Evolv sees $3.9M of ARR possibly impacted by right to cancel

Evolv (EVLV) Technology announced that it has resolved the United States Federal Trade Commission’s inquiry into certain aspects of the company’s prior marketing claims. “While Evolv disagrees with the FTC’s allegations, and has not admitted any wrongdoing, it has chosen to resolve the matter to focus on its core mission of protecting lives through innovation and maintaining the trust of its valued customers,” the company stated. Evolv added: “There are no financial penalties or other monetary relief associated with today’s announcement. As part of the resolution announced today: Approximately 237 Evolv Express units of certain customers could be impacted by the right to cancel, or approximately 4% of the Company’s total installed base of 5,323 Evolv Express units as of June 30, 2024; Approximately $3.9 million of the Company’s Annual Recurring Revenue could be impacted by the right to cancel, or approximately 4% of the Company’s Annual Recurring Revenue as of June 30, 2024; Approximately $10.5 million of the Company’s Remaining Performance Obligation3 could be impacted by the right to cancel, or approximately 4% of the Company’s Remaining Performance Obligation as of June 30, 2024. As noted above, the cancellation option will be provided only to a limited group of K-12 customers that comprise approximately 8% of the Company’s total customers.”