Evolv Technology Reports First Quarter Financial Results
Evolv Technology, a leading security company, reported impressive financial results for Q1 2024. They recorded a revenue of $21.7 million, up 17% year-over-year, with Ending ARR of $82.5 million, up 96% year-over-year, and Ending RPO of $254.1 million, up 57% year-over-year. The company also saw a significant increase in Evolv Express® subscriptions. Net loss decreased to $(11.6) million, and adjusted EBITDA improved. The company had solid cash reserves and no debt as of March 31, 2024. Evolv Technology provided a positive outlook for 2024, aiming for total revenue of around $100 million and significant growth in ARR and adjusted EBITDA.
Evolv Technology reported strong financial results for Q1 2024, with revenue increasing to $21.7 million, up 17% year-over-year.
The Ending ARR of $82.5 million, up 96% year-over-year, indicates a significant growth in recurring revenue for the company.
The Ending RPO of $254.1 million, up 57% year-over-year, reflects a robust performance by Evolv Technology in securing long-term customer relationships.
With a decrease in net loss to $(11.6) million and improved adjusted EBITDA, Evolv Technology is showcasing better financial management.
The company's solid cash reserves of $81.3 million and no debt position it well for future growth and investment opportunities.
Evolv Technology's positive outlook for 2024, targeting total revenue of around $100 million and significant growth in ARR and adjusted EBITDA, indicates a strong growth trajectory for the company.
- None.
Insights
Scrutinizing Evolv Technology's Q1 financial performance, a solid
Furthermore, the sharp
Considering the broader security technology market, Evolv Technology's growth in Evolv Express® subscriptions by
The downward revision of the 2024 revenue outlook from
-
Q1 Revenue of
$21.7 million 17% year-over-year -
Q1 Ending ARR1 of
$82.5 million 96% year-over-year -
Q1 Ending RPO2 of
$254.1 million 57% year-over-year -
Q1 Ending Evolv Express® subscriptions of 4,882, up
75% year-over-year
Results for the First Quarter of 2024
Total revenue for the first quarter of 2024 was
The following table summarizes the breakdown of recurring and non-recurring revenue4 for each period presented:
|
Three Months Ended
|
|||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
Recurring revenue |
$ |
19,381 |
|
$ |
9,075 |
|
114 |
% |
Non-recurring revenue |
|
2,287 |
|
|
9,506 |
|
(76 |
)% |
Total revenue |
$ |
21,668 |
|
$ |
18,581 |
|
17 |
% |
The following table summarizes operating cash flows for each period presented:
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(11,644 |
) |
|
$ |
(28,609 |
) |
Non-cash expense |
|
1,653 |
|
|
|
14,005 |
|
Changes in operating assets and liabilities |
|
(6,092 |
) |
|
|
11,170 |
|
Net cash used in operating activities |
$ |
(16,083 |
) |
|
$ |
(3,434 |
) |
Company Comments on Outlook for 2024
The Company today commented on its business outlook for 2024. The Company's outlook is based on the current indications for its business, which may change at any time.
Estimate ($ in millions) |
|
Issued February 29, 2024 |
|
Issued May 9, 2024 |
Total Revenue |
|
|
|
|
ARR1 (ARR) at 12/31/24 |
|
|
|
|
Adjusted Gross Margin3 |
|
~ |
|
Reaffirmed |
Adjusted EBITDA3 |
|
Improve by |
|
Reaffirmed |
Company to Host Live Conference Call and Webcast
The Company’s management team plans to host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss the financial results as well as management’s outlook for the business and other matters. The conference call may be accessed in
About Evolv Technology
Evolv Technology (NASDAQ: EVLV) is transforming human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered weapons detection and analytics. Its mission is to transform security to create a safer world to work, learn, and play. Evolv has digitally transformed the gateways in places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than 1 billion people, second only to the Department of Homeland Security’s Transportation Security Administration (TSA) in
1 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.
2 We define Remaining Performance Obligation, or RPO, as estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied as of the end of the quarter.
