Rekor Systems Inc (REKR) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen. And welcome to today's Rekor Systems Inc. conference call. My name is John, and I'll be your coordinator for today. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes.

早安，女士們，先生們。歡迎參加今天的 Rekor Systems Inc. 電話會議。我叫約翰，我將擔任你們今天的協調員。 （操作員說明）謹此提醒，本次電話會議正在錄音以供重播之用。

Before we start, I want to read you the company's abbreviated Safe Harbor statement. I want to remind you that statements made in the 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.

在我們開始之前，我想向您宣讀該公司的簡短安全港聲明。我想提醒您，電話會議中有關未來收入、營運業績、財務狀況、市場、經濟狀況、產品和產品發布、合作夥伴關係以及任何其他可能被解釋為對未來業績或事件的預測的陳述均為前瞻性陳述。此類陳述可能涉及已知和未知的風險、不確定性和其他因素，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。

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.

我們要求您參閱我們的收益報告中的完整免責聲明。您還應該查看我們向 SEC 提交的年度和季度文件中包含的風險因素的描述。非 GAAP 業績也將在電話會議上討論。該公司認為，非公認會計準則資訊的呈現提供了有關公司持續營運的有用補充數據，僅供參考。

And now, I want to turn the presentation over to Mr. Eyal Hanne, CFO of recourse systems.

現在，我想將演講交給追索系統財務長 Eyal Hanne 先生。

Hi, everyone. Thanks for joining us to discuss our results for the three and nine months ending September 30, 2023. We are happy to share our continued progress with you. I would like to start off by sharing two slides with you that I think really demonstrate the progress that Rekor has made.

大家好。感謝您與我們一起討論截至 2023 年 9 月 30 日的三個月和九個月的結果。我們很高興與您分享我們的持續進展。首先，我想與大家分享兩張投影片，我認為它們真正展示了 Rekor 所取得的進展。

Over the past five years since we've been tracking our technology revenue, Rekor has delivered a 268% compound annual growth rate of CAGR. This has included multiple challenges and times when we have been constrained by limited resources. We have made significant investments in our roadway intelligence technology and successfully integrated two acquisitions. During this time, we quickly gain a significant foothold in the transportation market and are becoming well recognized a top leader within the industry.

自從我們追蹤技術收入以來的過去五年裡，Rekor 的複合年增長率達到了 268%。這包括多重挑戰以及我們受到有限資源限制的時期。我們對道路智慧技術進行了大量投資，並成功整合了兩次收購。在此期間，我們迅速在運輸市場取得了重要的立足點，並成為業界公認的頂級領導者。

The next slide compares three other AI technology companies. As you can see on the left, the revenue per share for Rekor is significantly higher than the other three companies and was accomplished in much less time. As you can also see on the right, we did all of this with the intelligent use of much less equity than these other AI tech companies. This give you a good sense of the rapid progress that we've made while being mindful to use equity judiciously and not overly dilute our existing shareholders.

下一張投影片比較了其他三家人工智慧科技公司。正如您在左側所看到的，Rekor 的每股收入明顯高於其他三家公司，並且在更短的時間內完成。正如您在右側看到的那樣，我們透過明智地使用比其他人工智慧科技公司少得多的股權來完成所有這些。這讓您對我們所取得的快速進步有一個很好的認識，同時注意明智地使用股權，不要過度稀釋我們現有的股東。

With that in mind, I would like to discuss the continuous revenues momentum and the other achievements we have seen during Q3 and the last nine months. As a result of our continued growth and progress, we are pleased to announce an unprecedented top line for the third quarter of 2023 with a consecutive quarter-over-quarter increase of 6.5%. It's not worthy that we accomplish this, while we also continue to reduce our SG&A expenses. Over the last year, we have demonstrated that we can be financially prudent even as we integrate significant acquisitions. It's also important to mention that we achieved this while continuing to make significant investments in our future for research and development.

