Evolv Technology Reports Record Fourth Quarter and Full Year Financial Results

  • Q4 Revenue of $21.8 million, up 4% year-over-year
  • Q4 Ending ARR1 of $75.0 million, up 120% year-over-year
  • Q4 Ending RPO2 of $240.5 million, up 66% year-over-year
  • Q4 Ending Evolv Express® subscriptions of 4,505, up 99% year-over-year

WALTHAM, Mass.--(BUSINESS WIRE)-- Evolv Technology (NASDAQ: EVLV), the leading security technology company pioneering AI-based weapons detection to create safer experiences, today announced financial results for the quarter and year ended December 31, 20233 and issued its outlook for 2024.

Results for the Fourth Quarter of 2023

Total revenue for the fourth quarter of 2023 was $21.8 million, an increase of 4% compared to $20.9 million for the fourth quarter of 2022. Annual Recurring Revenue (“ARR”)1 was $75.0 million at the end of fourth quarter of 2023, an increase of 120% compared to $34.1 million at the end of fourth quarter of 2022. Net loss for the fourth quarter of 2023 was $(16.9) million, or $(0.11) per basic and diluted share, compared to net loss of $(28.3) million or $(0.20) per basic and diluted share in the fourth quarter of 2022. Adjusted net loss3 for the fourth quarter of 2023 was $(11.0) million, or $(0.07) per diluted share, compared to adjusted loss3 of $(18.3) million, or $(0.13) per diluted share, for the fourth quarter of 2022. Adjusted EBITDA3 for the fourth quarter of 2023 was $(9.5) million compared to $(18.0) million in the fourth quarter of 2022. As of December 31, 2023, the Company had cash, cash equivalents, marketable securities, and restricted cash of $118.7 million and no debt.

Results for 2023

Total revenue in 2023 was $80.4 million, an increase of 46% compared to $55.2 million in 2022. Net loss in 2023 was $(106.3) million, or $(0.71) per basic and diluted share, compared to net loss of $(86.4) million, or $(0.60) per basic and diluted share, in 2022. Adjusted net loss3 in 2023 was $(54.2) million, or $(0.36) per diluted share, compared to $(72.7) million, or $(0.51) per diluted share, in 2022. Adjusted EBITDA3 in 2023 was $(49.8) million, compared to $(69.7) million in 2022.

The following table summarizes the breakdown of recurring and non-recurring revenue4 during each year:

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

Recurring revenue

$

17,350

 

$

7,388

 

135

%

 

$

52,491

 

$

21,372

 

146

%

Non-recurring revenue

 

4,471

 

 

13,497

 

(67

)%

 

 

27,927

 

 

33,823

 

(17

)%

Total revenue

$

21,821

 

$

20,885

 

4

%

 

$

80,418

 

$

55,195

 

46

%

The following table summarizes operating cash flows during each year:

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

Net loss

$

(16,890

)

 

$

(28,304

)

 

$

(106,254

)

 

$

(86,406

)

Non-cash expense

 

7,970

 

 

 

12,928

 

 

 

59,754

 

 

 

17,331

 

Changes in operating assets and liabilities

 

5,777

 

 

 

10,069

 

 

 

36,699

 

 

 

(5,653

)

Net cash used in operating activities

$

(3,143

)

 

$

(5,307

)

 

$

(9,801

)

 

$

(74,728

)

Company Reaffirms 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.

 

 

2024 Business Outlook

Estimate (In millions)

 

Issued November 9, 2023

 

Issued February 29, 2024

Total Revenue

 

~$115

 

Reaffirmed

ARR1 (ARR) at 12/31/24

 

$108-$112

 

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 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 4005393 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 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. Evolv Technology®, 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 basic and 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 items and 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, 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 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 non-GAAP 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 other than statements of historical facts, including without limitation statements regarding our results of operations and financial position, business strategy, plans and prospects, future operations, and growth, our ability to meet our goals for revenue and profitability, as well as our estimates for cash and cash equivalents, including for fiscal year 2024, 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; 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; risks related to domestic and international privacy and cybersecurity concerns, laws and regulations; 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, 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,

 

2023

 

2022

 

2023

 

2022

Revenue:

 

 

 

 

 

 

 

Product revenue

$

2,789

 

 

$

12,806

 

 

$

21,977

 

 

$

31,985

 

Subscription revenue

 

12,586

 

 

 

