Evolv Technologies Holdings Inc (EVLV) 2024 Q2 法說會逐字稿

I'm joined here today by Peter George, our President and Chief Executive Officer; and Mark Donohue, our Chief Financial Officer.

今天我們的總裁兼執行長 Peter George 也來到這裡。以及我們的財務長馬克‧多諾霍 (Mark Donohue)。

This afternoon, after the market closed, we issued a press release announcing our second quarter 2024 results and as well as our business outlook for the remainder of the year. This press release has been furnished with the SEC and is also available on the IR section of our website.

今天下午，市場收盤後，我們發布了一份新聞稿，宣布 2024 年第二季業績以及今年剩餘時間的業務前景。本新聞稿已向 SEC 提供，也可在我們網站的 IR 部分取得。

During today's call, we will make forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These statements relate to our current expectations and views of future events, including, but not limited to, statements regarding our future operations, growth and financial results, our potential for growth and ability to obtain new customers and retain existing customers, demand for our products and offerings, our expectations regarding outcomes of being legal proceedings, including regulatory inquiries, and our ability to meet our business outlook.

在今天的電話會議中，我們將根據 1995 年《私人證券訴訟改革法案》的安全港條款做出前瞻性陳述。這些陳述涉及我們當前的預期和對未來事件的看法，包括但不限於有關我們未來營運、成長和財務業績、我們的成長潛力以及獲得新客戶和留住現有客戶的能力、對我們產品的需求的陳述和產品、我們對法律訴訟結果的期望，包括監管調查，以及我們滿足業務前景的能力。

All forward-looking statements are subject to material risks, uncertainties, and assumptions, some of which are beyond our control. Actual events or financial results may differ materially from those forward-looking statements because of a number of risks and uncertainties, including, without limitation, the risk factors set forth under the caption Risk Factors in our annual report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29th, 2024, and our quarterly report on Form 10-Q for the three months ended June 30th, 2024, which we filed with the SEC earlier today.

所有前瞻性陳述均受到重大風險、不確定性和假設的影響，其中一些是我們無法控制的。由於許多風險和不確定性，實際事件或財務結果可能與這些前瞻性陳述有重大差異，包括但不限於我們本年度 10-K 表格年度報告中「風險因素」標題下列出的風險因素截至2023年12月31日，於2024年2月29日向美國證券交易委員會提交，以及我們於今天稍早向美國證券交易委員會提交的截至2024年6月30日三個月的10-Q表格季度報告。

The forward-looking statements made today represent our views as of August 8, 2024. Although we believe that the expectations reflected in these statements are reasonable, we cannot guarantee that future results, performance, or the events and circumstances reflected in our forward-looking statements will be achieved or will occur. Except as may be required by applicable law, we disclaim any obligation to update them to reflect future events or circumstances.

今天發表的前瞻性陳述代表了我們截至 2024 年 8 月 8 日的觀點。儘管我們認為這些陳述中反映的預期是合理的，但我們不能保證前瞻性陳述中反映的未來結果、績效或事件和情況將會實現或將會發生。除非適用法律要求，否則我們不承擔更新它們以反映未來事件或情況的義務。

Our commentary today will also include non-GAAP financial measures, which we believe provide additional insights for investors. These measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with Generally Accepted Accounting Principles.

我們今天的評論還將包括非公認會計準則財務指標，我們相信這些指標可以為投資者提供更多見解。這些措施不應孤立地考慮或取代根據公認會計原則編制的財務資訊。

These measures include adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted operating income, adjusted EBITDA, adjusted earnings, and adjusted earnings per diluted share.

這些指標包括調整後毛利、調整後毛利率、調整後營業費用、調整後營業收入、調整後 EBITDA、調整後收益和調整後稀釋每股盈餘。

Reconciliations between these non-GAAP measures and the most directly comparable GAAP measures can be found in our press release issued today. Please note that our definition of these measures may differ from similarly titled metrics presented by other companies.

這些非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準之間的調節可以在我們今天發布的新聞稿中找到。請注意，我們對這些指標的定義可能與其他公司提出的類似標題的指標不同。

We will be discussing key metrics such as annual recurring revenue, or ARR; remaining performance obligation, or RPO; deployment activity; and total number of subscriptions, each of which we believe is helpful to investors in understanding the progress that we are making as a business.

我們將討論年度經常性收入 (ARR) 等關鍵指標；剩餘履約義務（RPO）；部署活動；認購總數，我們相信每一項都有助於投資者了解我們作為一家企業所取得的進展。

With that, I'd like to turn the call over to Peter. Peter?

有了這個，我想把電話轉給彼得。彼得？

Recent wins include Soldier Field, home of the NFL Chicago Bears and the Target Center, which is home of the NBA's Minnesota Timberwolves. We've also secured two recent wins across the NHL Ice as the lead prepares for the upcoming season.

最近的勝利包括士兵球場（NFL 芝加哥熊隊的主場）和目標中心球場（NBA 明尼蘇達灰狼隊的主場）。隨著領先者為即將到來的賽季做準備，我們最近還在 NHL Ice 上取得了兩場勝利。

We've added the Honda Center, home of the Anaheim Ducks and the Canadian Life Center, home of the Winnipeg Jets. We're excited to welcome these teams and their fans on board.

我們增加了阿納海姆鴨隊的主場本田中心和溫尼伯噴射機隊的主場加拿大生活中心。我們很高興歡迎這些團隊及其粉絲的加入。

We've also made substantial progress with our partnership with ASM Global, the global operator of live entertainment venues. ASM's venue network spans five continents with a portfolio of more than 350 of the world's most prestigious arenas, stadiums, convention, and exhibition centers, and performing arts venues. We are ASM's preferred technology provider for patron screening in North America. During the second quarter of 2024, we doubled the number of ASM properties we support to 16 sites.

