Evolv Technology Reports Record Fourth Quarter and Full Year Financial Results
- Positive aspects include the increase in Q4 revenue by 4% YoY, Ending ARR growth of 120% YoY, and a significant rise in Evolv Express® subscriptions by 99% YoY.
- The total revenue for 2023 saw a substantial 46% increase compared to 2022, showcasing strong business growth.
- The company's outlook for 2024 is optimistic, with expectations of total revenue around $115 million and a 40%+ improvement in adjusted EBITDA.
- Evolv Technology has a healthy financial position with $118.7 million in cash, cash equivalents, marketable securities, and no debt as of December 31, 2023.
- Negative aspects include the net loss of $(106.3) million in 2023 and the adjusted EBITDA of $(49.8) million, indicating financial challenges.
- There was a decrease in non-recurring revenue by 67% in Q4 2023 compared to the same period in 2022, which could be a concern for revenue diversification.
- The company's net loss for 2023 increased compared to 2022, signaling potential financial instability.
- The Q4 adjusted net loss of $(11.0) million and adjusted EBITDA of $(9.5) million show ongoing financial losses.
Insights
The reported quarterly revenue growth of 4% year-over-year for Evolv Technology indicates a modest increase in sales, which is a positive signal for investors and stakeholders. However, the more significant figure here is the 120% increase in Annual Recurring Revenue (ARR). This suggests that the company is successfully transitioning to a subscription-based model, which is highly valued by the market for its predictability and potential for stable, long-term income streams.
Despite these positive revenue trends, the company's net loss has decreased year-over-year, which may be seen as an improvement in cost management or operational efficiency. However, the fact that the company is still operating at a loss is a concern and warrants a close examination of their spending, especially in the context of their adjusted EBITDA which remains negative. The reaffirmation of the 2024 business outlook suggests management confidence in the company's strategic direction, but investors should monitor the progression towards profitability closely.
The 99% year-over-year increase in Evolv Express® subscriptions reflects a strong market demand for AI-based security solutions. This could be attributed to heightened security concerns and the growing acceptance of AI technology in public safety. The company's positioning in this niche market is likely to benefit from these trends, potentially increasing its market share and investor interest in the security technology sector.
However, the 66% increase in Remaining Performance Obligations (RPO) suggests that while there is significant contracted future revenue, the company must ensure successful delivery and customer satisfaction to realize these revenues. This can impact future financial performance and should be tracked by investors as an indicator of the company’s ability to grow and maintain its customer base.
With a solid cash reserve of $118.7 million and no debt, Evolv Technology appears to be in a strong liquidity position. This financial stability is crucial for supporting ongoing operations and investing in growth initiatives. It also provides a buffer against economic downturns or shifts in the security technology industry. The company's ability to manage its cash flow in the face of significant net losses will be an important factor in its long-term viability and capacity to capitalize on market opportunities.
Additionally, the improvement in net cash used in operating activities from $74.7 million in 2022 to $9.8 million in 2023 demonstrates a substantial enhancement in the company's cash management. This improvement is critical for sustaining operations without the need for external financing, which could dilute shareholder value.
-
Q4 Revenue of
$21.8 million 4% year-over-year -
Q4 Ending ARR1 of
$75.0 million 120% year-over-year -
Q4 Ending RPO2 of
$240.5 million 66% year-over-year -
Q4 Ending Evolv Express® subscriptions of 4,505, up
99% year-over-year
Results for the Fourth Quarter of 2023
Total revenue for the fourth quarter of 2023 was
Results for 2023
Total revenue in 2023 was
The following table summarizes the breakdown of recurring and non-recurring revenue4 during each year:
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||
Recurring revenue |
$ |
17,350 |
|
$ |
7,388 |
|
135 |
% |
|
$ |
52,491 |
|
$ |
21,372 |
|
146 |
% |
Non-recurring revenue |
|
4,471 |
|
|
13,497 |
|
(67 |
)% |
|
|
27,927 |
|
|
33,823 |
|
(17 |
)% |
Total revenue |
$ |
21,821 |
|
$ |
20,885 |
|
4 |
% |
|
$ |
80,418 |
|
$ |
55,195 |
|
46 |
% |
The following table summarizes operating cash flows during each year:
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
$ |
(16,890 |
) |
|
$ |
(28,304 |
) |
|
$ |
(106,254 |
) |
|
$ |
(86,406 |
) |
Non-cash expense |
|
7,970 |
|
|
|
12,928 |
|
|
|
59,754 |
|
|
|
17,331 |
|
Changes in operating assets and liabilities |
|
5,777 |
|
|
|
10,069 |
|
|
|
36,699 |
|
|
|
(5,653 |
) |
Net cash used in operating activities |
$ |
(3,143 |
) |
|
$ |
(5,307 |
) |
|
$ |
(9,801 |
) |
|
$ |
(74,728 |
) |
Company Reaffirms 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.