5,361

 

 

 

37,247

 

 

 

17,569

 

Service revenue

 

5,015

 

 

 

2,094

 

 

 

16,141

 

 

 

4,331

 

License fee and other revenue

 

1,431

 

 

 

624

 

 

 

5,053

 

 

 

1,310

 

Total revenue

 

21,821

 

 

 

20,885

 

 

 

80,418

 

 

 

55,195

 

Cost of revenue:

 

 

 

 

 

 

 

Cost of product revenue

 

5,214

 

 

 

18,062

 

 

 

26,667

 

 

 

41,575

 

Cost of subscription revenue

 

5,003

 

 

 

1,739

 

 

 

14,991

 

 

 

7,469

 

Cost of service revenue

 

1,166

 

 

 

548

 

 

 

3,982

 

 

 

2,200

 

Cost of license fee and other revenue

 

177

 

 

 

482

 

 

 

949

 

 

 

2,222

 

Total cost of revenue

 

11,560

 

 

 

20,831

 

 

 

46,589

 

 

 

53,466

 

Gross profit

 

10,261

 

 

 

54

 

 

 

33,829

 

 

 

1,729

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

6,262

 

 

 

4,824

 

 

 

24,455

 

 

 

18,771

 

Sales and marketing

 

14,887

 

 

 

13,470

 

 

 

55,223

 

 

 

46,639

 

General and administrative

 

11,018

 

 

 

8,451

 

 

 

42,091

 

 

 

37,719

 

Loss from impairment of property and equipment

 

 

 

 

123

 

 

 

322

 

 

 

1,161

 

Total operating expenses

 

32,167

 

 

 

26,868

 

 

 

122,091

 

 

 

104,290

 

Loss from operations

 

(21,906

)

 

 

(26,814

)

 

 

(88,262

)

 

 

(102,561

)

Other income (expense), net:

 

 

 

 

 

 

 

Interest expense

 

 

 

 

(223

)

 

 

(654

)

 

 

(712

)

Interest income

 

1,630

 

 

 

1,554

 

 

 

6,227

 

 

 

3,165

 

Other expense, net

 

(17

)

 

 

(7

)

 

 

(84

)

 

 

(64

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

(626

)

 

 

 

Change in fair value of contingent earn-out liability

 

2,452

 

 

 

(2,766

)

 

 

(14,901

)

 

 

6,988

 

Change in fair value of contingently issuable common stock liability

 

422

 

 

 

(657

)

 

 

(3,138

)

 

 

1,872

 

Change in fair value of public warrant liability

 

580

 

 

 

609

 

 

 

(4,765

)

 

 

4,906

 

Total other income (expense), net

$

5,067

 

 

$

(1,490

)

 

$

(17,941

)

 

$

16,155

 

Loss before income taxes

 

(16,839

)

 

 

(28,304

)

 

 

(106,203

)

 

 

(86,406

)

Provision for income taxes

 

(51

)

 

 

 

 

 

(51

)

 

 

 

Net loss

$

(16,890

)

 

$

(28,304

)

 

$

(106,254

)

 

$

(86,406

)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic and diluted

 

151,087,430

 

 

 

144,856,047

 

 

 

149,168,105

 

 

 

143,858,668

 

Net loss per share - basic and diluted

$

(0.11

)

 

$

(0.20

)

 

$

(0.71

)

 

$

(0.60

)

 

 

 

 

 

 

 

 

Net loss

$

(16,890

)

 

$

(28,304

)

 

$

(106,254

)

 

$

(86,406

)

Other comprehensive loss

 

 

 

 

 

 

 

Cumulative translation adjustment

 

(44

)

 

 

(45

)

 

 

(43

)

 

 

(10

)

Total other comprehensive loss

 

(44

)

 

 

(45

)

 

 

(43

)

 

 

(10

)

Total comprehensive loss

$

(16,934

)

 

$

(28,349

)

 

$

(106,297

)

 

$

(86,416

)

EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)

 

December 31, 2023

 

December 31, 2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

67,162

 

 

$

229,783

 

Restricted cash

 

275

 

 

 

 

Marketable securities

 

51,289

 

 

 

 

Accounts receivable, net

 

22,611

 

 

 

31,920

 

Inventory

 

9,507

 

 

 

10,257

 

Current portion of contract assets

 

3,707

 

 

 

2,852

 

Current portion of commission asset

 

