Evolv Technology, Inc. today provided an update on select strategic metrics for the three-month period ended December 31, 2024. The company also provided an update on its pending restatement effort and other regulatory matters.
According to preliminary estimates, which are subject to change, for the three-month period ending December 31, 2024, the company:
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Surpassed 6,000 Evolv Express units deployed globally with the activation of approximately 470 new multi-year subscriptions;
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Added approximately 60 new customers across multiple industries, including education, healthcare, professional sports and live entertainment, tourist attractions, and industrial workplaces;
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Added nearly 100 additional school buildings and now serves over 1,200 school buildings;
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Added over 30 additional hospital buildings and now serves over 450 hospital buildings;
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Booked its first orders of Evolv eXpedite, the company’s new AI-based weapons detection solution for bags; and
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Ended the quarter with cash, cash equivalents, marketable securities, and restricted cash of approximately $52 million on December 31, 2024, and no debt.
“We’re pleased with our solid finish to 2024. During the fourth quarter, we saw strong new customer adoption across a broad range of industries, significant expansion by our existing customers, exciting market traction of Evolv eXpedite, and the resolution of certain regulatory matters,” said John Kedzierski, President and Chief Executive Officer of Evolv Technology. “Looking ahead to 2025, we remain focused on achieving positive adjusted EBITDA in the second quarter with positive free cash flow in the fourth quarter. We thank our customers, partners, employees, and shareholders for their continued support of our mission to make the world a safer and more enjoyable place for people to live, work, learn, and play.”
Restatement Update
The company today also provided an update on its restatement efforts as previously disclosed in the company’s press release dated October 25, 2024. The company submitted to The Nasdaq Market LLC on January 17, 2025, a plan of compliance to address how it intends to regain compliance with the Nasdaq Listing Rule 5250(c)(1) as a result of the delayed filing of the company’s Quarterly Report on Form 10-Q for the period ended September 30, 2024.
If accepted, Nasdaq can grant an exception of up to 180 calendar days from the filing's due date as extended by Rule 12b-25, or until May 19, 2025, to regain compliance. In partnership with AlixPartners LLP, a leading global business advisory firm, the company is working expeditiously to complete the restatement effort and file the quarterly report and the restated financial statements. The company will host a publicly accessible conference call to review the financial results once they have been filed.
FTC Inquiry Update
On November 26, 2024, the company announced that it had resolved the United States Federal Trade Commission’s (FTC) inquiry into certain aspects of the company’s prior marketing claims. As part of that resolution, the company agreed to offer a limited number of its K-12 education customers the option to cancel the remainder of their current contracts with the company during a 60-day cancellation period.
In total, this group of customers represented approximately 237 Evolv Express units, approximately $3.9 million of the company’s Annual Recurring Revenue, and approximately $10.5 million of the company’s Remaining Performance Obligation. Per the terms of the resolution, notice was sent to this limited group of customers about their contract cancellation option. As of January 23, 2025, no customers had exercised their contract cancellation rights provided by the resolution. The vast majority of the cancellation rights available to this group of customers are scheduled to expire by March 14, 2025.
View CEO John Kedzierski's announcement video here.
