– Company Raises Outlook for 2022
–
- Q3 Revenue of $16.5 million, up 96% year-over-year
- Q3 Ending ARR of $28.7 million, up 189%
year-over-year
- Q3 Ending RPO of $109.4 million, up 220%
year-over-year
- Q3 Ending Evolv Express® subscriptions of 1,692, up 198%
year-over-year
Evolv Technology (NASDAQ: EVLV), the leader in
AI-based weapons detection security screening, today announced
financial results for its third quarter ended September 30, 20221
and raised its business outlook for 2022.
“We’re pleased to be reporting record third quarter results
which were highlighted by strong growth in revenues and continued
market expansion,” said Peter George, President and Chief Executive
Officer of Evolv Technology. “We experienced particularly robust
market adoption with 92 new customers including five of the largest
school districts in the United States, over a dozen new hospitals
across the nation, as well as the home stadiums of five additional
professional sports teams. Our results and momentum position us
well to deliver full year growth above our previous outlook for
2022.”
Results for the Third Quarter of 2022
Total revenue for the third quarter of 2022 was $16.5 million,
an increase of 96% compared to $8.4 million for the third quarter
of 2021. Total Contract Value (“TCV”)2 of orders booked for the
third quarter of 2022 was $45.4 million, an increase of 167%
compared to $17.0 million in the third quarter of 2021. Annual
Recurring Revenue (“ARR”)3 was $28.7 million at the end of third
quarter of 2022, an increase of 189% compared to $9.9 million at
the end of the third quarter of 2021. Net loss for the third
quarter of 2022 was $(18.6) million, or $(0.13) per basic and
diluted share, compared to net income attributable to common
stockholders for basic and diluted shares of $20.8 million and
$21.3 million, respectively, or $0.17 per basic share and $0.14 per
diluted share, in the third quarter of 2021. Adjusted earnings
(loss)4 for the third quarter of 2022 was $(18.6) million, or
$(0.13) per diluted share, compared to adjusted earnings (loss)4 of
$(12.9) million, or $(0.08) per diluted share, for the third
quarter of 2021. Adjusted EBITDA4 for the third quarter of 2022 was
$(18.0) million compared to $(11.5) million in the third quarter of
2021.
Results for the First Nine Months of 2022
Total revenue for the nine months ended September 30, 2022 was
$34.3 million, an increase of 104% compared to $16.8 million for
the nine months ended September 30, 2021. TCV2 of orders booked for
the nine months ended September 30, 2022 was $86.6 million, an
increase of 141% compared to $35.9 million for the nine months
ended September 30, 2021. Net loss for the nine months ended
September 30, 2022 was $(58.1) million, or $(0.40) per basic and
diluted share, compared to net loss of $(15.7) million, or $(0.33)
per basic and diluted share, for the nine months ended September
30, 2021. Adjusted earnings (loss)4 for the nine months ended
September 30, 2022 was $(54.3) million, or $(0.38) per diluted
share, compared to $(33.5) million, or $(0.70) per diluted share,
for the nine months ended September 30, 2021. Adjusted EBITDA4 for
the nine months ended September 30, 2022 was $(51.7) million,
compared to $(24.9) million for the nine months ended September 30,
2021.
Company Raises Outlook for 2022
The Company today commented on its business outlook for 2022.
The Company's outlook is based on the current indications for its
business, which may change at any time.
2022 Business Outlook
Estimate (In millions)
Issued August 10,
2022
Issued November 9,
2022
Total Revenue
$29-$31
$46-$48
Annual Recurring Revenue3 (ARR) at
12/31
$27-$28
$31-$32
Adjusted EBITDA4
($65-$67)
No change
Cash and Cash Equivalents
$220-$230
No change
“We believe we are well positioned to deliver strong top line
growth above our previously issued guidance in 2022,” said Mark
Donohue, Chief Financial Officer of Evolv Technology. “Our
preliminary estimates for 2023 call for exiting ARR in the range of
$65 million and $70 million – reflecting growth of more than 100% –
and full year revenues in the range of $55 million to $60 million,
reflecting our transition towards a subscription model. We also
expect to significantly reduce our full year operating cash usage
in 2023. We will provide formal detailed guidance for 2023 when we
release results for the fourth quarter of 2022.”
