by sustaining only the needed infrastructure in any given period.

Also in Q1, we announced the integration of our IT Alerting solution with IBM's QRadar security intelligence technology to enable security operation centers and IT responders to automate communication colloboration and orchestration test and IT responders to automate communications collaboration and orchestration test and processes to resolve incidents faster in this rapidly growing market.

And last on an operational topic, allow me to provide with you an update on our CEO search and my move to the role of Executive Chairman. After a comprehensive search process with a number of highly qualified candidates, we expect to be in a position to announce a new CEO relatively soon.

In summary, we are off to a great start in 2019, in the first quarter, we continue to extend the success of our CEM platform with several seven-figure deals and sold multi-product deals, which increased our overall deal size and led to record ASP, while simultaneously winning new Population Alerting customers around the world and also cross-selling additional products into our largest install base.

As we look forward, we are excited about the opportunity established ourselves as the ERP of safety and security and the leading provider of mission-critical technologies for the enterprise to manage the most critical events.

Now, allow me to turn the call over to Patrick for more of the financial details.

Patrick Brickley -- Chief Financial Officer

Thanks, Jaime. As this is my first conference call as CFO, I wanted to start off by saying that I'm looking-forward to working closely with our investors and analysts. Philosophically, I plan to continue the deliberate and prudent approach that has led to the success we've had under Jaime and Ken Goldman's leadership over the past several years.

In particular under Ken's leadership, we have established a history of strong growth and more than delivering on our commitments. As someone new to the CFO role continuing this trend of exceeding expectations, is one of my highest priorities and I plan to take great care to extend our track record of outperformance.

Now let me provide more details on our financial performance in the first quarter followed by our guidance for the second quarter and the year. Revenue in the first quarter was $42.8 million, above the high end of our guidance range and an increase of 40% from a year ago. With careful cost management, our revenue upside sell to the bottom line to produce adjusted EBITDA that was also better than our guided range coming in at a loss of $1.9 million.

Consistent with the past several quarters, our dollar-based net retention rate remains above 110%, reflecting the significant value and satisfaction we provide to our customers. Total enterprise customer count from customers generating fees of $200 per month or more increased by a net of 110 and we ended the quarter with a total of 4,532 enterprise customers.

Looking at the details of our P&L, unless otherwise indicated, I will be discussing income statement metrics on a non-GAAP basis. A reconciliation of GAAP to non-GAAP measures has been provided in the earnings release we issued earlier today. Non-GAAP gross margin was 69% compared to 71% a year ago, primarily due to the purchase accounting impact on acquired deferred revenue from acquisitions. However, as always keep in mind that gross margins can fluctuate from quarter-to-quarter and should not be considered indicative of any trends.

Total operating expenses in the quarter were $33.5 million, an increase of 33% from a year ago, reflecting the combination of continued products and headcount investments in addition to incremental expenses of acquired businesses. As I mentioned, adjusted EBITDA loss was $1.9 million, which was better than our guided range and similar to our performance a year ago.

Net loss in the first quarter was $4.7 million, or negative $0.15 per basic share and was also better than our original guidance as well as our year ago performance of a loss of $4.8 million, or negative $0.17 per basic share. On a GAAP basis, our net loss was $14.1 million and was also better than our guidance range.

Turning to our balance sheet. We ended the quarter with $258.2 million in cash, cash equivalents and short-term investments compared to $105.5 million at the end of the fourth quarter, primarily due to proceeds of approximately $140 million from the equity offering we completed in January. Cash flow from operations during the first quarter was an inflow of $8.7 million. With CapEx and capitalized software development costs of $4.8 million, our free cash flow during the quarter was $3.9 million.

Total deferred revenue was $98.4 million at the end of the quarter, an increase of 39% from a year ago. As we have noted on prior calls, our deferred revenue balance at the end of any given quarter can vary due to a number of factors. As such, even though we have predominantly annual payment terms, deferred revenue is not always a meaningful indicator of the underlying momentum in our business from a quarterly perspective, though we believe it is directionally relevant on a longer trended basis.

Now let me turn to our outlook for second quarter and our increased guidance for the year. As I indicated in my introduction, I plan to continue the deliberate and prudent approach that has enabled our historical success. At the same time, with increasing market momentum, a growing product lineup and an expanding go-to-market strategy, we are even more confident in our ability to deliver mid-30% growth in 2019.

As I mentioned in last quarter, April 1st marks the anniversary of our UMS acquisition, which means our growth in the second quarter will be all organic.Q2 will include perpetual license revenue from legacy UMS deals. However, contributions from perpetual revenue to total 2019 revenue will amount to less than 1%. Therefore, for the second quarter, we anticipate revenue of between $47.8 million and $48.1 million, representing growth of 33% to 34%, which as I mentioned is all organic.

We anticipate adjusted EBITDA to be between negative $0.1 million and positive $0.2 million. We anticipate a non-GAAP net loss of between $3.0 million and $2.7 million, or a loss of between negative $0.09 and negative $0.08 per share based on 33.2 million basic weighted average shares outstanding.

