Evolv Technology Reports Record Fourth Quarter and Full Year Financial Results
Evolv Technology (NASDAQ: EVLV) reported strong Q4 results with revenue of $20.9 million, marking a 217% increase year-over-year. The company achieved an Annual Recurring Revenue (ARR) of $34.1 million, up 164%. Total Contract Value (TCV) for Q4 was $57.6 million, a 222% increase. Despite these positive metrics, Evolv recorded a net loss of $(28.1) million, compared to a net income of $4.8 million in Q4 2021. The company aims to double its ARR in 2023, with projected revenues between $55-$60 million.
- Q4 revenue rose 217% to $20.9 million.
- Q4 ARR increased 164% to $34.1 million.
- TCV for Q4 reached $57.6 million, up 222%.
- Evolv added over 100 new customers in Q4.
- Net loss for Q4 was $(28.1) million, compared to a profit in Q4 2021.
- Adjusted EBITDA was $(17.8) million, worse than $(15.2) million in the prior year.
-
Q4 Revenue of
$20.9 million 217% year-over-year
-
Q4 Ending ARR1 of
$34.1 million 164% year-over-year
-
Q4 Ending RPO2 of
$144.6 million 181% year-over-year
-
Q4 Ending Evolv Express® subscriptions of 2,267, up
222% year-over-year
“We’re pleased to be reporting strong fourth quarter results which capped a historic year of accelerated growth for the Company,” said
Results for the Fourth Quarter of 2022
Total revenue for the three months ended
Results for 2022
Total revenue in 2022 was
Company Issues Outlook for 2023
The Company today commented on its business outlook for 2023. The Company's outlook is based on the current indications for its business, which may change at any time.
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2023 Business Outlook |
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Estimate (In millions) |
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Issued |
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Total Revenue |
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|
|
Annual Recurring Revenue1 (ARR) at |
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|
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Adjusted EBITDA5 |
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( |
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Cash and Cash Equivalents |
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|
Company to Host Live Conference Call and Webcast
The Company’s management team plans to host a live conference call and webcast at
About
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 Amounts herein pertaining to
4 We define Total Contract Value, or TCV, of orders booked as the total value of the contract over the specified term. Our calculation of TCV 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). TCV should be viewed independently of, and not as a substitute for or forecast of, revenue and deferred revenue. Our calculation of TCV may differ from similarly titled metrics presented by other companies. The fourth quarter of the fiscal year ended
5 Non-GAAP Financial Measures
