Evolv Technologies Holdings, Inc. · NASDAQ:EVLV

Evolv Technologies — Q4 2021 Earnings Presentation

28 slides from Evolv Technologies's earnings presentation, Mar 14, 2022

1. Slide 1: Q4 2021 Earnings Call

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Q4 2021 Earnings Call March 14, 2022

2. Slide 2: Safe Harbor Statement & Use of Non-GAAP Measures

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Safe Harbor Statement & Use of Non - GAAP Measures 2 Certain statements in this press release may constitute “forward - looking” statements and information, within the meaning of Sect ion 27A of the Securities Act of 1933, Section 21E of

3. Slide 3: Peter George, Chief Executive Officer

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Peter George Chief Executive Officer

4. Slide 4: Our Vision

   ©Copyright 2021 Evolv Technologies, Inc. All Rights Reserved. Our Vision A safer world for people to work, learn and play.

5. Slide 5: Trends Driving Our Market

   ©Copyright 2021 Evolv Technologies, Inc. All Rights Reserved. Safe Healthy Contactless Personal Frictionless Informed Trends Driving Our Market

6. Slide 6: The Imperative Today

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. The Imperative Today • We believe the pandemic has changed the way we live, work and play • We believe people have an elevated sense of anxiety about gathering again • Gun viol

7. Slide 7: Strong year of growth despite pandemic challenges

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Strong year of growth despite pandemic challenges • Revenue growth of 236% in Q4’21 and 395% in 2021 • Strong new customer adoption across key vertical markets • Growing momentum and scale with channel partners • Key product innovations w

8. Slide 8: Accelerating new customer adoption across strategic verticals

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. 6 13 21 23 27 Q1 Q2 Q3 Q4 Accelerating new customer adoption across strategic verticals Q4 New Customers * Q4’21 +350% YoY *New customers which placed a purchase order with the Company in the year Partial List of New Q4’21 Customers Unnam

9. Slide 9: Growing momentum from partners as we become a channel centric company

   ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Growing momentum from partners as we become a channel centric company 2021 TCV * by Channel Direct 70% Channel 25% Motorola Solutions 5% *TCV = Total Contract Value of Orders Booked 9

10. Slide 10: We continue to extend our technology and market advantage

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. We continue to extend our technology and market advantage AI - based platform delivered via SaaS model • 250K+ data points per visitor • 500K visitors screened daily • 200M visitors scanned • 200+ customers • 700 subscriptions • Thousands

11. Slide 11: Significant drivers of sustainable growth

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. • Secular growth drivers remain strong and public safety is more important than ever • Significant long - term opportunity for growth with existing and new channel partners • Ancillary revenue streams with Analytics and Digital tools to d

12. Slide 12: Mario Ramos, Chief Financial Officer & Chief Risk Officer

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Mario Ramos Chief Financial Officer & Chief Risk Officer

13. Slide 13: Strong secular growth trends fueled our financial results in 2021

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Strong secular growth trends fueled our financial results in 2021 13 Recurring Revenues Subscription + Service Revenue ARR* $9.8M +180% YoY * Annual Recurring Revenue (ARR) represents subscription revenue and the recurring service revenue

14. Slide 14: Customer adoption is driving accelerated growth in backlog

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. 214 278 391 567 703 32 64 113 176 136 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Customer adoption is driving accelerated growth in backlog although Omicron is impacting the rate of installations Ending Deployed Units Net Additions Note: Deployed Unit

15. Slide 15: We grew ARR by 220% and RPO by 200% in Q4'21

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. We grew ARR by 220% and RPO by 200% in Q4’21 Remaining Performance Obligation 2 $ in Millions 2 Remaining Performance Obligation (RPO) reflects the difference between contract value and revenue recognized for installed units as of the end

16. Slide 16: Strong Q4 and full year financial results

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Strong Q4 and full year financial results Q4 2021 2021 $ (Millions) YoY Chg $ (Millions) YoY Chg Revenue $6.8 236% $23.7 395% CoGS $6.5 317% $17.0 388% Gross Profit $0.3 - 34% $6.7 415% Gross Margin 4% - 28% - Total OpEx $22.3 128% $60.7

17. Slide 17: Attractive gross margin from predictable and growing recurring revenue

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Attractive gross margin from predictable and growing recurring revenue 17 Rapid Gross Profit Expansion $630 $1,152 $1,247 $2,180 $2,592 $186 $312 $597 $3,109 $475 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Total Adjusted Gross Profit* $ in Thousands N

18. Slide 18: Fiscal year 2022 business outlook

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Fiscal year 2022 business outlook Estimate 2022 Business Outlook 1 YoY Growth Total revenue $29 - $31 22% - 31% Annual Recurring Revenue 2 at 12/31 $27 - $28 109% - 117% Operating expenses $94 - $96 55% - 58% Operating loss ($82) - ($84)

19. Slide 19: Scalable investments to support growth plans

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Scalable investments to support growth plans 19 Key Investment Areas Research and Development • Focusing on next generation Express to deliver significant cost reductions and drive gross margins higher • Ancillary products to drive ARPU o

20. Slide 20: We expect an elevated cash burn into 2023

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. We expect an elevated cash burn into 2023 as we ramp up investments and emerge from supply chain constraints Meaningful operating losses from public company expenses as well as early - stage investments in S&M Expect meaningful leverage i

21. Slide 21: Additional modeling considerations

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. • Omicron impacting installations in Q1’22 which will impact the linearity of both product and subscription revenue • Expect both TCV and revenues to further accelerate in second half of 2022 • Mix of newly deployed units expected to be ~

22. Slide 22: Q4 2021 Earnings Call Q&A Session

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Q4 2021 Earnings Call Q&A Session

23. Slide 23: Appendix

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Appendix

24. Slide 24: Change in Standalone Selling Price (SSP) resulted in lower revenue recognition in Q4'21

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. 24 Change in Standalone Selling Price (SSP) resulted in lower revenue recognition in Q4’21 without an impact on the fundamentals The change in SSP is reflective of the increasing portion of our client contracts that come from software pla

25. Slide 25: Gross Profit and Gross Margin Reconciliation

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. 25 $ in Thousands Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 2021 Recurring Gross Profit – GAAP $427 $775 $754 $1,744 $1,922 $5,195 - Stock Based Compensation 2 4 4 25 16 49 - Depreciation & Amortization 343 411 577 744 848 2,581 - Non - recurring Ser

26. Slide 26: Reconciliation of 2022 Net Income (Loss) to Adjusted EBITDA

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. 26 Reconciliation of 2022 Net Income (Loss) to Adjusted EBITDA* * Adjusted EBITDA is defined as net income (loss) plus depreciation and amortization, share - based compensation and other expense. Management presents these non - GAAP finan

27. Slide 27: Glossary of Key Terms

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved. Glossary of Key Terms 27 Term Definition Adjusted EBITDA Adjusted EBITDA is defined as net income (loss) plus depreciation and amortization, share - based compensation and other expense Annual recurring revenue (ARR) Represents subscripti

28. Slide 28: ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved.

    ©Copyright 2022 Evolv Technologies, Inc. All Rights Reserved.

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