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
774298. 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. 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 4430069 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 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 425 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 Amounts herein pertaining to September 30, 2022 represent a
preliminary estimate as of the date of this earnings release. More
information on our results of operations for the three and nine
months ended September 30, 2022 will be provided upon filing our
Quarterly Report on Form 10-Q with the Securities and Exchange
Commission.
2 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.
3 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.
4 Non-GAAP Financial Measures In this press release, the
Company’s adjusted operating expenses, adjusted gross profit,
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 which management believes provides a more meaningful
representation of contribution margin. 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.
Forward-Looking Statements
This press release contains 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. All statements contained in this
press release other than statements of historical facts should be
considered forward-looking statements, including without limitation
statements regarding: the transition of our business model, our
ability to reduce future cash burn and meet our goals for revenue
and profitability, including for fiscal years 2022 and 2023.
Forward-looking statements involve the Company’s current
expectations and projections relating to its financial condition,
competitive position, future financial results, plans, objectives,
and business. 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 the Company’s current
views with respect to future events and the 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 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; 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; 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, including variants, vaccine roll-out efforts, and local,
state, and federal responses to addressing the pandemic may have an
adverse effect on the Company’s business operations, as well as the
Company’s financial condition and results of operations; risks
associated with inflation and its possible impact on the Company;
litigation and regulatory enforcement risks, including the
diversion of management time and attention and the additional costs
and demands on resources; and the other important risk factors set
forth 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 may be
updated in other filings we make with 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,
2022
2021
2022
2021
Revenue:
Product revenue
$
9,839
$
5,395
$
19,179
$
10,279
Subscription revenue
5,198
2,312
12,208
5,060
Service revenue
1,493
717
2,923
1,456
Total revenue
16,530
8,424
34,310
16,795
Cost of revenue:
Cost of product revenue
12,960
2,967
23,513
7,386
Cost of subscription revenue
2,207
1,277
5,730
3,080
Cost of service revenue
1,138
713
3,392
1,685
Total cost of revenue
16,305
4,957
32,635
12,151
Gross profit
225
3,467
1,675
4,644
Operating expenses:
Research and development
5,616
3,612
13,947
8,399
Sales and marketing
11,746
10,024
33,169
17,756
General and administrative
8,839
7,535
29,268
12,058
Loss from impairment of property and
equipment
626
1,656
1,038
1,656
Total operating expenses
26,827
22,827
77,422
39,869
Loss from operations
(26,602
)
(19,360
)
(75,747
)
(35,225
)
Other income (expense), net:
Interest expense
(188
)
(295
)
(489
)
(5,952
)
Interest income
1,052
—
1,611
—
Other expense, net
(57
)
(669
)
(57
)
(669
)
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
7,245
32,609
9,754
32,609
Change in fair value of contingently
issuable common stock liability
1,081
5,718
2,529
5,718
Change in fair value of public warrant
liability
(1,146
)
3,152
4,297
3,152
Change in fair value of common stock
warrant liability
—
42
—