Stock-based compensation expense is expected to be approximately $9.2 million for the second quarter. For the full year, we are increasing our 2019 revenue guidance to a range of $196.4 million to $197.4 million, representing growth of 34%, which does not include the potential benefit of M&A, which occurred early in 2018 and 2017, but has not yet occurred in 2019.

From a profitability perspective, we are raising our adjusted EBITDA guidance to the range of positive $4.2 million to $5.2 million. We now expect the non-GAAP net loss of between $9.4 million and $8.4 million for the full year 2019, or between negative $0.28 and negative $0.25 per share based on 33.4 million basic weighted average shares outstanding. This guidance assumes estimated stock-based compensation expenses of approximately $38 million for the year.

In summary, we are off to a solid start for the year with results that exceeded our guidance ranges. We are increasingly optimistic about our prospects as a leading provider of critical event management solutions, as we expand our market leadership and further penetrate existing customers with additional technology and this is reflected in our increased guidance for the year.

Before we open the call up for questions, I'd like to also announce that we look forward to holding our Second Annual Analyst Meeting next month in New York, where we will provide more detail on our market opportunity and strategy to further penetrate the multi-billion dollar opportunity ahead of us. If you'd like to attend and have not yet received an invitation, please reach out to our Investor Relations team.

Now, operator, we'd like to open the call for questions.

Questions and Answers:

Operator

(Operator Instructions) First question from the line of Brad Sills from Bank of America. Your line is open.

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Oh, great. Hey, thanks guys. Wanted to ask about the new crisis management solution and what you anticipate that doing to ASP for the Critical Event Management suite?

Jaime Ellerston -- Chief Executive Officer

Sure. I mean it's pretty simple. We had four products. This is a major product because it allows you to structure workflow, so that standard operating procedures, those could be things like locking doors in a school campus and with an active shooting situation or opening doors, it could be the communication, automated communication in the case of a middle of the night tornado on the Midwest or a transportation or supply chain operations, where you have to get out messages to people because a carrier or distributors late early with a set of goods in a -- during a major event.

And so the thousands of events that take place the smaller actions you have to take in a large scale event like we said, a major cyber attack, a manmade event or a something like a cyclone or a tornado that affects a broad swath of your supply chain in your people, your facilities. There are hundreds and hundreds of tasks that you have to invoke.

If you're doing those manually and then firing off all the manual communications with the tool like our Mass Notification that can be very time consuming. The crisis management product puts that into workflow, allows to integrate seamlessly into our visual environment and then automate those, so the minute and event is spotted and it qualifies a break in, again a shooting, severe weather event, you can automatically take those steps and therefore reduce the risk to employees or people or to your operations.

And so we think that in some senses that's the most valuable application we have because it moves you from being responsive, I see an event that could affect my branch, or my people, or my executives traveling. Now, let me take some actions to a wait a minute, the system, which never sleeps in any size of organization could be a 500 person, a 5,000 person company upto a 400,000 global management consulting firm that spent $1.7 million, I would add, without purchasing Crisis Management yet because it wasn't available when they first moved in the contract negotiations. It allows them to automate the entire process and move from being responsive to proactive. So, at a minimum 25%, 30% uplifts potentially in those CEM sweet products. So, a product that used to sell with four applications at $340,000 can now be selling at a $0.5 million or $600,000 and a customer spending $1.5 million could spend $2 million with the advent of that product. It really is a piece of glue that stitches together the core value proposition and moves organizations from responsive to, from reacted, excuse me, to a proactive and automated.

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Great. Thanks Jaime. And then one more if I may please. It looks like you're getting some real nice sales and marketing leverage this quarter. What would you attribute that to? Do you feel like your sales productivity ramp is getting ahead of maybe, where you had anticipated, as you began hiring more enterprise reps, is the deal sizes that are helping there, any color on just what's driving sales productivity?

Jaime Ellerston -- Chief Executive Officer

Well, if you mean in the sense of large deals and the number of large deals, we've stressed that we wanted to move from what we consider to be a very important, but historic core market of Mass Notification, which was a multi million, billion dollar market. But by I know means the $25 million, $30 billion market, we claim today with CEM into a much larger space, where we are delivering greater value. And integrated value proposition from a suite of products, as I stated in my remarks and ERP like sale, where you could sell a couple of million dollars to a large entity like Fortune 1,000 and you guys can do the math right, if you can sell several hundreds of those you get into the hundreds of millions of dollars of revenue from CEM.

And so for us it's getting the enterprise scale reps, more enterprise scale reps and a better understanding of how to sell that value to C level officers, which is a migration, quite honestly, we're still in the middle of them. We're still making progress. We still have bumps in the road, but that's the migration that leads to a higher ASP on a continuous basis and record-setting sales, like some of the CEM ones we mentioned in this call.

