– Company Raises Outlook for 2021
–
- Q3 Total Contract Value (TCV) of $16.9 million, up 365%
year-over-year
- Q3 Revenue of $8.4 million, up 473% year-over-year
Evolv Technology (NASDAQ: EVLV), the global leader in weapons
detection security screening, today announced financial results for
its third quarter ended September 30, 2021 and raised its business
outlook for 2021.
“We are pleased to be reporting strong third quarter results
highlighted by record revenues, accelerating channel activity and
category defining new product innovations,” said Peter George,
Chief Executive Officer of Evolv Technology. “We continued to
extend our market leadership position with dozens of new customers
including the Indianapolis Symphony Orchestra, the Nasdaq
MarketSite and the National Football League’s Carolina Panthers and
Tennessee Titans. Looking ahead, we are focused on a strong finish
in 2021 and believe that we are well positioned for accelerated
growth.”
Results for the Third Quarter of 2021
Total revenue for the third quarter of 2021 was $8.4 million, an
increase of 473% compared to $1.5 million for the third quarter of
2020. Total Contract Value (“TCV”) of orders booked for the third
quarter of 2021 was $16.9 million, an increase of 365% compared to
$3.6 million in the third quarter of 2020. GAAP net income for the
third quarter of 2021 was $23.2 million, or $0.15 per diluted
share, compared to a GAAP net loss of $6.3 million, or $0.70 per
basic and diluted share, for the third quarter of 2020.
Results for the First Nine Months of 2021
Total revenue for the first nine months of 2021 was $16.8
million, an increase of 513% compared to $2.8 million for the first
nine months of 2020. TCV of orders booked for the first nine months
of 2021 was $36.0 million, an increase of 280% compared to $9.5
million in the first nine months of 2020. GAAP net loss for the
first nine months of 2021 was $13.4 million, or $0.28 per basic and
diluted share, compared to a GAAP net loss of $18.0 million, or
$2.00 per basic and diluted share, for the first nine months of
2020.
Company Raises Outlook for 2021
The Company today raised its business outlook for 2021. The
Company's outlook is based on the current indications for its
business, which may change at any time.
Business Outlook for Year
Ending December 31, 2021
Estimate
Issued August 16, 2021
Issued November 10,
2021
TCV of orders booked (in millions)
$53-$55
$53-$57
Total Revenue (in millions)
$20-$21
$20-$23
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
1400696. The conference call may be accessed outside of the United
States by dialing +1.409.207.6975 and using access code 1400696.
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 for a period of 30 days by dialing 1.866.207.1041 or
+1.402.970.0847 and using access code 3758262 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
100 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, including variants, vaccine roll-out efforts, 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 prospectus, filed with the Securities and Exchange
Commission (the “SEC”) on September 3, 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 September
30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Revenue:
Product revenue
$
5,345
$
349
$
10,299
$
422
Subscription revenue
2,305
794
5,118
1,743
Service revenue
717
318
1,429
585
Total revenue
8,367
1,461
16,846
2,750
Cost of revenue:
Product revenue
2,933
163
7,237
361
Subscription revenue
1,086
490
2,542
1,192
Service revenue
192
169
732
376
Total cost of revenue
4,211
822
10,511
1,929
Gross profit
4,156
639
6,335
821
Operating expenses:
Research and development
3,641
4,088
8,330
10,629
Sales and marketing
8,510
1,552
17,284
5,105
General and administrative
6,983
1,177
11,162
2,676
Loss from impairment of leased
equipment
1,656
-
1,656
-
Total operating expenses
20,790
6,817
38,432
18,410
Loss from operations
(16,634)
(6,178)
(32,097)
(17,589)
Interest and other expense
(955)
(84)
(6,657)
(207)
Loss on extinguishment of debt
(865)
-
(12,685)
-
Change in fair value of derivative
liability
475
-
(1,745)
-
Change in fair value of contingent
earn-out liability
31,818
-
31,818
-