(879
)
Total other income (expense), net
$
7,987
$
40,167
$
17,645
$
19,549
Net income (loss) attributable to common
stockholders – basic
$
(18,615
)
$
20,807
$
(58,102
)
$
(15,676
)
Net income (loss) attributable to common
stockholders – diluted
$
(18,615
)
$
21,278
$
(58,102
)
$
(15,676
)
Weighted average common shares
outstanding
Basic
144,117,273
119,745,196
143,522,555
47,772,253
Diluted
144,117,273
153,936,436
143,522,555
47,772,253
Net income (loss) per share
Basic
$
(0.13
)
$
0.17
$
(0.40
)
$
(0.33
)
Diluted
$
(0.13
)
$
0.14
$
(0.40
)
$
(0.33
)
Net income (loss)
$
(18,615
)
$
20,807
$
(58,102
)
$
(15,676
)
Other comprehensive income (loss)
Cumulative translation adjustment
45
—
#
35
#
—
Total other comprehensive income
45
—
35
—
Total comprehensive income (loss)
$
(18,570
)
$
20,807
$
(58,067
)
$
(15,676
)
EVOLV TECHNOLOGY CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except share and
per share data) (Unaudited)
September 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
218,499
$
307,492
Restricted cash
400
400
Accounts receivable, net
21,199
6,477
Inventory
6,732
2,890
Current portion of contract assets
5,291
1,459
Current portion of commission asset
2,413
1,645
Prepaid expenses and other current
assets
20,223
10,757
Total current assets
274,757
331,120
Restricted cash, noncurrent
275
275
Contract assets, noncurrent
1,524
3,418
Commission asset, noncurrent
4,607
3,719
Property and equipment, net
40,532
23,783
Operating lease right-of-use assets
1,882
—
Other assets
2,045
542
Total assets
$
325,622
$
362,857
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
11,139
$
6,045
Accrued expenses and other current
liabilities
8,884
9,551
Current portion of deferred revenue
15,852
6,599
Current portion of deferred rent
—
135
Current portion of long-term debt
4,000
2,000
Current portion of operating lease
liabilities
1,106
—
Total current liabilities
40,981
24,330
Deferred revenue, noncurrent
9,234
2,475
Deferred rent, noncurrent
—
333
Long-term debt, noncurrent
4,959
7,945
Operating lease liabilities,
noncurrent
1,147
—
Contingent earn-out liability
11,452
21,206
Contingently issuable common stock
liability
2,735
5,264
Public warrant liability
6,733
11,030
Total liabilities
77,241
72,583
Stockholders’ equity:
Preferred stock, $0.0001 par value;
100,000,000 authorized at September 30, 2022 and December 31, 2021;
no shares issued and outstanding at September 30, 2022 and December
31, 2021
—
—
Common stock, $0.0001 par value;
1,100,000,000 shares authorized at September 30, 2022 and December
31, 2021; 144,434,717 and 142,745,021 shares issued and outstanding
at September 30, 2022 and December 31, 2021, respectively
14
14
Additional paid-in capital
412,238
396,064
Accumulated other comprehensive income
35
—
Accumulated deficit
(163,906
)
(105,804
)
Stockholders’ equity
248,381
290,274
Total liabilities and stockholders’
equity
$
325,622
$
362,857
EVOLV TECHNOLOGY CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited)
Nine Months Ended
September 30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(58,102
)
$
(15,676
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
3,782
1,948
Write-off of inventory
559
400
Adjustment to property and equipment for
sales type leases
(625
)
—
Loss from impairment of property and
equipment
1,038
1,656
Loss on disposal of property and
equipment
—
659
Stock-based compensation
15,513
6,032
Non-cash interest expense
14
5,561
Non-cash lease expense
602
—
Provision recorded for allowance for
doubtful accounts
100
(63
)
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
(9,754
)
(32,609
)
Change in fair value of contingently
issuable common stock
(2,529
)
(5,718
)
Change in fair value of public warrant
liability
(4,297
)
(3,152
)
Changes in operating assets and
liabilities
Accounts receivable
(14,822
)
(5,866
)
Inventory
(4,401
)
(736
)
Commission assets
(1,656
)
(1,102
)
Contract assets
(1,938
)
(3,477
)
Other assets
(629
)
23
Prepaid expenses and other current
assets
(9,009
)
(11,535
)
Accounts payable
2,177
240
Deferred revenue
16,005
2,352
