Rekor Systems, Inc. (NASDAQ:REKR) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET
Company Participants
Eyal Hen - CFO, Principal Financial & Accounting Officer
Robert Berman - Executive Chairman & CEO
Conference Call Participants
Michael Latimore - Northland Capital Markets
Zachary Cummins - B. Riley Securities
KC Ambrecht - Shay Capital
Operator
Good afternoon, ladies and gentlemen, and welcome to today's Rekor Systems, Inc. conference call. My name is Latanya, and I will be your coordinator for today. [Operator Instructions]. As a reminder, this 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 the statements made in this conference call concerning future revenues, results of operations, financial positions, 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 disclaimers in our earnings release. You should also review a description of the risk factors contained in our annual and quarterly financial filings with the SEC. Non-GAAP results will also be discussed on this 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 proceed, sir.
Eyal Hen
Good afternoon, and thanks for joining us. Today, we'll discuss Rekor's results for the 3 and 6 months ended June 30, 2022, and provide you with an update on key business topics.
Our CEO, Robert Berman, will be on the call with me today and will provide additional color on our business after I go over our relevant metrics. In the second quarter of 2022, we continue to accelerate growth in recurring revenue under our new sales model. As explained previously, since the third quarter of 2021, we've been shifting our emphasis from point-in-time revenue to recurring revenue. While we continue to engage in point-in-time hardware sales in appropriate circumstances, our new model emphasizes providing software and data services on a subscription basis. This has had a near-term impact on our overall revenues. But with the strong growth we are seeing in recurring revenues, we're confident about the positive impact it will have on our overall strength and stability for the long term.