Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) Q3 2023 Earnings Call Transcript

Brett Knoblauch: Understood. Thanks, guys. Congrats on the quarter.

Brian Norris: I’m going to turn the call over to Peter George for a few closing remarks.

Peter George: Yes. Thanks, Brian. Well, thanks everybody who joined us today. We’re really pleased with the results that we were able to take you through. We thank our customers and our partners, all of the dedicated evolvers that work tirelessly every single day to make our systems better, more accurate and more secure to keep venues safe. We’re really pleased with what we were able to talk about today in terms of our results. We had record revenues, record ARR, record RPO and record gross margins. And I just want to reiterate that we took year-on-year our gross margins from 3% to 57%. So huge benefit there. And as Mark talked about, there’re some headwinds with our distributor in terms of the purchase subscription, but the benefit there comes in gross margins which should get us to EBITDA positive sooner than we would have thought before.

So some real goodness there as a company. We continue to see really great customer activity and acquisition. We had 70 new customers this quarter. I’ll remind you our largest customer, Charlotte-Mecklenburg District Schools, has 180 systems but we count that as 1 customer. So we have an expanding ASP with our customers. We continue to innovate in the company. We’re thrilled about the Extend product pushing the perimeter out, being able to gain time to prevent mass shootings from happening. Mark already mentioned our distribution bottle and how that’s staying off particularly in gross margins. And then as we think about next year, right, the 50% ARR growth and then 50% revenue growth we’re thrilled about. So we’ll get to adjusted EBITDA positive, as we mentioned, in the first half of 2025 and we’re excited about that.

All that being said, while we take great pride in our achievements, it weighs heavily on us and our hearts to share tonight amidst the global conflicts and the escalating violence going on around the world. The unfortunate cycle of violence results in sorrow, loss and perpetuates further harm. At Evolv, we are resolute in our belief that the world triumphs over adversity by persisting in the pursuit of positive change. As evolvers, we are relentlessly committed to making the world a safer place to live, to work, to learn and to play. Thanks, everybody.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T conferencing service. You may now disconnect.