SaaS Security Screening Provider, Evolv, Goes Public, With $1.25 Billion Valuation

By Isabella Cheng, Published Mar 10, 2021, 12:25pm EST

Unprecedented for security screening, Evolv is going public, raising ~$470 million which gives Evolv a $1.25 billion valuation despite doing less than $5 million in revenue last year.

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In this report, IPVM examines Evolv's plans, including:

  • Unprecedented Deal in Security Screening
  • Merger with SPAC NewHold Investment Corp.
  • Value Proposition
  • Financial Performance
  • Eying $1 Billion Annual Recurring Revenue
  • Motorola Solutions Partnership
  • Go-to-Market Strategy
  • Expansion Plans
  • Temperature Screening
  • Paid for Frost & Sullivan Award

Unprecedented **** *** ********** *******

***** ********* **** * ****(*******-******* *********** *******),******* ********** ****., ** ****** * public ******* ** ** unprecedented **** *** ******** security, ********** *** *** (and ********* **** **** year) *******. [*** *****'* ******** *********.]

*** **** ****** ******* celebrity ********* ********* ****** Manning, ********* ******* ***** stockholders **** *****, ******** Solutions, *** *** ****'* investment **** *******, ***** others.

** ****, ************ ******** *** ******** **********. Since ****, ***** *** pivoted ** ****** * SaaS ******* **** *** sights *** ** ** eventual $* ******* ** annual ********* *******. **** potential ********* ******* ** one ***** ***** ********* are ******* *****, **** the ************ *********:

***** ** *** ***** company ** *** ******** to ********* * ************ SaaS *****

*** ******** **** ** how **** ******** ****** will ******* ** **** based **** *** "***** detectors".

*** ********, ***** *** been ******* ********* **** the **** * ***** and *** **** **** 100 *********:

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Value *********** - ********* ********* *** **** *******

*****'* ****** ***** *********** is ** ***** ** screening ** *********** ****** having ** **** *** objects *** ** ***** pockets ** **** ***, resulting, ******** ***** ** guards. ***** ******** ********* uses ** "**-***** ********* system" **** "************* ************** weapons **** ******** *****".

*****'* ****** '************ *,*** people *** **** " (i.e., */******), "*** ****** than ***** *********", *** visitors ** *** **** to **** ***** ******* through *** ********.

***** **** ****** *** product ********* "** ** 70% **** *******" ** it "******** ************* ***** guards" ** *******. *** graphic ***** **** *****'********* ***************** ** ******* ** comparable *********:

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***** *****'* ******** *** far **** ********* **** traditional ***** ********* (*** or ****), *********** *****'* value *********** ** ** guard *********.

*** ***** ********* ********** is **** ******* ***** who **** **** ***** detectors ** *** **** place *** *** *** apply ** ***** ***** with **** * *** metal *********.

Metal ********* ***********

***** ***** ****** **** savings, ***** ********* *** relatively ***********, **** **** brands **** **** *******, typically ***** **** $*,***-*,***.

Pricing - **** - * ***** - ~$***,*** *** ****

*****'* **** ******* ** $2,000-3,000 *** ****** *** month, ********* * *-**** commitment.

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*****'* ********* **** * year, ***-*********** *********, **** 12 ****** **** ******** in *******. **** ***** customers *** ~$**,*** *** the **** ** *******, which ***** **** "****** us ** ****** *** cost ** *** ******** in *** ***** **** of *** ********." ** is ******* ** ***** the * ***** *** over *** ********* ***** a *** ********, ******* they ***** ** **** to **** *** ******** or ** ** ***** all ** ***** ****.

********* ***** *** * metal ******** *** ~* month's ************ ****. ***** claims ********* *** "********* the **** *****" *** to ***** ******* *****, but ** ** ******* if **** ** * good **** *** ********* in *** ****** ****.

Current ********* *********** - $*.* ******* ******* ** ****

***** ******** **** ~$*.* million ******* ** **** giving ** ** ********** 290x ***-***** ********* ******** to *****. **** ** especially *********** ** ******* fell **% **** $*.* to *.* ******* ******* 2019 *** ****.