3 Non-GAAP Financial Measures In this press release, the Company’s adjusted gross profit (loss), adjusted gross margin, adjusted operating expenses, adjusted operating income (loss), adjusted EBITDA, adjusted earnings (loss), and adjusted earnings per diluted share are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Adjusted gross profit and adjusted gross margin exclude one-time expenses, stock-based compensation expense, and amortization of capitalized stock-based compensation which management believes provides a more meaningful representation of contribution margin. Adjusted operating expenses is defined as operating expenses less one-time items, stock-based compensation expense, amortization of capitalized stock-based compensation, and loss on impairment of lease equipment which management believes provides a more meaningful representation of on-going operating expense levels. Adjusted EBITDA is defined as net income (loss) plus depreciation and amortization, share-based compensation, interest expense (income), loss on extinguishment of debt, change in fair value of contingent earn-out liability, change in fair value of contingently issuable common stock liability, change in fair value of public warrant liability, and certain other one-time expenses. Adjusted earnings (loss) is defined as net income (loss) plus stock-based compensation, amortization of capitalized stock-based compensation, loss on extinguishment of debt, change in fair value of contingent earn-out liability, change in fair value of contingently issuable common stock liability, change in fair value of public warrant liability, loss on impairment of lease equipment, and certain other one-time expenses. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. However, non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures included in this press release. The Company is unable to provide a reconciliation of Adjusted Gross Margin to GAAP Gross Margin and Adjusted EBITDA to Net Income (Loss), each measure's most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact these GAAP financial measures are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation, changes in the fair value of derivative liabilities, changes in the fair value of contingent earn out liabilities, changes in the fair value of contingently issuable common stock liabilities and changes in fair value of public warrant liabilities. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results.
4 Recurring revenue includes the recurring portion of revenue associated with pure subscription contracts and hardware purchase subscription contracts. Non-recurring revenue includes revenue that is one-time in nature, such as product revenue, shipping revenue, and revenue from installation, training, and professional services.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend 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 contained in this press release and related presentation materials other than statements of historical facts, including without limitation statements regarding our ability to meet our 2024 guidance for revenue, ARR, adjusted gross margin, and adjusted EBITDA, our estimates for cash and cash equivalents for fiscal year 2024, our results of operations and financial position, business strategy, plans and prospects, our relationship with significant manufacturers and suppliers, our ability to obtain new customers and retain existing customers, existing and prospective products, research and development costs, the potential benefits of our transition to a pure subscription model, timing and likelihood of success, macroeconomic and market trends, the impact of government regulations that we are subject to, our expectations regarding any outcomes and impact of any legal proceedings, government investigation or enforcement action (such as the current investigations by the FTC and the SEC), and plans and objectives of management for future operations and results are forward-looking statements. Words such as “believe” “may,” “will,” “expect,” “should,” “could,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “project,” “plan,” “target,” “forecast”, “is/are likely to” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. The forward-looking statements in this press release and related presentation materials are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: relating to our history of losses and ability to reach profitability; our reliance on reseller partners to generate a growing portion of our revenue; expectations regarding the Company’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures;; the Company’s reliance on third party contract manufacturing and distribution, and a global supply chain; the Company recognizes a substantial portion of its revenue ratably of the term of its agreements, and, as a result, downturns or upturns in sales may not be immediately reflected in its operating results; the rate of innovation required to maintain competitiveness in the markets in which the Company competes; the competitiveness of the market in which the Company competes; the failure of our products to detect threats could result in injury or loss of life, which could harm our brand, reputation, and results of operations; the loss of designation of our Evolv Express® system as a Qualified Anti-Terrorism Technology under the Homeland Security SAFETY Act; risks related to our business model, which is predicated, in part, on building a customer base that will generate a recurring stream of revenues through the sale of our subscription contracts; the ability for the Company to obtain, maintain, protect and enforce the Company’s intellectual property rights and use of “open source” software; the concentration of the Company’s revenues on a single solution; the Company’s ability to timely design, produce and launch its solutions, the Company’s ability to invest in growth initiatives and pursue acquisition opportunities; the limited liquidity and trading of the Company’s securities; risks related to existing and changing tax laws; geopolitical risk and changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; operational risk; risks related to material weaknesses in our internal control over financial reporting and our remediation plans; risks related to increasing attention to and evolving expectations for, environmental, social, and governance initiatives; the impact of fluctuating general economic and market conditions and reductions in spending; the need for additional capital to support business growth, which might not be available on acceptable terms, if at all; and litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on resources. These and other important 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 Securities and Exchange Commission ("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 March 31, 2024. The forward-looking statements in this press release and related presentation materials 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.
You should review this press release and the documents that we reference in this press release and related presentation materials with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary 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 and related presentation materials, whether as a result of any new information, future events or otherwise.