In this press release, the Company’s adjusted operating expenses, adjusted gross profit (loss), adjusted gross margin, adjusted operating income (loss), adjusted EBITDA, adjusted earnings (loss), and adjusted earnings per share-diluted 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 including 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 including 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 operational 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 non-GAAP Adjusted EBITDA to Net Income (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact this GAAP financial measure 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.
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 ability to meet our goals for revenue and profitability, as well as our estimates for cash and cash equivalents, including for fiscal year 2023, 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; risk that the COVID-19 pandemic may have an adverse effect on the Company’s business operations, as well as the Company’s financial condition and results of operations; 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; 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
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.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share data) (Unaudited) |
|||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Revenue: |
|
|
|
|
|
|
|
||||
Product revenue |
$ |
12,806 |
|
$ |
3,352 |
|
$ |
31,985 |
|
$ |
13,631 |
Subscription revenue |
|
5,361 |
|
|
2,743 |
|
|
17,569 |
|
|
7,803 |
Service revenue |
|
2,718 |
|
|
503 |
|
|
5,641 |
|
|
1,959 |
Total revenue |
|
20,885 |
|
|
6,598 |
|
|
55,195 |
|
|
23,393 |
Cost of revenue: |
|
|
|
|
|
|
|
||||
Cost of product revenue |
|
18,062 |
|
|
4,893 |
|
|
41,575 |
|
|
12,279 |
Cost of subscription revenue |
|
1,739 |
|
|
1,421 |
|
|
7,469 |
|
|
4,501 |
Cost of service revenue |
|
1,030 |
|
|
899 |
|
|
4,422 |
|
|
2,584 |
Total cost of revenue |
|
20,831 |
|
|
7,213 |
|
|
53,466 |
|
|
19,364 |
Gross profit |
|
54 |
|
|
(615) |
|
|
1,729 |
|
|
4,029 |
Operating expenses: |
|
|
|
|
|
|
|
||||
Research and development |
|
4,824 |
|
|
3,059 |
|
|
18,771 |
|
|
11,458 |
Sales and marketing |
|
13,243 |
|
|
8,343 |
|
|
46,412 |
|
|
26,099 |
General and administrative |
|
8,451 |
|
|
7,811 |
|
|
37,719 |
|
|
19,869 |
Loss from impairment of property and equipment |
|
123 |
|
|
213 |
|
|
1,161 |
|
|
1,869 |
Total operating expenses |
|
26,641 |
|
|
19,426 |
|
|
104,063 |
|
|
59,295 |
Loss from operations |
|
(26,587) |
|
|
(20,041) |
|
|
(102,334) |
|
|
(55,266) |
Other income (expense), net: |
|
|
|
|
|
|
|
||||
Interest expense |
|
(223) |
|
|
(116) |
|
|
(712) |
|
|
(6,068) |
Interest income |
|
1,554 |
|
|
— |
|
|
3,165 |
|
|
— |
Other expense, net |
|
(7) |
|
|
52 |
|
|
(64) |
|
|
(617) |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
(12,685) |
Change in fair value of derivative liability |
|
— |
|
|
— |
|
|
— |
|
|
(1,745) |
Change in fair value of contingent earn-out liability |
|
(2,766) |
|
|
14,751 |
|
|
6,988 |
|
|
47,360 |
Change in fair value of contingently issuable common stock liability |
|
(657) |
|
|
688 |
|
|
1,872 |
|
|
6,406 |
Change in fair value of public warrant liability |
|
609 |
|
|
9,454 |
|
|
4,906 |
|
|
12,606 |
Change in fair value of common stock warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(879) |
Total other income (expense), net |
$ |
(1,490) |
|
$ |
24,829 |
|
$ |
16,155 |
|
$ |
44,378 |
Net income (loss) |
$ |