*******, ***** ******* ******* of $*** ******* ** 2025, ** *** *** revenue ** **** ** over ****. **** ** a **** ********* *********, including ******* *********** ******* this ****:

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*****'* ******** ********* *** not ******* *** ******* decline ******* **** *** 2020, ****** ************ ** the *********' ******* ** fewer ****** ******* ****** arenas **** ******** *****. Evolv **** *** *** speak ***** *** ** expects ******* ** ******** 5x **** ****, ** reach ~$** ******* ** the *** ** ****.

Profits ******** ****

*****'* **** ******** **** ~$28 ******* ***, ****** $25.5 ******* *** *** year. *******, ***** **** expects ** **** ~$** million **** ** ****-****, before ********** * ****** (~$5 *******) ** **** and ******* ****** ~*** to $*** ******* ** 2025. $** ******* ** losses *** *** **** two ***** ** * small ***** ** *** if ***** *** ***** hit **** ***** ** growth ****-****.

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Gross ****** ****** ** ***** **% ** ****

***** ******* ***** ****** margins ** ******** **** 41% ** **% ** 2021 *** ********** ***** 85% ** ****:

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**% ***** ******* ***** be *************** **** *** a ******* **** ***** including *** ********* ****** as * ******** ******** still ************* *** ** deliver *** ******** ******** on-site.

Potential $* ******* *** ****** ********* *******

*** ** *****'* ***** growth ** *** **** 5 ***** ** *** eventual **** ** *** $1 ******* ** ****** recurring *******, ** ***** by **** *****:

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*********, $* ******* *** is * "****-****" ****, but ***** *** **** that ** ******* "**% of [****** $*** ******* revenue ** ****] **** be *********," ******* ** expects ** *** *** mid-term **** ** ~$*** million *** ** ****.

Motorola ********* ***********

***** ******** ******** ****** Motorola ********* *** ***** frequently ********** *****'* ************, as ******** ** *** only * ******* ***** stockholder *** **** *** an *** *********** **** Evolv. *******, ***** *** completion ** **** ****, an ********* **** ******** Solutions, ********* *******, **** be ** *****'* ***** of *********.

***** ** ** ******* of * "******** ********* branded ******* ******* ******* by *****":

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Channel ******** ***** **-**-****** ********

******** ***** ** **** only **** ****** ** users, *****'* *** **-**-****** strategy ** ******* ********* on ***** ******** *** collaboration **** ******** ******* partners ** **** ** global ********* ******** ******* Security, ******* ********, *** Motorola *********. *** ******* currently *** ** ************ throughout ******, *** ****** East, ******, *** ****. Indeed, *** **** ** hit $* ******* *** is ********* ** *** ability ** ***** *** verticals, *******, *** ************ regions, **** ***************. ***** is ***** **** ** needs *** **** ** a ***** **********, **** as *** *** ******** has, ** ******* *** goals:

********, ** *** **** is ** $* ******* security *******. **** **** hundreds ** *********** *** thousands ** ******* ********, and **** **** **** us ****** ***** *** REITS **** ** ***’* have *****.

Future ********* ******* ************

***** ** ******* ***** its ************* ** ****** through ************, ****** ********** 80 *********** *******. ******** Evolv's ******* ******* **** screens ****** *** *******, this ******* ***** ***** all ** *** ***** analytics **** ***** ***** to ******:

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******* ***** **** ** successful ** ********* ***** companies *** ******** *** product **** * ************* end-to-end ******** ******* ** be ****.

Temperature *********

***** ******** **** **** in ***** ********'* ****, copied *****:

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** *****'* ******* ********* documentation, **** ** *** disclose **-******* **** *** their *********** ** ******* of ****, ******* * Seek **** ******* ** their ****** *** ******:

**** ******* *** ** screened *** ******** **** temperaturein ** ******* ** *-* *******

** *** **** ****,**** **** ********* **** in ****'* ****.

2020 ***** & ******** *****

*** ****** ** **** Evolv *** ***** ***** & ******** award*** ***** *******. ** IPVM *********** **********, ***** ***** ***** companies ****** *** ****, but *** ****** *** to *** ***** ** promote *** *****, ****** payment ********* ** *** use. ********, *** ****** given *** ***** ** negligible ********. ** ****'* analysis ** ***** ******** over *** *****, **** awards *** *******.