Deferred rent
—
397
Warranty Reserve
—
(42
)
Accrued expenses and other current
liabilities
(750
)
2,834
Operating lease liability
(699
)
—
Net cash used in operating activities
(69,421
)
(42,565
)
Cash flows from investing
activities:
Development of internal-use software
(1,936
)
—
Purchases of property and equipment
(17,554
)
(10,994
)
Proceeds from sale of property and
equipment
312
—
Net cash used in investing activities
(19,178
)
(10,994
)
Cash flows from financing
activities:
Proceeds from exercise of stock
options
571
777
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
—
(33,968
)
Repayment of financing obligations
—
(359
)
Proceeds from long-term debt, net of
issuance costs
—
31,882
Repayment of principal on long-term
debt
(1,000
)
—
Net cash provided by (used in) financing
activities
(429
)
383,277
Effect of exchange rate changes on cash
and cash equivalents
35
—
Net increase (decrease) in cash, cash
equivalents and restricted cash
(88,993
)
329,718
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
$
219,174
$
334,422
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):
Three Months Ended
September 30, 2021
Nine Months Ended
September 30, 2021
As
Previously
Reported
Adjustment
As Revised
As
Previously
Reported
Adjustment
As Revised
Revenue:
Product revenue
$
5,345
$
50
$
5,395
$
10,299
$
(20
)
$
10,279
Subscription revenue
2,305
7
2,312
5,118
(58
)
5,060
Service revenue
717
—
717
1,429
27
1,456
Total revenue
8,367
57
8,424
16,846
(51
)
16,795
Cost of revenue:
Cost of product revenue
2,933
34
2,967
7,237
149
7,386
Cost of subscription revenue
1,086
191
1,277
2,542
538
3,080
Cost of service revenue
192
521
713
732
953
1,685
Total cost of revenue
4,211
746
4,957
10,511
1,640
12,151
Gross profit
4,156
(689
)
3,467
6,335
(1,691
)
4,644
Operating expenses:
Research and development
3,641
(29
)
3,612
8,330
69
8,399
Sales and marketing expense
8,510
1,514
10,024
17,284
472
17,756
General and administrative
6,983
552
7,535
11,162
896
12,058
Loss from impairment of property and
equipment
1,656
—
1,656
1,656
—
1,656
Total operating expenses
20,790
2,037
22,827
38,432
1,437
39,869
Loss from operations
(16,634
)
(2,726
)
(19,360
)
(32,097
)
(3,128
)
(35,225
)
Other income (expense), net:
Interest expense, net
(286
)
(9
)
(295
)
(5,988
)
36
(5,952
)
Other expense, net
(669
)
—
(669
)
(669
)
—
(669
)
Loss on extinguishment of debt
(865
)
—
(865
)
(12,685
)
—
(12,685
)
Change in fair value of derivative
liability
475
—
475
(1,745
)
—
(1,745
)
Change in fair value of contingent
earn-out liability
31,818
791
32,609
31,818
791
32,609
Change in fair value of contingently
issuable common stock liability
5,718
—
5,718
5,718
—
5,718
Change in fair value of public warrant
liability
3,152
—
3,152
3,152
—
3,152
Change in fair value of common stock
warrant liability
42
—
42
(879
)
—
(879
)
Total other income (expense), net
39,385
782
40,167
18,722
827
19,549
Net income (loss) attributable to common
stockholders - basic
$
22,751
$
(1,944
)
$
20,807
$
(13,375
)
$
(2,301
)
$
(15,676
)
Net income (loss) attributable to common
stockholders - diluted
$
23,222
$
(1,944
)
$
21,278
$
(13,375
)
$
(2,301
)
$
(15,676
)
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 RECONCILIATION OF
FORECASTED 2022 NET LOSS TO ADJUSTED EBITDA (In
thousands) (Unaudited)
Twelve Months Ended
December 31, 2022
High
Low
Net income (loss)
$
(76,000
)
$
(78,000
)
Adjustments to reconcile net income (loss)
to Adjusted EBITDA:
Depreciation and amortization
5,000
5,000
Stock-based compensation
19,000
19,000
Other one-time expenses
5,000
5,000
Other (income) expense
(18,000
)
(18,000
)
Adjusted EBITDA
$
(65,000
)
$
(67,000
)
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
New customers
13
21
23
27
44
53
92
Total contract value of orders booked
$
8,424
$
10,476
$
16,995
$
17,916
$
19,167
$
22,066
$
45,353
Annual recurring revenue
$
5,424
$
7,423
$
9,932
$
12,907
$
16,641
$
20,865
$
28,741
Remaining performance obligation
$
17,658
$
24,930
$
34,152
$
51,430
$
63,750
$
80,978
$
109,407
Net additions
64
113
176
136
207
237
545
