Evolv Technology Reports Second Quarter Financial Results
Evolv Technology (NASDAQ: EVLV) reported strong financial results for Q2 2024. Revenue increased 29% year-over-year to $25.5 million, while Annual Recurring Revenue (ARR) grew 64% to $88.9 million. The company achieved a net income of $3.5 million, compared to a net loss of $66.8 million in Q2 2023. Evolv Express® subscriptions rose 57% to 5,323.
For the first half of 2024, total revenue was $47.2 million, up 23% year-over-year. The company reaffirmed its 2024 outlook, projecting total revenue of ~$100 million and ARR of ~$100 million by year-end. Evolv Technology ended Q2 with $56.7 million in cash and no debt.
Evolv Technology (NASDAQ: EVLV) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. Il fatturato è aumentato del 29% rispetto all'anno precedente, raggiungendo $25,5 milioni, mentre le Entrate Ricorrenti Annuali (ARR) sono cresciute del 64%, arrivando a $88,9 milioni. L'azienda ha registrato un utile netto di $3,5 milioni, rispetto a una perdita netta di $66,8 milioni nel secondo trimestre del 2023. Le sottoscrizioni di Evolv Express® sono aumentate del 57%, totalizzando 5.323.
Per il primo semestre del 2024, il fatturato totale è stato di $47,2 milioni, in crescita del 23% rispetto all'anno precedente. L'azienda ha riaffermato le sue previsioni per il 2024, prevedendo un fatturato totale di circa $100 milioni e un ARR di circa $100 milioni entro la fine dell'anno. Evolv Technology ha chiuso il secondo trimestre con $56,7 milioni in contante e senza debiti.
Evolv Technology (NASDAQ: EVLV) reportó resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos aumentaron un 29% año tras año, alcanzando $25.5 millones, mientras que los Ingresos Recorrentes Anuales (ARR) crecieron un 64%, llegando a $88.9 millones. La compañía logró un ingreso neto de $3.5 millones, en comparación con una pérdida neta de $66.8 millones en el segundo trimestre de 2023. Las suscripciones de Evolv Express® aumentaron un 57%, totalizando 5,323.
Para la primera mitad de 2024, el ingreso total fue de $47.2 millones, un aumento del 23% año tras año. La empresa reafirmó sus proyecciones para 2024, proyectando ingresos totales de ~$100 millones y ARR de ~$100 millones para fin de año. Evolv Technology terminó el segundo trimestre con $56.7 millones en efectivo y sin deudas.
이볼브 테크놀로지(Evolv Technology, NASDAQ: EVLV)는 2024년 2분기에 강력한 재무 실적을 보고했습니다. 매출은 전년 대비 29% 증가하여 2,550만 달러에 달했습니다, 연간 반복 수익(ARR)은 64% 증가하여 8,890만 달러에 달했습니다. 이 회사는 350만 달러의 순이익을 달성했으며, 이는 2023년 2분기의 6,680만 달러 순손실과 비교됩니다. Evolv Express® 구독자는 57% 증가하여 5,323명이 되었습니다.
2024년 상반기 동안 총 수익은 4,720만 달러로, 전년 대비 23% 증가했습니다. 회사는 2024년 전망을 재확인하며 연말까지 총 수익 약 1억 달러와 ARR 약 1억 달러를 예상했습니다. 이볼브 테크놀로지는 2분기를 현금 5,670만 달러와 무이자로 마감했습니다.
Evolv Technology (NASDAQ: EVLV) a annoncé de solides résultats financiers pour le deuxième trimestre 2024. Le chiffre d'affaires a augmenté de 29% par rapport à l'année précédente, atteignant 25,5 millions de dollars, tandis que le Revenu Annuel Récurrent (ARR) a crû de 64%, atteignant 88,9 millions de dollars. L'entreprise a réalisé un bénéfice net de 3,5 millions de dollars, contre une perte nette de 66,8 millions de dollars au deuxième trimestre 2023. Les abonnements Evolv Express® ont augmenté de 57%, totalisant 5 323.
Pour le premier semestre 2024, le chiffre d'affaires total s'élevait à 47,2 millions de dollars, en hausse de 23% par rapport à l'année précédente. L'entreprise a réaffirmé ses prévisions pour 2024, projetant un chiffre d'affaires total d'environ 100 millions de dollars et un ARR d'environ 100 millions de dollars d'ici la fin de l'année. Evolv Technology a clôturé le deuxième trimestre avec 56,7 millions de dollars en liquidités et aucune dette.