Competitors *** ***********

**** **** *** ******** this ****** ******* ********* so ** ****** ***** on *****'* ********* ** potential *********** ****.

*******

** *** **** ****, having ****** $*** ******* in ******* ******** ***** with *** ************ ** sell, ******, *** ******* customers ****** *** *****.

*** **** ******** *** (1) *** **** ******* costs ******** *** (*) Evolv's ******* ********* ***** record **** *** **** 7+ *****.

***** *** ***** ***, though, *** ********* ****** such ******* ******** **** a ****** ***** ** attempt ****.

Poll / ****

Comments (16)

*****'* ******** ********* *** not ******* *** ******* decline ******* **** *** 2020, ****** ************ ** the *********' ******* ** fewer ****** ******* ****** arenas **** ******** *****. Evolv **** *** *** speak ***** *** ** expects ******* ** ******** 5x **** ****, ** reach ~$** ******* ** the *** ** ****.

***********.

* **** *** *******, and ***** ****'* ***** we'll ** ** **** point ** *** ******, but **** ***** ** a ****** ****** **'* time. ********* ******* ***** at *** ****** ** testing ** ********** *****, and ** *** *** how ******** ***** ****** are.

Agree: 1
Disagree
Informative
Unhelpful
Funny

**** *** **** ** investors *** ******** ** mind, *** ********* **** government ********** **** ** heavily *********, *** ***** very ********** ******** *** become *** ** ***-**-***-***.

Agree: 2
Disagree
Informative
Unhelpful
Funny

** * **** **** I ***** *** ** roll ** **** ********* who **** ** **** space ** ***** ***** product *** ***** ** their ******* ********. **** is ** ****** ********* revenue ****** ** **** by **** **** ***** current *******.

Agree
Disagree
Informative
Unhelpful
Funny

** ******** ******** ** one ** *** ****** in *** ****** *** had * **** ****. I ****** ** **** machine ******* ** ** end-users ** **** ** trained ** *****'* ******.

** ** ******* - there's **** ** ***** alarms ** ** ****** (when ***** ****** **** been) *** ** *** very **** *** ****** to ***** *** ** works ** ******** **** comparing ** ** * traditional ****-******* ***** ********. People **** **** ******* to ****** **** ** did *** **** ******** such **** ****** *** passed ******* *** ***** required ** **** *** either ******** ** * hand-held ***** ******** ******.

*** ***** *** ********* expensive ******** ** **** average ***** ********. *** typically ****-******* ***** ********, is ** ** *******, already ** ******* **** there's ** **** **** for *********** ** **** space.

* ********** *** *** like **** ********* *** I *** *** *** Motorola ***** ******** *** government ********* ** **** this ******.

Agree: 2
Disagree
Informative: 3
Unhelpful
Funny

********** ***** **** ** completely *********** ** **** misleading. ** ***** ** get **** ********** ********* against ***** ******** *** knifes, *** *********** **** need ** ** *** to * ***** ***** frequent ********* ****** (*** downs) **** ***** ** required ** ****** **** not ** ************* ****** than * *********** ***** detector. ****** ********* **** still **** ** ** through * ******** *-*** for ******** *********, ***** slowing *** ******* ****.

** *** *** **** pricing ** *** */* that ***** ******** ** realistic *** ***** ***** Edge ******* **** ** least *** *** *** of ***** **** ** detect ***-******** ******* (*.*. for ******* *****), *** it ***** *** ** high *** * ********* metal ********. *** **** there’s *** ****** ******* and ****** *********** - the **** *** **** would ******* **** ** if **** *** ** deployed ** * ***** percentage ** ******** *** schools, *** ********** *** cost ************ **** **** that ***.

** *** **** **** they ***** **** *** top ** **** ******* stock **** **** **** listed ** **** *** the ******* **** ***** off.

**. ** **** ***** to *** ****** **** the ********* ****** ********* space *** ***** **** take * **** ** Patriot ***, ***** ******* and ********** *** ******** (not ****** **** *** better ** *****!).