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Great. Thanks, Jaime.

Jaime Ellerston -- Chief Executive Officer

You bet.

Operator

Our next question comes from the line of Tom Roderick from Stifel. Your line is open.

Tom Roderick -- Stifel -- Analyst

Hey guys. Thanks for taking my question. Jaime, I'd love to hear a little bit more about any changes in sales coverage around, which of your sales reps are able to sell CEM now? How much more you're opening that up to the broader sales -- to the broader sales group? And any changes in the structure as you go to market with CEM as a whole?

Jaime Ellerston -- Chief Executive Officer

Well, I think that was, yes, it's great question and it's a follow on from the previous question, right. So, we don't publish specific sales numbers or how much of our exact team is, but as I said, we only sell CEM today into the corporate and healthcare verticals. So, we are not even touching the city, state and local governments, which have -- obviously have a need. They in some senses governments are tasked with the protection of citizens and your safety and livelihood in a greater sense than corporations.

We haven't moved CEM sales into that market at all, touching any of our public markets and we do not sell it to -- in the raw international markets. Partly because we just wanted to remain focused and train a portion of the sales force and then start to roll it out.

We have said before, we started with our large account, our strategic account managers, which is a subset, less than a third of our sales force last year, when we talked about this. And then we've increasingly roll it out to the broader group of AEs, the Accounting Executives sell in to corporate and the healthcare space. And we're seeing good results.

But as we do that, we learn what it takes to learn how to sell higher and wider in an account, deliver that message to a CE suite executive, instead of someone maybe that's managing emergency notifications or business continuity, and do that with consistently better results. And so, we've continued to say that this year, we're going to focus on primarily those two markets, which leave us about 50% yet to be trained, and then the product rolled out to. And to be honest, part of that is because we need to do all the blocking and tackling internationally to make those products ready. Ready in the sense that we have all the -- we have a 120 different threat data signals today in our package. And out of our geog, we have to expand that into the international markets. We have to also make sure the support and partner landscape is also scaled and ready internationally.

So, in today's environment it's about 50% of our sales force. And going forward, we assume that next year we will be ready to move into the international markets more broadly and the state and potentially some of the public markets next year as well. So, that's kind of the roadmap to that and more specific details, we just haven't published those on a broad basis.

Tom Roderick -- Stifel -- Analyst

Yeah, outstanding. Okay, great. And then sort of shifting over to the product side of things. You've talked in the past about analytics being one of the upcoming modules for CEM. I think in particular, you've got maybe even one customer that's sponsoring the build out of that. Can you talk just about the timing of that. And then even just beyond that, as you think about opportunities on M&A, would we look more for sort of product build outs on the M&A side, or is it time to start thinking about customer expansions?

Jaime Ellerston -- Chief Executive Officer

Yeah, you know, that's a great question. So, look on the analytics side, nothing has changed. We didn't want to -- we figure our earnings comments are broad enough, at least, mine are broad enough that we didn't get into all the products. But our analytics product is still on track for the second half. This first half we are honestly very focused on Crisis Management, the CEM product addition into the suite because that does have the potential as the first question was posed to add another 20%, 25% onto an average CEM deal, not every deal will be the same and the pricing will be a little bit different, but adding that substantive of application on top, we think we can obtain that type of value.

And so that's a big deal, analytics will follow in the second half, and be just as large, as you mentioned, we do have an initial customer. We think that rounds out a lot of the core of the suite. And we continue to look at M&A to add to that. As Patrick said roughly when we guide to Q2 right now we're guiding without the benefit of M&A and we're lapping our previous large deals like UMS last year.

But we continue to believe that we're a kind of mid '30s grower, with another 5% to 7% of M&A just haven't seen us announce anything this year yet. And so keep your eyes peeled that's a forward time period in the second half and what we most likely, we're going to focus on there as continuing geographic expansion. We still think there's a huge opportunity to rollout internationally in a couple of markets and really continue that 100% plus kind of international growth as well as around a couple of our strategic products that could use expansion or additional product capability.

So, those are two of the areas in addition to CEM expansion, but the CEM suite looks like it's in pretty good shape this year with the additional analytics in the second half .

Tom Roderick -- Stifel -- Analyst

Outstanding, really helpful. Thank you.

Jaime Ellerston -- Chief Executive Officer

You bet.

Operator

Our next question comes from the line of Scott Berg from Needham. Your line is open.

Scott Berg -- Needham & Company -- Analyst

Thank you Jaime and Patrick. Congrats on the great quarter and thanks for taking my questions. Jaime I guess from a high level, your commentary in the quarter was really good, especially were quite of a seasonally kind of weaker quarter for software sales in Q1. Can you maybe comment on why Q1 was such a good quarter for you on a relative basis you typically don't see that from other software company?

