- Q4 Revenue of $20.9 million, up 217% year-over-year
- Q4 Ending ARR1 of $34.1 million, up 164%
year-over-year
- Q4 Ending RPO2 of $144.6 million, up 181%
year-over-year
- Q4 Ending Evolv Express® subscriptions of 2,267, up 222%
year-over-year
Evolv Technology (NASDAQ: EVLV), the leader in AI-based weapons
detection security screening, today announced financial results for
its fourth quarter and year ended December 31, 20223 and issued its
business outlook for 2023.
“We’re pleased to be reporting strong fourth quarter results
which capped a historic year of accelerated growth for the
Company,” said Peter George, President and Chief Executive Officer
of Evolv Technology. “Our results were highlighted by the addition
of over 100 new customers in the fourth quarter including the
Buffalo School District, the Duval County Schools, the Stony Brook
University Hospital, the Honolulu Museum of Art, the Ocean Casino
Resort, the Seabreeze Amusement Park, the Philadelphia Phillies,
the Houston Astros, and the Tampa Bay Lightning. Looking ahead, we
believe we are well positioned to achieve our goal of doubling our
Annual Recurring Revenue in 2023 and further extending our market
leadership.”
Results for the Fourth Quarter of 2022
Total revenue for the three months ended December 31, 2022 was
$20.9 million, an increase of 217% compared to $6.6 million for the
three months ended December 31, 2021. Total Contract Value (“TCV”)4
of orders booked for the three months ended December 31, 2022 was
$57.6 million, an increase of 222% compared to $17.9 million in the
three months ended December 31, 2021. Annual Recurring Revenue
(“ARR”)1 was $34.1 million as of December 31, 2022, an increase of
164% compared to $12.9 million as of December 31, 2021. Net loss
for the three months ended December 31, 2022 was $(28.1) million,
or $(0.19) per basic and diluted share, compared to net income of
$4.8 million or $0.03 per basic and diluted share in the three
months ended December 31, 2021. Adjusted earnings (loss)5 for the
three months ended December 31, 2022 was $(18.1) million, or
$(0.12) per diluted share, compared to adjusted earnings (loss)5 of
$(16.3) million, or $(0.10) per diluted share, for three months
ended December 31, 2021. Adjusted EBITDA5 for the three months
ended December 31, 2022 was $(17.8) million compared to $(15.2)
million in the three months ended December 31, 2021.
Results for 2022
Total revenue in 2022 was $55.2 million, an increase of 136%
compared to $23.4 million in 2021. TCV4 of orders booked in 2022
was $144.1 million, an increase of 168% compared to $53.8 million
in 2021. Net loss in 2022 was $(86.2) million, or $(0.60) per basic
and diluted share, compared to net loss of $(10.9) million, or
$(0.15) per basic and diluted share, in 2021. Adjusted earnings
(loss)5 in 2022 was $(72.4) million, or $(0.50) per diluted share,
compared to $(49.8) million, or $(0.69) per diluted share, in 2021.
Adjusted EBITDA5 in 2022 was $(69.4) million, compared to $(40.2)
million in 2021.
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.
2023 Business Outlook
Estimate (In millions)
Issued March 1, 2023
Total Revenue
$55-$60
Annual Recurring Revenue1 (ARR) at
12/31/23
$65-$70
Adjusted EBITDA5
($55-$60)
Cash and Cash Equivalents
$165-$175
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 +1.877.692.8955 and using access code
3784749. The conference call may be accessed outside of the United
States by dialing +1.234.720.6979 and using the same access code.
The conference call will be simultaneously webcast on the Company’s
investor relations website, which can be accessed at
http://ir.evolvtechnology.com. The press release with the financial
results as well as the accompanying investor presentation materials
will be accessible from the Company’s website prior to the
conference call. 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 9681780 or by accessing the
webcast replay on the Company’s investor relations website at
http://ir.evolvtechnology.com
About Evolv Technology
Evolv Technology (NASDAQ: EVLV) is transforming human security
to make a safer, faster, and better experience for the world’s most
iconic venues and companies as well as schools, hospitals, and
public spaces, using industry leading artificial intelligence
(AI)-powered weapons detection and analytics. Its mission is to
transform security to create a safer world to live, work, learn,
and play. Evolv has digitally transformed the gateways in places
where people gather by enabling seamless integration combined with
powerful analytics and insights. Evolv’s advanced systems have
scanned more than 500 million people, second only to the Department
of Homeland Security’s Transportation Security Administration (TSA)
in the United States. Evolv has been awarded the U.S. Department of
Homeland Security (DHS) SAFETY Act Designation as a Qualified
Anti-Terrorism Technology (QATT) as well as the Security Industry
Association (SIA) New Products and Solutions (NPS) Award in the Law
Enforcement/Public Safety/Guarding Systems category. 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.
