Evolv Technologies Down 30%: What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) shares plummeted 30% after reporting a Q1 adjusted loss per share of 9 cents, missing expectations by 2 cents, and quarterly revenues of $21.668 million, below the forecast of $22.999 million. Despite a 75% year-over-year increase in Evolv Express subscriptions, the company's FY24 revenue outlook of $100 million falls short of the anticipated $114.6 million. The company also expects a 40% year-over-year increase in adjusted EBITDA. Over the past year, EVLV stock has declined over 35%.
May 10, 2024 | 3:29 pm
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Evolv Technologies reported a larger Q1 loss and lower revenues than expected, with a disappointing FY24 revenue outlook, causing a 30% drop in its stock price.
The significant drop in Evolv Technologies' stock price is directly related to its Q1 earnings miss and the downward revision of its FY24 revenue outlook. Financial results that fall short of market expectations typically lead to negative investor sentiment and a decrease in stock price. The 75% year-over-year increase in Evolv Express subscriptions indicates some positive aspects of the business, but the overall financial outlook and past year's performance overshadow this growth, leading to a bearish short-term impact.
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IMPORTANCE 90
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