Jaime Ellerston -- Chief Executive Officer

Well, you've got me in an unusual position of being flustered. I think our performance was just what we anticipated and planned for. We just executed well, which is typically not myself, it's Patrick and what you're seeing is a strong team that continues to, to deliver kind of on our plan. We have said over and over and over again, we consider long-term, if you can build SaaS business that scale in mid-30s and that on anywhere between 5 or 6 points in strategic M&A, you get a very powerful combination. And we did that and hit on all the numbers with the exception of really announcing anything significant to mirror M&A success last year. And so we do believe that CEM is powering some good wins and I don't want to cut it short, Population Alerting, I hope you get the tone I used on the call is a strong performer right now and we see a lot of opportunity out there, a lot of opportunity and believe that's going to be a strong contributor, throughout this year.

So, with both engines kind of firing the big strategic engines of CEM firing with biggest deals and a volume of roll-out in the limited market penetration we have and then internationally Population Alerting continue to fire. We kind of have those two engines backed up by mid-90s renewals and a good cross-sell engine into a very large and established base. And that's the three of those are our growth pillars and they continue to be -- we continue to execute on them across the regions and the product sets and that delivers results we're delivering. We don't consider anything unusual, but we certainly take the compliment. Thank you.

Scott Berg -- Needham & Company -- Analyst

Wonderful. Thanks. Got it. And I guess another question on the CEM ASPs, I'll ask it a little bit different than Brad did, is now that you have several big deals under your belt, a year later and you just say your largest one. Can you help us understand maybe how ASPs have trended from those first couple of sales what you're seeing in the quarter here? Have they changed materially now that you're maybe more familiar selling in the package or they kind of in line with what you've seen, just in general, in the last year and they maybe scale what population side at a customer? Thank you.

Jaime Ellerston -- Chief Executive Officer

They are scaling and they're scaling not because the product has changed that much, although in the time period remember, when we started, we had three products in the CEM suite. When we started last year's first quarter call, we had three products; Mass Notification and Incident Management they're interchangeable as the communication component. We had Safety Connection and we had VCC. That was it.

During the year, we added the risk data and now we've added the Crisis Management allows you to tie it all together and to automate the process. It's a much more powerful solution today. Our people understand how to sell it better. So, they can pitch higher and more broadly and the result of that is, we're seeing some very large opportunities, which just weren't there before.

The other comment that we'd make is, even with our position as the ERP of safety and security, we wouldn't tell you that every time we show up in the room that the Chief Security Officer, or the Head of Business Continuity or even the Chief Risk Officer has a business biggest budget in the Company. Sometimes a guy running sales or Patrick's equivalent the CFO or even the CEO has the biggest budget and he's got the ability to sign-off on multi-million dollar deals.

Just remember our deals that we're announcing are typically three-year longer-year terms, you're talking about a $5 million commitment to Everbridge with these big deals. And that has taken some time to get to the point, and in many cases we show up in the first year, last year, we make the pitch and someone says to us, I love it, but I'm going to have to go get budget with you. Can you help me.

And just like at an ERP place early on with SAP or Oracle, they had to work to get those budgets freed up and introduce and integrated planning solution to a major corporation, we're doing that early farming. We believe that puts us out in front in a very large multi-billion dollar industry and we are the name and the recognition and gain that recognition, but it does take a little bit of time. So, you're seeing the ASP increase because we're getting more familiar with the sale, we're expanding the seats, the number of products in the suite and then customers are finding budget and going with some of them taking a budget cycle to get through that.

So, three key reasons why that's expanding and they're just -- they're very normal, if you look at the ERP craze or human capital management for the HR software guys, they did the exact same thing in their markets. That's why we're excited about CEM being a ERP like opportunity longer term.

Scott Berg -- Needham & Company -- Analyst

Super helpful. I'll jump to the queue. Thank you again.

Jaime Ellerston -- Chief Executive Officer

You bet.

Operator

Our next question comes from the line of Brad Zelnick from Credit Suisse. Your line is open.

Bhavin Shah -- Credit Suisse -- Analyst

Hi, it's Bhavin on for Brad. Thanks for taking my question and congrats on the great start to the year. I think following up on some of the earlier questions. And as you see success with Critical Event Management and start expanding the offering to new geos and verticals. How should we think about the additional investments that might be required to expand into these areas, whether it's additional salespeople, offerings, et cetera?

Jaime Ellerston -- Chief Executive Officer

Yes, I mean, I think we've planned out the expense, our normal expansion sales. The biggest thing we had to do early on in CEM was take time to train and learn from customers as I said, not everyone had the budget to spend $1 million with us to say day one. We had to put the use cases and the references out there. As you are starting to see these $500 million, $700 million deals even greater come in on a regular basis now, or I should say, so I'm saying it properly, a much more consistent base.

What you're seeing is a market mature and as that market matures, it's not that difficult for us, our core salespeople all learn the same products, Crisis Management for instance was born out of an acquisition we did almost two years ago in Sweden. So, Europeans have had Crisis Management for a while. Ours is just a new version integrated with CEM. They get to see how we are selling in the US, so, our international teams are going to be much more capable of ramping faster, when we turn it on, our preparation it's required is much more on the product side and making sure the data is ready and the support channels are ready for the international markets.