EVOLV TECHNOLOGY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share data) (Unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
||||
Product revenue |
$ |
603 |
|
|
$ |
8,754 |
|
Subscription revenue |
|
14,503 |
|
|
|
6,466 |
|
Service revenue |
|
5,384 |
|
|
|
2,786 |
|
License fee and other revenue |
|
1,178 |
|
|
|
575 |
|
Total revenue |
|
21,668 |
|
|
|
18,581 |
|
Cost of revenue: |
|
|
|
||||
Cost of product revenue |
|
2,777 |
|
|
|
10,578 |
|
Cost of subscription revenue |
|
5,779 |
|
|
|
2,351 |
|
Cost of service revenue |
|
1,211 |
|
|
|
583 |
|
Cost of license fee and other revenue |
|
129 |
|
|
|
304 |
|
Total cost of revenue |
|
9,896 |
|
|
|
13,816 |
|
Gross profit |
|
11,772 |
|
|
|
4,765 |
|
Operating expenses: |
|
|
|
||||
Research and development |
|
6,205 |
|
|
|
5,389 |
|
Sales and marketing |
|
16,005 |
|
|
|
12,804 |
|
General and administrative |
|
11,840 |
|
|
|
8,926 |
|
Loss from impairment of property and equipment |
|
— |
|
|
|
137 |
|
Total operating expenses |
|
34,050 |
|
|
|
27,256 |
|
Loss from operations |
|
(22,278 |
) |
|
|
(22,491 |
) |
Other income (expense), net: |
|
|
|
||||
Interest expense |
|
— |
|
|
|
(654 |
) |
Interest income |
|
1,085 |
|
|
|
953 |
|
Other income (expense), net |
|
(28 |
) |
|
|
19 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
(626 |
) |
Change in fair value of contingent earn-out liability |
|
6,899 |
|
|
|
(3,318 |
) |
Change in fair value of contingently issuable common stock liability |
|
527 |
|
|
|
(742 |
) |
Change in fair value of public warrant liability |
|
2,151 |
|
|
|
(1,750 |
) |
Total other income (expense), net |
|
10,634 |
|
|
|
(6,118 |
) |
Net loss |
$ |
(11,644 |
) |
|
$ |
(28,609 |
) |
|
|
|
|
||||
Weighted average common shares outstanding – basic and diluted |
|
153,076,719 |
|
|
|
146,433,378 |
|
Net loss per share - basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.20 |
) |
|
|
|
|
||||
Net loss |
$ |
(11,644 |
) |
|
$ |
(28,609 |
) |
Other comprehensive income (loss) |
|
|
|
||||
Cumulative translation adjustment |
|
3 |
|
|
|
(16 |
) |
Total other comprehensive income (loss) |
|
3 |
|
|
|
(16 |
) |
Total comprehensive loss |
$ |
(11,641 |
) |
|
$ |
(28,625 |
) |
EVOLV TECHNOLOGY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) |
|||||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
44,596 |
|
|
$ |
67,162 |
|
Restricted cash |
|
— |
|
|
|
275 |
|
Marketable securities |
|
36,415 |
|
|
|
51,289 |
|
Accounts receivable, net |
|
22,030 |
|
|
|
22,611 |
|
Inventory |
|
11,007 |
|
|
|
9,507 |
|
Current portion of contract assets |
|
2,538 |
|
|
|
3,707 |
|
Current portion of commission asset |
|
4,516 |
|
|
|
4,339 |
|
Prepaid expenses and other current assets |
|
20,700 |
|
|
|
16,954 |
|
Total current assets |
|
141,802 |
|
|
|
175,844 |
|
Restricted cash, noncurrent |
|
275 |
|
|
|
— |
|
Contract assets, noncurrent |
|
307 |
|
|
|
451 |
|
Commission asset, noncurrent |
|
7,000 |
|
|
|
7,107 |
|
Property and equipment, net |
|
129,342 |
|
|
|
112,921 |
|
Operating lease right-of-use assets |
|
2,535 |
|
|
|
1,195 |
|
Other assets |
|
999 |
|
|
|
1,202 |
|
Total assets |
$ |
282,260 |
|
|
$ |
298,720 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
15,584 |
|
|
$ |
17,400 |
|
Accrued expenses and other current liabilities |
|
13,712 |
|
|
|
15,578 |
|
Current portion of deferred revenue |
|
48,913 |
|
|
|
47,677 |
|
Current portion of operating lease liabilities |
|
1,713 |
|
|
|
1,391 |
|
Total current liabilities |
|
79,922 |
|
|
|
82,046 |
|
Deferred revenue, noncurrent |
|
22,808 |
|
|
|
23,813 |
|
Operating lease liabilities, noncurrent |
|
980 |
|
|
|
— |
|
Contingent earn-out liability |
|
22,220 |
|
|
|
29,119 |
|
Contingently issuable common stock liability |
|
6,003 |
|
|
|
6,530 |
|
Public warrant liability |
|
8,738 |
|
|
|
10,889 |