我們與全球現場娛樂場所營運商 ASM Global 的合作也取得了實質進展。ASM 的場館網絡橫跨五大洲，擁有超過 350 個世界上最負盛名的競技場、體育場館、會議展覽中心以及表演藝術場館。我們是 ASM 在北美地區進行顧客篩選的首選技術提供者。2024 年第二季度，我們支援的 ASM 屬性數量增加了一倍，達到 16 個站點。

I want to pivot and share some positive news on the innovation front. We recently released a major software update designed to further integrate Evolv Express into our customers' overall security infrastructure. The update introduces new capabilities to the MyEvolv portal and launches our new mobile app, bringing the power of Evolv connected systems to our customers no matter where they are.

我想分享一些創新方面的正面消息。我們最近發布了一項重大軟體更新，旨在進一步將 Evolv Express 整合到客戶的整體安全基礎架構中。此次更新為 MyEvolv 門戶引入了新功能，並推出了新的行動應用程序，為我們的客戶帶來了 Evolv 連接系統的強大功能，無論他們身在何處。

It provides web and mobile visibility and configuration access to Evolv Express systems and dashboards for visitor flow, alarm statistics, event insights, threat-type analysis, and system performance.

它提供 Evolv Express 系統和儀表板的 Web 和移動可見性以及配置訪問，以實現訪客流量、警報統計、事件洞察、威脅類型分析和系統性能。

Key new features include market-specific default dashboards, an intuitive threat map report, automated screening reports, real-time data updates, and extended alert image data access.

主要新功能包括特定於市場的預設儀表板、直覺的威脅地圖報告、自動篩選報告、即時資料更新和擴展的警報影像資料存取。

Because our customers are on long-term subscription contracts with us, they can easily take advantage of these freight through capabilities as they are released over time to our powerful cloud-based environment we've invested in over the last several years.

由於我們的客戶與我們簽訂了長期訂閱合同，因此他們可以輕鬆利用這些貨運功能，因為這些功能會隨著時間的推移發佈到我們過去幾年投資的強大的基於雲端的環境中。

One more update on the product development front. We remain on track to introduce by the end of the year new offerings, which will provide additional capabilities to our customers and further extend the Evolv ecosystem.

產品開發方面的另一項更新。我們仍有望在今年年底前推出新產品，這將為我們的客戶提供額外的功能並進一步擴展 Evolv 生態系統。

We expect these subscription-based products, which could be either physical or digital to be sold to new and existing customers, expanding the lifetime value of our customers. More to come on that.

我們希望將這些基於訂閱的產品（可以是實體產品或數位產品）出售給新客戶和現有客戶，從而擴大客戶的終身價值。未來還會有更多內容。

Before I hand things over to Mark, I'd like to reiterate the importance of our mission. And this drives us every single day, and that's the democratize security to make the world a safer, more enjoyable place to live, work, learn, and to play.

在將事情交給馬克之前，我想重申我們使命的重要性。這就是我們每一天的動力，這就是民主化的安全，讓世界成為一個更安全、更愉快的生活、工作、學習和娛樂場所。

We remain absolutely dedicated to filling this mission, while continuing to innovate in achieving our long-term financial goals, which include delivering 25% revenue growth in 2024, delivering positive adjusted EBITDA in Q2 of 2025, and advancing on the Rule of 40.

我們仍然絕對致力於完成這項使命，同時繼續創新以實現我們的長期財務目標，包括在 2024 年實現 25% 的收入成長，在 2025 年第二季度實現正調整 EBITDA，以及推進 40 法則。

With that, I'll turn it over to Mark to present our financial results and our outlook. Mark?

接下來，我將把它交給馬克來介紹我們的財務表現和前景。標記？

Thanks Peter and good afternoon everyone. I'm going to review our second quarter results in more detail and then walk through our outlook. As Peter mentioned, total revenue was $25.5 million, up 29% year-over-year. Annual recurring revenue, or ARR, as of June 30, 2024, was $89 million, reflecting growth of 64% year-over-year. Approximately 83% of revenue in Q2 2024 was recurring versus 59% in Q2 2023, further demonstrating the shift in our business model over the last 12 to 18 months.

謝謝彼得，大家下午好。我將更詳細地回顧我們第二季的業績，然後展望我們的前景。正如 Peter 所提到的，總收入為 2550 萬美元，年增 29%。截至 2024 年 6 月 30 日，年度經常性收入 (ARR) 為 8,900 萬美元，年增 64%。2024 年第二季約 83% 的收入是經常性收入，而 2023 年第二季這一比例為 59%，這進一步證明了我們業務模式在過去 12 至 18 個月內的轉變。

Remaining performance obligation, or RPO, as of June 30, 2024, was $263 million, up 33% year-over-year and 4% sequentially. As we have been sharing with our investors on prior calls, we continue to expect the rate of growth in RPO to temper as lower-margin hardware revenue begins to come off of our P&L and more unit bookings go through the distribution model. We expect the results to be faster growth in recurring revenue and higher overall gross margins for the business, which we saw again in Q2.