(28,077) |
|
$ |
4,788 |
|
$ |
(86,179) |
|
$ |
(10,888) |
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||
Basic |
|
144,856,047 |
|
|
142,403,779 |
|
|
143,858,668 |
|
|
71,662,694 |
Diluted |
|
144,856,047 |
|
|
161,906,393 |
|
|
143,858,668 |
|
|
71,662,694 |
Net income (loss) per share |
|
|
|
|
|
|
|
||||
Basic |
$ |
(0.19) |
|
$ |
0.03 |
|
$ |
(0.60) |
|
$ |
(0.15) |
Diluted |
$ |
(0.19) |
|
$ |
0.03 |
|
$ |
(0.60) |
|
$ |
(0.15) |
|
|
|
|
|
|
|
|
||||
Net income (loss) |
$ |
(28,077) |
|
$ |
4,788 |
|
$ |
(86,179) |
|
$ |
(10,888) |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
||||
Cumulative translation adjustment |
|
(45) |
|
|
— |
|
(10) |
|
— |
||
Total other comprehensive income |
|
(45) |
|
|
— |
|
|
(10) |
|
|
— |
Total comprehensive income (loss) |
$ |
(28,122) |
|
$ |
4,788 |
|
$ |
(86,189) |
|
$ |
(10,888) |
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) |
|||||
|
|
|
2021 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
229,783 |
|
$ |
307,492 |
Restricted cash |
|
— |
|
|
400 |
Accounts receivable, net |
|
31,920 |
|
|
6,477 |
Inventory |
|
10,257 |
|
|
2,890 |
Current portion of contract assets |
|
2,852 |
|
|
1,459 |
Current portion of commission asset |
|
3,232 |
|
|
1,645 |
Prepaid expenses and other current assets |
|
14,388 |
|
|
10,757 |
Total current assets |
|
292,432 |
|
|
331,120 |
Restricted cash, noncurrent |
|
275 |
|
|
275 |
Contract assets, noncurrent |
|
1,386 |
|
|
3,418 |
Commission asset, noncurrent |
|
6,034 |
|
|
3,719 |
Property and equipment, net |
|
44,707 |
|
|
23,783 |
Operating lease right-of-use assets |
|
1,673 |
|
|
— |
Other assets |
|
1,835 |
|
|
542 |
Total assets |
$ |
348,342 |
|
$ |
362,857 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
18,194 |
|
$ |
6,045 |
Accrued expenses and other current liabilities |
|
11,545 |
|
|
9,551 |
Current portion of deferred revenue |
|
18,273 |
|
|
6,599 |
Current portion of deferred rent |
|
— |
|
|
135 |
Current portion of long-term debt |
|
10,000 |
|
|
2,000 |
Current portion of operating lease liabilities |
|
1,114 |
|
|
— |
Total current liabilities |
|
59,126 |
|
|
24,330 |
Deferred revenue, noncurrent |
|
17,695 |
|
|
2,475 |
Deferred rent, noncurrent |
|
— |
|
|
333 |
Long-term debt, noncurrent |
|
19,683 |
|
|
7,945 |
Operating lease liabilities, noncurrent |
|
892 |
|
|
— |
Contingent earn-out liability |
|
14,218 |
|
|
21,206 |
Contingently issuable common stock liability |
|
3,392 |
|
|
5,264 |
Public warrant liability |
|
6,124 |
|
|
11,030 |
Total liabilities |
|
121,130 |
|
|
72,583 |
|
|
|
|
||
Stockholders’ equity: |
|
|
|
||
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
15 |
|
|
14 |
Additional paid-in capital |
|
419,190 |
|
|
396,064 |
Accumulated other comprehensive income |
|
(10) |
|
|
— |
Accumulated deficit |
|
(191,983) |
|
|
(105,804) |
Stockholders’ equity |
|
227,212 |
|
|
290,274 |
Total liabilities and stockholders’ equity |
$ |
348,342 |
|
$ |
362,857 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||
|
Twelve Months Ended
|
||||
|
|
2022 |
|
|
2021 |
Cash flows from operating activities: |
|
|
|
||
Net loss |
$ |
(86,179) |
|
$ |
(10,888) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||
Depreciation and amortization |
|
5,465 |