|
Total liabilities |
|
140,671 |
|
|
|
152,397 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
16 |
|
|
|
15 |
|
Additional paid-in capital |
|
451,731 |
|
|
|
444,825 |
|
Accumulated other comprehensive loss |
|
(50 |
) |
|
|
(53 |
) |
Accumulated deficit |
|
(310,108 |
) |
|
|
(298,464 |
) |
Stockholders’ equity |
|
141,589 |
|
|
|
146,323 |
|
Total liabilities and stockholders’ equity |
$ |
282,260 |
|
|
$ |
298,720 |
|
EVOLV TECHNOLOGY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(11,644 |
) |
|
$ |
(28,609 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
3,474 |
|
|
|
1,815 |
|
Write-off of inventory and change in inventory reserve |
|
1,059 |
|
|
|
214 |
|
Loss from impairment of property and equipment |
|
— |
|
|
|
137 |
|
Stock-based compensation |
|
6,410 |
|
|
|
5,043 |
|
Non-cash interest expense |
|
— |
|
|
|
22 |
|
Accretion of discount on marketable securities, net of change in accrued interest |
|
200 |
|
|
|
— |
|
Non-cash lease expense |
|
354 |
|
|
|
214 |
|
Change in allowance for expected credit losses |
|
(267 |
) |
|
|
124 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
626 |
|
Change in fair value of earn-out liability |
|
(6,899 |
) |
|
|
3,318 |
|
Change in fair value of contingently issuable common stock |
|
(527 |
) |
|
|
742 |
|
Change in fair value of public warrant liability |
|
(2,151 |
) |
|
|
1,750 |
|
Changes in operating assets and liabilities |
|
|
|
||||
Accounts receivable |
|
848 |
|
|
|
8,640 |
|
Inventory |
|
(2,091 |
) |
|
|
1,418 |
|
Commission assets |
|
(70 |
) |
|
|
(644 |
) |
Contract assets |
|
1,313 |
|
|
|
258 |
|
Other assets |
|
203 |
|
|
|
(130 |
) |
Prepaid expenses and other current assets |
|
(3,746 |
) |
|
|
(25 |
) |
Accounts payable |
|
(760 |
) |
|
|
(2,213 |
) |
Deferred revenue |
|
231 |
|
|
|
8,757 |
|
Accrued expenses and other current liabilities |
|
(1,628 |
) |
|
|
(4,637 |
) |
Operating lease liability |
|
(392 |
) |
|
|
(254 |
) |
Net cash used in operating activities |
|
(16,083 |
) |
|
|
(3,434 |
) |
Cash flows from investing activities: |
|
|
|
||||
Development of internal-use software |
|
(1,797 |
) |
|
|
(733 |
) |
Purchases of property and equipment |
|
(19,665 |
) |
|
|
(13,365 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
60 |
|
Purchases of marketable securities |
|
(14,567 |
) |
|
|
— |
|
Proceeds from maturities of marketable securities |
|
29,241 |
|
|
|
— |
|
Net cash used in investing activities |
|
(6,788 |
) |
|
|
(14,038 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
302 |
|
|
|
33 |
|
Proceeds from long-term debt |
|
— |
|
|
|
1,876 |
|
Repayment of principal on long-term debt |
|
— |
|
|
|
(31,876 |
) |
Payment of debt issuance costs and prepayment penalty |
|
— |
|
|
|
(332 |
) |
Net cash provided by (used in) financing activities |
|
302 |
|
|
|
(30,299 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
3 |
|
|
|
(16 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(22,566 |
) |
|
|
(47,787 |
) |
Cash, cash equivalents and restricted cash |
|
|
|
||||
Cash, cash equivalents and restricted cash at beginning of period |
|
67,437 |
|
|
|
230,058 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
44,871 |
|
|
$ |
182,271 |
|
EVOLV TECHNOLOGY SUMMARY OF KEY OPERATING STATISTICS (Unaudited) |
|||||||||||||||
|
Three Months Ended or as of, |
||||||||||||||
($ in thousands) |
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|||||
New customers |
|
|
61 |
|
|
74 |
|
|
70 |
|
|
75 |
|
|
53 |
Annual recurring revenue |
|
$ |
42,021 |
|
$ |
54,339 |
|
$ |
65,774 |
|
$ |
74,989 |
|
$ |
82,511 |
Recurring revenue |
|
$ |
9,075 |
|
$ |
11,689 |
|
$ |
14,377 |
|
$ |
17,350 |
|
$ |
19,381 |
Remaining performance obligation |
|
$ |
161,813 |
|
$ |
198,296 |
|
$ |
221,126 |
|
$ |
240,513 |
|
$ |
254,070 |
Net additions |
|
|
520 |
|
|
599 |
|
|