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 December 31, 2022
represent a preliminary estimate as of the date of this earnings
release. More information on our results of operations for the
twelve months ended December 31, 2022 will be provided upon filing
our Annual Report on Form 10-K with the Securities and Exchange
Commission.
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 December 31,
2022 is the final quarter that we will be reporting TCV.
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 December 31, 2021 filed with the Securities and Exchange
Commission ("SEC") on March 28, 2022, as updated in other filings
we make with the SEC including our Quarterly Report on Form 10-Q
for the quarter ended September 30, 2022 that was filed with the
SEC on November 9, 2022, could cause actual results to differ
materially from those indicated by the forward-looking statements
made in this press release.
These statements reflect management’s current expectations
regarding future events and operating performance and speak only as
of the date of this press release. You should not put undue
reliance on any forward-looking statements. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. Except
as required by law, we undertake no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of
unanticipated events.
EVOLV TECHNOLOGY
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
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)
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share data)
(Unaudited)
December 31, 2022
December 31,
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, $0.0001 par value;
100,000,000 authorized at December 31, 2022 and December 31, 2021;
no shares issued and outstanding at December 31, 2022 and December
31, 2021
—
—
Common stock, $0.0001 par value;
1,100,000,000 shares authorized at December 31, 2022 and December
31, 2021, respectively; 145,204,974 and 142,745,021 shares issued
and outstanding at December 31, 2022 and December 31, 2021,
respectively
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
EVOLV TECHNOLOGY
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
(Unaudited)
Twelve Months Ended
December 31,
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 PIPE Investment
—
300,000
Proceeds from the closing of the
Merger
—
84,945
Payment of offering costs from the closing
of the Merger and PIPE Investment
—
(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
EVOLV TECHNOLOGY 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 June 30, 2022, the
Company identified various errors in its previously issued
financial statements. The identified errors impacted the Company's
previously issued 2021 quarterly and annual financial statements
and its quarterly financial statements for the three months ended
March 31, 2022, and accordingly the Company has made adjustments to
the prior period amounts presented herein. A summary of the
revisions to certain previously reported financial information
impacting amounts presented in this earnings release is as follows
(in thousands):
Year Ended December 31,
2021
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)
December 31, 2021
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
EVOLV TECHNOLOGY
SUMMARY OF KEY OPERATING
STATISTICS
(Unaudited)
Three Months Ended or as
of,
($ in thousands)
March 31, 2021
June 30, 2021
September 30,
2021
December 31,
2021
March 31, 2022
June 30, 2022
September 30,
2022
December 31,
2022
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
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP
OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES
(In thousands)
(Unaudited)
Three Months Ended,
March 31, 2021
June 30, 2021
September 30,
2021
December 31,
2021
March 31, 2022
June 30, 2022
September 30,
2022
December 31,
2022
Operating expenses, GAAP
$ 9,400
$ 7,642
$ 22,826
$ 19,429
$ 24,760
$ 25,835
$ 26,827
$ 26,641
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
$ 9,100
$ 6,590
$ 15,896
$ 15,703
$ 19,414
$ 18,453
$ 19,834
$ 19,706
(1) Reflects immaterial adjustments to previously reported
stock-based compensation amounts.
EVOLV TECHNOLOGY
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
December 31,
Twelve Months Ended
December 31,
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
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
Operating income (loss), GAAP
$ (26,587)
$ (20,041)
$ (102,334)
$ (55,266)
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)
$ (19,429)
$ (16,262)
$ (74,825)
$ (43,114)
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP NET
INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
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.
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP NET
INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS)
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
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: Brian Norris Vice President of
Finance and Investor Relations bnorris@evolvtechnology.com
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