Evolv Technology Announces that 92% of Customers¹ Eligible to End Contracts Elect to Stay with Evolv
Evolv Technology (NASDAQ: EVLV) has announced strong customer retention following the FTC-related cancellation period for K-12 education customers. 92% of eligible customers (60 out of 65) chose to maintain their contracts, representing 213 Evolv Express units (90% retention). The company achieved 92% Net Revenue Retention and 94% Net Unit Retention across eligible customers.
Notably, four customers expanded their deployment by adding 10 additional units since the FTC resolution. Only five customers requested cancellation, impacting 24 units and approximately $445,000 in annual recurring revenue (ARR). These cancelling customers will maintain their systems through the 2024-2025 school year.
Wyoming Valley West School District, an eligible customer, increased their Express fleet by 50% due to satisfaction with the system's performance.
Evolv Technology (NASDAQ: EVLV) ha annunciato un forte tasso di fidelizzazione dei clienti dopo il periodo di cancellazione legato alla FTC per i clienti dell'istruzione K-12. Il 92% dei clienti idonei (60 su 65) ha scelto di mantenere i propri contratti, rappresentando 213 unità di Evolv Express (90% di fidelizzazione). L'azienda ha raggiunto un 92% di Retention dei Ricavi Netti e un 94% di Retention delle Unità Nette tra i clienti idonei.
È significativo che quattro clienti abbiano ampliato il loro utilizzo aggiungendo 10 unità aggiuntive dopo la risoluzione della FTC. Solo cinque clienti hanno richiesto la cancellazione, influenzando 24 unità e circa $445,000 di entrate ricorrenti annuali (ARR). Questi clienti che hanno cancellato manterranno i loro sistemi fino all'anno scolastico 2024-2025.
Il Distretto Scolastico di Wyoming Valley West, un cliente idoneo, ha aumentato la propria flotta di Express del 50% grazie alla soddisfazione per le prestazioni del sistema.
Evolv Technology (NASDAQ: EVLV) ha anunciado una fuerte retención de clientes tras el período de cancelación relacionado con la FTC para clientes de educación K-12. El 92% de los clientes elegibles (60 de 65) optaron por mantener sus contratos, representando 213 unidades de Evolv Express (90% de retención). La empresa logró un 92% de Retención de Ingresos Netos y un 94% de Retención de Unidades Netas entre los clientes elegibles.
Notablemente, cuatro clientes ampliaron su implementación añadiendo 10 unidades adicionales desde la resolución de la FTC. Solo cinco clientes solicitaron la cancelación, afectando a 24 unidades y aproximadamente $445,000 en ingresos recurrentes anuales (ARR). Estos clientes que cancelaron mantendrán sus sistemas durante el año escolar 2024-2025.
El Distrito Escolar de Wyoming Valley West, un cliente elegible, aumentó su flota de Express en un 50% debido a la satisfacción con el rendimiento del sistema.
이볼브 테크놀로지 (NASDAQ: EVLV)는 K-12 교육 고객을 위한 FTC 관련 취소 기간 이후 강력한 고객 유지율을 발표했습니다. 92%의 자격 고객(65명 중 60명)이 계약을 유지하기로 선택했으며, 이는 213개의 이볼브 익스프레스 유닛을 나타냅니다 (90% 유지율). 회사는 자격 고객을 대상으로 92%의 순수익 유지율과 94%의 순수유닛 유지율을 달성했습니다.
특히, 네 명의 고객이 FTC 결의 이후 10개의 추가 유닛을 추가하여 배치를 확장했습니다. 단 5명의 고객만이 취소를 요청했으며, 이는 24개의 유닛과 약 $445,000의 연간 반복 수익(ARR)에 영향을 미쳤습니다. 이 취소 고객들은 2024-2025 학년도까지 시스템을 유지할 것입니다.
자격 고객인 와이오밍 밸리 웨스트 학교 구역은 시스템 성능에 대한 만족도로 인해 익스프레스 플릿을 50% 증가시켰습니다.
Evolv Technology (NASDAQ: EVLV) a annoncé une forte fidélisation des clients suite à la période d'annulation liée à la FTC pour les clients de l'éducation K-12. 92% des clients éligibles (60 sur 65) ont choisi de maintenir leurs contrats, représentant 213 unités Evolv Express (90% de fidélisation). L'entreprise a atteint un 92% de Rétention des Revenus Nets et un 94% de Rétention des Unités Nets parmi les clients éligibles.
Notamment, quatre clients ont élargi leur déploiement en ajoutant 10 unités supplémentaires depuis la résolution de la FTC. Seuls cinq clients ont demandé une annulation, impactant 24 unités et environ $445,000 de revenus récurrents annuels (ARR). Ces clients annulés maintiendront leurs systèmes jusqu'à l'année scolaire 2024-2025.
Le District Scolaire de Wyoming Valley West, un client éligible, a augmenté sa flotte d'Express de 50% en raison de sa satisfaction concernant les performances du système.
Evolv Technology (NASDAQ: EVLV) hat eine starke Kundenbindung nach der von der FTC initiierten Stornierungsphase für K-12 Bildungskunden bekannt gegeben. 92% der berechtigten Kunden (60 von 65) haben sich entschieden, ihre Verträge aufrechtzuerhalten, was 213 Evolv Express Einheiten entspricht (90% Bindung). Das Unternehmen erzielte eine 92% Netto-Umsatzbindung und eine 94% Netto-Einheitenbindung unter den berechtigten Kunden.