4,339

 

 

 

3,384

 

Prepaid expenses and other current assets

 

16,954

 

 

 

14,388

 

Total current assets

 

175,844

 

 

 

292,584

 

Restricted cash, noncurrent

 

 

 

 

275

 

Contract assets, noncurrent

 

451

 

 

 

1,386

 

Commission asset, noncurrent

 

7,107

 

 

 

5,655

 

Property and equipment, net

 

112,921

 

 

 

44,707

 

Operating lease right-of-use assets

 

1,195

 

 

 

1,673

 

Other assets

 

1,202

 

 

 

1,835

 

Total assets

$

298,720

 

 

$

348,115

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

17,400

 

 

$

18,194

 

Accrued expenses and other current liabilities

 

15,578

 

 

 

11,545

 

Current portion of deferred revenue

 

47,677

 

 

 

18,273

 

Current portion of long-term debt

 

 

 

 

10,000

 

Current portion of operating lease liabilities

 

1,391

 

 

 

1,114

 

Total current liabilities

 

82,046

 

 

 

59,126

 

Deferred revenue, noncurrent

 

23,813

 

 

 

17,695

 

Long-term debt, noncurrent

 

 

 

 

19,683

 

Operating lease liabilities, noncurrent

 

 

 

 

892

 

Contingent earn-out liability

 

29,119

 

 

 

14,218

 

Contingently issuable common stock liability

 

6,530

 

 

 

3,392

 

Public warrant liability

 

10,889

 

 

 

6,124

 

Total liabilities

 

152,397

 

 

 

121,130

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.0001 par value; 100,000,000 authorized at December 31, 2023 and December 31, 2022; no shares issued and outstanding at December 31, 2023 and December 31, 2022

 

 

 

 

 

Common stock, $0.0001 par value; 1,100,000,000 shares authorized at December 31, 2023 and December 31, 2022, 151,310,080 and 145,204,974 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively

 

15

 

 

 

15

 

Additional paid-in capital

 

444,825

 

 

 

419,190

 

Accumulated other comprehensive loss

 

(53

)

 

 

(10

)

Accumulated deficit

 

(298,464

)

 

 

(192,210

)

Stockholders’ equity

 

146,323

 

 

 

226,985

 

Total liabilities and stockholders’ equity

$

298,720

 

 

$

348,115

 

EVOLV TECHNOLOGY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 

Twelve Months Ended
December 31,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net loss

$

(106,254

)

 

$

(86,406

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

9,932

 

 

 

5,465

 

Write-off of inventory and change in inventory reserve

 

1,612

 

 

 

1,582

 

Adjustment to property and equipment for sales type leases

 

 

 

 

(625

)

Loss from impairment of property and equipment

 

322

 

 

 

1,161

 

Stock-based compensation

 

24,151

 

 

 

22,498

 

Non-cash interest expense

 

22

 

 

 

55

 

Accretion of discount on marketable securities

 

(575

)

 

 

 

Non-cash lease expense

 

478

 

 

 

811

 

Change in allowance for expected credit losses

 

382

 

 

 

150

 

Loss on extinguishment of debt

 

626

 

 

 

 

Change in fair value of earn-out liability

 

14,901

 

 

 

(6,988

)

Change in fair value of contingently issuable common stock

 

3,138

 

 

 

(1,872

)

Change in fair value of public warrant liability

 

4,765

 

 

 

(4,906

)

Changes in operating assets and liabilities

 

 

 

Accounts receivable

 

8,927

 

 

 

(25,593

)

Inventory

 

(644

)

 

 

(8,495

)

Commission assets

 

(2,407

)

 

 

(3,675

)

Contract assets

 

80

 

 

 

639

 

Other assets

 

633

 

 

 

(419

)

Prepaid expenses and other current assets

 

(2,566

)

 

 

(3,174

)

Accounts payable

 

(5,963

)

 

 

7,661

 

Deferred revenue

 

35,522

 

 

 

26,887

 

Accrued expenses and other current liabilities

 

3,732

 

 

 

1,462

 

Operating lease liability

 

(615

)

 

 

(946

)

Net cash used in operating activities

 

(9,801

)

 

 

(74,728

)

Cash flows from investing activities:

 

 

 

Development of internal-use software

 

(3,535

)

 

 

(2,720

)

Purchases of property and equipment

 

(69,134

)

 

 

(21,473

)

