Rekor Systems, Inc. (NASDAQ:REKR) Q3 2022 Earnings Conference Call November 14, 2022 4:30 PM ET

Company Participants

Eyal Hen - Chief Financial Officer

David Desharnais - President & Chief Operating Officer

Robert Berman - Chief Executive Officer

Charlie Degliomini - Executive Vice President, Government Relations & Corporate Communications

Conference Call Participants

Zach Cummins - B. Riley

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. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes.

Before we get started, I would like to read you the company's abbreviated Safe Harbor statement. I would like 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 the 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.

I would now like to turn the presentation over to Mr. Eyal Hen, CFO of Rekor Systems. Please go ahead, sir.

Eyal Hen

Hi, everyone. Thanks for joining us today to discuss our results for the three and nine months ended September 30, 2022, and update you on key business topics. On the call with me today are our CEO, Robert Berman; and our President and COO, David Desharnais. David will provide additional color on our business after I go over our relevant metrics.

With a full quarter of 1,000 traffic services revenue in the third quarter of 2022, we have accelerated growth in recurring revenue under our sales model. As I've explained previously, we've shifted our emphasis from point-in-time revenue to recurring revenue since the third quarter of 2021. While we continue to engage in point-in-time hardware sales in appropriate circumstances, our new models and sizes providing data services and software on a subscription basis. This had a near-term impact on our overall revenues earlier in the year, but the strong growth we are now seeing in recurring revenues is laying a solid foundation for our overall strength and stability over the long-term.