Evolv Technologies (EVLV) TD Cowen 47th Annual Aerospace & Defense Conference summary

Company mission and market context

• Founded in 2013 to address rising mass shootings and violence in public spaces, aiming to make environments safer and more enjoyable for all.

• Identified a gap in security innovation for everyday venues compared to aviation and military sectors.

• Engaged with hundreds of security leaders globally to understand threats and operational needs.

• Focused on enabling rapid, accurate screening with minimal disruption to people’s movement.

• Emphasizes the importance of technology augmenting security staff, given high turnover and varying experience levels.

Technology and product innovation

• Developed AI-enabled touchless screening systems: Evolv Express for people and Evolv eXpedite for bags.

• Systems use sensor fusion, AI, and real-time alerts to distinguish threats from personal items and guide security responses.

• Automated bag screening is 2-3 times faster than traditional X-ray, with AI making instant decisions.

• Devices are network-connected, allowing for panic alerts and integration with broader security ecosystems.

• Adjustable sensitivity settings allow customization for different threat scenarios and operational setups.

Business model and growth strategy

• Operates a hardware-enabled SaaS model with regular software and algorithm updates to address evolving threats.

• Customers pay an annual fee for updates, service, and maintenance, ensuring predictable costs.

• Entered a dual-sourcing manufacturing agreement with Plexus to scale globally, aiming for full operational capacity by H2 2026.

• Holds four-year non-cancelable contracts, fostering long-term customer relationships and data-driven improvements.

• Sees a $20 billion total addressable market, with current penetration at a small fraction of 700,000 potential entrances.