|
|
2024 Business Outlook |
||
Estimate (In millions) |
|
Issued November 9, 2023 |
|
Issued February 29, 2024 |
Total Revenue |
|
|
|
Reaffirmed |
ARR1 (ARR) at 12/31/24 |
|
|
|
Reaffirmed |
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 a billion people since 2019. Evolv has been awarded the
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 basic and 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 items and stock-based compensation expense 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, restructuring expenses, 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, and certain other one-time expenses. Adjusted earnings (loss) is defined as net income (loss) plus stock-based compensation, change in fair value of derivative liability, 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, change in fair value of common stock warrant liability, restructuring expenses, 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 non-GAAP 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 other than statements of historical facts, including without limitation statements regarding our results of operations and financial position, business strategy, plans and prospects, future operations, and growth, our ability to meet our goals for revenue and profitability, as well as our estimates for cash and cash equivalents, including for fiscal year 2024, our ability to retain existing and acquire new customers, and our ability to maintain our market position are forward looking statements. Words such as “believe” “may,” “will,” “expect,” “should,” “could,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “project,” “plan,” “target,” “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. These statements are neither promises nor guarantees, but 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: 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 history of losses and lack of profitability; the Company’s reliance on third party contract manufacturing and a global supply chain; 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 ability for the Company to obtain, maintain, protect and enforce the Company’s intellectual property rights; 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; the impact of fluctuating economic conditions; the need for additional capital to support business growth, which might not be available on acceptable terms, if at all; risks related to our indebtedness; risks related to domestic and international privacy and cybersecurity concerns, laws and regulations; 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, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release.
These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
EVOLV TECHNOLOGY
|
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Product revenue |
$ |
2,789 |
|
|
$ |
12,806 |
|
|
$ |
21,977 |
|
|
$ |
31,985 |
|
Subscription revenue |
|
12,586 |
|
|
|
5,361 |
|
|
|
37,247 |
|
|
|
17,569 |
|
Service revenue |
|
5,015 |
|
|
|
2,094 |
|
|
|
16,141 |
|
|
|
4,331 |
|
License fee and other revenue |
|
1,431 |
|
|
|
624 |
|
|
|
5,053 |
|
|
|
1,310 |
|
Total revenue |
|
21,821 |
|
|
|
20,885 |
|
|
|
80,418 |
|
|
|
55,195 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Cost of product revenue |
|
5,214 |
|
|
|
18,062 |
|
|
|
26,667 |
|
|
|
41,575 |
|
Cost of subscription revenue |
|
5,003 |
|
|
|
1,739 |
|
|
|
14,991 |
|
|
|
7,469 |
|
Cost of service revenue |
|
1,166 |
|
|
|
548 |
|
|
|
3,982 |
|
|
|
2,200 |
|
Cost of license fee and other revenue |