Bemerkenswert ist, dass vier Kunden ihren Einsatz um 10 zusätzliche Einheiten seit der FTC-Entscheidung erweitert haben. Nur fünf Kunden haben eine Stornierung beantragt, was 24 Einheiten und etwa $445,000 an wiederkehrenden jährlichen Einnahmen (ARR) beeinflusst. Diese stornierenden Kunden werden ihre Systeme bis zum Schuljahr 2024-2025 beibehalten.
Der Wyoming Valley West School District, ein berechtigter Kunde, hat seine Express-Flotte um 50% erhöht, da er mit der Leistung des Systems zufrieden ist.
- High customer retention rate of 92% following FTC resolution
- 90% of Evolv Express units retained (213 out of 237)
- Net Revenue Retention of 92% across eligible customers
- Customer expansion: 4 clients added 10 new units
- Cancelling customers maintaining deployment through 2024-2025 school year
- Loss of $445,000 in annual recurring revenue from cancellations
- 5 customers requesting contract cancellations
- 24 Evolv Express units lost due to cancellations
Insights
Evolv Technology has successfully navigated the FTC-mandated cancellation period with minimal business impact, demonstrating strong product stickiness and customer loyalty. The 92% customer retention rate and 94% unit retention among eligible education customers significantly outperformed what investors might expect following regulatory action.
The financial impact appears contained, with only
Most revealing is that four customers actually expanded their deployments during this period, adding 10 new units. This expansion during a cancellation window indicates strong product satisfaction despite regulatory concerns. The Wyoming Valley West School District's
While the article doesn't explicitly state the nature of the original FTC resolution, the expiration of this cancellation period suggests this regulatory chapter is closing. For a company with a market cap of
FTC-Related Cancellation Period Closes as Value of Evolv Express to Education Customers Remains Strong
ARR2 and Unit Impact of Cancellation Program Minimal, Currently Estimated at
Evolv Remains Committed to Innovation, Integrity and Customer Trust
Of the 65 education customers (representing 237 Evolv Express units) who were eligible for contract cancellation, a total of 60 customers (
“We first deployed the Evolv Express systems in 2022 in our schools after evaluating different options and continuing to come back to the fact that Evolv performed at a superior level across the board,” said Anthony Dicton, Safety and Security Coordinator at Wyoming Valley West School District. “That initial evaluation has proven to be more than accurate as Evolv has been an important part of our safety planning and we couldn’t be more pleased with the partnership. We just expanded our Express systems by
The Company received cancellation requests from five out of the 65 eligible customers. These customers represented a total of 24 Evolv Express units, currently estimated at approximately
“We appreciate our customers’ continued commitment to the Evolv system and take seriously the responsibility of being a trusted partner in helping to make schools and communities safer,” said John Kedzierski, President and Chief Executive Officer of Evolv Technology. “Our top priority remains the safety of people and the communities we serve.”
About Evolv Technology
Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) is designed to transform human security using artificial intelligence (AI)-powered screening and analytics to help create safer experiences for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces. Its mission is to transform security to create a safer world to live, work, learn, and play. Evolv has digitally transformed the gateways in many places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced weapons detection systems have scanned more than two billion people since 2019. Evolv has been recognized by the
1 "Customer(s)" means school(s) or school district(s) in the K-12 range that purchased or otherwise contracted for the use of Evolv Express between the period April 1, 2022, to June 30, 2023. Excluded from this definition is any school or school district that: (1) participated in a pilot program of at least 30 days prior to such purchase or contract; (2) purchased 15 or more Evolv Express units; or (3) purchased or contracted for, and deployed, additional Evolv Express units more than 45 days after initially deploying Evolv Express at a school.
2 We define Annual Recurring Revenue, or ARR, as subscription revenue and the recurring service revenue related to purchase subscriptions for the final month of the quarter normalized to a one-year period. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, upgrades or downgrades, or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. In addition, the amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades, downgrades or other changes in pending renewals, as well as the effects of professional services revenue and acquisitions or divestitures. As a result, ARR should be viewed independently of, and not as a substitute for or forecast of, revenue and deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.
3 Net Revenue Retention is calculated by taking the total annual recurring revenue, including expansions, subtracting churned annual recurring revenue, and dividing the result by the starting annual recurring revenue. Net Unit Retention is calculated by taking the total number of units, including expansions, minus churned units, divided by the starting unit count.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements made in the quotes from the President and Chief Executive Officer and statements regarding the estimated impact of the cancellation program. Forward-looking statements are based on current estimates, assumptions and beliefs and are subject to known and unknown risks and uncertainties, many of which are beyond our control, that may cause actual results to vary materially from those indicated by such forward-looking statements. Such risks and uncertainties include, but are not limited to: unknown costs or financial impacts related to the cancellation of the contracts, including, but not limited to, shipping and logistics costs, potential refunds, and tax implications, and the factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024, as any such factors may be updated from time to time in our other filings with the SEC, including the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as well as risks related to our leadership transition. The forward-looking statements in this press release are based upon information available to us as of the date hereof, and while we believe such information forms a reasonable basis for such statements, it may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.
Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250331187274/en/
Media Contact:
Alexandra Smith Ozerkis
aozerkis@evolvtechnology.com
Investor Contact:
Brian Norris
bnorris@evolvtechnology.com
Source: Evolv Technologies Holdings, Inc.
FAQ
What percentage of Evolv Technology's (EVLV) eligible customers retained their contracts after the FTC cancellation period?
How many Evolv Express units were affected by the FTC-related cancellations in 2024?
What is the financial impact of the FTC-related cancellations on EVLV's annual recurring revenue?
How many customers expanded their Evolv Express deployments since the FTC resolution?