Proceeds from sale of property and equipment

 

270

 

 

 

312

 

Purchases of marketable securities

 

(89,898

)

 

 

 

Proceeds from maturities of marketable securities

 

39,184

 

 

 

 

Net cash used in investing activities

 

(123,113

)

 

 

(23,881

)

Cash flows from financing activities:

 

 

 

Proceeds from exercise of stock options

 

668

 

 

 

827

 

Proceeds from long-term debt

 

1,876

 

 

 

29,683

 

Repayment of principal on long-term debt

 

(31,876

)

 

 

(10,000

)

Payment of debt issuance costs and prepayment penalty

 

(332

)

 

 

 

Net cash provided by (used in) financing activities

 

(29,664

)

 

 

20,510

 

Effect of exchange rate changes on cash and cash equivalents

 

(43

)

 

 

(10

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(162,621

)

 

 

(78,109

)

Cash, cash equivalents and restricted cash

 

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

230,058

 

 

 

308,167

 

Cash, cash equivalents and restricted cash at end of period

$

67,437

 

 

$

230,058

 

EVOLV TECHNOLOGY
SUMMARY OF KEY OPERATING STATISTICS
(Unaudited)

 

Three Months Ended or as of,

($ in thousands)

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

March 31,
2023

 

June 30,
2023

 

September 30,
2023

 

December 31,
2023

New customers

 

 

44

 

 

53

 

 

92

 

 

106

 

 

61

 

 

74

 

 

70

 

 

75

Annual recurring revenue

 

$

16,641

 

$

20,865

 

$

28,741

 

$

34,120

 

$

42,021

 

$

54,339

 

$

65,774

 

$

74,989

Recurring revenue

 

$

3,159

 

$

4,604

 

$

6,221

 

$

7,388

 

$

9,075

 

$

11,689

 

$

14,377

 

$

17,350

Remaining performance obligation

 

$

63,750

 

$

80,978

 

$

109,407

 

$

144,561

 

$

161,813

 

$

198,296

 

$

221,126

 

$

240,513

Net additions

 

 

207

 

 

237

 

 

545

 

 

575

 

 

520

 

 

599

 

 

628

 

 

491

Ending deployed units

 

 

910

 

 

1,147

 

 

1,692

 

 

2,267

 

 

2,787

 

 

3,386

 

 

4,014

 

 

4,505

EVOLV TECHNOLOGY
RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES
(In thousands)
(Unaudited)

 

Three Months Ended,

 

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

March 31,
2023

 

June 30,
2023

 

September 30,
2023

 

December 31,
2023

Operating expenses, GAAP

 

$

24,760

 

 

$

25,835

 

 

$

26,827

 

 

$

26,868

 

 

$

27,256

 

 

$

31,039

 

 

$

31,629

 

 

$

32,167

 

Stock-based compensation

 

 

(3,819

)

 

 

(4,781

)

 

 

(6,298

)

 

 

(6,771

)

 

 

(4,898

)

 

 

(6,505

)

 

 

(5,454

)

 

 

(6,711

)

Restructuring expenses

 

 

(324

)

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on impairment of lease equipment

 

 

(96

)

 

 

(316

)

 

 

(626

)

 

 

(123

)

 

 

(137

)

 

 

(157

)

 

 

(28

)

 

 

 

Other one-time expenses

 

 

(1,107

)

 

 

(2,298

)

 

 

(69

)

 

 

(41

)

 

 

(53

)

 

 

(683

)

 

 

(945

)

 

 

(535

)

Adjusted operating expenses

 

$

19,414

 

 

$

18,453

 

 

$

19,834

 

 

$

19,933

 

 

$

22,168

 

 

$

23,694

 

 

$

25,202

 

 

$

24,921

 

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
December 31,

 

Twelve Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

Revenue

$

21,821

 

 

$

20,885

 

 

$

80,418

 

 

$

55,195

 

Cost of revenue

 

11,560

 

 

 

20,831

 

 

 

46,589

 

 

 

53,466

 

Gross profit, GAAP

 

10,261

 

 

 

54

 

 

 

33,829

 

 

 

1,729

 

Stock-based compensation

 

137

 

 

 

214

 

 

 

583

 

 

 

829

 

Amortization of capitalized stock-based compensation

 

14

 

 

 

9

 

 

 

47

 

 

 

24

 

Other one-time expenses

 

1,925

 

 