考慮到這一點，我想討論我們在第三季和過去九個月中看到的持續收入動能和其他成就。由於我們持續成長和進步，我們很高興地宣布 2023 年第三季的營收達到前所未有的水平，連續季度環比增長 6.5%。在我們實現這一目標的同時，我們也持續減少 SG&A 費用，這是不值得的。去年，我們已經證明，即使我們整合重大收購，我們也可以在財務上保持謹慎。值得一提的是，我們在實現這一目標的同時，繼續對未來的研發進行大量投資。

Now let's talk about some other significant additional details for Q3. Highlighting the tangible growth and forward momentum we've just discussed, we're pleased to share that our revenue for the third quarter increased to $9.1 million. 35 -- 34.5% higher than the $6.8 million experienced in the same period last year and about 6.5% higher than the second quarter of 2023. Total revenue for the nine months ended September 30, 2023 was $23.9 million. A significant increase of 77.4% over the same period in 2022, which had revenue of $13.5 million. Our 2023 growth is mainly organic with more and more states, municipalities and commercial customers adopting our technology across all applications.

現在我們來談談第三季的一些其他重要的附加細節。為了強調我們剛才討論的實際成長和前進動力，我們很高興地告訴大家，我們第三季的營收增至 910 萬美元。 35—比去年同期的 680 萬美元高出 34.5%，比 2023 年第二季高出約 6.5%。截至 2023 年 9 月 30 日的九個月總收入為 2,390 萬美元。較2022年同期大幅成長77.4%，營收為1,350萬美元。我們 2023 年的成長主要是有機的，越來越多的州、市和商業客戶在所有應用中採用我們的技術。

In the first nine months of 2023, we also achieved a reduction in cash used for operations down to $26.7 million from $30.4 million in the same period last year. And I'd like to point out our 2023 results include one-time payment for accrued accounts payable from 2022, professional fees and deployment of new systems. During the third quarter, our cash burn continued to decline. This showcases our commitment to thoughtful and efficient financial management as we position Rekor for growth and scale.

2023 年前 9 個月，我們也實現了營運所用現金從去年同期的 3,040 萬美元減少至 2,670 萬美元。我想指出的是，我們 2023 年的業績包括從 2022 年起應計應付帳款的一次性付款、專業費用和新系統的部署。第三季度，我們的現金消耗持續下降。這體現了我們對深思熟慮和高效財務管理的承諾，因為我們將 Rekor 定位為成長和規模。

Turning our attention to financial metrics and other recent developments, I'll cover several promising trends. Q3 2023 revenue, we achieved a robust $9.1 million in revenues. Demonstrating significant growth of 34.5% from the $6.8 million recorded during the same period in 2023. We also continued our growth quarter over quarter, which was 6.5% above Q2 of 2023. Revenue for the net -- for the first nine months of 2023 totalled $23.9 million up 77.4% from the $13.5 million during the same period in 2022. As mentioned earlier, our revenue have grown organically since all operation for our recent acquisitions have been fully included.

將我們的注意力轉向財務指標和其他最新發展，我將介紹幾個有希望的趨勢。 2023 年第三季的收入，我們實現了 910 萬美元的強勁收入。與 2023 年同期的 680 萬美元相比，顯著增長了 34.5%。我們也繼續保持季度環比增長，比 2023 年第二季度增長 6.5%。2023 年前 9 個月的淨收入總計2,390 萬美元，比2022 年同期的1350 萬美元增長77.4%。如前所述，自從我們最近收購的所有業務全部納入其中以來，我們的收入實現了有機增長。

We've also seen remarkable improvement in adjusted gross margins up to 52.6% for the third quarter of 2023 from 46.1% in the third quarter of 2022. This margin performance has been fuelled both by technology advancements and the use of automation and process controls. Enabling us to optimize cost and bolster margins.