|
|
2,895 |
Write-off of inventory |
|
1,582 |
|
|
2,132 |
Adjustment to property and equipment for sales type leases |
|
(625) |
|
|
(91) |
Loss from impairment of property and equipment |
|
1,161 |
|
|
1,869 |
Loss on disposal of property and equipment |
|
— |
|
|
617 |
Stock-based compensation |
|
22,498 |
|
|
9,596 |
Non-cash interest expense |
|
55 |
|
|
5,245 |
Non-cash lease expense |
|
811 |
|
|
— |
Provision recorded for allowance for doubtful accounts |
|
150 |
|
|
(13) |
Loss on extinguishment of debt |
|
— |
|
|
12,685 |
Change in fair value of derivative liability |
|
— |
|
|
1,745 |
Change in fair value of common stock warrant liability |
|
— |
|
|
879 |
Change in fair value of earn-out liability |
|
(6,988) |
|
|
(47,360) |
Change in fair value of contingently issuable common stock |
|
(1,872) |
|
|
(6,406) |
Change in fair value of public warrant liability |
|
(4,906) |
|
|
(12,606) |
Changes in operating assets and liabilities |
|
|
|
||
Accounts receivable |
|
(25,593) |
|
|
(5,063) |
Inventory |
|
(8,495) |
|
|
(3,436) |
Commission assets |
|
(3,902) |
|
|
(3,072) |
Contract assets |
|
639 |
|
|
(4,877) |
Other assets |
|
(419) |
|
|
32 |
Prepaid expenses and other current assets |
|
(3,174) |
|
|
(9,148) |
Accounts payable |
|
7,661 |
|
|
765 |
Deferred revenue |
|
26,887 |
|
|
4,832 |
Deferred rent |
|
— |
|
|
457 |
Warranty Reserve |
|
— |
|
|
(42) |
Accrued expenses and other current liabilities |
|
1,462 |
|
|
2,472 |
Operating lease liability |
|
(946) |
|
|
— |
Net cash used in operating activities |
|
(74,728) |
|
|
(56,781) |
Cash flows from investing activities: |
|
|
|
||
Development of internal-use software |
|
(2,720) |
|
|
(1,028) |
Purchases of property and equipment |
|
(21,473) |
|
|
(16,557) |
Proceeds from sale of property and equipment |
|
312 |
|
|
— |
Net cash used in investing activities |
|
(23,881) |
|
|
(17,585) |
Cash flows from financing activities: |
|
|
|
||
Proceeds from exercise of stock options |
|
827 |
|
|
915 |
Proceeds from issuance of common stock from the |
|
— |
|
|
300,000 |
Proceeds from the closing of the Merger |
|
— |
|
|
84,945 |
Payment of offering costs from the closing of the Merger and |
|
— |
|
|
(34,132) |
Repayment of financing obligations |
|
— |
|
|
(359) |
Proceeds from long-term debt, net of issuance costs |
|
29,683 |
|
|
31,882 |
Repayment of principal on long-term debt |
|
(10,000) |
|
|
(5,422) |
Net cash provided by (used in) financing activities |
|
20,510 |
|
|
377,829 |
Effect of exchange rate changes on cash and cash equivalents |
|
(10) |
|
|
— |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(78,109) |
|
|
303,463 |
Cash, cash equivalents and restricted cash |
|
|
|
||
Cash, cash equivalents and restricted cash at beginning of period |
|
308,167 |
|
|
4,704 |
Cash, cash equivalents and restricted cash at end of period |
$ |
230,058 |
|
$ |
308,167 |
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
In preparing the condensed consolidated financial statements as of and for the three and six months ended
|
Year Ended
|
|||||||
|
As Previously Reported |
|
Adjustment |
|
As Revised |
|||
Revenue: |
|
|
|
|
|
|||
Product revenue |
$ |
13,917 |
|
$ |
(286) |
|
$ |
13,631 |
Subscription revenue |
|
7,855 |
|