628 |
|
|
491 |
|
|
377 |
Ending deployed units |
|
|
2,787 |
|
|
3,386 |
|
|
4,014 |
|
|
4,505 |
|
|
4,882 |
EVOLV TECHNOLOGY RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (In thousands) (Unaudited) |
||||||||||||||||||||
|
Three Months Ended, |
|||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
||||||||||
Operating expenses, GAAP |
|
$ |
27,256 |
|
|
$ |
31,039 |
|
|
$ |
31,629 |
|
|
$ |
32,167 |
|
|
$ |
34,050 |
|
Stock-based compensation |
|
|
(4,898 |
) |
|
|
(6,505 |
) |
|
|
(5,454 |
) |
|
|
(6,711 |
) |
|
|
(6,272 |
) |
Loss on impairment of lease equipment |
|
|
(137 |
) |
|
|
(157 |
) |
|
|
(28 |
) |
|
|
— |
|
|
|
— |
|
Other one-time expenses |
|
|
(53 |
) |
|
|
(683 |
) |
|
|
(945 |
) |
|
|
(535 |
) |
|
|
(476 |
) |
Adjusted operating expenses |
|
$ |
22,168 |
|
|
$ |
23,694 |
|
|
$ |
25,202 |
|
|
$ |
24,921 |
|
|
$ |
27,302 |
|
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT, GAAP GROSS MARGIN TO ADJUSTED
(In thousands) (Unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
21,668 |
|
|
$ |
18,581 |
|
Cost of revenue |
|
9,896 |
|
|
|
13,816 |
|
Gross profit, GAAP |
|
11,772 |
|
|
|
4,765 |
|
Stock-based compensation |
|
138 |
|
|
|
145 |
|
Amortization of capitalized stock-based compensation |
|
14 |
|
|
|
10 |
|
Other one-time expenses |
|
1,204 |
|
|
|
— |
|
Adjusted gross profit |
$ |
13,128 |
|
|
$ |
4,920 |
|
|
|
|
|
||||
Gross margin % |
|
54.3 |
% |
|
|
25.6 |
% |
Adjusted gross margin % |
|
60.6 |
% |
|
|
26.5 |
% |
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating loss, GAAP |
$ |
(22,278 |
) |
|
$ |
(22,491 |
) |
Stock-based compensation |
|
6,410 |
|
|
|
5,043 |
|
Amortization of capitalized stock-based compensation |
|
14 |
|
|
|
10 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
137 |
|
Other one-time expenses |
|
1,680 |
|
|
|
53 |
|
Adjusted operating loss |
$ |
(14,174 |
) |
|
$ |
(17,248 |
) |
EVOLV TECHNOLOGY RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA (In thousands) (Unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(11,644 |
) |
|
$ |
(28,609 |
) |
Depreciation & amortization |
|
3,474 |
|
|
|
1,815 |
|
Stock-based compensation |
|
6,410 |
|
|
|
5,043 |
|
Interest expense (income) |
|
(1,085 |
) |
|
|
(299 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
626 |
|
Change in fair value of contingent earn-out liability |
|
(6,899 |
) |
|
|
3,318 |
|
Change in fair value of contingently issuable common stock liability |
|
(527 |
) |
|
|
742 |
|
Change in fair value of public warrant liability |
|
(2,151 |
) |
|
|
1,750 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
137 |
|
Other one-time expenses |
|
1,680 |
|
|
|
53 |
|
Adjusted EBITDA |
$ |
(10,742 |
) |
|
$ |
(15,424 |
) |
EVOLV TECHNOLOGY RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS) (In thousands, except share and per share data) (Unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(11,644 |
) |
|
$ |
(28,609 |
) |
Stock-based compensation |
|
6,410 |
|
|
|
5,043 |
|
Amortization of capitalized stock-based compensation |
|
14 |
|
|
|
10 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
626 |
|
Change in fair value of contingent earn-out liability |
|
(6,899 |
) |
|
|
3,318 |
|
Change in fair value of contingently issuable common stock liability |
|
(527 |
) |
|
|
742 |
|
Change in fair value of public warrant liability |
|
(2,151 |
) |
|
|
1,750 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
137 |
|
Other one-time expenses |
|
1,680 |
|
|
|
53 |
|
Adjusted loss |
$ |
(13,117 |
) |
|
$ |
(16,930 |
) |
|
|
|
|
||||
Weighted average common shares outstanding – diluted |
|
153,076,719 |
|
|
|
146,433,378 |
|
|
|
|
|
||||
Adjusted loss per share – diluted |
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509711104/en/
Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com
Source: Evolv Technology