|
177 |
|
|
|
482 |
|
|
|
949 |
|
|
|
2,222 |
|
Total cost of revenue |
|
11,560 |
|
|
|
20,831 |
|
|
|
46,589 |
|
|
|
53,466 |
|
Gross profit |
|
10,261 |
|
|
|
54 |
|
|
|
33,829 |
|
|
|
1,729 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
6,262 |
|
|
|
4,824 |
|
|
|
24,455 |
|
|
|
18,771 |
|
Sales and marketing |
|
14,887 |
|
|
|
13,470 |
|
|
|
55,223 |
|
|
|
46,639 |
|
General and administrative |
|
11,018 |
|
|
|
8,451 |
|
|
|
42,091 |
|
|
|
37,719 |
|
Loss from impairment of property and equipment |
|
— |
|
|
|
123 |
|
|
|
322 |
|
|
|
1,161 |
|
Total operating expenses |
|
32,167 |
|
|
|
26,868 |
|
|
|
122,091 |
|
|
|
104,290 |
|
Loss from operations |
|
(21,906 |
) |
|
|
(26,814 |
) |
|
|
(88,262 |
) |
|
|
(102,561 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
— |
|
|
|
(223 |
) |
|
|
(654 |
) |
|
|
(712 |
) |
Interest income |
|
1,630 |
|
|
|
1,554 |
|
|
|
6,227 |
|
|
|
3,165 |
|
Other expense, net |
|
(17 |
) |
|
|
(7 |
) |
|
|
(84 |
) |
|
|
(64 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(626 |
) |
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
2,452 |
|
|
|
(2,766 |
) |
|
|
(14,901 |
) |
|
|
6,988 |
|
Change in fair value of contingently issuable common stock liability |
|
422 |
|
|
|
(657 |
) |
|
|
(3,138 |
) |
|
|
1,872 |
|
Change in fair value of public warrant liability |
|
580 |
|
|
|
609 |
|
|
|
(4,765 |
) |
|
|
4,906 |
|
Total other income (expense), net |
$ |
5,067 |
|
|
$ |
(1,490 |
) |
|
$ |
(17,941 |
) |
|
$ |
16,155 |
|
Loss before income taxes |
|
(16,839 |
) |
|
|
(28,304 |
) |
|
|
(106,203 |
) |
|
|
(86,406 |
) |
Provision for income taxes |
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
Net loss |
$ |
(16,890 |
) |
|
$ |
(28,304 |
) |
|
$ |
(106,254 |
) |
|
$ |
(86,406 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – basic and diluted |
|
151,087,430 |
|
|
|
144,856,047 |
|
|
|
149,168,105 |
|
|
|
143,858,668 |
|
Net loss per share - basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.71 |
) |
|
$ |
(0.60 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(16,890 |
) |
|
$ |
(28,304 |
) |
|
$ |
(106,254 |
) |
|
$ |
(86,406 |
) |
Other comprehensive loss |
|
|
|
|
|
|
|
||||||||
Cumulative translation adjustment |
|
(44 |
) |
|
|
(45 |
) |
|
|
(43 |
) |
|
|
(10 |
) |
Total other comprehensive loss |
|
(44 |
) |
|
|
(45 |
) |
|
|
(43 |
) |
|
|
(10 |
) |
Total comprehensive loss |
$ |
(16,934 |
) |
|
$ |
(28,349 |
) |
|
$ |
(106,297 |
) |
|
$ |
(86,416 |
) |
EVOLV TECHNOLOGY
|
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
67,162 |
|
|
$ |
229,783 |
|
Restricted cash |
|
275 |
|
|
|
— |
|
Marketable securities |
|
51,289 |
|
|
|
— |
|
Accounts receivable, net |
|
22,611 |
|
|
|
31,920 |
|
Inventory |
|
9,507 |
|
|
|
10,257 |
|
Current portion of contract assets |
|
3,707 |
|
|
|
2,852 |
|
Current portion of commission asset |
|
4,339 |
|
|
|
3,384 |
|
Prepaid expenses and other current assets |
|
16,954 |
|
|
|
14,388 |
|
Total current assets |
|
175,844 |
|
|
|
292,584 |
|
Restricted cash, noncurrent |
|
— |
|
|
|
275 |
|
Contract assets, noncurrent |
|
451 |
|
|
|
1,386 |
|
Commission asset, noncurrent |
|
7,107 |
|
|
|
5,655 |
|
Property and equipment, net |
|
112,921 |
|
|
|
44,707 |
|
Operating lease right-of-use assets |
|
1,195 |
|
|
|
1,673 |
|
Other assets |
|
1,202 |
|
|
|
1,835 |
|
Total assets |
$ |
298,720 |
|
|
$ |
348,115 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
17,400 |
|
|
$ |
18,194 |
|
Accrued expenses and other current liabilities |
|
15,578 |