|
(52) |
|
|
7,803 |
Service revenue |
|
1,920 |
|
|
39 |
|
|
1,959 |
Total revenue |
|
23,692 |
|
|
(299) |
|
|
23,393 |
Cost of revenue: |
|
|
|
|
|
|||
Cost of product revenue |
|
12,471 |
|
|
(192) |
|
|
12,279 |
Cost of subscription revenue |
|
3,644 |
|
|
857 |
|
|
4,501 |
Cost of service revenue |
|
936 |
|
|
1,648 |
|
|
2,584 |
Total cost of revenue |
|
17,051 |
|
|
2,313 |
|
|
19,364 |
Gross profit |
|
6,641 |
|
|
(2,612) |
|
|
4,029 |
Operating expenses: |
|
|
|
|
|
|||
Research and development |
|
11,416 |
|
|
42 |
|
|
11,458 |
Sales and marketing expense |
|
27,404 |
|
|
(1,305) |
|
|
26,099 |
General and administrative |
|
20,013 |
|
|
(144) |
|
|
19,869 |
Loss from impairment of property and equipment |
|
1,869 |
|
|
— |
|
|
1,869 |
Total operating expenses |
|
60,702 |
|
|
(1,407) |
|
|
59,295 |
Loss from operations |
|
(54,061) |
|
|
(1,205) |
|
|
(55,266) |
Other income (expense), net: |
|
|
|
|
|
|||
Interest expense, net |
|
(6,095) |
|
|
27 |
|
|
(6,068) |
Interest income |
|
— |
|
|
— |
|
|
— |
Loss on disposal of property and equipment |
|
(617) |
|
|
— |
|
|
(617) |
Loss on extinguishment of debt |
|
(12,685) |
|
|
— |
|
|
(12,685) |
Change in fair value of derivative liability |
|
(1,745) |
|
|
— |
|
|
(1,745) |
Change in fair value of contingent earn-out liability |
|
46,212 |
|
|
1,148 |
|
|
47,360 |
Change in fair value of contingently issuable common stock liability |
|
6,406 |
|
|
— |
|
|
6,406 |
Change in fair value of public warrant liability |
|
12,606 |
|
|
— |
|
|
12,606 |
Change in fair value of common stock warrant liability |
|
(879) |
|
|
— |
|
|
(879) |
Total other income (expense), net |
|
43,203 |
|
|
1,175 |
|
|
44,378 |
Net loss |
$ |
(10,858) |
|
$ |
(30) |
|
$ |
(10,888) |
|
|
|||||||
|
As Previously Reported |
Adjustment |
As Revised |
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
307,492 |
$ |
— |
$ |
307,492 |
||
Restricted cash |
|
400 |
|
— |
|
400 |
||
Accounts receivable, net |
|
6,477 |
|
— |
|
6,477 |
||
Inventory |
|
5,140 |
|
(2,250) |
|
2,890 |
||
Current portion of contract assets |
|
1,459 |
|
— |
|
1,459 |
||
Current portion of commission asset |
|
1,645 |
|
— |
|
1,645 |
||
Prepaid expenses and other current assets |
|
11,047 |
|
(290) |
|
10,757 |
||
Total current assets |
|
333,660 |
|
(2,540) |
|
331,120 |
||
Restricted cash, noncurrent |
|
275 |
|
— |
|
275 |
||
Contract assets, noncurrent |
|
3,418 |
|
— |
|
3,418 |
||
Commission asset, noncurrent |
|
3,719 |
|
— |
|
3,719 |
||
Property and equipment, net |
|
21,592 |
|
2,191 |
|
23,783 |
||
Other assets |
|
401 |
|
141 |
|
542 |
||
Total assets |
$ |
363,065 |
$ |
(208) |
$ |
362,857 |
||
|
|
|
|
|||||
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
6,363 |
$ |
(318) |
$ |
6,045 |
||
Accrued expenses and other current liabilities |
|
9,183 |
|
368 |
|
9,551 |
||
Current portion of deferred revenue |
|
6,690 |
|
(91) |
|
6,599 |
||
Current portion of deferred rent |
|
135 |
|
— |
|
135 |
||
Current portion of long-term debt |
|
2,000 |
|
— |
|
2,000 |
||
Total current liabilities |
|
24,371 |
|
(41) |
|
24,330 |
||
Deferred revenue, noncurrent |
|
2,475 |
|
— |
|
2,475 |
||
Deferred rent, noncurrent |
|
333 |
|
— |
|
333 |
||
Long-term debt, noncurrent |
|
7,945 |
|
— |
|