我們也看到，2023 年第三季調整後毛利率顯著提高，從 2022 年第三季的 46.1% 升至 52.6%。技術進步以及自動化和流程控制的使用推動了這種利潤率表現。使我們能夠優化成本並提高利潤。

Operating losses due to our improved margins and reduction in SG&A expenses was successfully decreased our operating loss from $12.8 million in the third quarter of 2022 not including the goodwill impairment to $9.8 million in the third quarter of 2023. Furthermore, the first nine months of 2023 show a reduction from $40.9 million in the corresponding period in 2022 down to $32.8 million. Even as we worked intently to complete the integration of the SDS acquisition.

由於我們的利潤率提高和銷售管理及行政費用減少，我們的營運虧損成功從2022 年第三季的1,280 萬美元（不包括商譽減損）減少到2023 年第三季的980 萬美元。此外，2023 年前9 個月顯示從 2022 年同期的 4,090 萬美元減少到 3,280 萬美元。即使我們正在全力以赴完成對 SDS 收購的整合。

Adjusted EBITDA for the third quarter of 2023. The adjusted EBITDA loss stand at $6.6 million. An improvement of over 38% from the $10.7 million in the same period last year. For the first nine months of 2023, reduce the adjusted EBITDA loss by 28.5% to $23.2 million. Down from $32.4 million in the same period last year. Quarter to quarter improvement from Q2 2023 was roughly a $0.5 million reduction or approximately 7.6%. We anticipate this trend to continue as we continue to grow our top line and manage operating expenses prudently.

2023 年第三季調整後 EBITDA。調整後 EBITDA 虧損為 660 萬美元。比去年同期的 1,070 萬美元增長了 38% 以上。 2023 年前 9 個月，調整後 EBITDA 損失減少 28.5%，至 2,320 萬美元。低於去年同期的 3,240 萬美元。與 2023 年第二季相比，每季的改進大約減少了 50 萬美元，約 7.6%。隨著我們繼續增加收入並謹慎管理營運費用，我們預計這種趨勢將持續下去。

As in previous quarters, we have borne one-time expenses into payable management, asset and inventory system deployment and associate professional services. We'll continue to maintain a disciplined approach on operating expenses and diligently review each of our financial metrics to strategically allocate resources to areas that provide the best opportunities to drive revenue acceleration.

與前幾季一樣，我們將一次性費用用於應付管理、資產和庫存系統部署以及相關專業服務。我們將繼續對營運支出保持嚴格的態度，並認真審查每項財務指標，以策略性地將資源分配到提供最佳機會推動收入加速的領域。

We've been providing and reached key performance indicators to provide a more granular insight into our upward trajectory. Our goal is to empower you to assess our ability to obtain new contracts and for shareholders to appreciate the enduring value these contracts bring to our performance commitment.

我們一直在提供並達到關鍵績效指標，以便更詳細地了解我們的上升軌跡。我們的目標是讓您能夠評估我們獲得新合約的能力，並讓股東欣賞這些合約為我們的業績承諾帶來的持久價值。

In the third quarter of 2023, our recurring revenue percentage from total revenue was 52.6%. A decrease from 71.4% during the same period last year. This was a result of different mix in the products and services we sold. As we stated before, we generally anticipate to have 65% to 75% of recurring revenue, which may vary based on the mix of sales between products and services that provide recurring revenue and those that produce point-in-time revenue.

2023年第三季度，我們的經常性收入佔總收入的比例為52.6%。較去年同期的71.4%有所下降。這是我們銷售的產品和服務的不同組合的結果。正如我們之前所說，我們通常預期有 65% 到 75% 的經常性收入，這可能會根據提供經常性收入和產生時間點收入的產品和服務之間的銷售組合而有所不同。

Recurring revenue for the nine months ended September 30, 2023 accounted for 62% of total revenue. A small decrease from 64% in the same period last year. In the third quarter of 2023, we executed contracts worth $8.4 million. A 74% increase over the $4.8 million total contract value in the same quarter of 2023. Additionally, through the nine months ended September 30, 2023, we secured contracts worth of $38.1 million. A 343% increase over the $8.6 million total contract value in the same period of 2022.

