NASDAQ$EVLV

Evolv Technologies Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Evolv Technology reported record third quarter financial results and reaffirmed previously raised outlook for 2023 and issued outlook for 2024 above street consensus.

Evolv Technology announced strong Q3 2023 results, with revenue up 22% year-over-year to $20.2 million. The company's ARR increased by 129% year-over-year, reaching $65.8 million. Net income was $6.0 million, a significant improvement compared to the previous year's net loss.

  • Q3 revenue reached $20.2 million, a 22% increase year-over-year.
  • Ending ARR for Q3 was $65.8 million, representing a 129% year-over-year growth.
  • Q3 ending RPO was $221.1 million, up 102% year-over-year.
  • Evolv Express subscriptions grew to 4,014, a 137% increase year-over-year.

Headline financials

Total Revenue

$20.2M

Previous: $16.5M+22.1%
EPS (adj)

-$0.08

Previous: -$0.13+38.5%
Capital Expenditures

-$19.1M

No prior period
Free Cash Flow

$6M

Previous: -$18.6M+132.2%
Net Income

$6M

Previous: -$18.6M+132.2%
Operating Income

-$20.2M

Previous: -$26.6M+23.9%
Gross Profit

$11.4M

Previous: $225K+4962.2%
Cash & Equivalents

$99.6M

Previous: $218M-54.4%
Total Assets

$306M

Previous: $326M-5.9%
R&D Expense

$6.41M

No prior period
Stock-Based Comp

$5.57M

Previous: $6.53M-14.6%

Revenue & EPS history

Evolv · Revenue · Quarterly

$20.2M

Q3 2023+22.1%vs Q3 2022
Beat estimate in 13 of 14 quarters(93%)
ActualEstimate

Revenue by segment

Evolv · $18.6M total across 3 segments · Q1 2023

  • Product Revenue
    $8.75M
  • Subscription Revenue
    $6.47M
  • Service Revenue
    $3.36M

Forward guidance

The Company reaffirmed its business outlook for 2023 as previously raised on October 12, 2023 and provided a preliminary outlook for 2024.

Tailwinds

  • Total Revenue ~$75-$77 million (2023, Reaffirmed)
  • Total Revenue ~$115 million (2024)
  • ARR at 12/31/23 ~$73-$75 million (2023, Reaffirmed)
  • ARR at 12/31/23 ~$108-$112 million (2024)
  • Adjusted Gross Margin ~43%-45% (2023, Reaffirmed)

Headwinds

  • Adjusted Gross Margin ~60% (2024)
  • Adjusted EBITDA ~($50-$53) million (2023, Reaffirmed)
  • Adjusted EBITDA Improve by 40%+ (2024)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.9%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+6.3%

Avg return

30 days after

59%

13 / 22 earnings

Positive

+29.2%

Q3 2022

Best reaction

-45.0%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-17.6%-11.3%
Q4 2025+9.7%-1.1%+13.5%
Q3 2025-8.7%-10.0%+6.5%
Q1 2025+7.8%+3.1%+3.4%
Q3 2024-0.9%-5.4%+22.3%
Q4 2024-1.4%+4.3%+31.3%
Q2 2024-1.7%+4.1%+23.2%
Q1 2024-38.9%-26.9%-36.3%
Q4 2023-13.7%-18.0%-3.3%
Q3 2023-11.8%+0.8%+13.8%
Q2 2023+26.4%+28.4%+12.6%
Q1 2023+25.2%+28.6%+50.4%
Q4 2022+10.2%+4.7%+13.5%
Q3 2022+29.2%+29.2%+31.4%
Q2 2022+14.5%+18.8%-16.7%
Q1 2022+12.8%+20.9%+57.2%
Q4 2021-45.0%-42.1%-18.4%
Q3 2021+17.5%+9.8%-23.3%
Q2 2021-13.1%-5.8%-33.9%
Q1 2021+0.1%+0.3%+0.1%
Q4 2020+0.2%-0.4%-0.8%
Q3 2020+0.4%+0.7%+2.6%
Q2 2020

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