Evolv Technology has announced that a significant majority of its K-12 education clients have opted to continue their contracts, following the expiration of a 60-day cancellation window.
This opportunity was part of a settlement with the United States Federal Trade Commission (FTC), allowing a select group of customers to reconsider their agreements.
Contract and revenue details
Among the 65 education sector customers, who utilised 237 Evolv Express units, 92% chose to uphold their engagements. This percentage represents 60 customers and 213 units retained. Furthermore, four of these clients expanded their contracts by acquiring an additional 10 units, exemplifying confidence in Evolv's offerings after the FTC resolution.
After adjustments for both cancellations and expansions, Evolv Technology achieved a 92% Net Revenue Retention and a 94% Net Unit Retention among these customers. Notably, the Wyoming Valley West School District, an eligible entity, increased its number of units, underscoring satisfaction with Evolv Express.
Safety planning and customer satisfaction
Expressing his views on the system, Anthony Dicton, Safety and Security Coordinator at Wyoming Valley West School District, stated, “We first deployed the Evolv Express systems in 2022 in our schools after evaluating different options and continuing to come back to the fact that Evolv performed at a superior level across the board.” He further added, “We just expanded our Express systems by 50% because we have been so impressed by the results.”
Cancellations and retained deployments
Five customers decided to cancel their contracts during this period, impacting 24 units, and contributing to an estimated reduction of $445 thousand in annual recurring revenue. However, these entities will maintain their current systems until the conclusion of the 2024-2025 academic year.
The potential for cancellation was communicated to them as part of Evolv's earlier FTC resolution.
Commitment to safety
John Kedzierski, the President and CEO of Evolv Technology, remarked on the dedication of their customer base: “We appreciate our customers’ continued commitment to the Evolv system and take seriously the responsibility of being a trusted partner in helping to make schools and communities safer. Our top priority remains the safety of people and the communities we serve.”
Evolv Technologies Holdings, Inc., a foremost security technology company pioneering AI-based solutions designed to help create safer experiences, announced the expiration of the previously disclosed 60-day cancellation period, under which a limited number of the Company’s K-12 education customers could cancel the remainder of their subscription contracts with the Company as part of Evolv’s resolution with the United States Federal Trade Commission (FTC).
Contracts and revenue
Of the 65 education customers (representing 237 Evolv Express units) who were eligible for contract cancellation, a total of 60 customers (92%) representing 213 Evolv Express units (90%) elected to retain their contracts with Evolv. Importantly, four of the 65 eligible customers expanded their use of Evolv Express by adding a total of 10 additional units acquired since the Company announced its resolution with the FTC.
Netting the expansion and cancellation activity since the Company announced its resolution with the FTC, the Company achieved 92% Net Revenue Retention3 and 94% Net Unit Retention3 across the 65 eligible customers. Wyoming Valley West School District, who was part of the cohort of customers eligible for cancellation, recently increased its fleet of Express due to their satisfaction with the system’s performance.
Safety planning
“We first deployed the Evolv Express systems in 2022 in our schools after evaluating different options and continuing to come back to the fact that Evolv performed at a superior level across the board,” said Anthony Dicton, Safety and Security Coordinator at Wyoming Valley West School District.
“That initial evaluation has proven to be more than accurate as Evolv has been an important part of our safety planning and we couldn’t be more pleased with the partnership. We just expanded our Express systems by 50% because we have been so impressed by the results.”
Cancellation requests
The Company received cancellation requests from five out of the 65 eligible customers. These customers represented a total of 24 Evolv Express units, currently estimated at approximately $445 thousand dollars of annual recurring revenue (ARR).
Each of these customers has requested to maintain their existing deployment through the end of the 2024-2025 school year. The customers were notified of their eligibility to cancel existing contracts in connection with the previously announced resolution entered into last year with the FTC.
Keeping schools and community safe
“We appreciate our customers’ continued commitment to the Evolv system and take seriously the responsibility of being a trusted partner in helping to make schools and communities safer,” said John Kedzierski, President and Chief Executive Officer of Evolv Technology. “Our top priority remains the safety of people and the communities we serve.”
