Producing the next generation of mass security screeners, Evolv eliminates long entry lines at large events. Smart SaaS analysis eliminates the need to empty pockets, take off shoes, or belts – it’s free-flowing. This stock has multiple valuation appreciation opportunity as the list of big name clients grows.
Evolv Technologies Takes Security Screening to Next Level, Game-changing Technology for Weapons and Threat Detection
Share data, Capitalization, & Corporate info
Evolv Technologies Holdings, Inc.
Stock symbol EVLV, warrant symbol EVLVW
Recent Share Price: ~$2.09
Market-Cap: ~$301 Million
Shares Outstanding: ~143.4 Million
LTM Revenue: $28.4 Million, Cash: $270.9 Million, Debt: $12.7 Million
Company website: https://www.evolvtechnology.com/
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Evolv Technologies’ Express Detection System allows large crowds of people to be screened without queuing in a single-file line, they can keep their bags with them and don’t need to empty pockets or take off belts or shoes.
Figure 1. (above) Evolv’s Express Detection System
Large companies, well-known venues, and sports stadiums are installing Evolv systems today; e.g. Coca-Cola, Six Flags theme parks, the Lincoln Center, Wynn Resorts, and the Chicago Cubs.
Evolv can lower screening costs by up to 70%; e.g. the Tennessee Titans. Before Evolv, the Titans used about 100 traditional metal detectors. In total, it took 280 security staff to man them all. After installing 17 Evolv Express units, the Titans saw a 66% decrease in staff to just 94 per game. That saved them tens of thousands of dollars, and they also saw an increase in catching prohibited items. It used to be a 30-minute wait to enter the stadium, that wait went to nearly 0 immediately and fan satisfaction doubled from 2.3 to 4.6 out of a 5.0 score. Other NFL teams have since adopted the technology at their stadiums.
The Evolv Express Detection System is also growing in popularity with schools and government. The size of the related security industry Evolv operates in is massive and budgets are ever growing.
Video(above) — Company demonstration of technology.
SaaS (Software-as-a-Service) Business Model is “Security-as-a-Service”
Instead of simply selling a customer its detection system, Evolv signs the client up to a subscription, bundling the equipment, AI software, and cloud services altogether. Contracts typically run four years and are non-cancellable.
Subscriptions are up 3x over the past year, and the company’s backlog of subscription revenue is growing – see Company presentation for related stats https://ir.evolvtechnology.com online.
Recent stock performance and why now: Evolv merged with a SPAC (Special Purpose Acquisitions Company) last year. The SPAC bubble burst and took down the entire sector, Evolv with it (Since listing Since its listing shares are down ~70%) — but that is why you should look at it now, especially since it is proven and growing fast.
FACT: The Largest shareholder is….. BILL GATES with just over just over 15 million shares. He also has an earn-out provision, granting him the opportunity to acquire another 1.8 million shares (the share price has to trade at or above a certain price before a certain date. For Gates, he earns 600,000 shares if the price hits $12.50 per share for 20 out of 30 consecutive trading days. Another 600,000 unlocks at $15 per share. The final third hits at $17.50 per share. This needs to happen before warrant expiration March 5, 2026).
Note on timing a purchase: Currently we are in a general bear market for stocks, this makes stock picking timing difficult. Consider buying warrants instead of the stock if you want to limit risk. Don’t get mad if the stock goes down, be happy as you can get more stock at a cheaper price… so do not necessarily buy all in one tranche — the point here is, this appears a good company to scale into over the long run.
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