Company achieves more than 35% revenue growth in Q3 2020 over the same quarter in 2019
Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor") (“the Company”), a Maryland-based company providing real-time roadway intelligence through AI-driven decisions, announced today that it expected gross revenue to be above $2.1 million for the third quarter of 2020, which represents more than 35% growth from the same quarter of 2019. Additionally, revenue for the nine months ended September 30, 2020, is expected to be approximately $6.4 million, which represents more than 60% growth from the nine months ended September 30, 2019. The Company saw an approximate $0.6 million decrease in revenue from the third quarter 2020 compared to the second quarter of 2020 due, in part, to project delays as a result of COVID-19 and extended negotiations related to certain new customers.
In the third quarter, Rekor issued a cash payment to retire the remaining $4.9 million outstanding balance of its 2019 Promissory Notes, significantly eliminating the Company’s remaining high interest debt obligations. Detailed information concerning these transactions is contained in the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission (the “SEC”) on September 17, 2020.
“Our results in the third quarter have demonstrated a remarkably high level of growth on a year-over-year basis, especially in the performance of our higher margin technology business,” said Eyal Hen, Rekor CFO. “We believe this is a testament to the strategic realignment of the Company that has focused on the longer-term drivers of demand from our commercial and government segments. Our sale of non-core assets positions us as a 100% technology focused organization with eCommerce as a key channel. Rekor’s go-to-market strategy intends to reach a global customer base with frictionless transactions and gives us great confidence moving forward.”
The Company has made continued progress in the implementation of its go-to-market strategy -- expanding the market for its products and services. In the third quarter it announced the launch of Rekor One -- a single source for roadway intelligence, an iPhone and Android mobile vehicle-recognition application for commercial users, and its selection by Mastercard to help deliver its AI Powered Drive Through Platform.
The financial data and other information disclosed in this press release are unaudited. The financial data contained in this press release is partial and preliminary and does not include all disclosures required by accounting principles generally accepted in the United States of America. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. This release should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report”) for the year ended December 31, 2019 and the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020 and the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2020 (the “Quarterly Reports”) as previously filed with the SEC. Actual results in future periods may differ materially from expectations due to a number of risks and uncertainties, including those risk factors disclosed in the Annual Report and Quarterly Reports.
Following the issuance of the full third quarter financial results on Monday. November 9, 2020, Rekor has scheduled a conference call to discuss these results also on Monday, November 9, 2020 at 4:00 P.M. (Eastern).
All interested parties may listen to a live webcast of the call at:
By phone: Toll Free: 877-407-8033 or International: 201-689-8033
An archived webcast will also be available to replay this conference call directly from the Company’s website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company’s website.