Change in fair value of contingently
issuable common stock liability
5,718
-
5,718
-
Change in fair value of public warrant
liability
3,152
-
3,152
-
Change in fair value of common stock
warrant liability
42
-
(879)
-
Total other income (expense)
$
39,385
$
(84)
$
18,722
$
(207)
Net income (loss) and comprehensive
loss attributable to
common stockholders – basic
$
22,751
$
(6,262)
$
(13,375)
$
(17,796)
Net income (loss) and comprehensive
loss attributable to
common stockholders – diluted
$
23,222
$
(6,262)
$
(13,375)
$
(17,796)
Net income (loss) per share – basic
$
0.19
$
(0.70)
$
(0.28)
$
(2.00)
Net income (loss) per share – diluted
$
0.15
$
(0.70)
$
(0.28)
$
(2.00)
Weighted average ordinary shares
outstanding – basic
119,745,196
8,917,855
47,786,638
8,892,564
Weighted average ordinary shares
outstanding – diluted
153,903,195
8,917,855
47,786,638
8,892,564
EVOLV TECHNOLOGY CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except share and per
share data) (Unaudited)
September 30,
2021
December 31,
2020
Assets
Current assets:
Cash
333,747
4,704
Restricted Cash
400
-
Accounts receivable, net
7,330
1,401
Inventory
3,530
2,742
Prepaid expenses and other current
assets
14,756
1,462
Total current assets
359,763
10,309
Commission asset, noncurrent
2,310
1,730
Property and equipment, net
17,783
9,316
Restricted cash, noncurrent
275
-
Other long-term assets
2,582
-
Total assets
$
382,713
$
21,355
Liabilities and Shareholders’ Equity
(Deficit)
Current liabilities:
Accounts payable
8,460
4,437
Accrued expenses and other current
liabilities
6,169
3,727
Current portion of deferred revenue
5,668
3,717
Current portion of long-term debt
1,000
-
Other current liabilities
37
238
Total current liabilities
21,334
12,119
Deferred revenue
988
480
Noncurrent portion of deferred rent
371
-
Common stock warrant liability
-
1
Public warrant liability
20,484
-
Derivative liability
-
1,000
Contingent earn-out liability
35,027
-
Contingently issuable common stock
liability
5,952
-
Financing obligation, noncurrent
-
132
Long-term debt, noncurrent
14,359
16,432
Total liabilities
98,515
30,164
Convertible preferred stock and
shareholders’ equity
Convertible preferred stock
-
75,877
Common stock
14
1
Additional paid-in capital
391,440
9,194
Accumulated deficit
(107,256)
(93,881)
Total shareholders’ equity (deficit
284,198
(84,686)
Total liabilities and shareholders’
equity
382,713
21,355
EVOLV TECHNOLOGY CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Nine Months Ended September
30,
2021
2020
Cash flows from operating
activities:
Net loss
$
(13,375)
$
(17,796)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
1,948
685
Loss from impairment of leased
equipment
1,656
-
Loss on disposal of fixed assets
659
-
Stock-based compensation
4,013
525
Noncash interest expense
5,561
-
Provision recorded for allowance for
doubtful accounts
(63)
(16)
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
(31,818)
-
Change in fair value of contingently
issuable common stock
(5,718)
-
Change in fair value of public warrant
liability
(3,152)
-
Changes in operating assets and
liabilities
(25,727)
(1,795)
Net cash used in operating activities
(50,707)
(18,397)
Cash flows from investing
activities:
Purchases of property and equipment
(3,082)
(4,304)
Net cash used in investing activities
(3,082)
(4,304)
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
777
418
Proceeds from issuance of common stock
from the PIPE Investment
300,000
-
Proceeds from the closing of the Merger,
net of offering costs
51,207
-
Repayment of financing obligations
(359)
(225)
Proceeds from long-term debt, net of
issuance costs
31,882
5,284
Net cash provided by financing
activities
383,507
8,471
Net increase (decrease) in cash
329,718
(14,230)
Cash, beginning of period
4,704
17,341
Cash, end of period
$
334,422
$
3,111
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
427
$
207
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110006285/en/
Investor Relations: Brian Norris Vice President of
Investor Relations bnorris@evolvtechnology.com
Public Relations: Fitz Barth Director of Communications
fbarth@evolvtechnology.com
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