截至 2024 年 6 月 30 日，剩餘履約義務 (RPO) 為 2.63 億美元，年增 33%，季增 4%。正如我們在先前的電話會議上與投資者分享的那樣，我們繼續預計RPO 的成長率將會放緩，因為利潤率較低的硬體收入開始從我們的損益表中扣除，並且更多的單位預訂透過分銷模式。我們預計結果將是經常性收入的更快成長和業務的整體毛利率更高，我們在第二季度再次看到了這一點。

Adjusted gross margin, which excludes stock-based compensation and certain other one-time expenses, was 58% in the second quarter of 2024 compared to 38% in the second quarter of last year. This primarily reflects our continued transition to recurring revenue streams, both through our pure subscription model and our newer distribution subscription model.

2024 年第二季調整後毛利率（不包括股票薪酬和某些其他一次性費用）為 58%，而去年第二季為 38%。這主要反映了我們透過純訂閱模式和更新的分銷訂閱模式持續向經常性收入流轉型。

Adjusted operating expenses, which exclude stock-based compensation, loss on impairment of equipment, and certain other one-time expenses, were $26.5 million compared to $23.7 million in the second quarter of last year. The increase year-over-year primarily reflects modest headcount investments across the business. We continue to leverage AI-powered solutions as an alternative to growing headcount where possible.

調整後的營運費用（不包括股票薪酬、設備減損損失和某些其他一次性費用）為 2,650 萬美元，而去年第二季為 2,370 萬美元。年比成長主要反映了整個企業的適度員工投資。我們繼續利用人工智慧驅動的解決方案作為盡可能增加員工人數的替代方案。

Adjusted loss, which excludes stock-based compensation, non-cash charges, and other one-time items, was $11.1 million compared to $14.3 million in the second quarter of last year.

調整後虧損（不包括股票薪酬、非現金費用和其他一次性項目）為 1,110 萬美元，而去年第二季為 1,430 萬美元。

Adjusted EBITDA, which excludes stock-based compensation, non-cash charges, and other one-time items, was negative $7.9 million compared to negative $13.8 million in the second quarter of last year. This reflects strong revenue growth and gross margin expansion along with prudent expense management.

調整後 EBITDA（不含股票薪資、非現金費用和其他一次性項目）為負 790 萬美元，而去年第二季為負 1,380 萬美元。這反映出強勁的收入成長和毛利率擴張以及審慎的費用管理。

Turning to the balance sheet. We ended the quarter with $57 million in cash, cash equivalents, restricted cash, and marketable securities compared to $81 million at the end of Q1 2024, which reflects cash used in operations and cash used to support our pure subscription model.

轉向資產負債表。本季結束時，我們的現金、現金等價物、限制性現金和有價證券為5700 萬美元，而2024 年第一季末為8,100 萬美元，這反映了營運中使用的現金以及用於支持我們純認購模式的現金。

As Peter indicated, we continue to expect to reach positive adjusted EBITDA in Q2 of 2025 with similar levels of cash on hand. Notably, we expect to achieve this without any additional debt financing. However, as the interest rate environment becomes more favorable, we are actively evaluating nondilutive forms of debt financing that may be attractive to our long-term capital needs. Any set of action would be modest.

正如 Peter 指出的那樣，我們繼續預計 2025 年第二季將實現調整後的正 EBITDA，且手頭現金水準相似。值得注意的是，我們預計無需任何額外的債務融資即可實現這一目標。然而，隨著利率環境變得更加有利，我們正在積極評估非稀釋性債務融資形式，這可能對我們的長期資本需求有吸引力。任何一系列行動都應該是溫和的。

I want to close with a few comments on our outlook. We are encouraged by our performance in Q2, which played out largely as we expected. In the second half of the year, we will continue to focus on improving sales execution, raising brand awareness, driving demand generation, and optimizing our channel partner program. As such, we are reaffirming our guidance across the board.

最後我想對我們的前景發表一些評論。我們對第二季的表現感到鼓舞，基本上符合我們的預期。下半年，我們將繼續專注於改善銷售執行力、提高品牌知名度、推動需求產生以及優化我們的通路合作夥伴計畫。因此，我們重申我們的全面指導。

For the full year, we expect to deliver revenues of about $100 million, which reflects growth of 25% year-over-year. We believe we are in an excellent position to achieve this goal given our first half performance and our outlook for the balance of the year.

我們預計全年營收約 1 億美元，年增 25%。鑑於我們上半年的表現和對今年剩餘時間的展望，我們相信我們處於實現這一目標的絕佳位置。

We continue to expect to exit 2024 with ARR of around $100 million, reflecting growth of about 33% year-over-year. Our estimate for adjusted full year gross margin remains at about 60%.

我們仍預期 2024 年的 ARR 約為 1 億美元，年成長約 33%。我們預計調整後全年毛利率仍維持在 60% 左右。

Further, we believe we can deliver improvements in full year adjusted EBITDA of at least 40% in 2024. We believe we remain on track to reach positive adjusted EBITDA by Q2 of 2025.

此外，我們相信我們可以在 2024 年實現全年調整後 EBITDA 至少提高 40%。我們相信，我們仍有望在 2025 年第二季實現調整後的正 EBITDA。

With that, I'll turn the call back over to Brian.

這樣，我會將電話轉回布萊恩。

Thank you, Mark. Eric, at this time, I'd like to open the call up for Q&A. So, I'm going to ask you to start the Q&A session, please.

謝謝你，馬克。艾瑞克，現在我想打開電話進行問答。那麼，我想請你們開始問答環節。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Mike Latimore.

麥克·拉蒂摩爾.

I think you're asking the question about the vertical -- the new vertical that we're opening up the industrial warehouses and what could be the catalyst for that? Is that your question? So, look, it's still early days in that vertical. We have a dedicated team on that vertical.