截至2023年9月30日止九個月的經常性收入佔總收入的62%。較去年同期的64%小幅下降。 2023 年第三季度，我們執行了價值 840 萬美元的合約。與 2023 年同季 480 萬美元的合約總價值相比，成長了 74%。此外，截至 2023 年 9 月 30 日的九個月，我們獲得了價值 3,810 萬美元的合約。比 2022 年同期的 860 萬美元合約總價值增加 343%。

Finally, as of September 30, 2023, our remaining performance obligations stood at $30.2 million. A prominent jump of $8.8 million or 41% compared with $21.4 million as of December 31, 2022. We project that approximately 73% of the remaining performance obligation as of September 30, 2023 will be realized in the coming 12 months.

最後，截至 2023 年 9 月 30 日，我們的剩餘履約義務為 3,020 萬美元。與截至2022 年12 月31 日的2,140 萬美元相比，顯著增加880 萬美元，即41%。我們預計，截至2023 年9 月30 日的剩餘履約義務的約73% 將在未來12 個月內實現。

Moving to our financial condition and liquidity. In January, we completed the closing of senior secured notes in the aggregate amount of up to $15 million led by our CEO, Robert Berman, with participation from other new and existing investors. At closing, $12.5 million was funded. In March 2023, we also completed a registered direct offering for $10 million. These transactions gave us the liquidity to continue executing our strategy.

轉向我們的財務狀況和流動性。一月份，我們在執行長 Robert Berman 的帶領下完成了總金額高達 1500 萬美元的高級擔保票據的交割，其他新投資者和現有投資者也參與其中。交易結束時，已籌集 1,250 萬美元資金。 2023 年 3 月，我們也完成了 1000 萬美元的註冊直接發行。這些交易為我們提供了繼續執行策略的流動性。

Our cash balance at September 30, 2023 was $7 million. An increase from $1.9 million as of December 31, 2022. In July, a warrant holder exercised warrants resulting in approximately $11 million in cash proceeds. Our working capital position has also increased significantly. As of September 30, 2023, we had a working capital of $3.6 million compared to a deficit of $6 million as of December 31, 2022. The improvement in working capital was primarily due to increased cash and cash equivalents and accounts receivable.

截至 2023 年 9 月 30 日，我們的現金餘額為 700 萬美元。截至 2022 年 12 月 31 日，金額為 190 萬美元。7 月，認股權證持有人行使認股權證，獲得約 1,100 萬美元的現金收益。我們的營運資金狀況也顯著增加。截至2023年9月30日，我們的營運資金為360萬美元，而截至2022年12月31日的赤字為600萬美元。營運資金的改善主要是由於現金和現金等價物以及應收帳款的增加。

In summary, we're pleased to see continued solid results and synergistic impacts from our technology development efforts and strategic acquisitions. We also expect to have a strong fourth quarter and meet or beat the current estimates for the full year. This continues to give us confidence in our upward trajectory, operational efficiencies and commitment to long-term growth and shareholder value generation.

總之，我們很高興看到我們的技術開發工作和策略性收購持續取得紮實和協同影響。我們也預計第四季將表現強勁，並達到或超越當前的全年預期。這繼續讓我們對我們的上升軌跡、營運效率以及對長期成長和股東價值創造的承諾充滿信心。

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

現在，我將把電話轉給大衛。大衛？

Thank you, Eyal. And good afternoon to all of you that have joined us today. We appreciate your interest in Rekor and in our progress. Building upon Eyal's comments about our financial performance and momentum, I'm pleased to report that the third quarter has marked yet another period of continued performance and growth for Rekor. Not only have we expanded the breadth of our market presence, but also deepened the impact with customers across each business segment we serve.