Ending deployed units
278
391
567
703
910
1,147
1,692
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
Operating expenses, GAAP
$
9,400
$
7,642
$
22,826
$
19,429
$
24,760
$
25,835
$
26,827
Stock-based compensation(1)
(300
)
(1,052
)
(4,589
)
(3,513
)
(3,819
)
(4,781
)
(6,298
)
Restructuring expenses
—
—
—
—
(324
)
13
—
Loss on impairment of lease equipment
—
—
(1,656
)
(213
)
(96
)
(316
)
(626
)
Other one-time expenses
—
—
(685
)
—
(1,107
)
(2,298
)
(69
)
Adjusted Operating Expenses
$
9,100
$
6,590
$
15,896
$
15,703
$
19,414
$
18,453
$
19,834
(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
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenue
$
16,530
$
8,424
$
34,310
$
16,795
Cost of revenue
16,305
4,957
32,635
12,151
Gross Profit, GAAP
225
3,467
1,675
4,644
Stock-based compensation(2)
227
66
615
91
Amortization of capitalized stock-based
compensation
6
—
15
—
Adjusted Gross Profit
$
458
$
3,533
$
2,305
$
4,735
Gross Margin %
1.4
%
41.2
%
4.9
%
27.7
%
Adjusted Gross Margin %
2.8
%
41.9
%
6.7
%
28.2
%
(2) Reflects immaterial adjustments to
previously reported stock-based compensation amounts.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Operating income (loss), GAAP
$
(26,602
)
$
(19,360
)
$
(75,747
)
$
(35,225
)
Stock-based compensation
6,525
4,655
15,513
6,032
Amortization of capitalized stock-based
compensation
6
—
15
—
Restructuring expenses
—
—
311
—
Loss on impairment of lease equipment
626
1,656
1,038
1,656
Other one-time expenses
69
685
3,474
685
Adjusted Operating Income (loss)
$
(19,376
)
$
(12,364
)
$
(55,396
)
$
(26,852
)
EVOLV TECHNOLOGY RECONCILIATION OF
GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA (In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net income (loss)
$
(18,615
)
$
20,807
$
(58,102
)
$
(15,676
)
Depreciation & amortization
1,432
846
3,782
1,948
Stock-based compensation
6,525
4,655
15,513
6,032
Interest expense (income)
(864
)
295
(1,122
)
5,952
Loss on disposal of property &
equipment
—
659
—
659
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
(7,245
)
(32,609
)
(9,754
)
(32,609
)
Change in fair value of contingently
issuable common stock liability
(1,081
)
(5,718
)
(2,529
)
(5,718
)
Change in fair value of public warrant
liability
1,146
(3,152
)
(4,297
)
(3,152
)
Change in fair value of common stock
warrant liability
—
(42
)
—
879
Restructuring expenses
—
—
311
—
Loss on impairment of lease equipment
626
1,656
1,038
1,656
Other one-time expenses
69
685
3,474
685
Adjusted EBITDA
$
(18,007
)
$
(11,528
)
$
(51,686
)
$
(24,914
)
EVOLV TECHNOLOGY RECONCILIATION OF
GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS) (In
thousands, except share and per share data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net income (loss) attributable to common
stockholders – diluted
$
(18,615
)
$
21,278
$
(58,102
)
$
(15,676
)
Stock-based compensation
6,525
4,655
15,513
6,032
Amortization of capitalized stock-based
compensation
6
—
15
—
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
(7,245
)
(32,609
)
(9,754
)
(32,609
)
Change in fair value of contingently
issuable common stock liability
(1,081
)
(5,718
)
(2,529
)
(5,718
)
Change in fair value of public warrant
liability
1,146
(3,152
)
(4,297
)
(3,152
)
Change in fair value of common stock
warrant liability
—
(42
)
—
879
Restructuring expenses
—
—
311
—
Loss on impairment of lease equipment
626
1,656
1,038
1,656
Other one-time expenses
69
685
3,474
685
Adjusted earnings (loss) attributable to
common stockholders - diluted
$
(18,569
)
$
(12,857
)
$
(54,331
)
$
(33,473
)
Weighted average common shares outstanding
– diluted
144,117,273
153,936,436
143,522,555
47,772,253
Adjusted Earnings Per Share – diluted
$
(0.13
)
$
(0.08
)
$
(0.38
)
$
(0.70
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221109005860/en/
Investor Relations: Brian Norris Vice President of
Finance and Investor Relations bnorris@evolvtechnology.com
Evolv Technologies (NASDAQ:EVLV)
Historical Stock Chart
From Feb 2023 to Mar 2023
Evolv Technologies (NASDAQ:EVLV)
Historical Stock Chart
From Mar 2022 to Mar 2023