Agree: 1
Disagree
Informative: 2
Unhelpful
Funny

#*, ******!

** *** ***** ************ **** ****** / Radar ****** ********* **************% ********** ****** ********* Claims ******* ******** *******.

*** **** ******* ** that ***** ** **** never ****** *** ** these *******, ** ** not **** *** ***** of ***********.

**** ****** ** ***********! I'll ***** *** ** you ******** ** **** in *****, ******!

Agree
Disagree
Informative: 1
Unhelpful
Funny

******, *** *** **** those *******!

****’* *** ***** ***:********** - ***** ***************** **** * ********** University (**) *******. *** main ***** ***** ******** was ****** ** ******** position *** ****** ** each ******, *** ** the ****** ******* **** claim ** **** ********* this *** ** *********** with ******** ****** ** will ** *********** ** see *** **** *****.

***** **’* ********* ** analyse **** **** ** product ******* * *****-** evaluation. ***** **** ** these ********* ***** ******* demo *****...

Agree
Disagree
Informative
Unhelpful
Funny

*** **** *****’* *** insane ******* *** ****** projections - ***only *** they would achieve this is if they got it deployed at a large percentage of airports and schools, but capability and cost respectively will rule that out.

******* *** ***** ** to *** *** **** some ** *** ******** disgruntled ****** **** ******** from****

Agree
Disagree
Informative
Unhelpful
Funny

* *** ******* ******* SaaS/licensing ******* ** * customer, *** **** *'* on *** ***** **** of *** *****, * don't **** *** ** this "*** *******" ***** unless **'* *** **** solution, ** *** ****** request/insistence.

**********/********** ******** ******** ******* have ** ********** ******* the ********* ** ***** and ******** *************** ** ward *** *** **********, all **** ****** **** is **** ***** *** of *** *** **** could **** ********* **** spent ** * ****** way. *********, *********** ***** out ** *** *&* budgets, **** ** *******.

******: **** ******* *** been ***** ** *** own **********:******* ****/********* *******

Agree
Disagree
Informative
Unhelpful
Funny

** ********* *** ** a * **** ********, why ***** ******* *******? I **** *** **** many ********* ***** ********?

Agree
Disagree
Informative
Unhelpful
Funny

****'* * **** ********. It's *** ********* ** the ******* ** ********. Best ****** * *** see ** **** **** recently ******** ** * SaaS ***** *** **** previously ******* **** ** appliances, ** **** ******* might ** ********** *** this ** ****** ** a ******* ** ***-**** appliance *****.

**** **** ** **** will ** * ******** traded ******* *** ********* every ** **** ** can ******* ***** ******** (or **** *******).

Agree
Disagree
Informative
Unhelpful
Funny

***** *****. ** ******* Six ***** **** **** and **** ******* ***. Still *** ** ** through *** *** ****** (scanner ****) ** ******** had * ***** *** still ****** **** ********* 😉 :)

Agree
Disagree
Informative
Unhelpful
Funny

*** ***** ****** **** screening

*** ** * ***** system**** *******? ******* ********** ******* or?

Agree
Disagree
Informative
Unhelpful
Funny

***. **** *****. **** all ********, *** **** medicine ** *** ** and *** *** **** what *** *** *********** when *** ******

Agree
Disagree
Informative
Unhelpful
Funny

*********** - **** ** their ******* ******* **** from *-** **** ****** and *** ********* *** not *** *******.

Agree
Disagree
Informative
Unhelpful
Funny

******** ********* *** **** Brown ******* ********* ********'* investment ** ***** **** week ****** *&* **********'* ** **** ******** call, ****** ******** ** "committed ** **** ****** investments":

*** **** ***** **** gives ** ******* ********** around ****** *******. ** were ** ******** ******* probably * **** ** two *** **** *****.We're ********* ** **** ****** ***********. It's a little bit more consequential. And so when you think about critical infrastructure locations like schools or stadiums or airports or hospitals, Evolv and that partnership around weapons detection is another interesting component to integrate into the suite as we develop our product portfolio and think about a differentiated operating going forward.

Agree
Disagree
Informative
Unhelpful
Funny
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