Rekor Systems, Inc. (NASDAQ:REKR) Q1 2024 Earnings Conference Call May 15, 2024 4:30 PM ET
Company Participants
Eyal Hen - Chief Financial Officer
David Desharnais - President and COO
Robert Berman - Chairman and CEO
Conference Call Participants
Noah Levitz - William Blair
Michael Latimore - Northland Capital Markets
Roger Hawkins - RAH Capital
Operator
Good afternoon, ladies and gentlemen, and welcome to today's Rekor Systems, Inc. Conference Call. My name is Paul, and I will be your coordinator for today. [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, product 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 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 now would like to turn the presentation over to Mr. Eyal Hen, CFO of Rekor Systems.
Eyal Hen
Hello everyone. Thank you for joining us today. In the first quarter of 2024, our revenue reached $9.8 million marking at 58.1% increase from $6.2 million in the same period last year. Our adjusted gross margin for the first quarter of 2024 was 45.9%, a decline from 53.6% in the first quarter of 2023. This decrease was primarily due to lower margin projects and adverse weather conditions in January.
Adjusted EBITDA for the first quarter of 2024 remained steady with the $9.4 million loss consistent with the previous years first quarter. Significant developments in January, 2024 included the completion of the acquisition of all traffic data or ATD for $19 million in the mix of cash and stock.
In February, 2024, the successfully completed a follow-on offering with William Blair raising a net amount of $26.5 million. We utilized part of this fund to redeem the senior secure notes issued in January, 2023, part of the redemption price paid in common stock at a conversion rate of $2.50 per share.