謝謝你，埃亞爾。今天加入我們的所有人下午好。我們感謝您對 Rekor 和我們的進步的興趣。根據 Eyal 對我們財務表現和發展勢頭的評論，我很高興地報告說，第三季標誌著 Rekor 又一個持續業績和成長的時期。我們不僅擴大了市場覆蓋範圍，還加深了對我們所服務的每個業務領域的客戶的影響。

And as we've all seen and read in the media lately, US roadways are in a critical state. The increasing number of roadway collapses and the overall deterioration of roads have created heightened public awareness and intense political pressure to address the continued decline in public safety stemming from sharp increases in traffic congestion, environmental concerns and roadway fatalities. Traditional tools and methods for managing and optimizing this vital infrastructure are proving inadequate. And there is an immediate need and urgent call for innovative approaches and transformative solutions.

正如我們最近在媒體上看到和讀到的那樣，美國的道路正處於危急狀態。道路塌方數量的增加和道路整體惡化提高了公眾意識，並產生了巨大的政治壓力，要求解決因交通擁堵、環境問題和道路死亡人數急劇增加而導致公共安全持續下降的問題。事實證明，用於管理和優化這一重要基礎設施的傳統工具和方法是不夠的。我們迫切需要創新方法和變革性解決方案。

The passage of the bilateral infrastructure law at the end of 2021 marked a historic$1.2 trillion investment for the revitalization and digitalization of critical infrastructure and roadways. In this dynamic landscape of both chaos and opportunity, the markets and public agency customers we interact with are doing more than just reassess their existing investments. They are proactively looking to embrace AI and digital infrastructure technologies as a solution.

2021 年底雙邊基礎設施法的通過標誌著對關鍵基礎設施和道路的振興和數位化的歷史性投資達到 1.2 兆美元。在這個混亂與機會並存的動態格局中，我們與之互動的市場和公共機構客戶所做的不僅僅是重新評估他們現有的投資。他們積極尋求採用人工智慧和數位基礎設施技術作為解決方案。

For Rekor, this is where preparedness and opportunity meet. The guiding vision of Rekor and the passion of our teams is to improve the lives of people and the world around them by enabling roadways and communities to be safer, smarter and greener for all. To realize our vision, we leverage our 3,000 plus man-years of field and roadway experience and combine that with our award-winning AI technology to collect, connect and organize the world's mobility data to create essential and comprehensive roadway intelligence that is useful and easily accessible for our customers.

對 Rekor 來說，這就是準備和機會的結合點。 Rekor 的指導願景和我們團隊的熱情是透過讓道路和社區變得更安全、更聰明和更環保來改善人們及其周圍世界的生活。為了實現我們的願景，我們利用3,000 多年的現場和道路經驗，並將其與我們屢獲殊榮的人工智慧技術相結合，收集、連接和組織世界移動數據，以創建有用且簡單的基本且全面的道路智慧我們的客戶可以使用。

Our strategy is distinct. And that we do not simply collect data as a pass through to customers as is common practice in the transportation industry. Data for data is not helpful or useful. What's different about Rekor and our approach is that we use AI to aggregate and fused together massive amounts of volumes, velocities and varieties of data. Data about roadways. Data about anything moving on or around the roadways. And data about the events that can impact roadways.

我們的策略是獨特的。我們不會像運輸業的常見做法那樣簡單地收集資料並將其傳遞給客戶。數據的數據沒有幫助或有用。 Rekor 和我們的方法的不同之處在於，我們使用人工智慧來聚合和融合大量、速度和種類的資料。有關道路的數據。有關道路上或周圍移動的任何物體的數據。以及有關可能影響道路的事件的數據。

And we bring all of this together to generate unique real-time and predictive insights and roadway intelligence that is used by our customers to help them make better, more informed mission-critical decisions that improve the lives of people on roadways and the world around them. We provide our roadway intelligence solutions to both commercial and public sector customers across public safety, urban mobility and transportation management market segment.