 

 

 

 

1,925

 

 

 

 

Adjusted gross profit

$

12,337

 

 

$

277

 

 

$

36,384

 

 

$

2,582

 

 

 

 

 

 

 

 

 

Gross margin %

 

47.0

%

 

 

0.3

%

 

 

42.1

%

 

 

3.1

%

Adjusted gross margin %

 

56.5

%

 

 

1.3

%

 

 

45.2

%

 

 

4.7

%

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

Operating loss, GAAP

$

(21,906

)

 

$

(26,814

)

 

$

(88,262

)

 

$

(102,561

)

Stock-based compensation

 

6,848

 

 

 

6,985

 

 

 

24,151

 

 

 

22,498

 

Amortization of capitalized stock-based compensation

 

14

 

 

 

9

 

 

 

47

 

 

 

24

 

Restructuring expenses

 

 

 

 

 

 

 

 

 

 

311

 

Loss on impairment of lease equipment

 

 

 

 

123

 

 

 

322

 

 

 

1,161

 

Other one-time expenses

 

2,460

 

 

 

41

 

 

 

4,141

 

 

 

3,515

 

Adjusted operating loss

$

(12,584

)

 

$

(19,656

)

 

$

(59,601

)

 

$

(75,052

)

EVOLV TECHNOLOGY
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

Net loss

$

(16,890

)

 

$

(28,304

)

 

$

(106,254

)

 

$

(86,406

)

Depreciation & amortization

 

3,151

 

 

 

1,683

 

 

 

9,932

 

 

 

5,465

 

Stock-based compensation

 

6,848

 

 

 

6,985

 

 

 

24,151

 

 

 

22,498

 

Interest expense (income)

 

(1,630

)

 

 

(1,331

)

 

 

(5,573

)

 

 

(2,453

)

Provision for income taxes

 

51

 

 

 

 

 

 

51

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

626

 

 

 

 

Change in fair value of contingent earn-out liability

 

(2,452

)

 

 

2,766

 

 

 

14,901

 

 

 

(6,988

)

Change in fair value of contingently issuable common stock liability

 

(422

)

 

 

657

 

 

 

3,138

 

 

 

(1,872

)

Change in fair value of public warrant liability

 

(580

)

 

 

(609

)

 

 

4,765

 

 

 

(4,906

)

Restructuring expenses

 

 

 

 

 

 

 

 

 

 

311

 

Loss on impairment of lease equipment

 

 

 

 

123

 

 

 

322

 

 

 

1,161

 

Other one-time expenses

 

2,460

 

 

 

41

 

 

 

4,141

 

 

 

3,515

 

Adjusted EBITDA

$

(9,464

)

 

$

(17,989

)

 

$

(49,800

)

 

$

(69,675

)

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,

 

2023

 

2022

 

2023

 

2022

Net loss

$

(16,890

)

 

$

(28,304

)

 

$

(106,254

)

 

$

(86,406

)

Stock-based compensation

 

6,848

 

 

 

6,985

 

 

 

24,151

 

 

 

22,498

 

Amortization of capitalized stock-based compensation

 

14

 

 

 

9

 

 

 

47

 

 

 

24

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

626

 

 

 

 

Change in fair value of contingent earn-out liability

 

(2,452

)

 

 

2,766

 

 

 

14,901

 

 

 

(6,988

)

Change in fair value of contingently issuable common stock liability

 

(422

)

 

 

657

 

 

 

3,138

 

 

 

(1,872

)

Change in fair value of public warrant liability

 

(580

)

 

 

(609

)

 

 

4,765

 

 

 

(4,906

)

Restructuring expenses

 

 

 

 

 

 

 

 

 

 

311

 

Loss on impairment of lease equipment

 

 

 

 

123

 

 

 

322

 

 

 

1,161

 

Other one-time expenses

 

2,460

 

 

 

41

 

 

 

4,141

 

 

 

3,515

 

Adjusted loss

$

(11,022

)

 

$

(18,332

)

 

$

(54,163

)

 

$

(72,663

)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – diluted

 

151,087,430

 

 

 

144,856,047

 

 

 

149,168,105

 

 

 

143,858,668

 

 

 

 

 

 

 

 

 

Adjusted loss per share – diluted

$

(0.07

)

 

$

(0.13

)

 

$

(0.36

)

 

$

(0.51

)

 

Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com

Source: Evolv Technology