|
|
|
11,545 |
|
Current portion of deferred revenue |
|
47,677 |
|
|
|
18,273 |
|
Current portion of long-term debt |
|
— |
|
|
|
10,000 |
|
Current portion of operating lease liabilities |
|
1,391 |
|
|
|
1,114 |
|
Total current liabilities |
|
82,046 |
|
|
|
59,126 |
|
Deferred revenue, noncurrent |
|
23,813 |
|
|
|
17,695 |
|
Long-term debt, noncurrent |
|
— |
|
|
|
19,683 |
|
Operating lease liabilities, noncurrent |
|
— |
|
|
|
892 |
|
Contingent earn-out liability |
|
29,119 |
|
|
|
14,218 |
|
Contingently issuable common stock liability |
|
6,530 |
|
|
|
3,392 |
|
Public warrant liability |
|
10,889 |
|
|
|
6,124 |
|
Total liabilities |
|
152,397 |
|
|
|
121,130 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
15 |
|
|
|
15 |
|
Additional paid-in capital |
|
444,825 |
|
|
|
419,190 |
|
Accumulated other comprehensive loss |
|
(53 |
) |
|
|
(10 |
) |
Accumulated deficit |
|
(298,464 |
) |
|
|
(192,210 |
) |
Stockholders’ equity |
|
146,323 |
|
|
|
226,985 |
|
Total liabilities and stockholders’ equity |
$ |
298,720 |
|
|
$ |
348,115 |
|
EVOLV TECHNOLOGY
|
|||||||
|
Twelve Months Ended
|
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(106,254 |
) |
|
$ |
(86,406 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
9,932 |
|
|
|
5,465 |
|
Write-off of inventory and change in inventory reserve |
|
1,612 |
|
|
|
1,582 |
|
Adjustment to property and equipment for sales type leases |
|
— |
|
|
|
(625 |
) |
Loss from impairment of property and equipment |
|
322 |
|
|
|
1,161 |
|
Stock-based compensation |
|
24,151 |
|
|
|
22,498 |
|
Non-cash interest expense |
|
22 |
|
|
|
55 |
|
Accretion of discount on marketable securities |
|
(575 |
) |
|
|
— |
|
Non-cash lease expense |
|
478 |
|
|
|
811 |
|
Change in allowance for expected credit losses |
|
382 |
|
|
|
150 |
|
Loss on extinguishment of debt |
|
626 |
|
|
|
— |
|
Change in fair value of earn-out liability |
|
14,901 |
|
|
|
(6,988 |
) |
Change in fair value of contingently issuable common stock |
|
3,138 |
|
|
|
(1,872 |
) |
Change in fair value of public warrant liability |
|
4,765 |
|
|
|
(4,906 |
) |
Changes in operating assets and liabilities |
|
|
|
||||
Accounts receivable |
|
8,927 |
|
|
|
(25,593 |
) |
Inventory |
|
(644 |
) |
|
|
(8,495 |
) |
Commission assets |
|
(2,407 |
) |
|
|
(3,675 |
) |
Contract assets |
|
80 |
|
|
|
639 |
|
Other assets |
|
633 |
|
|
|
(419 |
) |
Prepaid expenses and other current assets |
|
(2,566 |
) |
|
|
(3,174 |
) |
Accounts payable |
|
(5,963 |
) |
|
|
7,661 |
|
Deferred revenue |
|
35,522 |
|
|
|
26,887 |
|
Accrued expenses and other current liabilities |
|
3,732 |
|
|
|
1,462 |
|
Operating lease liability |
|
(615 |
) |
|
|
(946 |
) |
Net cash used in operating activities |
|
(9,801 |
) |
|
|
(74,728 |
) |
Cash flows from investing activities: |
|
|
|
||||
Development of internal-use software |
|
(3,535 |
) |
|
|
(2,720 |
) |
Purchases of property and equipment |
|
(69,134 |
) |
|
|
(21,473 |
) |
Proceeds from sale of property and equipment |
|
270 |
|
|
|
312 |
|
Purchases of marketable securities |
|
(89,898 |
) |
|
|
— |
|
Proceeds from maturities of marketable securities |
|
39,184 |
|
|
|
— |
|
Net cash used in investing activities |
|
(123,113 |
) |
|
|
(23,881 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
668 |
|
|
|
827 |
|
Proceeds from long-term debt |
|
1,876 |
|
|
|
29,683 |
|
Repayment of principal on long-term debt |
|
(31,876 |
) |
|
|
(10,000 |
) |
Payment of debt issuance costs and prepayment penalty |
|
