Evolv Technologies (EVLV) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue rose 4% YoY to $21.8M; ending ARR increased 120% to $75.0M and RPO rose 66% to $240.5M.

• FY 2023 revenue grew 46% to $80.4M; GAAP net loss widened to $106.3M, while adjusted net loss and adjusted EBITDA improved YoY.

Financial highlights

• Q4 recurring revenue rose 135% YoY to $17.4M; non-recurring revenue fell 67% to $4.5M. FY recurring revenue rose 146% to $52.5M; non-recurring revenue declined 17% to $27.9M.

• Q4 GAAP net loss was $16.9M, or $0.11/share, versus $28.3M, or $0.20/share; adjusted net loss was $11.0M versus $18.3M.

• FY GAAP net loss was $106.3M, or $0.71/share, versus $86.4M, or $0.60/share; adjusted net loss improved to $54.2M from $72.7M.

• Adjusted EBITDA loss narrowed to $9.5M in Q4 from $18.0M; FY adjusted EBITDA loss narrowed to $49.8M from $69.7M.

Outlook and guidance

• 2024 outlook was reaffirmed: revenue of $108M-$112M and ending ARR of $115M; adjusted EBITDA improvement targeted at 40%+ versus 2023.

• Adjusted gross margin outlook for 2024 was reaffirmed; forward-looking adjusted EBITDA and gross margin cannot be reconciled to GAAP without unreasonable effort due to unpredictable items.