Business
Rekor Systems, Inc. Reports Third Quarter 2021 Financial Results
Highlights:Launched our Rekor OneTM operating system for intelligent infrastructure, which includes modules for traffic analytics, incident management, public
About this update from Rekor Systems, Inc.
[{"type":"text","content":"Highlights:Launched our Rekor OneTM operating system for intelligent infrastructure, which includes modules for traffic analytics, incident management, public safety, and law enforcement.Evolved our revenue model to effectively execute on our land-and-expand strategy and introduced new key performance indicators to allow investors to assess our progress, which include:Performance obligations increased 57% to $23.8 million, up from $15.2 million in the second quarter of 2021.Total Contract Value for the nine months ended September 30, 2021, increased 108% to $7.7 million, up from $3.7 million for the comparable period in 2020.Recurring revenue, which includes SaaS revenue, licensing and subscription revenue, eCommerce revenue and customer support revenue, increased 28% to $1.2 million as compared to $1.0 million in the third quarter of 2020.Third quarter 2021 revenue increased 23% to $2.6 million as compared to $2.1 million in the third quarter of 2020.Revenue for the first nine months of 2021 increased 74% to $11.1 million as compared to $6.4 million for the same period in the prior year.Third quarter 2021 adjusted gross margin, which excludes the impact of depreciation and amortization expense, was 46%, down from 54% in the third quarter of 2020.Closed the acquisition of Waycare Technologies, Ltd., expanding our global footprint, capabilities, and product offerings.COLUMBIA, MD / ACCESSWIRE / November 15, 2021 / Rekor Systems, Inc, (NASDAQ:REKR) (\"Rekor\" or the \"Company\"), a global AI technology company with a mission to build safer, smarter and more efficient cities around the world through intelligent infrastructure, announced today its unaudited financial results for the third quarter of 2021.\"In the third quarter of 2021, we generated revenue growth of 23% year-over-year,\" said Eyal Hen, Chief Financial Officer, Rekor. \"However, revenues declined 39% from the second quarter of 2021 as a result of our work to evolve our go-to-market strategy and focus our sales initiatives on increasing recurring revenues. We would expect revenues in the fourth quarter and first half of 2022 to remain below what we were able to generate in the first and second quarter of 2021 as we continue to execute on our land-and-expand strategy. This strategy emphasizes sensor-based subscriptions that produce lower initial revenues, as compared t...