– Company Issues Full Year Revenue Outlook of
375% Growth in 2021 –
- Q2 Revenue of $4.5 million, up 590% year-over-year
- Q2 Total Contract Value (TCV) of $10.9 million, up 361%
year-over-year
- Begins Trading on NASDAQ following combination with NewHold
Investment Corp.
Evolv Technology (NASDAQ: EVLV), the global leader in weapons
detection security screening, today announced financial results for
its second quarter ended June 30, 2021.
“We’re delighted to be reporting strong second quarter results
which reflect the growing demand for our innovative approach to
keeping venues safe,” said Peter George, Chief Executive Officer of
Evolv Technology. “Our growth continues to be fueled by visionary
security experts that are deploying Evolv Express in venues to
improve their security posture and their visitors’ experience,
while lowering their operating costs. Looking ahead, we believe
that we are well positioned to extend our leadership in the weapons
detection security screening market.”
Results for the Second Quarter of 2021
Total revenue for the second quarter of 2021 was $4.5 million,
an increase of 590% compared to $0.6 million for the second quarter
of 2020. Total Contract Value (“TCV”) of orders booked for the
second quarter of 2021 was $10.9 million, an increase of 361%
compared to $2.6 million in the second quarter of 2020. GAAP net
loss for the second quarter of 2021 was $22.4 million, or $0.71 per
basic and diluted share, compared to a GAAP net loss of $5.1
million, or $0.22 per basic and diluted share, for the second
quarter of 2020. As of June 30, 2021, the Company had $10.0 million
of cash and cash equivalents compared to $4.7 million at December
31, 2020. On July 16, 2021, the Company completed its previously
announced business combination with NewHold Investment Corp., which
raised approximately $385 million of cash for the Company which the
Company intends to use for general working capital requirements and
to fund the Company’s accelerating growth.
Results for the First Six Months of 2021
Total revenue for the first six months of 2021 was $8.5 million,
an increase of 558% compared to $1.3 million for the first six
months of 2020. TCV of orders booked for the first six months of
2021 was $20.2 million, an increase of 226% compared to $6.0
million in the first six months of 2020. GAAP net loss for the
first six months of 2021 was $36.1 million, or $1.22 per basic and
diluted share, compared to a GAAP net loss of $11.5 million, or
$0.49 per basic and diluted share, for the first six months of
2020.
Company Issues Outlook for 2021
The Company today issued its full year outlook for TCV of orders
booked and total revenue. The Company’s outlook is based on the
current indications for its business, which may change at any
time.
- The Company expects the TCV of orders booked in 2021 to be in
the range of $53 million to $55 million.
- The Company expects total revenue in 2021 to be in the range of
$20 million to $21 million.
- The Company expects GAAP net loss per share to be in the range
of $0.75 to $0.80 based on approximately 84 million weighted
average diluted shares outstanding.
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 the
United States by dialing +1.844.867.6169 and using access code
“EVLV”. The conference call may be accessed outside of the United
States by dialing +1.409.207.6975 and using access code “EVLV”. The
conference call will be simultaneously webcast on the Company’s
investor relations website, which can be accessed at
http://ir.evolvtechnology.com. A replay of the conference call will
be available approximately two hours after the call for a period of
two weeks by dialing 1.866.207.1041 or +1.402.970.0847 and using
access code 5737477 or by accessing the webcast replay on the
Company’s investor relations website at
http://ir.evolvtechnology.com. The Company has used, and intends to
continue to use, the investor relations portion of its website as a
means of disclosing material non-public information and for
complying with disclosure obligations under Regulation FD.
About Evolv Technology
Evolv Technology (NASDAQ: EVLV) is the global leader in weapons
detection security screening. Our mission is enabling a better
experience and better security for venues, creating a safer world
to work, learn, and play by transforming physical security to make
everywhere safer. This enhances the visitor experience and improves
weapons detection. We give sports fans, theme park visitors,
concertgoers, shoppers, employees, students, and others peace of
mind so that they can gather without fear of violence. Our security
system, delivered as a SaaS-based offering, has scanned more than
75 million people, second only to the Department of Homeland
Security’s Transportation Security Administration in the United
States, and our technology combines powerful, advanced sensors with
proven artificial intelligence (AI), security ecosystem
integrations, and comprehensive venue analytics to reliably detect
threats 10 times faster than traditional metal detectors. Evolv
Technology, Evolv Express®, Evolv Insights™, and Evolv Cortex AI™
are registered trademarks or trademarks of Evolv Technologies, Inc.
in the United States and other jurisdictions. For more information,
visit https://evolvtechnology.com.