Evolv Technology (NASDAQ: EVLV) berichtete über starke finanzielle Ergebnisse für das zweite Quartal 2024. Der Umsatz stieg im Jahresvergleich um 29% auf 25,5 Millionen Dollar, während der jährliche wiederkehrende Umsatz (ARR) um 64% auf 88,9 Millionen Dollar zunahm. Das Unternehmen erzielte einen Nettoeinkommen von 3,5 Millionen Dollar, im Vergleich zu einem Nettoverlust von 66,8 Millionen Dollar im zweiten Quartal 2023. Die Abonnements für Evolv Express® stiegen um 57% auf 5.323.
Für das erste Halbjahr 2024 betrug der Gesamterlös 47,2 Millionen Dollar, was einem Anstieg von 23% im Vergleich zum Vorjahr entspricht. Das Unternehmen bestätigte seinen Ausblick für 2024 und prognostizierte einen Gesamtumsatz von etwa 100 Millionen Dollar und einen ARR von etwa 100 Millionen Dollar bis zum Jahresende. Evolv Technology beendete das zweite Quartal mit 56,7 Millionen Dollar in bar und ohne Schulden.
- Revenue increased 29% year-over-year to $25.5 million in Q2 2024
- Annual Recurring Revenue (ARR) grew 64% to $88.9 million
- Net income of $3.5 million in Q2 2024, compared to a net loss of $66.8 million in Q2 2023
- Evolv Express® subscriptions increased 57% year-over-year to 5,323
- Company reaffirmed 2024 outlook with projected total revenue and ARR of ~$100 million
- Adjusted earnings showed a loss of $11.1 million in Q2 2024
- Adjusted EBITDA was negative at $7.9 million for Q2 2024
- Net cash used in operating activities increased to $21.9 million in Q2 2024 from $5.3 million in Q2 2023
-
Q2 Revenue of
$25.5 million 29% year-over-year -
Q2 Ending ARR1 of
$88.9 million 64% year-over-year -
Q2 Ending RPO2 of
$262.9 million 33% year-over-year -
Q2 Ending Evolv Express® subscriptions of 5,323, up
57% year-over-year
Results for the Second Quarter of 2024
Total revenue for the second quarter of 2024 was
Results for the First Six Months of 2024
Total revenue for the six months ended June 30, 2024 was
The following table summarizes the breakdown of recurring and non-recurring revenue4 for each period presented:
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
Recurring revenue |
$ |
21,249 |
|
$ |
11,689 |
|
82 |
% |
|
$ |
40,630 |
|
$ |
20,764 |
|
96 |
% |
Non-recurring revenue |
|
4,291 |
|
|
8,136 |
|
(47 |
)% |
|
|
6,578 |
|
|
17,642 |
|
(63 |
)% |
Total revenue |
$ |
25,540 |
|
$ |
19,825 |
|
29 |
% |
|
$ |
47,208 |
|
$ |
38,406 |
|
23 |
% |
The following table summarizes operating cash flows for each period presented:
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
3,462 |
|
|
$ |
(66,754 |
) |
|
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
Non-cash expense |
|
(12,264 |
) |
|
|
54,225 |
|
|
|
(10,611 |
) |
|
|
68,230 |
|
Changes in operating assets and liabilities |
|
(13,077 |
) |
|
|
7,208 |
|
|
|
(19,169 |
) |
|
|
18,378 |
|
Net cash used in operating activities |
$ |
(21,879 |
) |
|
$ |
(5,321 |
) |
|
$ |
(37,962 |
) |
|
$ |
(8,755 |
) |
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 May 9, 2024 |
|
Issued August 8, 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) uses advanced sensors, artificial intelligence powered software, and cloud services to reliably detect firearms, improvised explosives, and certain types of knives while ignoring many harmless items such as cell phones and keys. Its solutions and services are designed to capture valuable visitor data customers can leverage to inform their security operations, while providing end-users with an approachable and non-intrusive security experience. Evolv has digitally transformed the