7,945 |
||
Contingent earn-out liability |
|
20,809 |
|
397 |
|
21,206 |
||
Contingently issuable common stock liability |
|
5,264 |
|
— |
|
5,264 |
||
Public warrant liability |
|
11,030 |
|
— |
|
11,030 |
||
Total liabilities |
|
72,227 |
|
356 |
|
72,583 |
||
|
|
|
|
|||||
Stockholders’ equity: |
|
|
|
|||||
Convertible preferred stock |
|
— |
|
— |
|
— |
||
Common stock |
|
14 |
|
— |
|
14 |
||
Additional paid-in capital |
|
395,563 |
|
501 |
|
396,064 |
||
Accumulated deficit |
|
(104,739) |
|
(1,065) |
|
(105,804) |
||
Stockholders’ equity |
|
290,838 |
|
(564) |
|
290,274 |
||
Total liabilities and stockholders’ equity |
$ |
363,065 |
$ |
(208) |
$ |
362,857 |
||
SUMMARY OF KEY OPERATING STATISTICS (Unaudited) |
||||||||||||||||||||||||
|
Three Months Ended or as of, |
|||||||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New customers |
|
|
13 |
|
|
21 |
|
|
23 |
|
|
27 |
|
|
44 |
|
|
53 |
|
|
92 |
|
|
106 |
Total contract value of orders booked |
|
$ |
8,424 |
|
$ |
10,476 |
|
$ |
16,995 |
|
$ |
17,916 |
|
$ |
19,167 |
|
$ |
22,066 |
|
$ |
45,285 |
|
$ |
57,625 |
Annual recurring revenue |
|
$ |
5,424 |
|
$ |
7,423 |
|
$ |
9,932 |
|
$ |
12,907 |
|
$ |
16,641 |
|
$ |
20,865 |
|
$ |
28,741 |
|
$ |
34,120 |
Remaining performance obligation |
|
$ |
17,658 |
|
$ |
24,930 |
|
$ |
34,152 |
|
$ |
51,430 |
|
$ |
63,750 |
|
$ |
80,978 |
|
$ |
109,407 |
|
$ |
144,561 |
Net additions |
|
|
64 |
|
|
113 |
|
|
176 |
|
|
136 |
|
|
207 |
|
|
237 |
|
|
545 |
|
|
575 |
Ending deployed units |
|
|
278 |
|
|
391 |
|
|
567 |
|
|
703 |
|
|
910 |
|
|
1,147 |
|
|
1,692 |
|
|
2,267 |
RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (In thousands) (Unaudited) |
||||||||||||||||
|
Three Months Ended, |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses, GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation(1) |
|
(300) |
|
(1,052) |
|
(4,589) |
|
(3,513) |
|
(3,819) |
|
(4,781) |
|
(6,298) |
|
(6,771) |
Restructuring expenses |
|
— |
|
— |
|
— |
|
— |
|
(324) |
|
13 |
|
— |
|
— |
Loss on impairment of lease equipment |
|
— |
|
— |
|
(1,656) |
|
(213) |
|
(96) |
|
(316) |
|
(626) |
|
(123) |
Other one-time expenses |
|
— |
|
— |
|
(685) |
|
— |
|
(1,107) |
|
(2,298) |
|
(69) |
|
(41) |
Adjusted Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects immaterial adjustments to previously reported stock-based compensation amounts.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT AND GAAP OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (In thousands) (Unaudited) |
|||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Revenue |
$ |
20,885 |
|
$ |
6,598 |
|
$ |
55,195 |
|
$ |
23,393 |
Cost of revenue |
|
20,831 |
|
|
7,213 |
|
|
53,466 |
|
|
19,364 |
Gross Profit, GAAP |
|
54 |
|
|
(615) |
|
|
1,729 |
|
|
4,029 |
Stock-based compensation(2) |
|
214 |
|
|
51 |
|
|
829 |
|
|
142 |
Amortization of capitalized stock-based compensation |
|
9 |
|
|
2 |
|
|
24 |
|
|
2 |
Adjusted Gross Profit |
$ |
277 |
|
$ |
(562) |
|
$ |
2,582 |
|
$ |
4,173 |
|
|
|
|
|
|
|
|
||||
Gross Margin % |
|
0.3 % |
|
|
(9.3) % |
|
|
3.1 % |
|
|
17.2 % |
Adjusted Gross Margin % |
|
1.3 % |
|
|
(8.5) % |
|
|
4.7 % |
|
|
17.8 % |
(2) Reflects immaterial adjustments to previously reported stock-based compensation amounts.
|
Three Months Ended
|
|
Twelve Months Ended
|
||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating income (loss), GAAP |
|
|
|
|
|
|
|
Stock-based compensation |
6,985 |
|
3,564 |
|
22,498 |
|
9,596 |
Amortization of capitalized stock-based compensation |
9 |
|
2 |
|
24 |
|
2 |
Restructuring expenses |
— |
|
— |
|
311 |
|
— |
Loss on impairment of lease equipment |
123 |
|
213 |
|
1,161 |
|
1,869 |
Other one-time expenses |
41 |
|
— |
|
3,515 |
|
685 |
Adjusted Operating Income (loss) |
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA (In thousands) (Unaudited) |
|||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Net income (loss) |
$ |
(28,077) |
|
$ |
4,788 |
|
$ |
(86,179) |
|
$ |
(10,888) |
Depreciation & amortization(3) |
|
1,683 |
|
|
1,041 |
|
|
5,465 |
|
|
2,895 |
Stock-based compensation |
|
6,985 |
|
|
3,564 |
|
|
22,498 |
|
|
9,596 |
Interest expense (income) |
|
(1,331) |
|
|
116 |
|
|
(2,453) |
|
|
6,068 |
Loss on disposal of property & equipment |
|
— |
|
|
(42) |
|
|
— |
|
|
617 |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
12,685 |
Change in fair value of derivative liability |
|
— |
|
|
— |
|
|
— |
|
|
1,745 |
Change in fair value of contingent earn-out liability |
|
2,766 |
|
|
(14,751) |
|
|
(6,988) |
|
|
(47,360) |
Change in fair value of contingently issuable common stock liability |
|
657 |
|
|
(688) |
|
|
(1,872) |
|
|
(6,406) |
Change in fair value of public warrant liability |
|
(609) |
|
|
(9,454) |
|
|
(4,906) |
|
|
(12,606) |
Change in fair value of common stock warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
879 |
Restructuring expenses |
|
— |
|
|
— |
|
|
311 |
|
|
— |
Loss on impairment of lease equipment |
|
123 |
|
|
213 |
|
|
1,161 |
|
|
1,869 |
Other one-time expenses |
|
41 |
|
|
— |
|
|
3,515 |
|
|
685 |
Adjusted EBITDA |
$ |
(17,762) |
|
$ |
(15,213) |
|
$ |
(69,448) |
|
$ |
(40,221) |
(3) Reflects immaterial adjustments to previously reported depreciation and amortization amounts.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS) (In thousands, except share and per share data) (Unaudited) |
|||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Net income (loss) |
$ |
(28,077) |
|
$ |
4,788 |
|
$ |
(86,179) |
|
$ |
(10,888) |
Stock-based compensation |
|
6,985 |
|
|
3,564 |
|
|
22,498 |
|
|
9,596 |
Amortization of capitalized stock-based compensation |
|
9 |
|
|
2 |
|
|
24 |
|
|
2 |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
12,685 |
Change in fair value of derivative liability |
|
— |
|
|
— |
|
|
— |
|
|
1,745 |
Change in fair value of contingent earn-out liability |
|
2,766 |
|
|
(14,751) |
|
|
(6,988) |
|
|
(47,360) |
Change in fair value of contingently issuable common stock liability |
|
657 |
|
|
(688) |
|
|
(1,872) |
|
|
(6,406) |
Change in fair value of public warrant liability |
|
(609) |
|
|
(9,454) |
|
|
(4,906) |
|
|
(12,606) |
Change in fair value of common stock warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
879 |
Restructuring expenses |
|
— |
|
|
— |
|
|
311 |
|
|
— |
Loss on impairment of lease equipment |
|
123 |
|
|
213 |
|
|
1,161 |
|
|
1,869 |
Other one-time expenses |
|
41 |
|
|
— |
|
|
3,515 |
|
|
685 |
Adjusted earnings (loss) |
$ |
(18,105) |
|
$ |
(16,326) |
|
$ |
(72,436) |
|
$ |
(49,799) |
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding – diluted |
|
144,856,047 |
|
|
161,906,393 |
|
|
143,858,668 |
|
|
71,662,694 |
|
|
|
|
|
|
|
|
||||
Adjusted Earnings Per Share – diluted |
$ |
(0.12) |
|
$ |
(0.10) |
|
$ |
(0.50) |
|
$ |
(0.69) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005779/en/
Investor Relations:
Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com
Source:
FAQ
What were Evolv Technology's Q4 2022 revenue results?
What is Evolv Technology's Annual Recurring Revenue as of December 31, 2022?
What is the projected revenue range for Evolv Technology in 2023?
What net loss did Evolv Technology report for Q4 2022?
How many new customers did Evolv Technology acquire in Q4 2022?
