Evolv Layoffs And Sales Problems

Published Jul 10, 2024 13:00 PM

Earlier this year, Evolv cut its guidance, and its stock plummeted. Now, the company is having layoffs and struggling with sales.

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In this report, we examine Evolv's internal problems, their causes, and what the company could do to resolve them.

***** *** ******* ****** ***** *** *************— ******* **** ******* ******** ** 10%+ — *** ******* ********, *** secondary ******* *** *** ******** - internal ********** ****** *****'* ***** **** and ** ***** * ***** ****** round.

***** **** *** ****, *****, ** many ********, **** **** ********* ***** for *****'* ***********, **** ** * challenging **** **** ****** ***** ****** and ****** ********. ** *** ******* is *** ******* *** ************ *** earlier ** *** **** (***-*** ************), many ** *** *********** *** ************* missing ***** *******.

************, ***** ***** **** ** ****** announcements, ******* ***** ** *** ******* confirmed **** ***** *** ** ***** a ***** ***** ** *******. ******* the ****** **** **** *** ** left *********, **** ******** **** ******* sales ****** *****'** **** * ****** (despite *** *** ************* ***** ****** the ***** *****'* ******* ***, ****, not ***** *****).

** *******, ***** ** ** *** midst ** * ******* *****, ******* with *** ********** **************, ********, ***** criticism, *** ******** ********.

*** ****-**** ******** *** ***** ** to ****** **** *** ** **********, which ***** ****** **** ** * stock ***** ******** (******** *** ******** from *** ***** ****** *******) *** reduced ***** ******. ** ****, **** would **** ** ***** **-************ *** sales *** *** ****** ********* ** higher ***********. ** ******* ** ** seen, *******, ** ******** **** *** SEC *** *** ** ******** ** acceptable ***** **** ***** *** ****** its *** *** *** ** ********.

Cutting ********

****** *** ** **** ********* ******* call, ************* ***** ****** ***** *** SEC ************* *** *********, ***** ********* that *** *** ************* ** ********* the ***** ****** (******** ** ***** initial *******) *** ** ***** ** cutting *** **** ******* ******** ** ~13%:

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*** **** ******* ** *** ********** investigations *** ***** ********** *** ******* from ****, ***:

Not ******* ***** **********

******* ******* ******** ** * ****** outcome ** ***** ****** * **** difficult **** ******* *** *****, *****, by *********, ***** **** **** ********** salespeople *** *** ******* ***** ***** objectives. **** ******* ***** ************, ** typically, * *********** ******* ** *** salary ** ***** ** *** *********** from *****.

** ******** ******* ********* ** ****, 2022 *** **** **** **** ********* for *****'* ***********, ***** *********** *** problem ** *** ******* *** ***** in ****.

*** ******* ** **** *** **** years *** *****, *** ** ***** top *********** ************** ****** ***** *****, according ** *** *** ********** ** LinkedIn, ********* **** **** ******** *** 2022 ***** ** $*.** *******:

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Internal **********

******* *****, ** ******, *** ****** discontent. *******, **** **** ** *** of *** ******* ** ***********, ***** feelings *** *********.

******* ********* ** **** **** ***** is ******* **** ********* ******** ********* - ********* **** ** ************ ** conversations **** ***** ***** ** *** company *** ******** ************ ******** ******* on ********* ***** ***** ****.

*******

***** ***** **** **** ** ****** announcements ** *******, ******* ***** ** Evolv ********* ** **** **** ** had * ***** ** *******. ******, at ***** *** **-***** ****************** "********* ** *****":

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**'* ********* ** ******** *** **** of *** *****, *** **** ******** that ** *** ** *** ******* side (**** **** **%). ******** ***** a *% ******** ** ********* ** May ****, ******, **** *******, ****** in ******** ******** ******** **** ** underrepresent *** **** ***** ********:

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******* ***** *********** **** *** ******* in ****** ****, *** ********** ** whether ***** ****** **** **** *** or **** *********, **** ** * concern.

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******, *** ****** *** ***** **** slowed **** *************, ** ** *****-****, the ******* ***** **** ** ******, which ** ****** ***** ** *** as ** *** **** ****** ** 2023:

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No ******* **** *****

***** *** *** ******* ** ****'* questions ***** *******. ** **** **, we **** ****** *** ******.

Settling **** *** ** **********

** ***** ** ****** ** **** on *** ** ******* ******** ** is ****** ***** *** (********, **************, media ********, ******** ********, ***.), *** best-case ******** ** ** ****** **** the *** *** *** (******** *** latter ** **** ***********). **** *** lead **:

  • ** ******** ** ***** ***** ***** reduce *** ******** **** *** ***** action ******* *** ******** *********' **********
  • ************* ** ***** ****** ******* ** dissipation ** *** ******** ******** **** salespeople
  • ******* ***** ********** ** * ******* and *******/********** *** ********, **** ********** investors' ********** **** *******

*******, *** **** ** **** *** government *** ****** ********** ***** **** undermine *****'* **** ********* ******, ******* hurting *** *****.

Comments (3)
JH
John Honovich
Jul 10, 2024
IPVM

*** ******* * **** **** **** the ***** ** **** ******** *********** can **** ****, **** *****, *** the ********* ****** ******* ** ********* to ****** ********.

*** *********** *** ********** *********, **** can ** ************* ** **** **** that ***** **** **** *** **** an ******.

*** *** ******** *** **** *********, this *** ******* * ***** ***** of ********, ** **** ***** **** is **** ***** *** **** *** have *** ******.

*** ******* ** ** ***** **** for ****** ** ***** *****, ******* the *********** *** ****** ****** *** partnering *********.

********, * ******* ******** ******* ********* people ******** **, ******* ** **** it *** ******** ********** *** ********* each **** ** ******* ***** *** government ******* *** ******* ********* ********** under *** ******* ****** **** "*** press ** **** *****." ***, ** fairness ** ****, ** *****, ** really *** **** ** ******. *** then ** ***.

(5)
(3)
U
Undisclosed #1
Jul 10, 2024

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* ***** ***** ****** ****** *** backwards.

(2)
JH
John Honovich
Jul 10, 2024
IPVM

*****, ******.

(1)
(1)