Rekor Systems Inc (REKR) 2021 Q3 法說會逐字稿

Good evening, everybody, and I do apologize on behalf of the vendor providing today's call as it was a technical flaw on our part that caused the delay, and it was a no (technical difficulty) Rekor. I do apologize once again. And I would like to say good evening, at this time, 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.

各位晚上好，我謹代表今天電話會議的供應商向您致以歉意，因為是我們的一項技術故障導致了延遲，而且是Rekor系統公司（Rekor Systems, Inc.）的故障。我再次向您致以歉意。現在，我想說聲晚上好，歡迎參加今天的Rekor Systems, Inc.電話會議。我叫約翰，我將擔任今天的協調員。 （接線員指示）提醒一下，本次電話會議正在錄音，以便回放。

Before we get started, I will review the Company's abbreviated Safe Harbor statement. I remind you that statements made in this conference call concerning future revenues, results of operations, financial position, market, 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.

在開始之前，我將先回顧一下公司的簡短安全港聲明。我在此提醒您，本次電話會議中關於未來收入、營運業績、財務狀況、市場、經濟狀況、產品及產品發布、合作夥伴關係以及任何其他可能被解讀為對未來業績或事件預測的陳述均為前瞻性陳述。

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.

此類陳述可能涉及已知和未知的風險、不確定性及其他因素，可能導致實際結果與此類陳述明示或暗示的結果有重大差異。請您參閱我們收益報告中的完整免責聲明。您亦應查閱我們向美國證券交易委員會 (SEC) 提交的年度和季度文件中包含的風險因素描述。

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.

非公認會計準則 (Non-GAAP) 業績也將在電話會議上討論。公司認為，非公認會計準則 (Non-GAAP) 資訊的呈現方式為公司持續營運提供了有用的補充數據，僅供參考。

I will now turn the call over to Mr. Eyal Hen, CFO of Rekor Systems.

現在我將電話轉給 Rekor Systems 的財務長 Eyal Hen 先生。

Thank you, John, and good afternoon, everyone. Thank you for joining us on our earnings call today. Today we will discuss Rekor results for the third quarter ended September 30, 2021, as well as provide an update on key business topics. On the call with me today is Robert Berman, President and CEO, who will give you additional updates as soon as I finish sharing relevant metrics with you.

謝謝，約翰，大家下午好。感謝您參加今天的財報電話會議。今天我們將討論Rekor截至2021年9月30日的第三季業績，並報告一些關鍵業務主題的最新情況。今天與我一起參加電話會議的是總裁兼執行長羅伯特·伯曼，我將在與大家分享相關指標後，立即向大家提供更多更新資訊。

Following our prepared remarks, Robert and I will take your questions. The third quarter was a defining moment in Rekor's young history. During our inaugural investor day in September, (technical difficulty) to the investment community as products that we have been working on for the past two years. A lot of time, capital and know-how went into creating this operating platform, so that it can serve multiple agencies using a modular approach.

在我們準備好的發言之後，羅伯特和我將回答大家的問題。第三季是Rekor年輕歷史上的決定性時刻。在9月的首屆投資者日上，我們向投資界介紹了我們過去兩年一直在研發的產品（技術難題）。我們投入了大量的時間、資金和專業知識來創建這個營運平台，以便它能夠以模組化的方式服務多家機構。

The introduction for Rekor One and the acquisition of Waycare finally put us in a position to jumpstart the adoption of our operating platform, accelerate our growth, and claim our place as the leader in the emerging intelligent infrastructure market. With the introduction of our new multi-mission operating platform, we refined our go-to-market strategy to capitalize on the tremendous growth opportunity this market presents. We believe there is significant first-mover advantage in this emerging market. So speed is of the essence to build a strong moat.

Rekor One 的推出以及對 Waycare 的收購最終使我們能夠快速推廣我們的營運平台，加速成長，並確立我們在新興智慧基礎設施市場的領先地位。隨著我們全新多任務營運平台的推出，我們優化了市場策略，以充分利用該市場帶來的巨大成長機會。我們相信，在這個新興市場中，我們擁有顯著的先發優勢。因此，速度對於建造強大的護城河至關重要。

The evolution of our business model, we intend to capture our fair share of this emerging market. Since the second quarter of this year, we have been moving away from a product-oriented transactional revenues model to a solution-oriented recurring revenue model. Certainly, while the sale of solutions as compared to products spread out revenues over a longer period of time, it reduces them in the short term. And this has had an impact on near-term revenues.

我們業務模式的演變，旨在在這個新興市場中佔據應有的份額。自今年第二季以來，我們已從以產品為導向的交易收入模式轉向以解決方案為導向的經常性收入模式。當然，與產品相比，解決方案的銷售雖然可以將收入分散到更長的時期，但在短期內會減少收入。這對短期收入產生了影響。

However, we are confident that the flexibility, scalability, and agility inherent in this delivery model will result in significant revenue growth. Once our customers have experienced the benefits of our AI--driven technology, we can upsell and cross-sell our solutions. We fully expect the increasing adoption of Rekor One by customers to have a snowball effect and spur further revenue growth as we expand our geographic footprint.

然而，我們相信，這種交付模式固有的靈活性、可擴展性和敏捷性將帶來顯著的收入成長。一旦我們的客戶體驗到我們人工智慧驅動技術的優勢，我們就可以進行追加銷售和交叉銷售。我們完全相信，隨著客戶越來越多地採用 Rekor One，我們將產生滾雪球效應，並隨著我們地域覆蓋範圍的擴大而進一步刺激收入成長。

With that, let me go over the financial results for the third quarter. We continue to generate year-over-year revenue growth, even as our newly refined go-to-market strategy impacted our growth within the quarter. Revenue for the third quarter of 2021 was $2.6 million, an increase of 23% compared to $2.1 million in revenue for the same period last year. Revenues declined sequentially from the $4.3 million reported in the second quarter of 2021. Please note that revenues for the third quarter of 2021 includes approximately six weeks of Waycare contribution.

接下來，讓我來回顧一下第三季的財務表現。儘管我們新近完善的行銷策略在本季影響了我們的成長，但我們的營收仍保持年增。 2021年第三季的營收為260萬美元，較去年同期的210萬美元成長23%。與2021年第二季報告的430萬美元相比，營收季減。請注意，2021年第三季的營收包含約六週的Waycare貢獻。

Recurring revenues, which include SaaS revenues, licensing and subscription revenue, e-commerce revenue and customer support revenue, was $1.2 million for the three months ended September 30, 2021. This represents an increase of $269,000 or 28% compared to $964,000 for the three months ended September 30, 2020. Revenue for the nine months ended September 30, 2021 was $11.1 million compared to $6.4 million for the same period last year. This represents a robust year-over-year growth of nearly 74%.

截至2021年9月30日的三個月，經常性收入（包括SaaS收入、授權和訂閱收入、電子商務收入以及客戶支援收入）為120萬美元。與截至2020年9月30日的三個月的96.4萬美元相比，增加了26.9萬美元，增幅為28%。截至2021年9月30日的九個月，營收為1,110萬美元，去年同期為640萬美元。這代表著近74%的年成長。

Remaining performance obligations in the third quarter of 2021 were $23.8 million, an increase of 57% from the $15.2 million reported as of June 30, 2021. For the first time, we are also introducing total contract value as a KPI to provide investors with a metric to measure our progress. We won contracts valued at $7.7 million during the nine months ended September 30, 2021. This is an increase of 108% compared to $3.7 million of total contract value won during the same period in 2020.

2021年第三季剩餘履約義務為2,380萬美元，較截至2021年6月30日報告的1,520萬美元成長57%。我們也首次引入了合約總價值作為關鍵績效指標 (KPI)，為投資者提供衡量我們進展的指標。截至2021年9月30日的九個月內，我們贏得了價值770萬美元的合約。與2020年同期的370萬美元相比，這一數字成長了108%。

Lastly, following the acquisition of Waycare, our working capital at the end of the third quarter decreased to $28.2 million from $79.8 million in the second quarter, but remains well above the $18.2 million we reported as of December 31, 2020. The year-over-year increase in third-quarter revenue is primarily due to the expansion of our product and service offerings.

最後，在收購 Waycare 之後，我們第三季末的營運資本從第二季的 7,980 萬美元降至 2,820 萬美元，但仍遠高於我們截至 2020 年 12 月 31 日報告的 1,820 萬美元。第三季營收年增主要歸因於我們產品和服務範圍的擴大。

We are continuing to benefit from the strategic marketing initiative that we launched at the beginning of 2021, and we are seeing initial success of our focus on recurring revenues. To be clear, we expect our go-to-market strategy with an emphasize on subscription-based revenue to generate long-term growth well beyond of what we could have achieved under the previous model.

我們持續受惠於2021年初推出的策略行銷計劃，並且專注於經常性收入的措施已初見成效。需要明確的是，我們預計，以訂閱收入為重點的市場推廣策略將帶來遠超以往模式的長期成長。

However, we will continue to monetize opportunities which are transactional in nature. Thus, we generated a 19% year-over-year increase in product and services revenue in the third quarter of 2021. This cohort is comprised of implementation revenue for perpetual license sales, hardware sales, and compliance-based revenues. The Oklahoma uninsured vehicle enforcement diversion program, our contactless compliance solution, generated $345,000 revenue in the third quarter and $975,000 for the nine months ended September 30, 2021.

然而，我們將繼續利用交易性質的機會進行貨幣化。因此，我們在2021年第三季實現了產品和服務收入年增19%。這部分收入包括永久許可證銷售的實施收入、硬體銷售收入以及基於合規的收入。我們的非接觸式合規解決方案——俄克拉荷馬州無保險車輛執法轉移計劃，在第三季度創造了34.5萬美元的收入，在截至2021年9月30日的九個月中創造了97.5萬美元的收入。

While this program generates meaningful revenues for the state, there is also a social component to contactless compliance. Research has shown that there are indications of racial disparity when it comes to the decision about whom to stop for traffic violation.

雖然該計畫為州政府帶來了可觀的收入，但非接觸式駕駛的合規性也帶來了社會影響。研究表明，在決定哪些人違反交通規則時，存在種族差異。

This can lead to unnecessary and unintended complications. Recently, the city of Philadelphia enacted legislation to prevent police stops for minor traffic infractions. From here, the mayor will establish policy on how persons who commit these violations can receive a warning or citation in the mail. As the success of Oklahoma's UVED Program demonstrates, our technology can help to enforce contactless compliance without the need to stop motorists for minor traffic violations. This is significant given the over 20 million Americans estimated to be pulled over for every year.

這可能會導致不必要的、意想不到的麻煩。最近，費城頒布了一項立法，禁止警方因輕微交通違規而攔截車輛。市長將制定相關政策，規定違規者如何透過郵件收到警告或傳票。俄克拉荷馬州UVED計畫的成功經驗表明，我們的技術可以幫助強制執行非接觸式合規規定，而無需因輕微交通違規而攔截車輛。考慮到每年有超過2000萬美國人被警方攔截，這項技術意義重大。

Our adjusted gross margin for the quarter ended September 30, 2021, was 46%, a decline from the 54% we reported in the comparable 2020 period. The decline in margins for the third quarter ended September 30, 2021, is primarily attributable to the evolution of our go-to-market strategy. We have maintained our cost structure related to selling and servicing our clients even as we have deemphasized upfront hardware sales. As software-related sales continue to ramp up, you should expect to see an improvement in margins.

截至2021年9月30日的季度，我們的調整後毛利率為46%，較2020年同期的54%有所下降。截至2021年9月30日的第三季利潤率下降主要歸因於我們市場推廣策略的演變。儘管我們降低了硬體預售的優先級，但我們仍保持了與客戶銷售和服務相關的成本結構。隨著軟體相關銷售額的持續成長，利潤率可望提升。

Adjusted gross margin for the nine months of the year ended September 30, 2021, was 58% compared to 57% in the same period last year. We would expect 2022 adjusted gross margin to be in this range with the margins improving meaningfully in later years.

截至2021年9月30日止九個月的調整後毛利率為58%，去年同期為57%。我們預計2022年的調整後毛利率將維持在此範圍內，且利潤率在未來幾年將顯著提升。

Total operating expenses for the third quarter of 2021 were $10.9 million compared to $4.5 million during the same period last year. We recorded a significant increase in payroll expenses. Part of this increase was due to the addition of headcount to the Waycare acquisition.

2021年第三季總營運費用為1,090萬美元，去年同期為450萬美元。我們的工資支出大幅增加。部分原因是收購Waycare增加了員工人數。

In addition, like last quarter, we continued to add to our headcount to our engineering and sales and marketing teams. Furthermore, we expanded and continue to expand our sales and marketing efforts and added additional resources to promote our products and services.

此外，與上一季一樣，我們繼續擴充工程、銷售和行銷團隊。此外，我們擴大並將繼續加強銷售和行銷力度，並投入更多資源來推廣我們的產品和服務。

Finally, we grew our spend on research and development projects to develop new technologies and improve our line of products. We plan to continue investing in innovation to build out our competitive edge and to continue developing more and better state-of-the-art solution that address our customer growing needs.

最後，我們增加了研發項目支出，以開發新技術並改善我們的產品線。我們計劃繼續投資創新，以增強我們的競爭優勢，並繼續開發更多、更好的先進解決方案，以滿足客戶日益增長的需求。

Adjusted EBITDA for the third quarter ended September 30, 2021, was a loss of $6.7 million as compared to a loss of $2.7 million the same period last year. Adjusted EBITDA for the nine months ended September 30, 2021, was a loss of $12.7 million as compared to a loss of $6.8 million for the year ago comparable period. This increase in loss was also due to the aforementioned investment that will set us up for growth.

截至2021年9月30日的第三季度，調整後EBITDA虧損670萬美元，去年同期虧損270萬美元。截至2021年9月30日的九個月，調整後EBITDA虧損1,270萬美元，去年同期虧損680萬美元。虧損的增加也歸因於上述將為我們的成長奠定基礎的投資。

Moving to our financial condition and liquidity, our cash and cash equivalent balance on September 30, 2021, was $35.1 million up from $20.6 million as of December 31, 2020. Our working capital at the end of the third quarter stood at $28.2 million, up from $18.2 million as of December 31, 2020. The increase in both cash and cash equivalents and working capital was primarily due to the net proceeds from the public offering in the first quarter of this year, partially offset by a cash payment of $40.8 million as part of the $61.1 million in the total consideration offered for the Waycare acquisition.

談到我們的財務狀況和流動性，我們 2021 年 9 月 30 日的現金和現金等價物餘額為 3510 萬美元，高於 2020 年 12 月 31 日的 2060 萬美元。我們第三季末的營運資金為 2,820 萬美元，高於 2020 年 12 月 31 日的 1,820 萬美元。現金和現金等價物以及營運資金的增加主要歸因於今年第一季公開發行的淨收益，但部分被 Waycare 收購總對價 6,110 萬美元中 4,080 萬美元的現金支付所抵銷。

In summary, we are excited about our growth prospects. The teams have been extremely busy winning new clients relationship, deepening our existing ones, and forming partnerships. As you could tell by the numbers of new announcements we put out, we feel very good about our pipeline and the strong momentum we have enjoyed since last quarter, and we will continue to invest in the Company to build out the infrastructure necessary to grow our footprint. This investment will negatively impact our margins in the early years, but we expect our margins to improve significantly in later years as we reap the benefits of this investment.

總而言之，我們對公司的成長前景充滿期待。團隊一直忙於贏得新客戶、深化現有客戶關係以及建立合作關係。正如您從我們發布的新公告數量中可以看出，我們對現有產品線以及自上個季度以來的強勁發展勢頭感到非常滿意，我們將繼續投資公司，建設必要的基礎設施，以擴大業務版圖。這項投資將在初期對我們的利潤率產生負面影響，但隨著我們逐漸受益於這項投資，我們預計未來幾年我們的利潤率將顯著提高。

There is significant operating leverage embedded in the business model, and we'll remain focused on creating shareholder value and making decisions that will benefit our long-term shareholders.

此商業模式中蘊含著顯著的經營槓桿，我們將繼續專注於創造股東價值並做出有利於長期股東的決策。

With that, I will now turn the call over to Robert. Robert?

說完這些，我現在將電話轉給羅伯特。羅伯特？

Thanks, Eyal. Good afternoon, everyone, and welcome. The third quarter marks a pivotable point in our Company's young history and one in which there were many firsts at Rekor. In September, we held our first Analyst Day. At this inaugural event in New York City, we laid out our strategy and provided a roadmap to where we are heading. Prior to this event, we can only share bits and pieces of the overall plan.

謝謝，Eyal。大家下午好，歡迎！第三季是我們公司年輕史上的轉捩點，也是Rekor創造許多「第一」的時刻。 9月，我們舉辦了首屆分析師日。在紐約市舉辦的首屆分析師日活動中，我們闡述了策略，並提供了未來發展的路線圖。在此之前，我們只能分享整體計畫的點點滴滴。

At our Analyst Day, we were able to present a clear picture of our vision for the Company and the opportunities that the emerging intelligent infrastructure market provide. If you haven't seen the recording of the presentation, you can still find a link to it on the rekor.ai Investor Relations page.

在分析師日上，我們清楚地闡述了公司願景以及新興智慧基礎設施市場帶來的機會。如果您尚未觀看演示錄像，仍然可以在 rekor.ai 投資者關係頁面上找到連結。

It demonstrates the extraordinary depth and breadth of our offerings for the intelligent infrastructure market and how we plan on winning in this newly developing market. We are uniquely positioned to improve the safety and quality of life in communities all around the globe because we can provide on a single platform the data and the analytics to effectively execute multiple client missions.

它展現了我們為智慧基礎設施市場提供的卓越深度和廣度，以及我們如何在這個新興市場中取得成功。我們擁有獨特的優勢，能夠改善全球各地社區的安全和生活質量，因為我們能夠在單一平台上提供數據和分析，從而有效地執行多個客戶任務。

A number of our competitors have been addressing some of the individual components, but we are not aware of anyone who can provide a uniform platform like ours. With Rekor One, we can deliver the full range of hardware and software solutions required to fully and truly implement the benefits of intelligent infrastructure.

我們的許多競爭對手一直在解決一些單獨的組件問題，但我們不知道有誰能提供像我們這樣的統一平台。透過 Rekor One，我們可以提供全面、真正實現智慧基礎設施優勢所需的全套硬體和軟體解決方案。

Truly, intelligent infrastructure requires multiple channels of real-time communications. By this, we mean real-time data exchange between the physical infrastructure, multiple agencies that manage and service that infrastructure, and ultimately, the vehicles that use that infrastructure.

智慧基礎設施確實需要多通路的即時通訊。我們指的是實體基礎設施、管理和維護該基礎設施的多個機構以及最終使用該基礎設施的車輛之間的即時資料交換。

Our value proposition is simple. We can provide exceedingly cost-effective means of transforming static lines into dynamic intelligent roadways. We achieve this by aggregating data through networks of sensor systems and overlaying that with data provided by OEMs, crowdsourced data, and other third-party acquired information. All of this data runs through our AI engine to produce solutions that can reduce congestion, enhance safety on the roads, and improve the health and well-being of communities by reducing emissions. This is no longer an abstract idea, but something that has been tested and is being currently implemented.

我們的價值主張很簡單。我們能夠以極具成本效益的方式，將靜態車道轉變為動態智慧道路。我們透過感測器系統網路聚合數據，並將其與原始設備製造商 (OEM) 提供的數據、眾包數據以及其他第三方獲取的資訊進行疊加，從而實現這一目標。所有這些數據都會透過我們的人工智慧引擎運行，產生解決方案，以減少擁塞、提昇道路安全，並透過減少排放來改善社區居民的健康和福祉。這不再是一個抽象的概念，而是已經過測試並正在付諸實踐的成果。

We have already started working with numerous clients on several use cases. One example is our partnership with Volvo, which selected Rekor for a strategic research initiative. This initiative will evaluate how artificial intelligence can be used to improve predictive awareness in a smart city context. This marks the first deployment in Europe of our crash prediction technology. This pilot is being performed in conjunction with the Swedish Transportation Administration and the Gothenburg Traffic Management Center.

我們已與眾多客戶就多個用例展開合作。其中一個例子是我們與沃爾沃的合作，沃爾沃選擇 Rekor 作為其策略研究計畫的合作夥伴。該計畫將評估如何在智慧城市環境中利用人工智慧提升預測意識。這標誌著我們碰撞預測技術在歐洲的首次部署。此試點計畫由我們與瑞典交通管理局和哥德堡交通管理中心共同進行。

These agencies will have access to our cloud-based platform to view and manage roadway incidents, traffic hazards, zones at risk and more. The platform will incorporate data from a variety of sources including anonymized data from Volvo cars, hazard light alert, and slippery road alert technologies, in addition to navigation apps, physical infrastructure, and anonymized connected vehicle data. We are excited to help Gothenburg and Sweden better understand how AI-enabled insights can provide significant benefits including more efficient use of public funding and improved safety for drivers.

這些機構將能夠存取我們基於雲端的平台，查看和管理道路事故、交通隱患、危險區域等資訊。該平台將整合來自各種來源的數據，包括沃爾沃汽車的匿名數據、危險信號燈警報和濕滑路面警報技術，以及導航應用程式、實體基礎設施和匿名網路連線汽車數據。我們很高興能夠幫助哥德堡和瑞典更好地理解人工智慧賦能的洞察如何帶來顯著效益，包括更有效地利用公共資金並提升駕駛員安全。

We are in an enviable position because we cannot only create significant shareholder value, but also do good for the communities we work with. We can make money while saving our clients' money as well and as they do more and do it better. So how large is the total addressable market we are pursuing? Well, in another first for Rekor, we commissioned the first serious study of the total addressable market for intelligent infrastructure. The result was a projected TAM of $148 billion by 2026.

我們處於令人羨慕的地位，因為我們不僅能創造巨大的股東價值，還能造福我們合作的社區。我們既能獲利，又能為客戶節省成本，而且他們做得更多、做得更好。那麼，我們追求的潛在市場到底有多大呢？ Rekor 的另一個創舉是，我們委託對智慧基礎設施的潛在市場進行了首次認真的研究。研究結果顯示，到 2026 年，潛在市場規模預計將達到 1,480 億美元。

This estimate was made by KPMG, focusing on just the capabilities Rekor can provide today. They divided Rekor's offerings into four categories: traffic and infrastructure analytics; multimodal analytics; incident management and video management systems; and public safety and contactless compliance. For each category, KPMG applies subscription or asset-based model to estimate the size of the US market.

這項估算由 KPMG 做出，僅關注 Rekor 目前能夠提供的功能。他們將 Rekor 的產品分為四類：交通和基礎設施分析；多模式分析；事件管理和視訊管理系統；以及公共安全和非接觸式合規。對於每個類別，畢馬威都採用訂閱或基於資產的模型來估算美國市場的規模。

Growth factors were then applied to categories based on comparable market studies, bottom-up analysis, and inputs from customers they interviewed in each segment. Global TAM values were extrapolated based on the relative regional market share of the IOT and smart city markets. This was a very detailed analysis that involved a significant amount of modeling. However, the TAM analysis did not include sustainability and green initiatives or commercial use cases and other opportunities for the continuing sale of hardware that we expect to pursue as appropriate.

隨後，基於可比較市場研究、自下而上的分析以及每個細分市場客戶訪談的回饋，我們將成長因素應用於各個類別。全球TAM值則根據物聯網和智慧城市市場的相對區域市場份額進行推斷。這是一項非常詳細的分析，涉及大量建模。然而，TAM分析並未涵蓋永續性和綠色計劃、商業用例以及其他我們預計在適當情況下尋求的硬體持續銷售機會。

So we currently believe that we can capture 0.5% of this TAM provided that we execute our business plan. Why do we think we can succeed in capturing a significant share of this market? Because Rekor One. Just think of a world where traffic flow can be coordinated and optimized using algorithms on exchanging data between vehicles and sensors embedded in infrastructure. The implications are obvious.

因此，我們目前認為，只要我們執行商業計劃，就能佔據該潛在市場 0.5% 的份額。為什麼我們認為我們能夠成功佔據這個市場的很大份額？因為 Rekor One。想像一下，一個交通流量可以透過演算法在車輛和基礎設施中嵌入的感測器之間交換資料來協調和優化的世界。其意義顯而易見。

Variable speed can reduce congestion, lessen emissions, and then decrease accidents without having to build evermore roads and lanes. And that same coordinated data exchange can improve emergency responses to everything from a tragic roadside incident to an area with a natural disaster. It can provide better tools to plan for the future, as well as analyzing long-term patterns such as commuter, seasonal and holiday traffic, while simultaneously incorporating the expected impact of near-term events such as sports events and concerts. All this is what has motivated us to build our Rekor One operating platform over the past few years.

可變速度可以減少擁塞、減少排放，進而降低事故發生率，而無需不斷增建道路和車道。同樣的協調資料交換可以改善各種緊急應變，從路邊悲劇事故到自然災害地區。它能夠提供更完善的工具來規劃未來，分析通勤、季節性和假日交通等長期模式，同時也能將體育賽事和音樂會等短期事件的預期影響納入考量。所有這些，都促使我們在過去幾年中建立了 Rekor One 營運平台。

Most of these features are available today. Others, we will be rolling out in the near term. When we started our effort two years ago, we had an idea of the technical capabilities needed to truly implement intelligent infrastructure, but most of it simply did not exist. So we started with a concept, developed the technology to turn this concept into reality, and then meaningfully expedited our time to market by acquiring a rare asset: Waycare. That was a perfect match for us, bringing in valuable connected vehicle and other third-party data sources to complement our roadside data collection and distribution capabilities, plus adding additional groundbreaking analytical tools to our AI arsenal.

其中大部分功能現已推出。其他功能我們將在近期陸續推出。兩年前，當我們開始這項工作時，我們對真正實現智慧基礎設施所需的技術能力有所了解，但其中大部分技術能力根本不存在。因此，我們從一個概念開始，開發了將概念轉化為現實的技術，然後透過收購一項罕見的資產——Waycare，顯著加快了我們的上市時間。這對我們來說是完美的匹配，它引入了寶貴的車聯網和其他第三方資料來源，補充了我們路邊資料收集和分發的能力，並為我們的人工智慧庫增添了更多突破性的分析工具。

Our Rekor One operating platform serves multiple missions and enables interoperability among multiple agencies. With Rekor One, customers who tested and experienced the products capabilities in one area now have the ability to easily add on additional modules that address other areas. In a sense, it's the Swiss Army knife of intelligent roadways -- a simple-to-use device with multiple applications.

我們的 Rekor One 操作平台可執行多項任務，並支援多個機構之間的互通性。透過 Rekor One，客戶之前在一個領域測試並體驗過產品功能，現在可以輕鬆添加其他領域的附加模組。從某種意義上說，它是智慧道路領域的「瑞士軍刀」——一款簡單易用、廣泛應用的設備。

We now have six different verticals available through the Rekor One platform: on-demand traffic view; cross agency incident management; public safety and contactless compliance; traffic and infrastructure analytics; sustainability and green initiatives; and commercial use cases. Each of these verticals has multiple product offerings. And yet the incremental CapEx to serve additional clients with the same market is negligible once a sensor system using Rekor One has been enabled.

目前，Rekor One 平台提供六個不同的垂直領域：按需交通視圖；跨機構事件管理；公共安全與非接觸式合規；交通與基礎設施分析；永續發展與綠色倡議；以及商業用例。每個垂直領域都提供多種產品。然而，一旦啟用了使用 Rekor One 的傳感器系統，為同一市場的其他客戶提供服務所需的增量資本支出幾乎可以忽略不計。

We use the same sensors, the same distribution system, and the same customer-friendly interface to serve multiple missions. All we need to do for the client to subscribe to additional Rekor One modules is turn them on. This is a powerful operating leverage embedded into our business model. It's what gives us the ability to land and expand and makes Rekor One the win-win solution for intelligent infrastructure for both us and our clients.

我們使用相同的感測器、相同的分配系統和相同的客戶友好介面來服務多種任務。客戶只需啟用即可訂購額外的 Rekor One 模組。這為我們的商業模式帶來了強大的營運槓桿，賦予我們落地和擴展的能力，並使 Rekor One 成為我們和客戶互利共贏的智慧基礎設施解決方案。

But to capture market share, we needed to concentrate hard on how we sell. So we hired an experienced leader to lead the change on our land and expand strategy and have thoroughly rebuilt our revenue model with his guidance. Mike Dunbar joined us as our Chief Revenue Officer and was tasked with restructuring the sales organization and implementing a high direct touch value-added consultative sales process.

但為了搶佔市場份額，我們需要專注於銷售方式。因此，我們聘請了一位經驗豐富的領導者來領導我們土地和擴張策略的變革，並在他的指導下徹底重塑了我們的收入模式。 Mike Dunbar 加入我們，擔任首席營收官，負責重組銷售組織，並實施高直接接觸、高附加價值的顧問式銷售流程。

Our market research indicated a need to educate our prospects and customers about what we can provide using our innovative technology. The key to providing solutions that meets the needs of prospective clients is simple: know what they want before they do, and deliver beyond their expectations.

我們的市場調查表明，我們需要向潛在客戶和現有客戶介紹我們能夠利用創新技術提供哪些服務。提供滿足潛在客戶需求的解決方案的關鍵很簡單：先人一步了解他們的需求，並超越他們的期望。

To accomplish this, Mike started hiring new talent with deep experience in the IPS and enterprise software markets, individuals who can effectively communicate our value proposition and can manage a more complex consultative sales process. We have also thoroughly refined our revenue and pricing model. We believe we have a significant first-mover advantage and we are highly focused on expanding our geographic footprint quickly. So we want to enter a market quickly by providing customers a strong value proposition and work to upsell and cross-sell our products.

為了實現這一目標，Mike 開始招募在 IPS 和企業軟體市場擁有豐富經驗的新人才，這些人才能夠有效地傳達我們的價值主張，並能夠管理更複雜的顧問式銷售流程。我們也徹底改進了我們的收入和定價模式。我們相信我們擁有顯著的先發優勢，並且高度專注於快速擴展我們的地域覆蓋範圍。因此，我們希望透過為客戶提供強大的價值主張並努力進行追加銷售和交叉銷售來快速進入市場。

We are now entering markets using a modular sales approach offering an attractively priced operating system as a base platform. This requires us to build the necessary infrastructure and invest in the relationship. But from this base, we can then offer additional modules depending on the evolving needs of our client. And we can provide sophisticated solutions to additional agencies within the same market by deploying the interoperability between agencies that's built into the platform. That's why our sales efforts have been structured to heavily focus on selling our solutions via a subscription model.

我們目前採用模組化銷售模式進入市場，以價格極具吸引力的作業系統作為基礎平台。這需要我們建立必要的基礎設施並投資於客戶關係。但在此基礎上，我們可以根據客戶不斷變化的需求提供額外的模組。透過部署平台內建的代理機構間互通性，我們可以為同一市場內的其他代理機構提供先進的解決方案。正因如此，我們的銷售工作重點轉向透過訂閱模式銷售解決方案。

As you can imagine, once we have installed the infrastructure revenue, profitability per square mile or per population will increase significantly as more agencies within a market subscribe to our solutions. And we can provide these new customers with AI-powered solutions by simply activating a module on our Rekor One platform.

可以想像，一旦我們完成了基礎設施建設，隨著市場中越來越多的機構訂購我們的解決方案，每平方英里或每人口的盈利能力將大幅提升。而且，我們只需在 Rekor One 平台上啟動一個模組，就能為這些新客戶提供人工智慧驅動的解決方案。

Our solutions can be very attractively priced for our clients and still become increasingly lucrative for us as we broaden our relationships within a market. Thus for us, the most important initial clients in the intelligent infrastructure segment are governments and governmental agencies. They are not acquiring technology for its own sake. They are looking for verifiable results that work for them in their unique environments. So we have been concentrating our efforts on entering this market with attractively priced pilot programs. We want to eliminate any barriers to entry such as budget constraints.

我們的解決方案價格對客戶來說非常具有吸引力，隨著我們不斷擴大市場關係，我們的利潤空間也越來越大。因此，對我們來說，智慧基礎設施領域最重要的初始客戶是政府和政府機構。他們並非為了技術本身而獲取技術，而是尋求在其獨特環境中切實可行的可驗證結果。因此，我們一直致力於透過價格誘人的試點計畫進入這個市場。我們希望消除任何進入壁壘，例如預算限制。

We want the client to touch and feel and experience our solutions. The strength of our products gives us the confidence to enter pilot and proof-of-concept programs where we charge a very reasonable price. As we demonstrate the value of the products' capabilities to our clients and gain and maintain their trust, we expect them to spread the word to others. This includes similar entities in other jurisdictions, but even more importantly, coordinate agencies within their own jurisdiction.

我們希望客戶能夠親身體驗我們的解決方案。我們產品的強大實力賦予我們信心，讓我們能夠以非常合理的價格參與試點和概念驗證計畫。當我們向客戶展示產品功能的價值，並贏得並維護他們的信任時，我們期望他們能夠將產品口碑傳播給他人。這不僅包括其他司法管轄區的類似實體，更重要的是，也包括他們自己管轄區內的協調機構。

It just makes sense to serve multiple agencies and ultimately the general public by making use of the data collection and analytical capabilities you already have. Time and again, we have seen that there is virtually zero attrition that pilots can turn into multiyear extensions with the opportunity to upsell and that other agencies take a serious interest once they see positive impact our solutions have in nearby communities or similar agencies elsewhere.

利用您現有的資料收集和分析能力，為多個機構甚至最終為公眾提供服務，這才是明智之舉。我們一次又一次地見證了我們的成果：幾乎零流失，試點計畫可以轉化為多年的續約，並有機會進行追加銷售；其他機構一旦看到我們的解決方案對附近社區或其他類似機構產生的積極影響，就會產生濃厚的興趣。

This can give us significant economies of scale and a powerful competitive advantage. With our user-friendly solutions, there is no need to add additional sensors or hardware to accomplish multiple missions. Providing a solution to an additional agency for a governmental client we already serve is as simple as enabling an additional module on the Rekor One operating platform for the client.

這可以為我們帶來顯著的規模經濟效益和強大的競爭優勢。憑藉我們用戶友好的解決方案，無需添加額外的傳感器或硬體即可完成多項任務。為現有政府客戶提供其他機構的解決方案，只需在 Rekor One 操作平台上為客戶啟用一個附加模組即可。

So how are we doing with our new go-to-market strategy so far? Well, our pipeline is growing and we expect this trend to continue as we execute our land and expand strategy. Since the end of the second quarter, we announced a number of wins that include the following: Wisconsin's Waukesha County selected the Rekor One vehicle recognition system for implementation at eight of its public park entrances. We were tasked to help maintain the security of each location and to ensure entrance fee compliance.

那麼，到目前為止，我們新的市場推廣策略進展如何？我們的產品線正在不斷擴大，預計隨著我們實施土地和擴張策略，這一趨勢將持續下去。自第二季末以來，我們宣布了一系列成功案例，包括：威斯康辛州沃基肖縣選擇了 Rekor One 車輛識別系統，用於其八個公共公園的入口。我們的任務是協助維護每個地點的安全，並確保入場費合規。

Albany, the third most populous metropolitan region in New York, selected Rekor One's vehicle recognition system to help maintain the safety and security of the community and its citizens. Louisiana's Department of Transportation and Development selected Rekor One's traffic management technology to aid in real-time automated incident identification, crash prediction, and forecasting. We expect that the pilot program will help reduce congestion and collisions in the Baton Rouge area and promote speed harmonization for a safer driver experience.

奧爾巴尼是紐約州人口第三多的大都會區，該地區選擇了 Rekor One 的車輛識別系統，以維護社區及其居民的安全。路易斯安那州交通發展部也選擇了 Rekor One 的交通管理技術，用於輔助即時自動事件識別、碰撞預測和預報。我們預計，該試點計畫將有助於減少巴吞魯日地區的交通擁堵和碰撞事故，並促進車速協調，從而提供更安全的駕駛體驗。

Utah's Department of Transportation and Utah's Department of Public Safety selected Rekor One's traffic management technology to enable quicker, more efficient incident management and mitigation strategies, in addition to improving its collaboration and reporting capabilities.

猶他州交通部和猶他州公共安全部選擇了 Rekor One 的交通管理技術，以實現更快、更有效率的事件管理和緩解策略，同時提高其協作和報告能力。

We announced our collaboration with the Toyota Mobility Foundation in Thailand, and this program aims to ease traffic congestion, significantly reduce traffic fatalities, decrease vehicle emissions, provide economic savings, and improve citizens' quality of life. Once the project is fully implemented, the Toyota Mobility Foundation will explore expanding the program across the country. Our traffic management solution is one that can be replicated throughout Southeast Asia, where traffic has been a recognized social problem for the last two decades.

我們宣布與泰國豐田出行基金會合作，該計畫旨在緩解交通擁堵，大幅減少交通事故死亡人數，降低車輛排放，節省經濟成本，並改善民眾的生活品質。計畫全面實施後，豐田旅遊基金會將探索在全國推廣此計畫。我們的交通管理解決方案可以在整個東南亞複製，交通擁堵在過去二十年裡一直是東南亞公認的社會問題。

The City of Vineland, New Jersey selected Rekor One's vehicle intelligence platform in partnership with their police department. Vineland will launch with 14 optical sensors by the end of 2021. Likewise, the New Rochelle, New York selected the Rekor One vehicle intelligence platform in a partnership with their police department. We initially will deploy 41 optical sensor streams.

新澤西州維尼蘭市與其警察局合作，選擇了 Rekor One 車輛智慧平台。維尼蘭市將在 2021 年底前推出 14 個光學感測器。同樣，紐約州新羅謝爾市也與其警察局合作，選擇了 Rekor One 車輛智慧平台。我們初期將部署 41 個光學感測器流。

The Greenberg New York Police Department also chose to significantly expand its use of the Rekor One platform. The city of Chattanooga, Tennessee chose Rekor One to provide real-time traffic analytics in support of its smart city card or infrastructure initiative. This is a citywide deployment with approximately 150 sensors with each sensor providing multiple solutions. Our comprehensive offering will help reduce congestion, improve forecasting, estimate emissions from real-time data, and increase public safety.

紐約格林伯格警察局也選擇大幅擴展對 Rekor One 平台的使用。田納西州查塔努加市選擇 Rekor One 提供即時交通分析，以支援其智慧城市卡或基礎設施計劃。該平台覆蓋全市，部署了約 150 個感測器，每個感測器提供多種解決方案。我們全面的產品將有助於減少交通擁堵、改善預測、根據即時數據估算排放量，並提高公共安全。

Sensors can be accessed directly for real-time roadway viewing as well as historical recording of significant events for future analysis. The Police Department of Topeka, the capital city of Kansas, selected Rekor One for a citywide deployment. We will launch with 20 optical sensors with an initial law enforcement focus and anticipated expansion within that use case. This is another example of Rekor winning a contract that will provide a strong platform for future growth through upselling and cross-selling.

感測器可直接訪問，用於即時道路查看以及重大事件的歷史記錄，以供未來分析。堪薩斯州首府托皮卡市警察局已選擇 Rekor One 進行全市部署。我們將推出 20 個光學感測器，初期專注於執法，並計劃在此用例範圍內擴展。這是 Rekor 贏得合約的又一例證，它將為未來透過追加銷售和交叉銷售實現成長提供強大的平台。

Yet in another citywide deployment, the Napa Police Department chose our Rekor operating system. We will enter this market with a law enforcement focus installing 25 optical sensors. This will provide us with another opportunity to put a stake in the ground and upsell and cross-sell our solutions and services.

在另一個全市部署中，納帕警察局選擇了我們的 Rekor 作業系統。我們將以執法為重點進入該市場，安裝 25 個光學感測器。這將為我們再次提供機會，鞏固市場地位，並對我們的解決方案和服務進行追加銷售和交叉銷售。

Finally, last but not least, we have been awarded a patent for an algorithm that takes historical and real-time data from internal and external sources and turns it into a time-based dynamic model to help cities take action against irregular congestion, that is, congestion that is outside the norm.

最後，同樣重要的是，我們獲得了一項演算法的專利，該演算法從內部和外部來源獲取歷史和即時數據，並將其轉換為基於時間的動態模型，以幫助城市採取行動應對不規則擁堵，即超出常態的擁堵。

There is no better product advocate than a happy customer. So we continue to elevate our customers' product and service experience and are continuing to improve our product offerings to better serve them. To that end, we announced in October our enhanced relationship with Tomorrow.io. Prior to this agreement, we would incorporate basic weather forecasts.

沒有什麼比滿意的客戶更能成為產品代言人了。因此，我們持續提升客戶的產品和服務體驗，並持續改進我們的產品，以便更好地服務客戶。為此，我們在10月宣布與Tomorrow.io加強合作。在此協議達成之前，我們將整合基本的天氣預報功能。

Now jointly, we are moving forward on developing advanced solutions that will enhance the use case for transportation agencies. We will deploy weather monitors across Rekor One that will provide alerts for users beyond basic forecasts and customized severe weather alerts such as winter storms, blizzards, icy conditions, flooding, tornadoes, and so forth.

現在，我們正在攜手開發先進的解決方案，以增強交通運輸機構的使用案例。我們將在 Rekor One 上部署天氣監測器，為用戶提供基本天氣預報以外的警報，以及客製化的惡劣天氣警報，例如冬季風暴、暴風雪、冰凍天氣、洪水、龍捲風等。

So we plan on continuing to grow aggressively and increase our geographic footprint. And as mentioned earlier, while we are growing our footprint and doing good for society, we won't lose sight of creating shareholder value. Our focus will be on predictable, sticky revenue. So we are going to be concentrating on leasing hardware and we will pursue less predictable nonrecurring hardware sales only when it makes sense opportunistically.

因此，我們計劃繼續積極發展，擴大我們的地域覆蓋範圍。如前文所述，在擴大業務範圍、造福社會的同時，我們不會忽視為股東創造價值。我們的重點將放在可預測、穩定的收入上。因此，我們將專注於硬體租賃，並僅在機會上尋求更不可預測的非經常性硬體銷售。

This revenue model is an integral part of our land and expand strategy. Retaining ownership of the hardware and charging recurring fee allows us to rapidly expand our footprint and lay the foundation for a strong revenue growth. And we will build out our sales force to monetize our technology offerings and solutions using this foundation. You should expect us to have a significantly larger sales force than we do today, and we will focus on bringing in experienced individuals with specific domain expertise who can become trusted client partners.

這種收入模式是我們「落地並擴張」策略的重要組成部分。保留硬體所有權並收取定期費用使我們能夠快速擴展業務範圍，並為強勁的收入成長奠定基礎。我們將在此基礎上組建銷售團隊，將我們的技術產品和解決方案轉化為實際收益。您可以預見，我們的銷售團隊規模將遠超現有，我們將專注於引進經驗豐富的、擁有特定領域專業知識的人才，讓他們成為值得信賴的客戶合作夥伴。

As Eyal mentioned, we will be providing investors with additional metrics to measure our progress as we emphasize generating recurring revenue. While we anticipate that our near-term results will continue to be impacted by the change in the revenue model, we expect these additional metrics to make it easier for analysts and investors to assess our growth and forecast our ultimate long-term top line expansion with less uncertainty.

正如Eyal所提到的，我們將為投資者提供更多指標來衡量我們的進展，因為我們強調創造經常性收入。雖然我們預計短期業績將繼續受到收入模式變化的影響，但我們希望這些新增指標能讓分析師和投資者更容易評估我們的成長，並在減少不確定性的情況下預測我們最終的長期營收成長。

So we are committed to helping you measure our progress. And over the next 12 months, we expect to provide you with additional key performance indicators, so you will be able to judge for yourself how we are doing in execution of our business plan.

因此，我們致力於幫助您衡量我們的進展。在接下來的12個月裡，我們預計將為您提供更多關鍵績效指標，以便您能夠自行判斷我們執行業務計畫的進度。

Our growth will be driven by a combination of organic growth and acquisitions. This brings me to my next first in the quarter, and that is the closing on our first acquisition since we decided in 2019 to focus on our technology business. Waycare is a tremendous asset in terms of human capital, technology, and vendor relationships it brings to the organization. This acquisition accelerated our capability by years and enhances our ability to provide a never seen before situational awareness of what is happening and will happen on the roads in real time.

我們的成長將由內生成長和收購共同驅動。這帶來了我在本季度的下一個“第一”，即自2019年我們決定專注於技術業務以來的首次收購。 Waycare在人力資本、技術和供應商關係方面為公司帶來了巨大的財富。此次收購使我們的能力提升了數年，並增強了我們能夠提供前所未有的即時道路狀況感知能力，從而洞察道路上正在發生和即將發生的情況。

With Waycare, we increased the breadth and depth of the solutions that we know are fundamental for success. We expect additional acquisitions as we will continue to supplement our organic growth. As many of you are aware, we have been continuously assessing opportunities and we brought in an experienced M&A banker to head these initiatives in-house to make sure that every acquisition we consider is well thought out because we are committed to being a good steward of capital. The opportunities we evaluate will have to either help us expand our geographic footprint or bring in new capabilities that further enhance our product mix and allow us to serve our customers better.

透過收購 Waycare，我們拓展了我們深知對成功至關重要的解決方案的廣度和深度。我們期待更多收購，以持續補充我們的有機成長。正如各位所知，我們一直在持續評估投資機會，並聘請了一位經驗豐富的併購銀行家來領導這些內部項目，以確保我們考慮的每一項收購都經過深思熟慮，因為我們致力於成為優秀的資本管理者。我們評估的投資機會要麼能夠幫助我們拓展地理覆蓋範圍，要麼能夠帶來新的能力，從而進一步增強我們的產品組合，並使我們能夠更好地服務客戶。

And finally, before we conclude our prepared remarks, another first for Rekor, we have been awarded the Intelligent Traffic System World Congress Hall of Fame Industry Award for the Americas. The Industry Award recognizes exceptional companies that have deployed innovative solutions, accelerating ITS programs in certain regions. Well, that in a nutshell was why they were such a perfect fit for Rekor.

最後，在我們結束準備發言之前，Rekor 也創造了另一個先例：我們榮獲了美洲區智慧交通系統世界大會名人堂產業獎。該行業獎旨在表彰那些部署了創新解決方案、加速特定地區 ITS 專案發展的傑出公司。簡而言之，這就是 Rekor 與這些公司如此契合的原因。

With that, I'll turn the call back to our coordinator for questions.

說完這些，我將把電話轉回給我們的協調員以回答問題。

Thank you. And before we begin the Q&A period today, I would like to extend another apology on behalf of Issuer Direct for the technical difficulties that were encountered prior to today's call. The fault of this issue was entirely with Issuer Direct, and we do apologize to Rekor Systems and to all participants who have joined here today.

謝謝。在今天的問答環節開始之前，我想再次代表Issuer Direct對今天電話會議前遇到的技術問題表示歉意。這個問題完全是Issuer Direct的責任，我們向Rekor Systems以及今天在場的所有與會者致以歉意。

All interested parties can hear a full replay of today's event using the same link that they access the live event through. So once again, a full replay of today's event will be available using the same link that you used to access the live event today. Once again, I would like to extend an apology on behalf of Issuer Direct to both Rekor Systems and to participants joining today's call.

所有有興趣的人士都可以使用訪問直播活動的相同鏈接收聽今天活動的完整重播。因此，再次強調，今天活動的完整重播將透過您造訪直播活動的相同連結提供。我再次代表 Issuer Direct 向 Rekor Systems 以及參加今天電話會議的各位致以歉意。

I would now like to begin the Q&A period. (Operator instructions) K.C. Ambrecht, Shay Capital.

現在我想開始問答環節。 （操作員指示）K.C. Ambrecht，Shay Capital。

Hi, thanks very much for taking the question. A couple of questions to start, please. If we look at what you are originally -- if we take Rekor's target revenue of $740 million by 2026 and divide by around $50,000 per square mile, that would imply Rekor would have to enroll about 15,000 square miles of the Rekor One platform. How many miles do you have visibility on today through these pilots and pilots in the pipeline right now?

嗨，非常感謝您回答這個問題。首先，我想問幾個問題。如果我們看看您最初的想法——Rekor 到 2026 年的目標收入是 7.4 億美元，然後除以每平方英里約 5 萬美元，這意味著 Rekor 需要覆蓋約 1.5 萬平方英里的 Rekor One 平台。透過目前這些試點項目和正在籌備中的試點項目，您目前可以預見到多少平方英里的覆蓋範圍？

K.C., thanks for the question. It's just been a long afternoon here. So let me just -- let us catch our breath. I think when we put a press release out on Chattanooga, we mentioned that that city is 143 square miles. And some of the other pilots that we are working on, I think folks can -- they can look at the cities and municipalities and you can Google the square miles and you can discover that for yourselves.

K.C.，謝謝你的提問。今天下午真是漫長。所以，讓我——讓我們喘口氣。我記得我們發布關於查塔努加的新聞稿時，提到這座城市的面積是143平方英里。至於我們正在進行的其他一些試點項目，我想大家可以——看看這些城市和市政當局的數據，也可以用谷歌搜尋一下平方英里數，自己就能知道了。

But I think there is a good chance square miles will definitely be a component of the KPIs that the Company is looking at going forward, but there will also be a relationship to density and some other factors. But those things, as we said during Analyst Day, will clear themselves up over the next few quarters as we hone in on these KPIs.

但我認為，平方英里很有可能肯定會成為公司未來KPI的組成部分，但這也與密度和其他一些因素有關。正如我們在分析師日期間所說，隨著我們進一步深入這些KPI，這些問題將在未來幾季逐漸明朗。

You have to understand that going to market with a technology globally and making sure that you have your pricing correct, it is very sensitive before we want to be locked into any specific actual pricing. But I wouldn't say that your thesis is wrong by looking at it that way. I think that's a good early way to look at it. So you would be correct then. You'd be at like 15,000 square miles if that's the way things turn out.

你必須明白，將一項技術推向全球市場並確保定價正確，這在我們想要鎖定任何特定的實際定價之前是非常敏感的。但我不會說你的論點是錯的。我認為這是一個很好的早期視角。所以你是對的。如果情況真的如此，你的覆蓋範圍應該在15000平方英里左右。

Okay. And then looking from what you've guys announced intra-quarter and on the conference call, it looks like you've had almost 10 contracts with the early launch of Rekor One. How do we think about the performance revenue growth obligation as you start scaling your sales force? Do we -- I mean, the 57% linked quarter growth was a pretty big number.

好的。從你們在季度內和電話會議上宣布的消息來看，Rekor One 的早期發布似乎已經簽訂了近10份合約。隨著你們開始擴大銷售隊伍，我們如何看待績效收入成長義務？我的意思是，57%的季度環比增長是一個相當大的數字。

I think that's a great question. I mean, I think if you look in the Q, you are going to see that we expect over the next 12 months to recognize 36% of that performance obligation. So that's just shy of $9 million. And if you think about our year-to-date revenue, the expansion of that performance obligation is pretty significant overall, considering we just modified the business plan. So good catch.

我認為這個問題問得很好。我的意思是，如果你看Q，你會發現我們預計在未來12個月內確認36%的履約義務。也就是說，這個數字略低於900萬美元。考慮到我們剛剛修改了業務計劃，考慮到我們今年迄今為止的收入，履約義務的增加總體上相當顯著。所以，這個問題問得真好。

Yes, and then just lastly, there is a lot of talk in Philadelphia and Pittsburgh looking at implementing contactless compliance solutions. I am just wondering how you think about that and how could Rekor potentially be involved in that, if you plan on that.

是的，最後，費城和匹茲堡正在積極討論實施非接觸式合規解決方案。我想知道您對此有何看法？如果您有此計劃，Rekor 可能會如何參與其中？

I personally think that that's one of the greatest opportunities we have because once our system is deployed, these entities can make use of contactless compliance. Obviously, this is something that is going to require a lot of public debate. And but I think we can all see that the narrative is moving in our direction. First, you had Philadelphia and Pittsburgh. I think you have Montgomery County here in Maryland. So -- and we hear rumblings of other cities around the country that are looking at it as well.

我個人認為這是我們最大的機會之一，因為一旦我們的系統部署完畢，這些實體就可以享受非接觸式合規服務。顯然，這需要大量的公眾討論。但我認為我們都能看到，情況正在朝著我們的方向發展。首先是費城和匹茲堡。我想馬裡蘭州的蒙哥馬利縣也正在考慮中。所以——我們也聽到了全國其他城市也在考慮這個問題的傳言。

Look, it only makes sense at the end of the day that in the 21st century that law enforcement make use of technology to deal with minor traffic infractions rather than pulling people over. It's just -- it's a silly concept if you think about it. So we feel strongly that it's going to be a good -- it's going to be a component of the system, and we're glad we've got the UVED Program running in Oklahoma because it proves that we can do it.

想想看，在21世紀，執法部門利用科技來處理輕微交通違規行為，而不是直接攔停車輛，這才是真正合理的。仔細想想，這真是個愚蠢的想法。所以我們堅信，這將是一個好的方案——它將成為我們系統的一部分。我們很高興UVED計畫在俄克拉荷馬州得以運行，因為它證明了我們能夠做到這一點。

Okay. Thank you.

好的。謝謝。

Okay.

好的。

Zach Cummins, B. Riley.

康明斯、B.萊利。

Yes. Hi, Robert. Hi, Eyal. Thanks for taking my questions. I appreciate all the additional commentary. Robert, can you walk me through the typical process when you start a pilot and how those conversations evolve to potentially securing a contract? And I would imagine -- I mean, as K.C. was referencing with Chattanooga having almost 145 square miles, if you're converting to contract, are you converting all those miles at once or typically, how does this process work?

是的。嗨，羅伯特。嗨，埃亞爾。謝謝你回答我的問題。我很感謝你所有的補充評論。羅伯特，你能給我講講啟動試點計畫的典型流程嗎？這些對話是如何發展到最終獲得合約的？我猜——我的意思是，正如K.C.提到的，查塔努加有近145平方英里的土地，如果要轉換成合同，你是一次性轉換所有這些土地，還是通常情況下，這個過程是如何進行的？

Well, so it's our intent to offer the value proposition of what we call Tier 1 Rekor One platform. So that includes a law enforcement component, traffic analytics, and incident management and the incident tools that Waycare provides. So that's the goal. The goal is to provide that platform. And then you can -- if you think about different modules like things that may come to the US like variable speed or contactless compliance or other things, they can plug into the system that way.

嗯，我們的目標是提供我們稱之為 Tier 1 Rekor One 平台的價值主張。它包含執法組件、交通分析、事故管理以及 Waycare 提供的事故工具。這就是我們的目標。我們的目標是提供這個平台。然後，你可以——如果你考慮不同的模組，例如可能進入美國的技術，例如變速、非接觸式合規性等等，它們可以透過這種方式連接到系統。

So we have a variety of different entry points. So some are through at the state level, such as you have with the relationship with Nevada or in Missouri; and others at the city or local municipality level, either through the DOT or the law enforcement agencies themselves. We may go in with one module of the platform. And then that leads to the other components because in order to install the system, you have to have access. So if you are going through law enforcement and the police sign on, they have to go to their colleagues at DOT for that particular entity, and they have to get your access. So that brings them into the conversation.

所以我們有各種不同的入口點。有些是透過州一級的，例如你與內華達州或密蘇裡州的關係；有些是透過市或地方市政當局一級的，透過交通部或執法機構本身。我們可能會先進入平台的一個模組，然後才能進入其他元件，因為要安裝系統，你必須擁有存取權限。所以，如果你要通過執法部門，並且警察簽署了協議，他們必須聯繫交通部在特定實體的同事，並獲得你的訪問權限。這樣，他們就參與對話了。

But just to give (technical difficulty) just inside the US. So when you start thinking about the possibility of -- globally of getting to the TAM that we projected by 2026, it's not -- it doesn't sound as grandiose when you look at it that way. So it's land and expand, Zach. You get in, you're doing paid pilots. You are putting up a system, all the stakeholders are using it. And then you believe that it becomes very sticky and they don't frankly like to give up their new tools, and that converts into a long-term contract. And that's what we have been seeing with some of the smaller pilots that we have been doing. And we have just literally started this new effort a couple of months back. So we will see how that goes with some of the new entities that we recently signed with.

但僅就美國國內的技術難度而言。所以，當你開始思考到2026年在全球範圍內實現我們預測的TAM的可能性時，這聽起來並不——從這個角度來看，這聽起來並不那麼宏偉。所以，扎克，這需要落地並擴張。你進入市場，進行付費試點。你建立一個系統，所有利害關係人都在使用它。然後你會發現，它會變得非常棘手，坦白說，他們不願意放棄他們的新工具，這轉化為長期合約。這就是我們在一些小型試點計畫中看到的情況。幾個月前，我們才剛開始這項新的工作。所以我們將觀察最近與我們簽約的一些新實體的進展。

Understood. And in terms of the RPO number, can you just confirm what exactly is in that metric? I am assuming it is not all recurring revenue, but I am just trying to get a better sense of what's driving the big jump that we saw sequentially from Q3 to Q2.

明白了。關於RPO數字，您能否確認一下該指標的具體內容？我假設它並非全部來自經常性收入，但我只是想更了解是什麼推動了我們從第三季到第二季的連續大幅成長。

The performance obligation is all recurring revenue, that's the nature of finishing for our performance obligation. And as Robert mentioned, we anticipate to use 36% of it as the recurring revenues.

履約義務全部是經常性收入，這也是我們履行履約義務的本質。正如羅伯特所提到的，我們預計其中36%將作為經常性收入。

Understood. And the same thing, just a little more insight into the total contract value. I am assuming this is all just recurring revenue that you are doing this metric off of. I am just trying to get a sense of, I don't know, how these two metrics should combine together, and give us a sense of where the business is going over -- not just the next couple of quarters, but if we are thinking 12-plus months down the road.

明白了。同樣的事情，只是對合約總價值有了更多的了解。我假設你計算這個指標時，只是基於經常性收入。我只是想了解一下，我不知道這兩個指標應該如何結合起來，讓我們了解業務的未來走向——不僅僅是未來幾個季度，而是我們考慮未來12個月以上的發展方向。

Yes, that both goes together. You are correct. But total contract value, as we define it in the 10-Q, is what we signed in this year. And the performance obligation is the remaining revenue recognition that we have from these contracts. So they go together, but the total contract value is the total contract. Performance obligation is less total contract value less the revenues that were already recognized.

是的，兩者是相輔相成的。您說得對。但是，正如我們在10-Q報表中定義的，合約總價值是我們今年簽署的合約金額。履約義務是指我們從這些合約中確認的剩餘收入。所以，它們相輔相成，但合約總價值就是合約總額。履約義務等於合約總價值減去合約總價值再減去已確認的收入。

Understood.

明白了。

So we anticipate both to grow as we go. When we add contracts into the pipeline, you will see the total contract value increase as well as the performance obligation, not necessarily the same ratio because remember, we recognize part of the performance obligation as revenue over time, while total contract value is a set number.

因此，我們預計兩者都會隨著我們的發展而成長。當我們將合約加入待處理合約時，您會看到合約總價值和履約義務都會增加，但不一定以相同的比例增加，因為請記住，我們會將部分履約義務確認為隨時間推移的收入，而合約總價值是一個固定的數字。

Understood. And I think K.C. touched on this a little bit in some of his questions, but what are some of the other metrics you are going to consider providing going forward as you guys really make this full revenue model transition and how we should think about tracking your progress against that?

明白了。我想K.C.在他的一些問題中稍微提到了這一點，但是，當你們真正實現全面的收入模式轉型時，你們還會考慮提供哪些其他指標？我們該如何追蹤你們的進展？

As Robert mentioned, we are still considering a few other metrics that we mentioned in the Investor Day -- square mile and density and some other metrics that we still figuring out with the contracts that we currently have. So it is evolving and we will provide more as we have more information.

正如羅伯特所提到的，我們仍在考慮投資者日提到的其他一些指標——平方英里和密度，以及一些我們仍在根據現有合約進行調整的指標。所以它正在不斷發展，隨著我們獲得更多信息，我們將提供更多信息。

Understood. And final question from me is, I think you have a little over $35 million in cash on the balance sheet after the Waycare acquisition. How are you thinking about the total burn rate for cash going forward? It seems like you are remaining committed to investing in both sales and marketing and R&D. I am just trying to get a sense of the available capital you have to execute upon that plan.

明白了。最後一個問題是，收購 Waycare 後，你們的資產負債表上現金略高於 3,500 萬美元。您如何看待未來的現金總消耗率？看起來你們仍致力於在銷售、行銷和研發方面進行投資。我只是想了解一下，你們有多少資金可以用來執行這個計畫。

As you know, we have a shelf so we would be able to capitalize it if we need. But for the burn rate, go to our cash flow and you see the cash flow from operations. We obviously -- we cannot provide more guidance on this, but if you look on what we have in the operating cash flow for the nine months, probably with Waycare now going full steam ahead here and with the increase in sales, this burn rate will increase. But again, we have access to the capital market, and we can -- when we need it, we will be able to use it.

如你所知，我們有一個貨架，所以如果需要的話，我們可以利用它。至於燒錢率，你可以看看我們的現金流，你會看到營運現金流。我們顯然無法提供更多指導，但如果你看看我們過去九個月的營運現金流，隨著 Waycare 現在全速前進，銷售額的成長，燒錢率可能會上升。不過，我們有能力進入資本市場，當我們需要的時候，我們就能利用它。

If we need it.

如果我們需要的話。

Understood, that's helpful. Yes, thanks, appreciate that. I think that's all I have for now. So thanks for taking my questions and best of luck going forward.

明白了，這很有幫助。是的，謝謝，非常感謝。我想我現在就說這麼多。感謝您回答我的問題，祝您一切順利。

Thanks, Zach.

謝謝，扎克。

Thank you very much.

非常感謝。

Mike Latimore, Northland Capital.

麥克·拉蒂莫爾 (Mike Latimore)，Northland Capital。

Hi. This is Aditya on behalf of Mike Latimore. Could you give some color on which of your applications could benefit from the new federal infrastructure bill? And when do you see the funding to flow through your related projects?

大家好。我是阿迪亞，代表麥克·拉蒂莫爾。您能否介紹一下，你們的哪些項目可以從新的聯邦基礎設施法案中受益？您預計什麼時候能獲得資金支持相關項目？

Yes, thanks. Thanks. That's a great question. I wish we had more time to really discuss the infrastructure bill. But there is quite an extensive amount of money in the bill for everything related to congestion and emissions reduction and using technology for purposes of digitizing infrastructure. I think the word smart is used 66 times in the bill relating to technology and what's different this time around as opposed to just building more roads.

是的，謝謝。謝謝。這個問題問得很好。我希望我們能有更多時間認真討論基礎設施法案。但法案中確實有相當多的資金用於解決交通擁堵、減少排放以及利用技術實現基礎設施數位化等所有相關事宜。 「智能」這個詞在法案中出現了66次，都與技術有關，而這次與僅僅修建更多道路相比有何不同。

So there is an awful lot in that bill and I think there is just not enough time to go into it here. But you can imagine when you are spending the amount of money that they are spending, a lot of that is -- it is going to come towards technology that can help actually improve things quickly, which is what they need to do.

所以這項法案的內容非常豐富，我覺得這裡沒有足夠的時間去詳述。但你可以想像，他們投入的資金中，很大一部分將用於能夠快速改善現狀的技術，而這正是他們需要做的。

All right. Could you also give an update on the status of border control opportunity?

好的。您能否介紹一下邊境管制的最新情況？

So the last we heard was that custom border patrol put another milestone date on IT2, which is the contract for November 30. And we expect that the remaining bidders -- we teamed with all of them. We'll probably go through that final round and then be down selected. And then hopefully, they'll make an award here soon. We frankly expected it by now, but for whatever reason, they just haven't made a final decision yet.

我們最後聽到的消息是，海關邊境巡邏隊為IT2計畫設定了另一個里程碑日期，也就是11月30日的合約。我們預計剩下的競標者——我們與所有競標者都進行了合作。我們可能會進行最後一輪競標，然後被選中。希望他們能盡快在這裡授標。坦白說，我們現在已經預料到了，但不知何故，他們還沒有做出最終決定。

All right. Thank you.

好的。謝謝。

Okay. Thank you.

好的。謝謝。

Thank you. And due to time constraints, that will be the final question and that will conclude today's Q&A and conference call. Once again, on behalf of Issuer Direct, we would like to apologize for the technical difficulty that led to the delay of starting today's call and we do thank you for your participation today.

謝謝。由於時間限制，這將是最後一個問題，今天的問答和電話會議就到此結束。再次代表Issuer Direct，我們對因技術故障導致今天電話會議延遲開始表示歉意，並感謝您今天的參與。

That does conclude today's conference call and webcast. You may disconnect your phone lines at this time, and have a wonderful day. Thank you again for your patience and participation.

今天的電話會議和網路直播到此結束。您可以暫時掛斷電話，祝您擁有美好的一天。再次感謝您的耐心與參與。