我認為你問的是關於垂直領域的問題——我們正在開放工業倉庫的新垂直領域，什麼可能是其催化劑？這是你的問題嗎？所以，看，這個垂直領域還處於早期階段。我們在該垂直領域擁有一支專門的團隊。

Post-COVID, that's a vertical that just exploded across North America. It's still early days, but we expect in 2025 to this -- for this to be a really important -- materially important vertical as it relates to revenue. And then in the out years, along with education, be one of the top two verticals in the company.

新冠疫情之後，這一垂直領域在北美爆發。現在還處於早期階段，但我們預計到 2025 年，這將成為一個非常重要的垂直產業，因為它與收入有關。然後在未來的幾年裡，與教育一起成為公司最頂尖的兩個垂直領域之一。

Yes. So, let me talk about -- so we have close to 150 people in our go-to-market team, and that includes sales and support and solutions engineers and CSMs. In terms of quota-carrying salespeople, we have a couple of dozen quota-carrying salespeople across North America in the field.

是的。那麼，讓我談談——我們的行銷團隊有近 150 人，其中包括銷售和支援以及解決方案工程師和 CSM。就配額銷售人員而言，我們在北美地區有數十名配額銷售人員。

We have a channel team -- as you know, about 70% of our business comes through channel partners. So, we have a dedicated channel team that's an overlay team. Our quota-carrying salespeople get full credit for all the revenue that comes through channel partners.

我們有一個通路團隊—如您所知，我們大約 70% 的業務來自通路合作夥伴。因此，我們有一個專門的通路團隊，即覆蓋團隊。我們的配額銷售人員將獲得來自通路合作夥伴的所有收入的全額積分。

We do sell direct to the sporting vertical, but that's the only place that we typically don't go through the channel. So, we have a very sizable team, and they're getting operational leverage almost every quarter in the business.

我們確實直接向體育垂直領域銷售產品，但這是我們通常不透過管道的唯一地方。因此，我們擁有一支非常龐大的團隊，他們幾乎每季都在業務中獲得營運槓桿。

Thank you.

謝謝。

Thanks for the question.

謝謝你的提問。

Brett Knoblauch, Cantor Fitzgerald.

布雷特·諾布勞赫，康托·菲茨杰拉德。

Hey guys, congrats on the quarter. Maybe if we can just start with an update on the regulatory front. I know last quarter kind of dominated the release and regulatory overhang causing sales cycles to lengthen. Given the new customers you landed, this quarter was the most you did in a good while. Could you maybe just update us on how sales cycles are performing, where we are in terms of the regulatory overhang? Have you heard back from the FTC or SEC yet?

嘿夥計們，恭喜本季。也許我們可以從監管的最新情況開始。我知道上個季度的發布和監管懸而未決導致銷售週期延長。考慮到您獲得的新客戶，本季是您長期以來做得最多的季度。您能否向我們介紹一下銷售週期的最新情況以及我們在監管方面的進展？您收到 FTC 或 SEC 的回覆了嗎？

So, look, we're in communication with the FTC, and we continue to work closely with them, collaborate with them, and we're working towards a resolution. And as we've probably said before, typically, the FTC -- these are investigations that go on for 12 to 18 months. So, we're still in that zone, and we're working towards a resolution. So, we feel good about it.

所以，你看，我們正在與聯邦貿易委員會溝通，我們將繼續與他們密切合作，合作，我們正在努力尋求解決方案。正如我們之前可能說過的，聯邦貿易委員會 (FTC) 的調查通常會持續 12 到 18 個月。所以，我們仍然處於這個區域，我們正在努力尋求解決方案。所以，我們對此感覺良好。

On -- as it relates to our sales cycle, our sales cycle-times haven't changed, and the truth is we don't want to rush our customers. We're fully transparent with our customers. Most of them want to do their own trials and POCs, -- they want to go potentially to other like-minded schools or hospitals or places to see the system in action. And oftentimes, they test it themselves. We don't want to rush that.

因為它與我們的銷售週期有關，所以我們的銷售週期時間沒有改變，事實是我們不想催促我們的客戶。我們對客戶完全透明。他們中的大多數人想要進行自己的試驗和 POC，他們想要潛在地去其他志同道合的學校、醫院或地方，看看該系統的運作情況。通常，他們自己進行測試。我們不想著急。

The sales cycles have elongated, but not any more than they were in Q2. What has changed, like in Q2, our close rate went up, if you may remember in Q2, that stayed constant, which is terrific. We have a 100% close rate in the healthcare vertical. So, our close rate is very, very high.

銷售週期有所延長，但並不比第二季更長。發生了什麼變化，就像在第二季度一樣，我們的成交率上升了，如果你還記得在第二季度，它保持不變，這非常棒。我們在醫療保健垂直領域的成交率是 100%。所以，我們的成交率非常非常高。

And what we've done, our competition has weaponized the regulatory issues, and we're taking those on early in the sales cycle instead of being surprised at the end. And because of that, we were able to keep a high close rate and make sure that if there's a problem with a customer, we find out early and not waste a lot of time if that's going to get in the way of the decision.

我們所做的，我們的競爭對手已經將監管問題武器化，我們在銷售週期的早期就採取這些措施，而不是在最後感到驚訝。正因為如此，我們能夠保持較高的成交率，並確保如果客戶出現問題，我們會儘早發現，並且不會浪費大量時間（如果這會妨礙決策）。

So, it -- we're feeling good about where we are in terms of that sales execution in the marketplace because we're talking about the regulatory environment early with the customers.