So, I don't think there is a big investment to rollout CEM internationally. We've just been as, Patrick said in his comments, I think a little measured and very careful and thoughtful and how we rollout the product, so we don't just splatter against the wall and then work on what sticks because customers in a new geography, if we didn't have the support to take quite a bit of time for example. So, as we continue to rollout CEM, I don't think you'll see a large significant addition I think you'll see the continuing incremental sale and marketing spend that we do, as we grow our business proportional to our growing business and desire to be increasingly adjusted EBITDA positive.

Bhavin Shah -- Credit Suisse -- Analyst

Thanks. That makes sense and helpful. Just a quick follow-up in terms of Fed ramp and the certification you got a few quarters ago. Can you just give us some update on how that's performing relative to expectations? I know you guys gave some metrics on the call, but anything additional in terms of pipeline and what you're seeing?

Jaime Ellerston -- Chief Executive Officer

I wish the Federal government wasn't operating under a continuing resolution and under the threat of another tweet, but that's the world we live in today. And so our Fed team is pounding away, we're winning deals on a kind of a quarterly basis, but they're rhythm is all in this one quarter at the end of their fiscal year. And as you saw in our last Q3, we kind of over did that and we warned everyone in advance like we warned you, do not grab on the seasonally high as the norm always. But that continues to be the way the federal government buys. They can't get budget under continuing resolution until they are about to lose it or they have to spend it and then they purge it all within a given quarter. And so the deals just seem to be all, most of them at least seem to be lining up for a Q3 finish. And that's what we would anticipate and have heard is the normal cycle for that market. Continues to grow, continue to show good progress, but it's -- we're going to follow the same cycle that almost everyone else in software and enterprise software does with the federal government.

Bhavin Shah -- Credit Suisse -- Analyst

Thanks. Appreciate the answers. Congrats again.

Jaime Ellerston -- Chief Executive Officer

Thank you.

Operator

Our next question comes from the line of Eric Lemus from SunTrust. Your line is open.

Eric Carlos Lemus -- SunTrust Robinson Humphrey, Inc. -- Analyst

Hey guys, thanks for taking the question. I just had one and follows up on the last question. Looking at your Federal pipeline and how those deals are shaping up, do you think have those deals mostly just core Mass Notification deals, are you seeing those mostly as a multiproduct type deals?

Jaime Ellerston -- Chief Executive Officer

There are absolutely multi-product deals, of course, Mass Notification is our, you know, is the most common product, we are known for where the, I think, the global acknowledge, global market leader there. And in the U.S., there is still quite a bit of penetration opportunity for Mass Notification.

But, as we announced, I think it was U.S. Post Office, but IT Alerting a bunch of our wins this past quarter. One of the ones, I mentioned wasn't IT Alerting win in the state and local space, that's starting to pick up steam because we have such a large penetration of Mass Notification, not necessarily the Federal government, but the state and local.

And so, I think you'll continue to see a number of different products sold in the Federal government and some of the bigger opportunities are in the military and other spaces as we've alluded to, there's a number of projects ongoing there. And so again in Q3, you can see that be a reasonably balanced set of wins across the product set. Certainly, in terms of dollars, if not an individual product wins.

I would focus your attention on Population Alerting outside the U.S., which absolutely includes Mass Notification, but is much more often led with our Location-Based Alerting and Population Alerting solution as being just as big a contributor, because there were calling on 50 Federal governments at once with national population opportunities. You know, there's over 30 in the EU and I had mentioned that in India alone, we're on our fourth state, each of one -- each of which has the size of a Federal government opportunity.

And then, in addition to that other Southeast Asian opportunities. It's a pretty rich market right now and we would be surprised, if we didn't deliver this year. And as I said in my prepared remarks have high hopes for big results this year in Population Alerting to governments outside of the U.S.

So, when you think about, how we're attacking the Federal market, think about the Federal U.S. market and then the Federal international market, and I would argue the Federal international markets substantially larger even so, a balance opportunity set for us.

Eric Carlos Lemus -- SunTrust Robinson Humphrey, Inc. -- Analyst

Great, thanks. That's, good color, and thank you, Jaime.

Jaime Ellerston -- Chief Executive Officer

Thank you.

Operator

Next question comes from the line of Sterling Auty from JPMorgan. Your line is open.

Matt Pronin -- JPMorgan -- Analyst

Hi guys. This is Matt Pronin (ph) for Sterling Auty tonight. Thanks for taking my question. The question I had is in terms of your Critical Event Management suite, what did you see in terms of upsell in the quarter by existing customers? And how many new customers are going into that level?. Thanks.