gateways in many places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced 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 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 expenses, 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, loss on impairment of lease equipment, 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, the potential benefits of our ongoing transition to a pure subscription model, timing and likelihood of success, macroeconomic and market trends, 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 over 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 June 30, 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 INCOME (LOSS) |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Product revenue |
$ |
2,044 |
|
|
$ |
7,243 |
|
|
$ |
2,647 |
|
|
$ |
15,997 |
|
Subscription revenue |
|
15,903 |
|
|
|
7,964 |
|
|
|
30,406 |
|
|
|
14,430 |
|
Service revenue |
|
5,553 |
|
|
|
3,905 |
|
|
|
10,937 |
|
|
|
6,691 |
|
License fee and other revenue |
|
2,040 |
|
|
|
713 |
|
|
|
3,218 |
|
|
|
1,288 |
|
Total revenue |
|
25,540 |
|
|
|
19,825 |
|
|
|
47,208 |
|
|
|
38,406 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Cost of product revenue |
|
3,149 |
|
|
|
7,722 |
|
|
|
5,926 |
|
|
|
18,300 |
|
Cost of subscription revenue |
|
6,436 |
|
|
|
3,406 |
|
|
|
12,215 |
|
|
|
5,757 |
|
Cost of service revenue |
|
1,311 |
|
|
|
1,014 |
|
|
|
2,522 |
|
|
|
1,597 |
|
Cost of license fee and other revenue |
|
172 |
|
|
|
270 |
|
|
|
301 |
|
|
|
574 |
|
Total cost of revenue |
|
11,068 |
|
|
|
12,412 |
|
|
|
20,964 |
|
|
|
26,228 |
|
Gross profit |
|
14,472 |
|
|
|
7,413 |
|
|
|
26,244 |
|
|
|
12,178 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
5,722 |
|
|
|
6,395 |
|
|
|
11,927 |
|
|
|
11,784 |
|
Sales and marketing |
|
16,892 |
|
|
|
13,613 |
|
|
|
32,897 |
|
|
|
26,417 |
|
General and administrative |
|
14,185 |
|
|
|
10,874 |
|
|
|
26,025 |
|
|
|
19,800 |
|
Loss from impairment of property and equipment |
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
294 |
|
Total operating expenses |
|
36,799 |
|
|
|
31,039 |
|
|
|
70,849 |
|
|
|
58,295 |
|
Loss from operations |
|
(22,327 |
) |
|
|
(23,626 |
) |
|
|
(44,605 |
) |
|
|
(46,117 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(654 |
) |
Interest income |
|
681 |
|
|
|
1,853 |
|
|
|
1,766 |
|
|
|
2,806 |
|
Other income (expense), net |
|
(39 |
) |
|
|
(22 |
) |
|
|
(67 |
) |
|
|
(3 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(626 |
) |
Change in fair value of contingent earn-out liability |
|
16,514 |
|
|
|
(28,113 |
) |
|
|
23,413 |
|
|
|
(31,431 |
) |
Change in fair value of contingently issuable common stock liability |
|
3,747 |
|
|
|
(5,095 |
) |
|
|
4,274 |
|
|
|
(5,837 |
) |
Change in fair value of public warrant liability |
|
4,886 |
|
|
|
(11,751 |
) |
|
|
7,037 |
|
|
|
(13,501 |
) |
Total other income (expense), net |
|
25,789 |
|
|
|
(43,128 |
) |
|
|
36,423 |
|
|
|
(49,246 |
) |
Net income (loss) |
$ |
3,462 |
|
|
$ |
(66,754 |
) |
|
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
Net income (loss) attributable to common stockholders – basic and diluted |
$ |
3,421 |
|
|
$ |
(66,754 |
) |
|
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
156,473,080 |
|
|
|
148,882,160 |
|
|
|
154,774,899 |
|
|
|
147,664,534 |
|
Diluted |
|
171,563,943 |
|
|
|
148,882,160 |
|
|
|
154,774,899 |
|
|
|
147,664,534 |
|
Net income (loss) per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.02 |
|
|
$ |
