Evolv On COVID Money "Drying Up"
COVID funding is "drying up," noted Evolv's CEO Peter George, a core financial driver over the last few years for massive school security spending for fever cameras and metal detectors.
In this report, we examine Peter George's outlook on the significant federal funding expiring, his claim that it won't have "a big impact going forward," and how shrinking school budgets may impact the company.
Evolv *** ** "****** ** ******* *********" ** ***** *******
** * ***** ******** ****** ******* *************** *****, *********** *************** ***** ******** ******:
[*********] *** ********* *** *** ****** care **** ** ***** *** ****** of ******* ********* ** ***** *****-******* funding *** ****** *** **?
** ********, ****** ************ ****** ******* is "****** ** **** *********," *** minimized *** ****** ** *****, ***** he **** ** "******* **** * lot ** ******* ** ***** ******* sources...so ** ***'* **** ** ***** a *** ****** ***** *******."
** *********,ESSER ******* ** ****** ** **** *********. So September of 2024. We've already been working **** * *** ** ******* ** ***** ******* *******, not just their own operating budgets, but other funding sources, other grants that are available to them to help put systems in like ours. So ** ***'* **** ** ***** * *** ****** ***** *******. [emphasis added]
** *****, "**'* **** ** ****** need ** **** **** *** ****** safe," ********* **** ******* - **** as **** ** ********* - **** ensure ******* **** * *** ** buy *****, ************ ** ****** **********:
**'* **** ** ****** **** ** keep **** *** ****** ****. **'* becoming * ******** *** ******* *** educators *** *********.
***** ********** ** **** ** *** May **** ******** ****, *********** **** schools *** ******* ***** **** ** pay *** *****'* *******.
** *** ****** * ***** ** more*************** ****** *** *** **** **** security ********** ** *********** *** ***expiration ** ***** ******* later this year.
****** ****** ***finding **** ** **** *** ******** ***** ***** ********* ******* *** ******* ******** *******. This can make Evolv more embedded in a district standard purchasing motion as opposed to a one-time brand. School officials are finding creative ways to prioritize our solution in the absence of obvious funding sources. We're also seeing larger school districts in states like Maryland and Kentucky, increasingly phased their deployments over multiple quarters. [emphasis added]
***** *** *** ******* **** ********** of ****** ********* *** ******* ***** alternative *****.
** *** **** ****, ***** ************ that **** *** *** ****** ********* competitive ******** *** *** ******** **** pricing, ****** *********** **** **** ******* they *** ***** ******** * ******* pricing ********:
**'** ****seeing **** *********** *********, I think we haven't seen before. We've seen more and more pricing competition in some of the deals. I think there's a clear technology benefit to what we're doing. So I think the comparative on the technical perspective is very high. But from a pricing perspective, we are a premium priced product. We have, though, gone and been ******** ** ******* and particularly in the school systems where there's a lot of volume.
** **** ** **** ******** **** down **** **** ** **** **** our ********* *** ********* ** ******** kind ** ****** ****we're ********** *** ***** ******* **** ** *** *********** *** *****. In other verticals, there's still -- we're still able to maintain pricing because of the value we're providing. The throughput that we can provide and the technical differentiators, I think, still are helpful to maintaining our pricing position. [emphasis added]
$190 ******* ******* **********
****** ** ********* ** *** ********** of********** *** ********* ****** ********* ******(*****) *******, $*** ******* ** ******* grants ******* ** ******** *****-**'* ****** on *******. ******** ******* **** ** to ********** ********* ** ****** *** to ***** **, *** ******* ********* new ******** **********, ******* *** ****** ** *******.
*************** ****** ** ********* **, ****, *****-****** ********* ******** ** ******* ******** ** ** ******* ** ********** *** ****, ** up ** ** ****** ***** ********** ** ********* ******.
Impact ** ***** ********
******** ***** ****** ******** **** *****'* expiration ***'* **** "* *** ******" on *****, ** ***** *** **** removing * ******* ****** *** ******** purchases, *** ******** **** ** ****** budgets *********.
****** ******* ** ******* ** *****. In ***** **** ******** ****, ***** ****** **** ******* *** Evolv's "****** *** *** ****** *** represented **% ** *** ******** ** 2023."
******* ********* **** **** ***** ***** to ******** *****, **** ***** ******** ****** *************** ****** *******. *******, ******* *** ***. ****** William ****** ******* **** *** $**.* million ** ***** *** ** *** own ******, ************ ****** ***** ***** ****** ***** ************ ***** ***** **** *********.
*****, **** ***** ****** ********* *** not *** ***** ***** ** *****, ESSER ******* ******** **** ***** ********** have **** *** ** ***** *** budgets. *** ******* ****** *** *******, their ******** **** *** ** ******* in, ** **** ***** *********.
*** ********, *** ******** ** ******** Public *************** * **% ****** *********.******* ******* *** ******* "********* *****" *** *** **** to *** *** ******** *** ***** go. ******* *** **** ******* ******* to **** ** *** **********. **** can *** *** ********* ** **** issuances, ****** ** *********,****** **** *************** **** *********. ** **** *****, districts **** **** ** ****** *** to ***** *******, *** *** *** staff.
**** ** ***** ****** *** ** obtained, ** ****** ********, ***** ******* was ************* ** **** *** ******* currently ******** **. ****** ***, ******* may ** ****-******* ** ****** ** multi-million ****** ***** *** ***** ***** at *** **** **** ****** ********.
** *** ********** ****** ******, ***** ****** ************ **** "*** availability ** ********** *******" ******* *** business, *** *********** * ****.
Prospect ** *** ******* ******* ** ******* ******
*********, *** ******* ********** *** ** plans ** ****** *** ***** **** ESSER ** ********* ******* **** ******* for ****** ******** ********. *******—*** ******* companies **** *****—**** *********** ***** *** further *******, *** **** *** *** succeed ** * ******* ********. ***** governments ***, ** **** *****, **** in.
** * ****** ********** ****** ******** occurs ** *** **** ******, ** could *********** *** ******* ******* *** school ********,** ** *** ****. *** **** ****** ********* **** seen *********** *********** *****'* ***** *****.
** *** ** *** ** * have **** ********...
*** ************* **** $$ ****** *** up ** *** *** *****-******* ****** protections *** **-***** ** **-****** ******* detection ****** ** ****** *** ****** of ***** **** $$ ** **** the ********* ** ***** *** ******** 'solutions' - *** *** *** **** $$ ****** ** ***** ****** ***?
** ******... *** ***!
*** **** ****** ********* *** ******* to ******** ***** *** $$ ** 'solutions', * ****** ***** **** ** much **** ******** ********* *** *********** between ****** ***** *** ********* *****.
******* ********** ********* *** **** ** the ******, *** ************ ***** ** the ******.