WALTHAM, Mass. - Evolv Technology (NASDAQ: EVLV), known for its AI-based security screening solutions, has obtained a U.S. patent for its technology that distinguishes threats in public spaces. The patent, issued by the United States Patent and Trademark Office (USPTO), covers the Evolv Express® system, which is currently utilized in various venues globally, including stadiums and schools.
The patent, titled Personnel Inspection with Threat Detection and Discrimination (U.S. Patent No. 11,568,734), was granted last year. It recognizes the company’s method of classifying objects as threats or non-threats using radio frequency (RF) electromagnetic data. This technology is a key component of Evolv Express, which was introduced in 2019 and has since been adopted by more than 800 customers worldwide.
Evolv’s co-founder and chief innovation officer, Michael Ellenbogen, emphasized the significance of innovation in the physical security industry and expressed the company's commitment to advancing security measures. Evolv Express is designed to enhance visitor screening by distinguishing potential threats from everyday items, such as phones and keys, without causing congestion at entry points.
The system, which scans over one million people daily, has been recognized with several accolades, including the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT). Moreover, it has received awards in the Screening Equipment category and for advancements in sports and fan experience technology.
Evolv Technology's mission is to transform human security for a safer world in various sectors, including entertainment, education, healthcare, and worship. With a growing portfolio of over 30 issued U.S. and foreign patents, the company continues to lead in AI-powered weapons detection and analytics.
The information for this article is based on a press release statement.
In other recent news, Evolv Technology, a leader in security screening solutions, has experienced robust growth in the second quarter. The company reported a 29% year-over-year increase in revenue to $25.5 million and a 64% rise in annual recurring revenue (ARR) to $89 million. This growth is attributed to strong customer acquisition and product adoption, with 84 new customers added, bringing the total to over 800 across 10 vertical markets.
Evolv Technology also launched a major software update, integrating Evolv Express into customers' security infrastructure. The company's partnerships with ASM Global and Motorola (NYSE:MSI) have been highlighted as key growth drivers. Looking ahead, Evolv Technology is focusing on the industrial warehouse vertical, projected to be a significant revenue contributor in 2025.
The company's CEO, Peter George, expressed confidence in the company's momentum and its strategy to achieve long-term financial goals. Evolv Technology expects to achieve 25% revenue growth in 2024 and anticipates positive adjusted EBITDA by Q2 2025. The company also reaffirmed its full-year guidance, expecting revenues and ARR of around $100 million.
InvestingPro Insights
Evolv Technology (NASDAQ: EVLV), while pioneering in the security screening sector with its latest U.S. patent, shows a complex financial picture. The company holds a market capitalization of $450.59 million, which is significant for a firm in this niche industry. However, the financial data indicates some challenges. The company's P/E ratio stands at -4.88, reflecting investor concerns about profitability, a sentiment echoed by analysts who do not expect Evolv to be profitable this year, as seen in the additional InvestingPro Tips.
On the liquidity front, Evolv's balance sheet appears robust, with more cash than debt, ensuring the company can meet its short-term obligations. This is a vital sign of financial health, particularly for a company that is quickly burning through cash. Moreover, the stock has experienced volatility, with a notable decline over the past week and year, yet it has managed to secure a strong return over the last three months.
Investors and potential stakeholders might be interested in the revenue growth metrics, which show a 17.67% increase in the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 28.83% in Q2 2024. These figures suggest that while the company faces profitability challenges, it is managing to expand its top-line earnings at a healthy rate.
For those considering an investment in Evolv Technology, it's worth noting that the stock does not pay a dividend, which may influence the investment strategy for income-focused portfolios. For more detailed analysis and additional InvestingPro Tips, there are 10 more insights available on the InvestingPro platform.
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