- Q2 Revenue of $25.5 million, up 29% year-over-year
- Q2 Ending ARR1 of $88.9 million, up 64%
year-over-year
- Q2 Ending RPO2 of $262.9 million, up 33%
year-over-year
- Q2 Ending Evolv Express® subscriptions of 5,323, up 57%
year-over-year
Evolv Technology (NASDAQ: EVLV), a leading security technology
company pioneering AI-based screening designed to help create safer
experiences, today announced financial results for the quarter
ended June 30, 2024.
Results for the Second Quarter of 2024
Total revenue for the second quarter of 2024 was $25.5 million,
an increase of 29% compared to $19.8 million for the second quarter
of 2023. Annual Recurring Revenue (“ARR”)1 was $88.9 million at the
end of second quarter of 2024, an increase of 64% compared to $54.3
million at the end of the second quarter of 2023. Net income for
the second quarter of 2024 was $3.5 million, or $0.02 per basic and
diluted share, compared to net loss of $(66.8) million, or $(0.45)
per basic and diluted share, in the second quarter of 2023.
Adjusted earnings (loss)3 for the second quarter of 2024 was
$(11.1) million, or $(0.06) per diluted share, compared to adjusted
earnings (loss)3 of $(14.3) million, or $(0.10) per diluted share,
for the second quarter of 2023. Adjusted EBITDA3 for the second
quarter of 2024 was $(7.9) million compared to $(13.8) million in
the second quarter of 2023. As of June 30, 2024, the Company had
cash, cash equivalents, marketable securities, and restricted cash
of $56.7 million and no debt.
Results for the First Six Months of 2024
Total revenue for the six months ended June 30, 2024 was $47.2
million, an increase of 23% compared to $38.4 million for the six
months ended June 30, 2023. Net loss for the six months ended June
30, 2024 was $(8.2) million, or $(0.05) per basic and diluted
share, compared to $(95.4) million, or $(0.65) per basic and
diluted share, in the six months ended June 30, 2023. Adjusted
earnings (loss)3 for the six months ended June 30, 2024 was $(24.2)
million, or $(0.16) per diluted share, compared to adjusted
earnings (loss)3 of $(31.2) million, or $(0.21) per diluted share,
for the six months ended June 30, 2023. Adjusted EBITDA3 for the
six months ended June 30, 2024 was $(18.6) million compared to
$(29.3) million in the six months ended June 30, 2023.
The following table summarizes the breakdown of recurring and
non-recurring revenue4 for each period presented:
Three Months Ended June
30,
Six Months Ended June
30,
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 June
30,
Six Months Ended June
30,
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
~$100
Reaffirmed
ARR1 (ARR) at 12/31/24
~$100
Reaffirmed
Adjusted Gross Margin3
~60%
Reaffirmed
Adjusted EBITDA3
Improve by 40%+
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 the
United States by dialing +1.877.692.8955 and using access code
825879. 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 will be available on 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 8674340 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) 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 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, as well as
Sport Business Journal’s (SBJ) awards for “Best In Fan Experience
Technology” and “Best In Sports Technology”. Evolv®, Evolv
Express®, Evolv Insights®, Evolv Cortex AI®, and Evolv Visual Gun
Detection™ 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 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 June
30,
Six Months Ended June
30,
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, $0.0001 par value;
100,000,000 authorized at June 30, 2024 and December 31, 2023; no
shares issued and outstanding at June 30, 2024 and December 31,
2023
—
—
Common stock, $0.0001 par value;
1,100,000,000 shares authorized at June 30, 2024 and December 31,
2023; 157,474,122 and 151,310,080 shares issued and outstanding at
June 30, 2024 and December 31, 2023, respectively
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 June
30,
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, 2023
June 30, 2023
September 30,
2023
December 31,
2023
March 31, 2024
June 30, 2024
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, 2023
June 30, 2023
September 30,
2023
December 31,
2023
March 31, 2024
June 30, 2024
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 June
30,
Six Months Ended June
30,
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 June
30,
Six Months Ended June
30,
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 June
30,
Six Months Ended June
30,
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 June
30,
Six Months Ended June
30,
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
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