Rekor Systems, a leading AI-driven roadway intelligence technology company, has reported a record-breaking performance in the third quarter of 2023. The company recorded a significant increase in revenue, reducing losses and showing promising growth.
In an 8-K filing released on November 14, 2023, Rekor Systems announced its impressive financial results for Q3 2023. Gross revenue for the quarter reached $9.1 million, marking a 35% increase compared to the same period in 2022, where revenue stood at $6.8 million. These numbers demonstrate Rekor Systems’ continued success and growth in the AI sector.
The company’s revenue for the first nine months of 2023 also showcased remarkable growth. Rekor Systems achieved $23.9 million in revenue, representing a 77% increase from the previous year, where revenue stood at $13.5 million. This growth can largely be attributed to the acquisition of STS in June 2022, which contributed $10.7 million in revenue.
Furthermore, Rekor Systems experienced a significant increase in performance obligations. As of September 30, 2023, these obligations amounted to $30.2 million, reflecting a 41% increase compared to December 31, 2022, where they stood at $21.4 million. The company also signed contracts worth $8.4 million during Q3 2023, exemplifying a 74% increase compared to the same quarter in 2022.
Rekor Systems successfully reduced its loss from operations, excluding goodwill impairment, by 24% for the three months ended September 30, 2023, in comparison to the same period the previous year. This reduction can be attributed to increased revenue and a reduction in expenses. Additionally, the company focused on operational efficiencies, resulting in a significant decrease in payroll and related costs.
The company’s Adjusted EBITDA loss also showed improvement. Rekor Systems recorded a loss of $6.6 million for Q3 2023, an improvement from the loss of $10.7 million in Q3 2022. This improvement demonstrates the company’s strategic efforts in scaling and standardizing its product offerings, leading to higher margins and operational efficiencies.
Rekor Systems’ revenue for the three months ending September 30, 2023, showed a 6% increase compared to the three months ending June 30, 2023. This growth can be attributed to the continued adoption of the company’s suite of solutions.
Looking ahead, Rekor Systems is optimistic about its performance in the fourth quarter. The company aims to meet or exceed its current full-year estimates, building on its impressive Compound Annual Growth Rate (CAGR) of 268% from 2018 to 2022. This growth sets a positive precedent for Rekor Systems’ trajectory in the AI sector.
For more detailed information on Rekor Systems’ financial results, including consolidated balance sheets and statements of operations, interested parties can access the conference call scheduled for November 14, 2023, or refer to the earnings release for replay and webcast information.
Rekor Systems continues to lead the way in implementing digital infrastructure in communities, leveraging AI and machine learning to transform data into actionable roadway intelligence. With a focus on creating safer, greener, and more efficient environments, Rekor Systems is driving innovation and shaping the future of roadway systems.
References:
1. Rekor Systems Reports Record Q3 Revenue Surge of 35% – Promises Strong Q4
2. Rekor Systems Inc (NASDAQ:REKR) – 8-K filing
3. Rekor Systems Inc (NASDAQ:REKR) News