(332 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(29,664 |
) |
|
|
20,510 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(43 |
) |
|
|
(10 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(162,621 |
) |
|
|
(78,109 |
) |
Cash, cash equivalents and restricted cash |
|
|
|
||||
Cash, cash equivalents and restricted cash at beginning of period |
|
230,058 |
|
|
|
308,167 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
67,437 |
|
|
$ |
230,058 |
|
EVOLV TECHNOLOGY
|
||||||||||||||||||||||||
|
Three Months Ended or as of, |
|||||||||||||||||||||||
($ in thousands) |
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
New customers |
|
|
44 |
|
|
53 |
|
|
92 |
|
|
106 |
|
|
61 |
|
|
74 |
|
|
70 |
|
|
75 |
Annual recurring revenue |
|
$ |
16,641 |
|
$ |
20,865 |
|
$ |
28,741 |
|
$ |
34,120 |
|
$ |
42,021 |
|
$ |
54,339 |
|
$ |
65,774 |
|
$ |
74,989 |
Recurring revenue |
|
$ |
3,159 |
|
$ |
4,604 |
|
$ |
6,221 |
|
$ |
7,388 |
|
$ |
9,075 |
|
$ |
11,689 |
|
$ |
14,377 |
|
$ |
17,350 |
Remaining performance obligation |
|
$ |
63,750 |
|
$ |
80,978 |
|
$ |
109,407 |
|
$ |
144,561 |
|
$ |
161,813 |
|
$ |
198,296 |
|
$ |
221,126 |
|
$ |
240,513 |
Net additions |
|
|
207 |
|
|
237 |
|
|
545 |
|
|
575 |
|
|
520 |
|
|
599 |
|
|
628 |
|
|
491 |
Ending deployed units |
|
|
910 |
|
|
1,147 |
|
|
1,692 |
|
|
2,267 |
|
|
2,787 |
|
|
3,386 |
|
|
4,014 |
|
|
4,505 |
EVOLV TECHNOLOGY
|
||||||||||||||||||||||||||||||||
|
Three Months Ended, |
|||||||||||||||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||||||||||
Operating expenses, GAAP |
|
$ |
24,760 |
|
|
$ |
25,835 |
|
|
$ |
26,827 |
|
|
$ |
26,868 |
|
|
$ |
27,256 |
|
|
$ |
31,039 |
|
|
$ |
31,629 |
|
|
$ |
32,167 |
|
Stock-based compensation |
|
|
(3,819 |
) |
|
|
(4,781 |
) |
|
|
(6,298 |
) |
|
|
(6,771 |
) |
|
|
(4,898 |
) |
|
|
(6,505 |
) |
|
|
(5,454 |
) |
|
|
(6,711 |
) |
Restructuring expenses |
|
|
(324 |
) |
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of lease equipment |
|
|
(96 |
) |
|
|
(316 |
) |
|
|
(626 |
) |
|
|
(123 |
) |
|
|
(137 |
) |
|
|
(157 |
) |
|
|
(28 |
) |
|
|
— |
|
Other one-time expenses |
|
|
(1,107 |
) |
|
|
(2,298 |
) |
|
|
(69 |
) |
|
|
(41 |
) |
|
|
(53 |
) |
|
|
(683 |
) |
|
|
(945 |
) |
|
|
(535 |
) |
Adjusted operating expenses |
|
$ |
19,414 |
|
|
$ |
18,453 |
|
|
$ |
19,834 |
|
|
$ |
19,933 |
|
|
$ |
22,168 |
|
|
$ |
23,694 |
|
|
$ |
25,202 |
|
|
$ |
24,921 |
|
EVOLV TECHNOLOGY
|
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue |
$ |
21,821 |
|
|
$ |
20,885 |
|
|
$ |
80,418 |
|
|
$ |
55,195 |
|
Cost of revenue |
|
11,560 |
|
|
|
20,831 |
|
|
|
46,589 |
|
|
|
53,466 |
|
Gross profit, GAAP |
|
10,261 |
|
|
|
54 |
|
|
|
33,829 |
|
|
|
1,729 |
|
Stock-based compensation |
|
137 |
|
|
|
214 |
|
|
|
583 |
|
|
|
829 |
|
Amortization of capitalized stock-based compensation |
|
14 |
|
|
|
9 |
|
|
|
47 |
|
|
|
24 |
|
Other one-time expenses |
|
1,925 |
|
|
|
— |
|
|
|
1,925 |
|
|
|
— |
|
Adjusted gross profit |
$ |
12,337 |
|
|
$ |
277 |
|
|
$ |
36,384 |
|
|
$ |
2,582 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin % |
|
47.0 |
% |
|
|
0.3 |
% |
|
|
42.1 |
% |
|
|
3.1 |
% |
Adjusted gross margin % |
|
56.5 |
% |
|
|
1.3 |
% |
|
|
45.2 |
% |
|
|
4.7 |
% |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Operating loss, GAAP |
$ |
(21,906 |
) |
|
$ |
(26,814 |
) |
|
$ |
(88,262 |
) |
|
$ |
(102,561 |
) |
Stock-based compensation |
|
6,848 |
|
|
|
6,985 |
|
|
|
24,151 |
|
|
|
22,498 |
|
Amortization of capitalized stock-based compensation |
|
14 |
|
|
|
9 |
|
|