因此，我們對市場銷售執行情況感覺良好，因為我們很早就與客戶討論了監管環境。

Got it. Thank you. And then maybe if we can just touch on what's been very public over the last couple of months, and that's the New York City subway that -- the New York City Mayor, having a couple of press conferences standing next to one of your units and I believe you started to deploy some of those units over the prior week. Could you just update us as to how do you guys sign a contract with them? How big is that contract or the terms or any color on your involvement there?

知道了。謝謝。然後也許我們可以談談過去幾個月裡非常公開的事情，那就是紐約市地鐵——紐約市長，在你的一個單位旁邊舉行了幾次新聞發布會，我相信您在上週就開始部署其中一些單位。您能否向我們介紹一下你們如何與他們簽訂合約的最新情況？該合約或條款或您參與其中的任何色彩有多大？

Yes. Look, we're still working with what is arguably the best law enforcement agency in the country. We have a lot of confidence in their ability to protect New Yorkers on the subways and everywhere.

是的。看，我們仍在與可以說是全國最好的執法機構合作。我們對他們保護地鐵和任何地方的紐約人的能力充滿信心。

As you probably know, we have a long history in New York City. We've been -- it was one of our first places where our first customer, Lincoln Center, which is a very visible place. And since then, there have been museums and hospitals and tourist sites, all kinds of attractions, including sporting stadiums, where we protect close to 14 million New Yorkers.

您可能知道，我們在紐約市有著悠久的歷史。我們去過—這是我們第一個客戶林肯中心的第一個地方，這是一個非常顯眼的地方。從那時起，這裡就出現了博物館、醫院、旅遊景點和各種景點，包括體育場館，我們在那裡保護著近 1,400 萬紐約人。

And during that time, over the last seven years, we've stopped 20,000 weapons from going into place. So, we have a long history there. The New York Police knows that. We're still working with them and letting them make the decisions that they need to, to protect the citizens of New York, and we're going to continue to support them, and we're confident that they're going to make a decision that's right for the city, and we're going to support whatever decision that is.

在那段時間裡，在過去的七年裡，我們已經阻止了 20,000 件武器的安裝。所以，我們在那裡有悠久的歷史。紐約警方知道這一點。我們仍在與他們合作，讓他們做出他們需要的決定，以保護紐約公民，我們將繼續支持他們，我們相信他們將做出一個對這座城市來說是正確的決定，我們將支持任何決定。

But have they started already deploying your units in the subways?

但是他們已經開始在地鐵部署你們的設備了嗎？

They're still testing our systems. They have tested other companies as well. So, you'll see our systems out there. They're in the middle of that, but it's still in its trial phase.

他們仍在測試我們的系統。他們也測試了其他公司。所以，您會在那裡看到我們的系統。他們正處於其中，但仍處於試驗階段。

Understood. Thank you. Appreciate it.

明白了。謝謝。欣賞它。

All right.

好的。

Jeremy Hamblin, Craig-Hallum.

傑里米·漢布林，克雷格·哈勒姆。

Thanks and congrats on the strong results. Just as a follow-up question on that last point. What have you seen in terms of inbound interest over the last couple of months? Certainly, I think at the least, it's some nice validation for the technology to have largest city in the country in such a large mass commuter system using that. I wanted to just get a sense for your inbound interest that you've seen?

感謝並祝賀取得的優異成績。就像最後一點的後續問題一樣。過去幾個月您對入境興趣有何看法？當然，我認為至少，在如此龐大的大規模通勤系統中使用該技術，對於該技術來說是一個很好的驗證。我只是想了解您所看到的入境興趣？

Yes. Look, we started working with cities -- the City of Detroit a couple of years ago. And the City of Detroit has dozens of our systems that they use to create safe places or safer zones in open places like the fireworks for example. So, we have a track record there.

是的。看，我們幾年前開始與城市—底特律市合作。底特律市擁有數十個我們的系統，他們使用這些系統在煙火等開放場所創建安全場所或更多的區域。所以，我們在那裡有記錄。

And now with what's happening in New York City, we are getting inbound through that brand awareness from other cities like in L.A. and other places that care about keeping their citizens space. So, we -- it's not included in our TAM when we talk about our TAM today. But as we start to make progress in cities, we're going to -- we'll talk about that as a vertical expansion opportunity in our TAM.

現在，隨著紐約市發生的事情，我們正在透過洛杉磯等其他城市和其他關心保持公民空間的地方的品牌知名度來吸引我們。所以，當我們今天談論我們的 TAM 時，它不包含在我們的 TAM 中。但當我們開始在城市取得進展時，我們將把它視為 TAM 的垂直擴張機會。

Got it. And then I just wanted to get a sense. In terms of your cash flow and inventory management. And as we think about the evolution of that here over the next three, four quarters, just to get a sense for where you are on your balance sheet and how you expect as you see conversion to more distributor deals versus subscription deals?

知道了。然後我只是想了解一下。就您的現金流量和庫存管理而言。當我們思考未來三、四個季度的演變時，只是為了了解您在資產負債表上的位置，以及當您看到更多分銷商交易與訂閱交易的轉換時，您的預期如何？

How should we expect that to play out in terms of the quarter where you expect maybe cash and equivalents to bottom out and start to build back up, kind of the timing on that? And then kind of related to that question, I suppose, is where do you expect to be in terms of percentage of total deals distributor versus subscription at year end?

我們應該如何預期這種情況會在您預期現金和等價物可能觸底並開始回升的季度中發揮作用，大概是這樣的時機？我想，與這個問題相關的是，您預計年底經銷商與訂閱總交易的百分比會是多少？

Yes, thanks for the question. We had talked about how we were going to end this quarter. We were at about $57 million in cash and cash equivalents. We had talked about being around in the 60 ZIP code. So, we had a little bit of extension in some of our accounts receivable.