Jaime Ellerston -- Chief Executive Officer

Yes, I think it's probably pretty balanced Matt. I think we had a number of wins I talked about customers starting with Mass Notification in the large bank moving to Safety Connection Pro a year later, and then literally one year later moving to VCC in the entire suite. That's a great example some are taking a journey. If we could do that with all 4500 customers, we're going to be a damn big company in a couple of years.

So, that's the goal. It doesn't always happen that way. Some like the big management consulting firm had a tiny, little tiny fraction of their business, had a relationship with us, but for all intents and purposes was a new win. We had to sell everyone from the CSO and the CEO and down. In that case, they are spending millions and millions of dollars in committing over 400,000 employee workplace to Everbridge to help them manage critical event.

So, it was a mixed about 50-50 that's what we want, right. We want to leverage the very large, very successful Mass Notification and Safety Connection. Our customer base because that means there's a plentiful supply of upsells, that's why we keep hinting at these customers have bought their second or third product, but they're on the CEM path. And so that's fantastic. If you were Oracle back in the day, you wanted to sell financial general ledger, but then you wanted to sell integrated resource planning and then you wanted to sell the HR system once say bought PeopleSoft. So, it's a solution sale same thing for us.

Some began that journey, that brand new ones that are just being introduced. We introduced that the CEM and we don't start off selling Mass Notification if we can help it. So, that's how we go to market, but to an existing base of 4,500, it's our goal to upsell almost all of them over the next X number of years the complete suite and that's how we'll get to that, the type of numbers that we aspire to as a SaaS vendor.

Matt Pronin -- JPMorgan -- Analyst

Great. Thanks for answering the question.

Jaime Ellerston -- Chief Executive Officer

You bet.

Operator

Our next question comes from the line of Brian Peterson from Raymond James. Your line is open.

Kevin J. Ruth -- Raymond James & Associates, Inc. -- Analyst

Hi guys, this is Kevin here on for Brian. Thanks for taking my call. Wanted to ask about any changes you've been making across the Nixle platform. I think some of the tweaks there have encourage users to migrate to some of your higher tier offerings. And I was curious where you see yourselves in that process today? And what impact would you expect that to have on Mass Notification ASPs going forward?

Jaime Ellerston -- Chief Executive Officer

I don't -- you know that product is a mature product for us. It plays a spot in the market. We've always been concerned with any software market we entered to have the small and medium business size space protected. And so for very small sheriff's departments, public safety agencies, we want to have a solution, where they can start and I'm frequently on the phone of those guys because they can be very impactful in terms of the message counter or how they use the solution, have great stories. But they can 20 sheriffs in a small rural town in the middle of New Mexico, they can't afford a $10,000 to $20,000, but a price point that Nixle brings to bear $5,000 or $3,500 a year with a multi-year contract is perfect for them.

They began the journey there. They end up ups -- being up sold in to Mass Notification and ultimately add safety connection or one of our other products community alerting, something else and become a much larger customer. And the example that journey is really the City of Los Angeles, the county of Los Angeles sheriffs started as a free user and move to paid and before you know they were upto a $0.25 a few years ago before they migrated to Everbridge, they principally migrate to Everbridge because the SLAs and the scale at which that platform operates is built into its cost structure, but also into its delivery capability. So, with our Mass Notification solution, we just have the best most richest platform for critical communications and alerting on the planet, and people will move to that when they have the size and nature of need that promotes that

But to start, Nixle will continues to be a feeder system for us. We have over 3,000 Nixle users out there. Local law enforcement police maybe 4,000 today I have checked the number lately and they continue to be a very strong feeder system for Mass Notification. But it isn't one or the other because our Mass Notification product doesn't go down to that size in terms of budget. And again, most of those customers are on the public side of the markets.

Kevin J. Ruth -- Raymond James & Associates, Inc. -- Analyst

That's very helpful. Thanks, Jaime.

Jaime Ellerston -- Chief Executive Officer

You bet.

Operator

Our next question comes from the line of Will Power from Baird. Your line is open.

William Power -- Robert W. Baird & Co -- Analyst

Great. Thanks for taking the question. Yeah, just wanted to come back to the EU opportunity, certainly it seems like it could be significant over the next several years. And you addressed part of this Jaime, how is the right way to think about how we should expect that pipeline to build? Does that get more back-end loaded, just based on the deadlines that have been said? Or, do you think we see that occur more ratably over the course of the next couple of years?

And then the second piece of that is, describe what's the competitive climate there looks like? Have you seen any other cloud providers appear? Is it kind of one-off hardware-based solutions? What are you seeing on the competitive front there?

Jaime Ellerston -- Chief Executive Officer

The two great questions, because it's a very important and as I've leaned into it a little bit here, a very, -- we think a very positive market this year. So, the EU is on a roughly four years the director says until you have to have it all done and dusted in place, which if you start backing up means that most of these decisions will be made in the next 18 months from today from the summer. So, we see it as at opportunity that's now starting to affect us now. So, we've made a commitment to grow our sales force and our go-to-market team and ramp our marketing into the EU.

