Rekor Systems, Inc. (NASDAQ:REKR) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET

Company Participants

Eyal Hen – Chief Financial Officer

David Desharnais – President and Chief Operating Officer

Robert Berman – Chief Executive Officer

Conference Call Participants

Zach Cummins – B. Riley Securities

Aditya Dagaonkar – Northland Capital

Operator

Good afternoon, ladies and gentlemen, and welcome to today’s Rekor Systems Inc. Conference Call. My name is John and I will be your coordinator for today. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes.

Before we start, I want to read you the company’s abbreviated Safe Harbor statement. I want to remind you that statements made in this conference call concerning future revenues, results of operations, financial position, markets, economic conditions, products and product releases, partnerships and any other statements that may be construed as a prediction of future performance or events are forward-looking statements. Such statements can involve known and unknown risks, uncertainties, and other factors, which may cause actual results to differ materially from those expressed or implied by such statements.

We ask that you refer to the full disclaimer in our earnings release. You should also review a description of the risk factors contained in our annual and quarterly filings with the SEC. Non-GAAP results will also be discussed on the call. The company believes the presentation of non-GAAP information provides useful supplementary data concerning the company’s ongoing operations and is provided for informational purposes only.

And now I want to turn the presentation over to Mr. Eyal Hen, CFO of Rekor Systems. Please proceed.

Eyal Hen

Hi everyone. Thank you for joining us to discuss our results for the first three months ending March 31, 2023. We are excited to share our continuing progress with you. Our President and COO, David Desharnais, is on the call with me today together with our CEO, Robert Berman. David will brief you on recent developments in our business and Robert will provide a summary and closing remarks. But first, I will go over some relevant metrics. As indicated in our comments last quarter, given current market conditions, we continue to prioritize our efforts and investments in near term execution versus longer range development and continue our efforts to accelerate growth in recurring revenue. This has resulted in continued growth in both non-recurring and recurring revenue, while at the same time our recurring revenue as a percentage of total revenue is increasing. This is a trend we believe will continue as we concentrate on a significant near-term opportunity we are focused on now.