Evolv Technologies posts Q2 profit beat, revenue above forecasts

Evolv Technologies Holdings Inc. said on Wednesday its second-quarter results topped Wall Street estimates, with adjusted earnings per share and revenue both surpassing consensus forecasts.

The company, which provides AI-powered security screening systems for venues including schools, stadiums and corporate sites, reported adjusted earnings of 2 cents per share, beating the average analyst estimate of a 1-cent loss. Revenue rose 12% year-over-year to $21.3 million, exceeding the $20.1 million estimate compiled by Refinitiv.

Evolv attributed the outperformance to increased adoption of its Evolv Express screening platform, which uses artificial intelligence to process individuals at high throughput without requiring them to remove personal items. The company noted demand from both new and existing customers across its core markets.

Chief Executive Officer Peter George said the results reflected "continued momentum" in the company’s go-to-market strategy, including expansion into commercial and government sectors. Evolv has emphasized its focus on scalable, automated security solutions amid heightened global safety concerns.

Shares of Evolv Technologies were up 5% in pre-market trading following the report, extending gains after the earnings release. The stock has gained roughly 15% over the past month, outperforming the S&P 500’s 3% advance during the same period.

Analysts at William Blair maintained an Outperform rating on the stock, citing the company’s leadership in AI-driven security and potential for further market penetration. Evolv’s next earnings report is scheduled for November 2024.