We continue to be the only player that's of scale, that's why we bring up things like The New York Times boasting about saving a million people because at scale, we don't know of anyone else that does, what we do as consistently across multiple geographies across any type of event. It's one thing to have a, some sort of hardware-based solution that can blast the message, but not when you have four different languages, you're having to deliver the message in and not, when you want it to be delivered to virtually any handsets. So, you can light up an entire city or nation and that the competition is almost nonexistent there. That's why we've built out the roughly, you know, over 100 global patents in place and it's why we feel so strongly.

The numbers I'm going to hold off. We keep a little teaser out there for Patrick's announced Analyst Day, because we've had a number of requests around, so help us build that market out, show the opportunity since we are primarily trying to win RFPs and influence people right now. And then we'll go into the winning stage next year, I would say if you attend our Analyst Day, we'll try to build that market bottoms up for you and tops down to give you a detailed field, but probably too much to do in this call.

I would watch for other significant wins, where we continue to be highlighted as deep player in the space, because as Patrick processor Ken Goldman used to say, in this market reputation and ability to deliver is not just, OK, it can be in life or death. And so when you get that New York Times article saying, you can potentially save a million people, that's not something anyone else can buy because they have a -- they jump into the market, say they're cloud provider and they can do it. That it's not going to work that way. We do not believe the market is going to rollout that way.

So, big solid footprint existing today, most referenceable platform on the planet, continuing success at scale and continue new wins and seeded in a position that we are expanding our go-to market to be in a position to win as many of those as we can over the next 18 months, where we believe will be adjudicated and announced.

William Power -- Robert W. Baird & Co -- Analyst

All right. That's great. Look forward to the Analyst Day.

Jaime Ellerston -- Chief Executive Officer

Yeah. Thank you.

Operator

Our next question comes from the line of Dmitry Netis from Stephens. Your line is open.

Ryan MacWilliams -- Stephens, Inc. -- Analyst

Hi. This is Ryan MacWilliams on for Dmitry. Thanks for squeezing me in. Just have one question. That kind of goes off the last question might be for Patrick. Due to the lumpy nature of the Population Alerting deals and in the last quarter, you mentioned you had some in the hopper that could hit us earlier as this quarter, how you are guiding around the full year around the uncertain time of these deals? And are there any larger wins baked in the second half guidance? Thanks.

Patrick Brickley -- Chief Financial Officer

Yeah. Thank you. There are not any large wins baked into second half guidance. We are -- we did acquire a number of deals that were in the pipeline that we had been originally presented to prospects as perpetual. But we've been working very hard, wherever possible, try to reframe those and convert those to a recurring model and we've been successful in a number of those opportunities that are in flight. So, we are not including any significant sort of material perpetual revenue in second half guidance, nor do we hope that we will ever have to guide to a lot of lumpiness in the future. I am certainly as a first-time CFO, the last thing I want to try to do -- deal with our lumps from quarter-to-quarter. So, working very hard to prevent that.

Ryan MacWilliams -- Stephens, Inc. -- Analyst

Great, thanks.

Operator

Our next question comes from the line of Brent Bracelin from KeyBanc. Your line is open.

Clarke Jeffries -- KeyBanc Capital Markets -- Analyst

Hi, this is Clarke on for Brent. Jaime just on your the metric of 55% of new sales still coming from Mass Notification. And then I guess, putting that with the comment of, you wouldn't like to sell with Mass Notification primarily, if you could help it, what could trend that metric up to be more to the new products SKU from here?

And is that just really reflective of the new kind of customer acquisition engine or the distribution of CEM selling in the sales force. Any color on that would be really appreciated.

Jaime Ellerston -- Chief Executive Officer

Yeah, sure, Clarke. I appreciate the question. Yes, so it's -- you've got it a little reversed though. So, it's 45% came from Mass Notification and Incident Management our core historic oldest products. 55% came from the newer products, which at our -- as of our 2016 IPO were somewhat brand new Safety Connection, IT Alerting, things like that, now Crisis Management and Visual Command Center.

So, 55% of all new in growth comes from the new products. And what I said was, that's about where we want it. You know, a 50/50 split, given that we've redefined Mass Notification as Population Alerting. So, we're going to redefine it going forward here, Population Alerting to include Mass Notification, Incident Management and the Population Alerting and Location-Based Alerting solutions we acquired to UMS, which is really Mass Notification internationally. And the one segment, which we'd like to be -- we'd like to see healthy growth in that because otherwise we're offsetting decline in one market with growth in another.

On the other hand, we're up to slightly over 50% this last quarter and in Q4, 55% of all new and growth coming from the newer products. We think that's healthy CEM, certainly pulls that up because our CEM sale includes Mass Notification, Safety Connection, Visual Command Center and typically either Risk Data or now Crisis Management, if they're buying all of them.