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking” statements and information, within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995 that
relate to our current expectations and views of future events. All
statements other than statements of historical facts contained in
this press release are forward-looking statements. In some cases,
these forward-looking statements can be identified by words or
phrases such as “may,” “will,” “expect,” “should,” “could,”
“anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,”
“potential,” “continue,” “is/are likely to” or the negative of
these terms or other similar expressions. These forward-looking
statements are subject to risks, uncertainties and assumptions,
some of which are beyond our control. In addition, these
forward-looking statements reflect our current views with respect
to future events or our Company’s performance and are not a
guarantee of future performance. Actual outcomes may differ
materially from the information contained in the forward-looking
statements as a result of a number of factors, including, without
limitation expectations regarding Evolv’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, and Evolv’s ability to invest in growth
initiatives and pursue acquisition opportunities; the risk that the
consummation of the business combination with NewHold Investment
Corp. (the “Business Combination”) disrupts Evolv’s current plans;
the ability to recognize the anticipated benefits of the Business
Combination; unexpected costs related to the Business Combination;
limited liquidity and trading of our securities; geopolitical risk
and changes in applicable laws or regulations; the possibility that
we may be adversely affected by other economic, business, and/or
competitive factors; operational risk; risk that the COVID-19
pandemic, and local, state, and federal responses to addressing the
pandemic may have an adverse effect on our business operations, as
well as our financial condition and results of operations;
litigation and regulatory enforcement risks, including the
diversion of management time and attention and the additional costs
and demands on our resources; our ability to successfully deploy
the proceeds from the Business Combination; and the risk factors
set forth under the caption “Risk Factors” in our proxy
statement/prospectus, filed with the Securities and Exchange
Commission (the “SEC”) on June 28, 2021, as updated by the risk
factors disclosed in the section titled “Risk Factors” in our Form
8-K, filed with the SEC on July 22, 2021, and in our other
documents filed with or furnished to the SEC.
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
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Revenue:
Product
revenue..........................................................................
$ 2,452
$ 17
$ 4,954
$ 73
Subscription
revenue..................................................................
1,513
490
2,813
949
Service revenue
..........................................................................
515
142
712
267
Total
revenue....................................................................
4,480
649
8,479
1,289
Cost of revenue:
Product
revenue..........................................................................
2,075
37
4,304
198
Subscription
revenue..................................................................
861
364
1,456
702
Service revenue
..........................................................................
413
85
540
207
Total cost of
revenue........................................................
3,349
486
6,300
1,107
Gross
profit.......................................................................
1,131
163
2,179
182
Operating expenses:
Sales and
marketing...................................................................
1,077
2,947
4,689
6,541
Research and
development.........................................................
5,090
1,371
8,774
3,553
General and
administrative........................................................
1,280
869
4,179
1,499
Total operating
expenses.........................................................
7,447
5,187
17,642
11,593
Loss from
operations...............................................................
(6,316)
(5,024)
(15,463)
(11,411)
Interest
expense..........................................................................
3,255
80
5,702
123
Loss on extinguishment of
debt.................................................
11,820
-
11,820
-
Change in fair value of derivative
liability................................
795
-
2,220
-
Change in fair value of common stock
warrant liability............
185
-
921
-
Total other
expense...........................................................
16,055
80
20,663
123
Net loss and comprehensive loss
attributable to common
stockholders – basic and
diluted..................................................
$ (22,371)
$ (5,104)
$ (36,126)
$ (11,534)
Net loss per share – basic and
diluted........................................
$ (0.71)
$ (0.22)
$ (1.22)
$ (0.49)
Weighted average ordinary shares
outstanding – basic and
diluted....................................................................................