我們將所有這些結合在一起，產生獨特的即時和預測性見解以及道路情報，供我們的客戶使用，幫助他們做出更好、更明智的關鍵任務決策，從而改善道路上人們及其周圍世界的生活。我們為公共安全、城市交通和交通管理細分市場的商業和公共部門客戶提供道路智慧解決方案。

This past quarter, in particular, has been pivotal for us in cementing our position as an essential innovator in AI for digital infrastructure and delivering significant breakthroughs in our products and platforms in each of these market segments. We also worked to exponentially increase our distribution capacity, scale our internal systems and processes, and strengthen our brand's promise as a leading provider in roadway intelligence solutions. I am pleased to provide some key highlights in each of these areas on our call today.

尤其是上個季度，對於我們鞏固作為數位基礎設施人工智慧重要創新者的地位，以及在每個細分市場的產品和平台上實現重大突破而言，至關重要。我們也努力倍增我們的配送能力，擴展我們的內部系統和流程，並強化我們作為道路智慧解決方案領先供應商的品牌承諾。我很高興在今天的電話會議上提供這些領域的一些關鍵要點。

Starting with public safety and licensing, we made significant technology and AI model updates in the quarter. Dramatically expanding our geographic coverage and scope of vehicle recognition capabilities including the latest plate designs and reflective properties and new vehicle makes and models across traditional combustion engine, hybrid and electric vehicles driving on roadways around the world.

從公共安全和許可開始，我們在本季度進行了重大技術和人工智慧模型更新。大幅擴展我們的車輛識別能力的地理覆蓋範圍和範圍，包括最新的車牌設計和反射特性以及在世界各地道路上行駛的傳統內燃機、混合動力和電動汽車的新車輛品牌和型號。

In parallel to these technology updates, we saw new and expanded adoption of our Scout vehicle recognition platform with major wins in Colorado, Florida and New Jersey. We also saw a continued expansion of our footprint in Latin America, EMEA, Asia and North America and through our fast-growing OEM licensing and reseller channels. Scout's vehicle recognition technology operates as the powerhouse engine under the hood of critical solutions provided by companies like Safe Fleet, Hayden AI and multiple others that are deploying tools to transit authorities and law enforcement agencies globally and across major metro areas in the United States including New York, Philadelphia, Chicago and Washington, D.C. This represents Rekor 's technology licensing arm in action. And we expect this area to grow significantly in the coming quarters.

在這些技術更新的同時，我們看到我們的 Scout 車輛識別平台得到了新的和擴大的採用，並在科羅拉多州、佛羅裡達州和新澤西州取得了重大勝利。我們也看到，透過快速成長的 OEM 授權和經銷商通路，我們在拉丁美洲、歐洲、中東和非洲、亞洲和北美的足跡不斷擴大。 Scout 的車輛識別技術是 Safe Fleet、Hayden AI 等公司提供的關鍵解決方案的強大引擎，這些解決方案正在向全球以及美國主要都市區（包括紐約市）的交通當局和執法機構部署工具。約克、費城、芝加哥和華盛頓特區。這代表Rekor 的技術許可部門正在採取行動。我們預計該領域在未來幾季將顯著成長。

Beyond law enforcement and transit, we've also continued to deepen our relationships and footprint with enterprise clients such as corporate campuses, stadiums, universities, parking facilities, theme parks, casinos, retail establishment and more in the quarter. This expansion is supported by a growing set of regional value-added resellers that we recently established to drive faster and more efficient market penetration and scale.

除了執法和交通之外，本季我們也持續深化與企業客戶的關係和足跡，例如企業園區、體育場、大學、停車設施、主題樂園、賭場、零售機構等。這種擴張得到了我們最近建立的越來越多的區域加值經銷商的支持，這些經銷商的目的是推動更快、更有效的市場滲透和規模。

Now let's shift attention to our performance in the urban mobility segment for the quarter. Departments of transportation and commercial entities are supposed to conduct an estimated 5 million traffic studies in the US each year. These traffic studies are mandated by the Federal Highway Administration and the US Department of Transportation and must meet exacting standards for vehicle counts, classification and speeds on all of their roadways.