|
47 |
|
|
|
24 |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
311 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
123 |
|
|
|
322 |
|
|
|
1,161 |
|
Other one-time expenses |
|
2,460 |
|
|
|
41 |
|
|
|
4,141 |
|
|
|
3,515 |
|
Adjusted operating loss |
$ |
(12,584 |
) |
|
$ |
(19,656 |
) |
|
$ |
(59,601 |
) |
|
$ |
(75,052 |
) |
EVOLV TECHNOLOGY
|
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
$ |
(16,890 |
) |
|
$ |
(28,304 |
) |
|
$ |
(106,254 |
) |
|
$ |
(86,406 |
) |
Depreciation & amortization |
|
3,151 |
|
|
|
1,683 |
|
|
|
9,932 |
|
|
|
5,465 |
|
Stock-based compensation |
|
6,848 |
|
|
|
6,985 |
|
|
|
24,151 |
|
|
|
22,498 |
|
Interest expense (income) |
|
(1,630 |
) |
|
|
(1,331 |
) |
|
|
(5,573 |
) |
|
|
(2,453 |
) |
Provision for income taxes |
|
51 |
|
|
|
— |
|
|
|
51 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
626 |
|
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
(2,452 |
) |
|
|
2,766 |
|
|
|
14,901 |
|
|
|
(6,988 |
) |
Change in fair value of contingently issuable common stock liability |
|
(422 |
) |
|
|
657 |
|
|
|
3,138 |
|
|
|
(1,872 |
) |
Change in fair value of public warrant liability |
|
(580 |
) |
|
|
(609 |
) |
|
|
4,765 |
|
|
|
(4,906 |
) |
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
311 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
123 |
|
|
|
322 |
|
|
|
1,161 |
|
Other one-time expenses |
|
2,460 |
|
|
|
41 |
|
|
|
4,141 |
|
|
|
3,515 |
|
Adjusted EBITDA |
$ |
(9,464 |
) |
|
$ |
(17,989 |
) |
|
$ |
(49,800 |
) |
|
$ |
(69,675 |
) |
EVOLV TECHNOLOGY
|
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
$ |
(16,890 |
) |
|
$ |
(28,304 |
) |
|
$ |
(106,254 |
) |
|
$ |
(86,406 |
) |
Stock-based compensation |
|
6,848 |
|
|
|
6,985 |
|
|
|
24,151 |
|
|
|
22,498 |
|
Amortization of capitalized stock-based compensation |
|
14 |
|
|
|
9 |
|
|
|
47 |
|
|
|
24 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
626 |
|
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
(2,452 |
) |
|
|
2,766 |
|
|
|
14,901 |
|
|
|
(6,988 |
) |
Change in fair value of contingently issuable common stock liability |
|
(422 |
) |
|
|
657 |
|
|
|
3,138 |
|
|
|
(1,872 |
) |
Change in fair value of public warrant liability |
|
(580 |
) |
|
|
(609 |
) |
|
|
4,765 |
|
|
|
(4,906 |
) |
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
311 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
123 |
|
|
|
322 |
|
|
|
1,161 |
|
Other one-time expenses |
|
2,460 |
|
|
|
41 |
|
|
|
4,141 |
|
|
|
3,515 |
|
Adjusted loss |
$ |
(11,022 |
) |
|
$ |
(18,332 |
) |
|
$ |
(54,163 |
) |
|
$ |
(72,663 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – diluted |
|
151,087,430 |
|
|
|
144,856,047 |
|
|
|
149,168,105 |
|
|
|
143,858,668 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted loss per share – diluted |
$ |
(0.07 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.51 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229712594/en/
Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com
Source: Evolv Technology
FAQ
What was Evolv Technology's Q4 revenue, and how does it compare to the previous year?
What was the Ending ARR for Evolv Technology in Q4 2023, and how does it compare to the previous year?
How many Evolv Express® subscriptions were there in Q4 2023, and what was the growth rate compared to the previous year?
What was Evolv Technology's total revenue for 2023, and how does it compare to 2022?
What is Evolv Technology's outlook for 2024 in terms of total revenue and adjusted EBITDA?