是的，謝謝你的提問。我們已經討論過如何結束本季。我們的現金和現金等價物約為 5700 萬美元。我們曾討論過在郵遞區號 60 附近的情況。因此，我們的一些應收帳款有一點延期。

A lot of that was to finish buying this inventory buildup that we did and the transition from Generation 1 to Generation 2 systems. We have seen an increase in the distribution model. It doubled from Q1 to Q2 from 20% to just over 40%. We were expecting this quarter to be in the 30% ZIP code. But by the end of the year, we're hoping that it's around 50% of the quarterly activity by Q4.

其中很大一部分是為了完成購買我們所做的庫存累積以及從第一代系統到第二代系統的過渡。我們看到分銷模式增加。從第一季到第二季度，這一比例翻了一番，從 20% 升至略高於 40%。我們預計本季將位於 30% 的郵遞區號區。但到今年年底，我們希望到第四季該比例將達到季度活動的 50% 左右。

And in terms of the cash hitting the bottom, I would say that we're probably going to see a little bit more cash usage in Q3, but then kind of coming back and being around the $60 million ZIP code by the end of the year. We'll see a little bit of cash usage in Q1 that's typical for us, but then kind of come popping back to about the $60 million level when we hit profitability in Q2. So, I really want to kind of hone in on the $60 million level that I think we're going to be achieving over the next four quarters given this.

就現金觸底而言，我想說的是，我們可能會在第三季度看到更多的現金使用，但到年底就會回升到 6000 萬美元左右。我們將在第一季看到少量現金使用，這對我們來說是典型的，但當我們在第二季度實現盈利時，現金使用量會回升至 6000 萬美元左右的水平。因此，我真的很想專注於 6000 萬美元的水平，鑑於此，我認為我們將在未來四個季度實現這一目標。

One of the key elements of what we're doing right now as this distribution model is popping up is moving some of our equipment, which was originally in fixed assets back to the inventory line.

隨著這種分銷模式的出現，我們現在正在做的事情的關鍵要素之一是將我們原本屬於固定資產的一些設備移回庫存線。

So, you'll see on our balance sheet that the inventory line grew. It wasn't because we bought more systems. It's because we redistributed how they are on the balance sheet right now. And that's in anticipation of seeing more and more of this distribution activity.

因此，您會在我們的資產負債表上看到庫存線成長。這並不是因為我們買了更多系統。這是因為我們現在重新分配了它們在資產負債表上的表現。這是因為我們預期這種分發活動會越來越多。

Just to remind you, we only keep things in fixed assets that are or will be subscription over the long-term. But part of the deal here is we won't have any CapEx needs with regards to product, probably until going into next year.

提醒您一下，我們只將長期認購或將要認購的固定資產保留在固定資產中。但這裡達成的協議的一部分是，我們不會有任何與產品相關的資本支出需求，可能要到明年才會有。

We're building up credits based on the fact that we took on all the inventory with Columbia technology, our contract manufacturer, and it will take into the beginning of next year to eat through those credits from an inventory perspective.

我們正在建立信用，基於這樣一個事實，即我們與我們的合約製造商哥倫比亞技術公司承擔了所有庫存，並且從庫存角度來看，將從明年初開始消耗這些信用。

Got it. Great color. Last one for me. Your G&A expense jumped a little bit here in Q2 from a run rate that you've kind of seen a steady progression, made a bit of a jump there. I wanted to see if you could provide a little bit of color on that and then kind of how we should be thinking about that on a go-forward basis?

知道了。顏色很棒。最後一張給我。您的一般行政費用在第二季度從運行率略有上升，您已經看到了穩定的進展，在那裡略有跳躍。我想看看你是否可以對此提供一些意見，然後我們應該如何在未來的基礎上考慮這個問題？

Yes. Honestly, on an adjusted level, it's relatively stable. We actually had to do some estimates for legal settlements that we've been working through lately. There's a little bit related to stock compensation as well, but a lot of this is actually more in the reserve category than anything else.

是的。老實說，在調整後的水平上，它是相對穩定的。實際上，我們必須對最近一直在努力解決的法律解決方案進行一些估計。也有一些與股票薪酬相關，但其中許多實際上更多地屬於儲備類別，而不是其他任何類別。

Great. Thanks for the color and good luck the rest of the year. Thanks.

偉大的。感謝你的顏色，祝你今年剩下的時間好運。謝謝。

Hugh Cunningham, TD. Cohen.

休·坎寧安，TD。科恩。

Hey guys, thanks for taking my question. Congrats on a good quarter. Nice to see the unit adds take back up and the guidance reaffirmation?

嘿夥計們，謝謝你提出我的問題。恭喜季度表現良好。很高興看到該單位增加了支持並重申了指導？

Thank you.

謝謝。

Two questions here. So, first, in terms -- it seems like -- I know they're a long-term partner for you guys, but it seems like CT is sort of hitting an equilibrium point from an operating standpoint here. How is that relationship going?

這裡有兩個問題。所以，首先，就——看起來——我知道他們是你們的長期合作夥伴，但從營運的角度來看，CT 似乎達到了一個平衡點。這段關係進展如何？

And then, Peter, you've hinted a few times on this, but the new products and the add-ons, I think last time we talked about the brandished weapon detection. And for me, it's pretty interesting, all the other things you could add on, particularly given that you control such a valuable piece of real estate.

