Highlights:
- 2022 gross revenue increased 72% to $19.9 million ($22.3 million with the discontinued operations) as compared to $11.6 million ($14.3 million with discontinued operations) in 2021
- Closed $15 million Senior Secured Notes in January 2023
- Sold our Automatic Traffic Safety Enforcement (“ATSE”) business unit
- Acquired Southern Trafic Services (“STS”) in June 2022, expanding our footprint, product offering, and customer base
- Recurring revenue increased 182% to $13.1 million in 2022 as compared to $4.6 million in 2021
- Performance obligations increased 45% to $21.4 million in 2022 as compared to $14.8 million in 2021
COLUMBIA, MD / ACCESSWIRE / March 27, 2023 / Rekor Systems, Inc (NASDAQ:REKR) (“Rekor” or the “Company”), a global AI technology company with a mission to provide insights that build safer, smarter, and more efficient cities around the world through intelligent infrastructure, announced its financial results for the year ended December 31, 2022.
“During the last six months of 2022, we focused on streamlining operations and finding efficiencies across our general and administrative, sales and marketing, research and development and travel expenses. Like many technology companies, we continue to make tough but important choices to help right-size our business and achieve financial and operational efficiencies,” said Eyal Hen, Chief Financial Officer, Rekor. “In 2022, we also integrated Rekor’s two strategic acquisitions – Waycare and Southern Traffic Services. This has resulted in significant advances and in our technology and business development efforts as we enter 2023, allowing us to further develop our leading technology and achieve greater visibility in the transportation markets.”
“Rekor stands at the forefront of innovation, leading the charge to be the premier provider of Roadway Intelligence and data-driven mobility insights on a global scale. As a technology company, we are changing the course of the public safety, urban mobility, and transportation market segments with our cutting-edge, AI-driven solutions, enabling smarter, safer, and more sustainable streets for all communities. We look forward to building on this success in 2023 and beyond.” said Robert A. Berman, Chief Executive Officer, Rekor.
Full-Year 2022 Financial Results
Revenues
Gross revenue for the year ended December 31, 2022, increased $8,345,000 or 72% to $19,920,000, compared to $11,575,000 for the year ended December 31, 2021. The increase in revenue for the year ended December 31, 2022, compared to the year ended December 31, 2021, was primarily attributable to our STS acquisition. As part of our selling strategy, we have focused in 2022 on a sales model that employs contracts with recurring revenue. We expect these contracts to provide a more predictable stream of revenues compared to one-time sales of hardware and software licenses, which are generally more difficult to predict. Our revenue with the discontinued operation of our ATSE business was $22,280,000 for the year ended December 31, 2022, compared to $14,294,000 for the year ended December 31, 2021.
Recurring revenue for the year ended December 31, 2022, which includes SaaS, eCommerce, data aggregation, and customer support revenue, increased $8,457,000 or 182% to $13,091,000, compared to $4,634,000 for the year ended December 31, 2021.
Product and service revenue for the year ended December 31, 2022, which includes hardware and perpetual license sales, decreased $112,000 or 2% to $6,829,000, compared to $6,941,000 for the year ended December 31, 2021.
