Evolv Technologies falls on launching internal investigation

Evolv Technologies Holdings

25/10/2024 15:28

(Updates share, adds milestone)
    ** Shares of Evolv Technologies Holdings  EVLV.O  fall 45.1%
to $2.26, making it the second-biggest loser on the Nasdaq
    ** Cybersecurity co said it is launching an internal
investigation into its sales practices
    ** Says it believes certain sales to one of its largest
"channel partners" were subject to extra-contractual terms, and
were withheld from co's audit committee
    ** Certain employees also "engaged in misconduct" in
connection with those sales, Evolv says
    ** EVLV said rev was prematurely or incorrectly recognized
between Q2 2022 and Q2 2024
    ** Co currently estimates premature or incorrect rev
recognition between $4 mln to $6 mln
    ** EVLV will also delay its Q3 earnings release
    ** Up to Thursday's close, stock had fallen 13.1% YTD

 (Reporting by Rishi Kant in Bengaluru)
 ((Rishi.Kant@thomsonreuters.com))