As we had a couple of customers buy everything in our suite this last quarter and that increases the size. But so those should stay in a rough balance now because if one got too far out ahead of the other, you would -- it would mean a decline right, it would mean that you weren't able to grow your Mass Notification products anymore, including Population Alerting and I don't foresee that is happening at all.

And then on the other hand, if the new in growth grew substantially faster than this, it would mean that CEM was gaining even better traction, which still could happen. It's more likely that the new in growth could go from 55% to 57% if we had a banner CEM quarter. But again, we're hoping to stay somewhere in that range, where both are healthy and both are growing, meaning that the percentage distribution stays roughly even. So, that's how to think about that going forward.

Clarke Jeffries -- KeyBanc Capital Markets -- Analyst

Perfect. Thank you.

Jaime Ellerston -- Chief Executive Officer

You bet.

Operator

Our last question comes from the line of Mike Latimore from Northland Capital. Your line is open.

Michael Latimore -- Northland Securities -- Analyst

Great, thanks. Yeah, excellent quarter. I guess just on the EU mandate opportunities that most of the decision probably next 18 months, do you foresee that to be sort of back-end loaded in terms of decision-making, or relatively even over this same period?

Jaime Ellerston -- Chief Executive Officer

Too early to call, I would pay attention to our Population Alerting and the wins in that space and that'll give you increasing understanding of how we're doing in Population Alerting in general. And like any other new market it's a brand new market, we do believe that 18 months is roughly correct because if you work backwards from the EU directives, you have to have the law in place in that time period and a large nationwide system, given we've implemented more than anyone else in the planet. You can't do in a year. It's not possible. It takes a year, year and a half roll it out.

So, when you back that up from the 3.5 years that are left you have to have made the decision in the next 18 months. And do we think everyone's going to be at the back half of that, well, more probably in the back half than the front half. But other than that, we don't have a trending yet because we're just starting.

What we do believe is it will happen in the next 18 months starting this at the end of Q2 and moving forward through the end of 2020 and most deals will be decided by that point. And so then you're rolling out for the next three years and it's a large potential market with big countries being eight-figure deals. It could be well in excess of $10 million, $20 million and smaller deals being seven-figure deals, they make a difference in our model, no matter, which year we're in. They -- just a few of those can have a meaningful difference.

So, we're very focused on it. As I said, continue to focus on our -- we continue to focus on our making that Population Alerting and Location-Based Alerting solution, the best on the planet, the most cost effective and the best to be used. And when we see opportunities like India, where we're getting that type of press, that just makes it very difficult for others to compete with us with any type of bona fide that's even comparable in any way. So, we're -- we continue to move forward with that and we'll have a little more detail on how we roll that out and how we see the dollars adding up in the addressable market at the Analyst Day in June.

Michael Latimore -- Northland Securities -- Analyst

Great. And just last, how is the JARVISS deployment going?

Jaime Ellerston -- Chief Executive Officer

Good. Continues to move forward. Big project for us, it's gotten bigger since we've gone and other than that, there's not -- we have made no specific announcements around that. I did mention, when I talked about federal, there are other DoD opportunities out there. As we said, there are some 18 other agencies. And so you can assume we're going after those aggressively too. But there's still a lot of work to do around JARVISS and doing it and it continued to be rolled out ever-expanding in the U.S. Army.

Michael Latimore -- Northland Securities -- Analyst

Okay. Thank you.

Jaime Ellerston -- Chief Executive Officer

Thank you.

Operator

As there are no more questions over the phone, I would now like to turn the conference back to Mr. Jaime Ellertson, the Company CEO.

Jaime Ellerston -- Chief Executive Officer

All right. Thanks everyone for joining our call today. We're again excited to exceed our financial objectives. I think this is the 11th straight quarter since our 2016 IPO. So we, as Patrick said, are focused on kind of rinse and repeat model here. And appreciate you joining. We think the first quarter results represent both strong business environment for us, the strategy is working, and most importantly, we're well positioned to continue to provide a return to shareholders in the future.

Thanks for spending time with us. We look forward to seeing you on the road in the future. Bye-bye.

Operator

Ladies and gentlemen, this concludes today's conference. Thank you for your participation and have a wonderful day. You may all disconnect.

Duration: 75 minutes

Call participants:

Patrick Brickley -- Chief Financial Officer

Jaime Ellerston -- Chief Executive Officer

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Tom Roderick -- Stifel -- Analyst

Scott Berg -- Needham & Company -- Analyst

Bhavin Shah -- Credit Suisse -- Analyst

Eric Carlos Lemus -- SunTrust Robinson Humphrey, Inc. -- Analyst

Matt Pronin -- JPMorgan -- Analyst

Kevin J. Ruth -- Raymond James & Associates, Inc. -- Analyst

William Power -- Robert W. Baird & Co -- Analyst

Ryan MacWilliams -- Stephens, Inc. -- Analyst

Clarke Jeffries -- KeyBanc Capital Markets -- Analyst

Michael Latimore -- Northland Securities -- Analyst

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