現在讓我們將注意力轉向本季城市交通領域的表現。美國交通部門和商業實體每年應進行約 500 萬項交通研究。這些交通研究由聯邦公路管理局和美國交通部強制執行，並且必須滿足所有道路上車輛數量、分類和速度的嚴格標準。

Today, states struggle to collect and report traffic data for most of their roadways due to the cost of collection and the inability for legacy technologies and manual approaches to keep up with and meet the evolving standards,. The inability to properly report these traffic studies means states cannot recoup the much needed funding to build and maintain their vital infrastructure. This perpetual lack of underinvestment is also a reason while roadways and bridges in the US have an abysmal C minus report card. This has to change.

如今，由於收集成本高昂以及傳統技術和手動方法無法跟上和滿足不斷發展的標準，各州很難收集和報告大部分道路的交通數據。無法正確報告這些交通研究意味著各州無法收回建設和維護其重要基礎設施所需的急需資金。這種長期缺乏投資的現像也是美國道路和橋樑成績單糟糕透頂的一個原因。這必須改變。

At Rekor, nothing gives us more pleasure than reinventing normal. Creating technology and innovations that customers love and resetting their expectation for what normal should be. This is certainly the case with our groundbreaking Discover platform for AI-based traffic studies that we launched earlier this year.

在 Rekor，沒有什麼比重塑常態更讓我們高興的了。創造客戶喜愛的技術和創新，並重新設定他們對正常情況的期望。我們今年稍早推出的用於基於人工智慧的交通研究的開創性 Discover 平台就是這種情況。

We built our Rekor Discover solution to provide an unmatched value proposition for our customers. Our unique AI-driven approach delivers substantial cost savings per data collection site compared to traditional legacy methods and assures fast, safe and nonintrusive deployment, keeping road workers out of harm's way. We do this at a fraction of the cost and in a fraction of the time. Safely, flexibly and with the highest levels of reliability and accuracy made possible by advanced AI.

我們建構 Rekor Discover 解決方案是為了為客戶提供無與倫比的價值主張。與傳統的傳統方法相比，我們獨特的人工智慧驅動方法可以為每個資料收集站點節省大量成本，並確保快速、安全和非侵入式部署，使道路工人免受傷害。我們只需花費一小部分成本和一小部分時間就能做到這一點。先進的人工智慧使安全、靈活、具有最高水準的可靠性和準確性成為可能。

Using the Discover platform, customers can now easily and completely collect data across all of the roadways, address the federal requirements for traffic data coverage and accuracy, and automatically generate comprehensive reporting for class, count and speed across all of the roadways. Using Discover, customers can now substantiate, secure and reclaim federal funds back to the state for critical infrastructure development. And they're doing that.

使用 Discover 平台，客戶現在可以輕鬆、完整地收集所有道路的數據，滿足聯邦對交通數據覆蓋範圍和準確性的要求，並自動產生所有道路的等級、計數和速度的綜合報告。使用 Discover，客戶現在可以證實、保護聯邦資金並將其收回給州，用於關鍵基礎設施的開發。他們正在這樣做。

In the quarter despite incredibly challenging weather conditions from an intense hurricane season in our Southeast markets that continuously disrupted roadway operations, our dedicated teams in Georgia, Florida, Alabama, the Carolinas and Virginia rose to the occasion. As a result, we recorded our most successful quarter ever in our history for the volume of both permanent and short-term traffic studies. And a major milestone for the year so far.

本季度，儘管東南市場強烈的颶風季節帶來了極其嚴峻的天氣條件，持續擾亂了道路運營，但我們在喬治亞州、佛羅裡達州、阿拉巴馬州、卡羅來納州和維吉尼亞州的專業團隊仍奮起應對。結果，我們在永久和短期交通研究量方面創下了歷史上最成功的季度。迄今為止，這是今年的一個重要里程碑。

And our customer pipeline for our Urban Mobility segment continues to expand across United States as well. Already generating significant revenue from our footprint in key states such as Georgia, Florida and South Carolina, our influence continues to broaden. With an additional 14 pilot programs already underway in various states including New Mexico, North Carolina, Maryland, New York, Montana and Colorado, and more, our upward trajectory for continued growth here is more than promising.