然後，彼得，你已經暗示過幾次了，但是新產品和附加組件，我想上次我們談到了揮舞武器檢測。對我來說，這非常有趣，你可以添加所有其他東西，特別是考慮到你控制著如此有價值的房地產。

Yes. I think Peter and I will tag team this one a little bit. I'll start with a little bit about Columbia Tech and then maybe, Peter, you can take on some of the new product discussion that we're going through.

是的。我想彼得和我會稍微標記一下這個團隊。我將首先介紹哥倫比亞理工學院，然後彼得，你也許可以參與我們正在進行的一些新產品討論。

In terms of Colombia Technology, they are a very important partner to us. They are 30 minutes down the street from our organization. We've been working closely with them over the last -- really since the inception of the company to help build our products. And at the current levels that we build and the expertise that we need in launching new products, they're the right partner for us. There's no doubt about it. And we have a very -- we have a lot of confidence in them and we work closely with them. on all of this.

就哥倫比亞技術而言，他們是我們非常重要的合作夥伴。他們距離我們組織 30 分鐘路程。自從公司成立以來，我們一直在與他們密切合作，幫助建立我們的產品。以我們目前的水平和推出新產品所需的專業知識來看，他們是我們合適的合作夥伴。毫無疑問。我們對他們充滿信心，並且與他們密切合作。關於這一切。

And as we think about more products coming out, it's also important that we kind of have that relationship. It's not that we won't think about things going forward when the time is right, about expanding our relationships with contract manufacturers. But right now, we are far from hitting the point where Columbia Tech can't help us on our volume levels.

當我們考慮推出更多產品時，建立這種關係也很重要。這並不是說我們不會在時機成熟時考慮未來的事情，即擴大我們與合約製造商的關係。但現在，我們還遠遠沒有達到哥倫比亞理工學院無法在數量水平上為我們提供幫助的地步。

Great. And Hugh, in terms of new products. So, as you know, we announced Visual Gun Detect, which is basically identifying detecting brandish weapons or open carry weapons as people approach the egress where Evolv Expresses and making a connection between that identification on our tablet is really important and revolutionary in the industry.

偉大的。休，在新產品方面。因此，如您所知，我們宣布了視覺槍支檢測，它基本上是在人們接近Evolv Express 的出口時識別檢測揮舞的武器或開放攜帶的武器，並在我們平板電腦上的識別之間建立聯繫，這在行業中非常重要且具有革命性。

So, those products are already out there. We're starting to see Visual Gun Detection help our pipeline, so we're starting to see new opportunities. And what's interesting is we're getting pulled into deals. And if they're not ready to make a decision on Evolv Express to find concealed weapons, oftentimes, they're very ready to make an investment in OpenCarry. And so that's becoming the first product. So we're seeing it in our pipeline today.

所以，這些產品已經上市了。我們開始看到視覺槍支檢測有助於我們的管道，因此我們開始看到新的機會。有趣的是我們正在參與交易。如果他們還沒有準備好透過 Evolv Express 來尋找隱藏武器，那麼他們通常很願意投資 OpenCarry。這就是第一個產品。所以我們今天在我們的管道中看到了它。

In terms of the rest of the year, we've said that we're going to be coming out with one, maybe two new products before the year-end. That is on track. They may be both digital and physical, but we're excited about that and what it could mean for our customers. But also 45% of our business this quarter was on expansion capabilities from our existing customers on Express systems and visual gun detect. They also want more to your point. So expanding that ARPU, becoming more sticky on renewal time, all those things will be real advantages for us as those become important metrics that we report going forward.

就今年剩餘時間而言，我們已經說過，我們將在年底前推出一款，也許兩款新產品。這已步入正軌。它們可能既是數位的，也是實體的，但我們對此及其對我們的客戶意味著什麼感到興奮。但本季我們 45% 的業務也依賴現有客戶在 Express 系統和視覺槍支檢測方面的擴展能力。他們還想要更多符合你觀點的內容。因此，擴大 ARPU，在續約時間上變得更加黏性，所有這些對我們來說都將是真正的優勢，因為這些將成為我們未來報告的重要指標。

So, before the end of the year, we expect to see 1 or 2 new products that could sit on that digital platform or be connected to the Evolv system.

因此，在今年年底之前，我們預計會看到 1 或 2 個新產品可以位於該數位平台上或連接到 Evolv 系統。

Awesome. Thank you. Can I squeeze one more question. What is the strength behind -- what is the reason behind Motorola's momentum?

驚人的。謝謝。我可以再問一個問題嗎？背後的實力是什麼──摩托羅拉勢頭強勁的原因是什麼？

Look, they're a leader in the space, right? And they have an enviable position with body cameras, with all kinds of technology and the OEM our product and AI weapons detection is a big and growing market, and they have a big and growing organization of both direct salespeople and Motorola selling an end-to-end safety system and also 2,000 channel partners that want to deliver on that promise.

看，他們是這個領域的領導者，對吧？他們在隨身攝影機方面擁有令人羨慕的地位，擁有各種技術和OEM，我們的產品和人工智慧武器檢測是一個巨大且不斷增長的市場，他們擁有一個龐大且不斷增長的直銷人員和摩托羅拉銷售端到端的組織。

So, their size, their market leadership in the safety and security area, their existing relationships with customers, their best-in-brand -- best-in-class brand, all make it a natural partner for us, and we're starting to see a lot of traction there, which is great.

因此，他們的規模、他們在安全和安保領域的市場領導地位、他們與客戶的現有關係、他們的最佳品牌——一流的品牌，所有這些都使其成為我們天然的合作夥伴，我們正在開始看到那裡有很大的吸引力，這很棒。

Awesome. Thanks peter. Good luck guys.

驚人的。謝謝彼得。祝大家好運。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Eric Martinuzzi.

埃里克·馬丁努齊。

Yes. You spoke to the better linearity in Q2. Just wondering how Q3 is starting out? What trends are you seeing in July?

是的。您談到了第二季更好的線性度。只是想知道第三季的開始情況如何？您在 7 月看到了哪些趨勢？

Yes. Look, we were really, really pleased with our business in the early part of the quarter, which we're starting to see repeatable months moving up into the right. That momentum is continuing, and we're seeing it already in this quarter. So, we're expecting that to continue.

是的。看，我們對本季初期的業務非常非常滿意，我們開始看到可重複的月份向右移動。這種勢頭仍在持續，我們在本季就已經看到了這種勢頭。因此，我們預計這種情況會持續下去。

All the work that our sales and marketing organization have been doing to build pipeline to increase their close rate is now starting to translate into the business. And the thing we love the most here is this linearity, which will allow us to build backlog going forward, which is something we like a lot, obviously. So, continue to watch that. You can watch our RPO and our bookings continue to grow over the rest of the year.

我們的銷售和行銷組織為建立管道以提高成交率所做的所有工作現在開始轉化為業務。我們在這裡最喜歡的是這種線性，這將使我們能夠繼續建立積壓工作，這顯然是我們非常喜歡的。所以，繼續關注吧。您可以看到我們的 RPO 和我們的預訂量在今年剩餘時間內持續成長。

Last call, you talked a little bit about the competitive landscape, especially in education. Curious to know if you're seeing kind of a pricing stabilizing environment or still aggressive pricing in the education space?

上次通話，您談到了競爭格局，特別是在教育領域。想知道您在教育領域看到的是價格穩定的環境還是仍然激進的定價？

Look, I would say the competitive landscape hasn't changed. Our major competitor is a security legacy screening company and they've been around for quite some time. They sell a like a metal detector and the technology works like one. So, we do very well when we compete with them head-to-head. But in those very, very price-sensitive schools, they can be tough competition. So, that hasn't changed.

看，我想說競爭格局沒有改變。我們的主要競爭對手是一家安全遺留檢查公司，他們已經存在相當長一段時間了。他們出售一種類似於金屬探測器的產品，並且該技術的工作原理與金屬探測器類似。所以，當我們與他們正面競爭時，我們做得很好。但在那些對價格非常非常敏感的學校，競爭可能會非常激烈。所以，這並沒有改變。

The good news is we're in lots of more places, both by ourselves, but also in a competitive environment and the fact that people are taking security and putting it in their operating spend for security and not relying on better brands and grant funding, we think is a long-term trend that's really good for the business.

好消息是我們在更多的地方，無論是我們自己，還是在競爭環境中，事實上，人們正在採取安全措施並將其納入安全營運支出中，而不是依賴更好的品牌和撥款，我們認為這是一個對業務真正有利的長期趨勢。

Got it. Thanks for taking my questions.

知道了。感謝您回答我的問題。

Yes. Thanks Eric.

是的。謝謝埃里克。

Thanks, Eric. I think that's our last call. I'm going to turn it over to Peter for some closing remarks.

謝謝，埃里克。我想這是我們最後一次通話了。我將把它交給彼得做一些結束語。

Yes. Thanks, Brian. Look, everyone, just to finish up, we feel really, really good about the quarter, right? It was highlighted by record revenues and record new customers and record adjusted EBITDA. I feel really good about that. All the things that we outlined last quarter and have been executing on this quarter, building installation backlog I just mentioned, having a strong book-to-bill is really important, we're doing that.

是的。謝謝，布萊恩。聽著，大家，最後，我們對本季感覺非常非常好，對吧？創紀錄的收入、創紀錄的新客戶以及創紀錄的調整後 EBITDA 凸顯了這一點。我對此感覺很好。我們上季度概述並在本季度執行的所有事情，建立我剛才提到的安裝積壓，擁有強大的訂單到賬單非常重要，我們正在這樣做。

We're accelerating the adoption of the distribution model. It's up to 40%. That's translating into gross margins and lots of good things in the business and just improving our overall sales execution. That work started three quarters ago, but it's starting to translate into the business. And all of that contributed to having the quarter that we had this quarter.

我們正在加速採用分銷模式。高達40%。這轉化為毛利率和業務中的許多好處，並提高了我們的整體銷售執行力。這項工作在三個季度前開始，但已經開始轉化為業務。所有這些都促成了我們本季的表現。

So, we're really confident in our guidance, as Mark reiterated our guidance, our plans for the year, we feel confident in. We expect to get to cash flow positive for adjusted EBITDA in Q2 of next year, and we're going to finish this year strong and position the company for future years as we chase the Rule of 40 as a company.

因此，我們對我們的指導非常有信心，正如馬克重申的那樣，我們對今年的指導和計劃充滿信心。我們預計明年第二季調整後 EBITDA 的現金流將為正，並且我們將在今年以強勁的勢頭結束今年，並在我們追求 40 法則的過程中為公司未來幾年做好準備。

So, we appreciate everyone's support and attention. We look forward to reporting again next quarter, and we're going to continue on the track to be a market leader in a space and keeping people in places safer than ever before. Thanks everybody.

所以，我們感謝大家的支持與關注。我們期待下個季度再次報告，我們將繼續走在成為該領域市場領導者的道路上，並讓人們在比以往任何時候都更安全的地方。謝謝大家。

That does conclude our conference for today.

我們今天的會議到此結束。