(0.45 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.65 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
(0.45 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
3,462 |
|
|
$ |
(66,754 |
) |
|
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
||||||||
Cumulative translation adjustment |
|
8 |
|
|
|
(17 |
) |
|
|
11 |
|
|
|
(33 |
) |
Total other comprehensive income (loss) |
|
8 |
|
|
|
(17 |
) |
|
|
11 |
|
|
|
(33 |
) |
Total comprehensive income (loss) |
$ |
3,470 |
|
|
$ |
(66,771 |
) |
|
$ |
(8,171 |
) |
|
$ |
(95,396 |
) |
EVOLV TECHNOLOGY |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except share and per share data) |
|||||||
(Unaudited) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
35,698 |
|
|
$ |
67,162 |
|
Restricted cash |
|
— |
|
|
|
275 |
|
Marketable securities |
|
20,757 |
|
|
|
51,289 |
|
Accounts receivable, net |
|
36,428 |
|
|
|
22,611 |
|
Inventory |
|
18,604 |
|
|
|
9,507 |
|
Current portion of contract assets |
|
1,690 |
|
|
|
3,707 |
|
Current portion of commission asset |
|
4,810 |
|
|
|
4,339 |
|
Prepaid expenses and other current assets |
|
19,912 |
|
|
|
16,954 |
|
Total current assets |
|
137,899 |
|
|
|
175,844 |
|
Restricted cash, noncurrent |
|
275 |
|
|
|
— |
|
Contract assets, noncurrent |
|
144 |
|
|
|
451 |
|
Commission asset, noncurrent |
|
7,128 |
|
|
|
7,107 |
|
Property and equipment, net |
|
120,045 |
|
|
|
112,921 |
|
Operating lease right-of-use assets |
|
2,161 |
|
|
|
1,195 |
|
Other assets |
|
865 |
|
|
|
1,202 |
|
Total assets |
$ |
268,517 |
|
|
$ |
298,720 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
5,574 |
|
|
$ |
17,400 |
|
Accrued expenses and other current liabilities |
|
15,913 |
|
|
|
15,578 |
|
Current portion of deferred revenue |
|
56,168 |
|
|
|
47,677 |
|
Current portion of operating lease liabilities |
|
1,754 |
|
|
|
1,391 |
|
Total current liabilities |
|
79,409 |
|
|
|
82,046 |
|
Deferred revenue, noncurrent |
|
23,655 |
|
|
|
23,813 |
|
Operating lease liabilities, noncurrent |
|
566 |
|
|
|
— |
|
Contingent earn-out liability |
|
5,706 |
|
|
|
29,119 |
|
Contingently issuable common stock liability |
|
2,256 |
|
|
|
6,530 |
|
Public warrant liability |
|
3,852 |
|
|
|
10,889 |
|
Total liabilities |
|
115,444 |
|
|
|
152,397 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
16 |
|
|
|
15 |
|
Additional paid-in capital |
|
459,745 |
|
|
|
444,825 |
|
Accumulated other comprehensive loss |
|
(42 |
) |
|
|
(53 |
) |
Accumulated deficit |
|
(306,646 |
) |
|
|
(298,464 |
) |
Stockholders’ equity |
|
153,073 |
|
|
|
146,323 |
|
Total liabilities and stockholders’ equity |
$ |
268,517 |
|
|
$ |
298,720 |
|
EVOLV TECHNOLOGY |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
Six Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
7,442 |
|
|
|
4,087 |
|
Write-off of inventory and change in inventory reserve |
|
1,725 |
|
|
|
337 |
|
Loss from impairment of property and equipment |
|
— |
|
|
|
294 |
|
Stock-based compensation |
|
13,834 |
|
|
|
11,732 |
|
Non-cash interest expense |
|
— |
|
|
|
22 |
|
Amortization (accretion) of premium (discount) on marketable securities, net of change in accrued interest |
|
181 |
|
|
|
(242 |
) |
Non-cash lease expense |
|
728 |
|
|
|
432 |
|
Change in allowance for expected credit losses |
|
203 |
|
|
|
173 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
626 |
|
Change in fair value of earn-out liability |
|
(23,413 |
) |
|
|
31,431 |
|
Change in fair value of contingently issuable common stock |
|
(4,274 |
) |
|
|
5,837 |
|
Change in fair value of public warrant liability |
|
(7,037 |
) |
|
|
13,501 |
|
Changes in operating assets and liabilities |
|
|
|
||||
Accounts receivable |
|
(14,020 |
) |
|
|
(646 |
) |
Inventory |
|
(10,354 |
) |
|
|
5,080 |
|
Commission assets |
|
(492 |
) |
|
|
(1,258 |
) |
Contract assets |
|
2,324 |
|
|
|
(1,184 |
) |
Other assets |
|
337 |
|
|
|
(43 |
) |
Prepaid expenses and other current assets |
|
(2,958 |
) |
|
|
580 |
|
Accounts payable |
|
(1,653 |
) |
|
|
(7,409 |
) |
Deferred revenue |
|
8,333 |
|
|
|
24,113 |
|
Accrued expenses and other current liabilities |
|
79 |
|
|
|
(342 |
) |
Operating lease liability |
|
(765 |
) |
|
|
(513 |
) |
Net cash used in operating activities |
|
(37,962 |
) |
|
|
(8,755 |
) |
Cash flows from investing activities: |
|
|
|
||||
Development of internal-use software |
|
(3,408 |
) |
|
|
(1,599 |
) |
Purchases of property and equipment |
|
(21,092 |
) |
|
|
(33,173 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
60 |
|
Purchases of marketable securities |
|
(14,567 |
) |
|
|
(29,405 |
) |
Proceeds from maturities of marketable securities |
|
44,918 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
5,851 |
|
|
|
(64,117 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
636 |
|
|
|
344 |
|
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 |
|
636 |
|
|
|
(29,988 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
11 |
|
|
|
(33 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(31,464 |
) |
|
|
(102,893 |
) |
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 |
$ |
35,973 |
|
|
$ |
127,165 |
|
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,
|
|
June 30,
|
||||||
New customers |
|
|
61 |
|
|
74 |
|
|
70 |
|
|
75 |
|
|
53 |
|
|
84 |
Annual recurring revenue |
|
$ |
42,021 |
|
$ |
54,339 |
|
$ |
65,774 |
|
$ |
74,989 |
|
$ |
82,511 |
|
$ |
88,864 |
Recurring revenue |
|
$ |
9,075 |
|
$ |
11,689 |
|
$ |
14,377 |
|
$ |
17,350 |
|
$ |
19,381 |
|
$ |
21,249 |
Remaining performance obligation |
|
$ |
161,813 |
|
$ |
198,296 |
|
$ |
221,126 |
|
$ |
240,513 |
|
$ |
254,070 |
|
$ |
262,947 |
Net additions |
|
|
520 |
|
|
599 |
|
|
628 |
|
|
491 |
|
|
377 |
|
|
441 |
Ending deployed units |
|
|
2,787 |
|
|
3,386 |
|
|
4,014 |
|
|
4,505 |
|
|
4,882 |
|
|
5,323 |
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,
|
|
June 30,
|
||||||||||||
Operating expenses, GAAP |
|
$ |
27,256 |
|
|
$ |
31,039 |
|
|
$ |
31,629 |
|
|
$ |
32,167 |
|
|
$ |
34,050 |
|
|
$ |
36,799 |
|
Stock-based compensation |
|
|
(4,898 |
) |
|
|
(6,505 |
) |
|
|
(5,454 |
) |
|
|
(6,711 |
) |
|
|
(6,272 |
) |
|
|
(7,251 |
) |
Loss on impairment of lease equipment |
|
|
(137 |
) |
|
|
(157 |
) |
|
|
(28 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other one-time expenses |
|
|
(53 |
) |
|
|
(683 |
) |
|
|
(945 |
) |
|
|
(535 |
) |
|
|
(476 |
) |
|
|
(3,011 |
) |
Adjusted operating expenses |
|
$ |
22,168 |
|
|
$ |
23,694 |
|
|
$ |
25,202 |
|
|
$ |
24,921 |
|
|
$ |
27,302 |
|
|
$ |
26,537 |
|
EVOLV TECHNOLOGY |
|||||||||||||||
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT, GAAP GROSS MARGIN TO ADJUSTED GROSS MARGIN AND GAAP OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
25,540 |
|
|
$ |
19,825 |
|
|
$ |
47,208 |
|
|
$ |
38,406 |
|
Cost of revenue |
|
11,068 |
|
|
|
12,412 |
|
|
|
20,964 |
|
|
|
26,228 |
|
Gross profit, GAAP |
|
14,472 |
|
|
|
7,413 |
|
|
|
26,244 |
|
|
|
12,178 |
|
Stock-based compensation |
|
173 |
|
|
|
184 |
|
|
|
311 |
|
|
|
329 |
|
Amortization of capitalized stock-based compensation |
|
15 |
|
|
|
11 |
|
|
|
29 |
|
|
|
21 |
|
Other one-time expenses |