我們的城市交通部門的客戶管道也在美國各地持續擴大。我們在喬治亞州、佛羅裡達州和南卡羅來納州等關鍵州的足跡已經產生了可觀的收入，而且我們的影響力還在不斷擴大。另外 14 個試點計畫已經在新墨西哥州、北卡羅來納州、馬裡蘭州、紐約州、蒙大拿州和科羅拉多州等多個州展開，我們在這裡持續成長的上升軌跡非常有希望。

Shifting gears to our transportation management market. I'm excited to share that we have also made significant progress here in the quarter as well including major new technological advancements, expanded partner programs and customer growth. Traffic management centers shouldered a substantial responsibility tasked with ensuring smooth and safe traffic flow across extensive road networks. Their role is critical in managing and optimizing traffic. Tasks made increasingly difficult due to chronic understaffing and reliance on outdated tools. The job they do is mission critical in maintaining efficient and safe transportation. And they're demanding advanced solutions to augment their capabilities. This has become urgent.

轉向我們的運輸管理市場。我很高興與大家分享，我們在本季也取得了重大進展，包括重大新技術進步、擴大的合作夥伴計畫和客戶成長。交通管理中心肩負重大責任，負責確保廣泛的道路網絡中交通暢通安全。他們的角色對於管理和優化流量至關重要。由於長期人手不足和依賴過時的工具，任務變得越來越困難。他們所做的工作對於維持高效率和安全的運輸至關重要。他們需要先進的解決方案來增強他們的能力。這已變得緊急。

As a leader in roadway Intelligence Solutions and Building on the success of our record command platform, which is already popular among major traffic management centers both in the US and internationally. We delivered an enhanced suite of new advanced capabilities, tools and actionable insights in the quarter that further create a force multiplier for traffic management centers and provides an even more comprehensive and essential toolkit for situational awareness and response for the roadways. Roadways status, incident persistent scoring and automated response planning are among a few examples of these new capabilities that were released to the market.

作為道路智慧解決方案的領導者，並以我們的記錄指揮平台的成功為基礎，該平台已經在美國和國際主要交通管理中心中廣受歡迎。我們在本季度提供了一套增強的新的先進功能、工具和可行的見解，進一步為交通管理中心創造了力量倍增器，並為道路態勢感知和響應提供了更全面、更重要的工具包。道路狀態、事件持續評分和自動回應計畫是向市場發布的這些新功能的幾個例子。

We also unveiled a groundbreaking new approach and predictive analytics to assess roadway and crash risk enabling traffic managers to foresee potential road hazards and accident hours in advance. Proactive responsiveness to an incident saves lives. And being able to do this again is a force multiplier for our customers. In fact, traffic management centers enthusiastically report to us over and over that by using our record command platform, they can now automatically detect up to 49% more potentially fatal incidents that would have otherwise been missed and respond to incidences up to 23 minutes faster than traditional methods.

我們還推出了一種突破性的新方法和預測分析來評估道路和碰撞風險，使交通管理者能夠提前預見潛在的道路危險和事故時間。對事件的主動回應可以挽救生命。能夠再次做到這一點對我們的客戶來說是一個力量倍增器。事實上，交通管理中心熱情地向我們一遍又一遍地報告，透過使用我們的記錄指揮平台，他們現在可以自動檢測到多出49% 的潛在致命事件，否則這些事件可能會被錯過，並且對事件的反應速度比以前快23 分鐘傳統方法。

Not only does this translate to reduced congestion on our roadways and secondary crashes but more importantly, it saves lives. Rekor stands alone in our ability to provide these kinds of real-time and predictive insights to traffic management centers. For these reasons and more, we are observing an increase in annual revenue per customer, growth and profitability per customer and a sharp rise in engagement, adoption and usage of new capabilities. We believe that this momentum will continue to build and here's why. