Evolv Technologies Holdings, Inc., a security technology firm known for its AI-based solutions, has announced that 92% of its eligible K-12 education customers chose to continue their contracts following a 60-day cancellation period.
This period was part of a resolution with the United States Federal Trade Commission (FTC), allowing certain customers to end their contracts early.
Contracts and Revenue Analysis
Of the 65 educational institutions eligible for contract termination, comprising 237 Evolv Express units, 60 chose to maintain their agreements, representing 213 units. Additionally, four schools expanded their use by acquiring 10 more units after the resolution announcement with the FTC.
Overall, this resulted in a 92% net revenue retention and a 94% net unit retention among the eligible customers. These metrics illustrate a strong retention rate despite the option to cancel. Notably, Wyoming Valley West School District increased its number of Express systems, satisfied with the performance of the security technology.
Safety Planning and Satisfaction
Anthony Dicton, Safety and Security Coordinator at Wyoming Valley West School District, shared positive feedback, stating, "We first deployed the Evolv Express systems in 2022 in our schools after evaluating different options and continuing to come back to the fact that Evolv performed at a superior level across the board."
He added that the school expanded its Express systems by 50% due to impressive results, underlining the system's significance in their safety planning.
Handling Cancellation Requests
Five customers, representing 24 units and approximately $445,000 in annual recurring revenue, requested contract cancellations.
Despite this, these customers intend to use the technology until the end of the 2024-2025 academic year. They were initially informed of their eligibility to cancel as part of Evolv's resolution with the FTC.
Commitment to Safety
John Kedzierski, President and CEO of Evolv Technology, expressed gratitude for the trust clients have in their services. "We appreciate our customers’ continued commitment to the Evolv system and take seriously the responsibility of being a trusted partner in helping to make schools and communities safer," he said, emphasizing the company's priority on safety in the communities they serve.
Evolv Technologies Holdings, Inc., a foremost security technology company pioneering AI-based solutions designed to help create safer experiences, announced the expiration of the previously disclosed 60-day cancellation period, under which a limited number of the Company’s K-12 education customers could cancel the remainder of their subscription contracts with the Company as part of Evolv’s resolution with the United States Federal Trade Commission (FTC).
Contracts and revenue
Of the 65 education customers (representing 237 Evolv Express units) who were eligible for contract cancellation, a total of 60 customers (92%) representing 213 Evolv Express units (90%) elected to retain their contracts with Evolv. Importantly, four of the 65 eligible customers expanded their use of Evolv Express by adding a total of 10 additional units acquired since the Company announced its resolution with the FTC.
Netting the expansion and cancellation activity since the Company announced its resolution with the FTC, the Company achieved 92% Net Revenue Retention3 and 94% Net Unit Retention3 across the 65 eligible customers. Wyoming Valley West School District, who was part of the cohort of customers eligible for cancellation, recently increased its fleet of Express due to their satisfaction with the system’s performance.
Safety planning
“We first deployed the Evolv Express systems in 2022 in our schools after evaluating different options and continuing to come back to the fact that Evolv performed at a superior level across the board,” said Anthony Dicton, Safety and Security Coordinator at Wyoming Valley West School District.
“That initial evaluation has proven to be more than accurate as Evolv has been an important part of our safety planning and we couldn’t be more pleased with the partnership. We just expanded our Express systems by 50% because we have been so impressed by the results.”
Cancellation requests
The Company received cancellation requests from five out of the 65 eligible customers. These customers represented a total of 24 Evolv Express units, currently estimated at approximately $445 thousand dollars of annual recurring revenue (ARR).
Each of these customers has requested to maintain their existing deployment through the end of the 2024-2025 school year. The customers were notified of their eligibility to cancel existing contracts in connection with the previously announced resolution entered into last year with the FTC.
Keeping schools and community safe
“We appreciate our customers’ continued commitment to the Evolv system and take seriously the responsibility of being a trusted partner in helping to make schools and communities safer,” said John Kedzierski, President and Chief Executive Officer of Evolv Technology. “Our top priority remains the safety of people and the communities we serve.”