31,540,397
23,568,291
29,593,131
23,491,518
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share data)
(Unaudited)
June 30, 2021
December 31,
2020
Assets
Current assets:
Cash
.....................................................................................................................................................
9,963
4,704
Restricted Cash
....................................................................................................................................
400
-
Accounts receivable,
net.......................................................................................................................
2,799
1,401
Inventory..............................................................................................................................................
3,869
2,742
Prepaid expenses and other current
assets............................................................................................
9,237
1,462
Total current
assets.....................................................................................................................
26,268
10,309
Commission asset,
noncurrent……………………………………………………………………………
2,192
1,730
Property and equipment,
net……………………………………………………………………………...
17,552
9,316
Restricted cash,
noncurrent………………………………………………………………………………
275
-
Other long-term
assets……………………………………………………………………………………
239
-
Total
assets..................................................................................................................................
$ 46,526
$ 21,355
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts
payable.................................................................................................................................
9,798
4,437
Accrued expenses and other current
liabilities.....................................................................................
5,493
3,727
Current portion of deferred
revenue.....................................................................................................
3,769
3,717
Current portion of long-term
debt........................................................................................................
29,802
-
Other current
liabilities.........................................................................................................................
163
238
Total current
liabilities................................................................................................................
49,025
12,119
Deferred
revenue............................................................................................................................................
681
480
Common stock warrant
liability………………………………………………………………………….
922
1
Derivative
liability……………………………………………………………………………………….
20,206
1,000
Financing obligation,
noncurrent…………………………………………………………………………
-
132
Long-term debt,
noncurrent………………………………………………………………………………
18,352
16,432
Total
liabilities............................................................................................................................
89,186
30,164
Convertible preferred stock and
shareholders’ equity
Convertible preferred
stock…………………………………………………………………………….
75,877
75,877
Common
stock………………………………………………………………………………………….
35
26
Additional paid-in
capital………………………………………………………………………………
11,439
9,169
Accumulated deficit
……………………………………………………………………………………
(130,007)
(93,881)
Total shareholders’
deficit………………………………………………………………………………
(118,537)
(84,686)
Total liabilities and shareholders’
equity……………………………………………………………….
46,526
21,355
EVOLV TECHNOLOGY
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June
30,
2021
2020
Cash flows from operating
activities:
Net
loss.................................................................................................................................................................
$ (36,126)
$ (11,534)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and
amortization……………………………………………………………………………...
1,102
394
Stock-based
compensation…………………………………………………………………………………
1,617
122
Noncash interest
expense…………………………………………………………………………………...
5,455
-
Provision recorded for allowance for
doubtful accounts……………………………………………………
(63)
(16)
Loss on extinguishment of
debt……………………………………………………………………………..
11,820
-
Change in fair value of derivative
liability…………………………………………………………………
2,220
-
Change in fair value of common stock
warrant liability……………………………………………………
921
-
Changes in operating assets and
liabilities………………………………………………………………….
(3,900)
(2,075)
Net cash provided by operating
activities................................................................................
(16,954)
(13,109)
Cash flows from investing
activities:
Purchases of property and
equipment.........................................................................................................
(9,292)
(2,106)
Net cash used in investing
activities........................................................................................
(9,292)
(2,106)
Cash flows from financing
activities:
Proceeds from issuance of Series B-1
convertible preferred stock, net of issuance costs…………….
-
2,994
Proceeds from exercise of stock
options………………………………………………………………
657
70
Repayment of financing
obligations…………………………………………………………………..
(359)
(161)
Proceeds from long-term debt, net of
issuance costs………………………………………………….
31,882
3,154
Net cash provided by financing
activities................................................................................
32,180
6,057
Net increase (decrease) in
cash..........................................................................................................................
5,934
(9,158)
Cash, beginning of
period.....................................................................................................................................
4,704
17,341
Cash, end of
period...............................................................................................................................................
$10,638
$8,183
Supplemental disclosure of cash flow
information:
Cash paid for
interest..................................................................................................................................
$247
$80
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210816005614/en/
Investor Contact: Brian Norris Vice President of Investor
Relations bnorris@evolvtechnology.com Media
Contact: Fitz Barth Director of Communications
fbarth@evolvtechnology.com
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