|
106 |
|
|
|
— |
|
|
|
1,310 |
|
|
|
— |
|
Adjusted gross profit |
$ |
14,766 |
|
|
$ |
7,608 |
|
|
$ |
27,894 |
|
|
$ |
12,528 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin % |
|
56.7 |
% |
|
|
37.4 |
% |
|
|
55.6 |
% |
|
|
31.7 |
% |
Adjusted gross margin % |
|
57.8 |
% |
|
|
38.4 |
% |
|
|
59.1 |
% |
|
|
32.6 |
% |
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating loss, GAAP |
$ |
(22,327 |
) |
|
$ |
(23,626 |
) |
|
$ |
(44,605 |
) |
|
$ |
(46,117 |
) |
Stock-based compensation |
|
7,424 |
|
|
|
6,689 |
|
|
|
13,834 |
|
|
|
11,732 |
|
Amortization of capitalized stock-based compensation |
|
15 |
|
|
|
11 |
|
|
|
29 |
|
|
|
21 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
294 |
|
Other one-time expenses |
|
3,117 |
|
|
|
683 |
|
|
|
4,797 |
|
|
|
736 |
|
Adjusted operating loss |
$ |
(11,771 |
) |
|
$ |
(16,086 |
) |
|
$ |
(25,945 |
) |
|
$ |
(33,334 |
) |
EVOLV TECHNOLOGY |
|||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
3,462 |
|
|
$ |
(66,754 |
) |
|
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
Depreciation & amortization |
|
3,968 |
|
|
|
2,272 |
|
|
|
7,442 |
|
|
|
4,087 |
|
Stock-based compensation |
|
7,424 |
|
|
|
6,689 |
|
|
|
13,834 |
|
|
|
11,732 |
|
Interest expense (income) |
|
(681 |
) |
|
|
(1,853 |
) |
|
|
(1,766 |
) |
|
|
(2,152 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
626 |
|
Change in fair value of contingent earn-out liability |
|
(16,514 |
) |
|
|
28,113 |
|
|
|
(23,413 |
) |
|
|
31,431 |
|
Change in fair value of contingently issuable common stock liability |
|
(3,747 |
) |
|
|
5,095 |
|
|
|
(4,274 |
) |
|
|
5,837 |
|
Change in fair value of public warrant liability |
|
(4,886 |
) |
|
|
11,751 |
|
|
|
(7,037 |
) |
|
|
13,501 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
294 |
|
Other one-time expenses |
|
3,117 |
|
|
|
683 |
|
|
|
4,797 |
|
|
|
736 |
|
Adjusted EBITDA |
$ |
(7,857 |
) |
|
$ |
(13,847 |
) |
|
$ |
(18,599 |
) |
|
$ |
(29,271 |
) |
EVOLV TECHNOLOGY |
|||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS) |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
3,462 |
|
|
$ |
(66,754 |
) |
|
$ |
(8,182 |
) |
|
$ |
(95,363 |
) |
Stock-based compensation |
|
7,424 |
|
|
|
6,689 |
|
|
|
13,834 |
|
|
|
11,732 |
|
Amortization of capitalized stock-based compensation |
|
15 |
|
|
|
11 |
|
|
|
29 |
|
|
|
21 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
626 |
|
Change in fair value of contingent earn-out liability |
|
(16,514 |
) |
|
|
28,113 |
|
|
|
(23,413 |
) |
|
|
31,431 |
|
Change in fair value of contingently issuable common stock liability |
|
(3,747 |
) |
|
|
5,095 |
|
|
|
(4,274 |
) |
|
|
5,837 |
|
Change in fair value of public warrant liability |
|
(4,886 |
) |
|
|
11,751 |
|
|
|
(7,037 |
) |
|
|
13,501 |
|
Loss on impairment of lease equipment |
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
294 |
|
Other one-time expenses |
|
3,117 |
|
|
|
683 |
|
|
|
4,797 |
|
|
|
736 |
|
Adjusted loss |
$ |
(11,129 |
) |
|
$ |
(14,255 |
) |
|
$ |
(24,246 |
) |
|
$ |
(31,185 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – diluted |
|
171,563,943 |
|
|
|
148,882,160 |
|
|
|
154,774,899 |
|
|
|
147,664,534 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted loss per share – diluted |
$ |
(0.06 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.21 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807488453/en/
Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com
Source: Evolv Technology
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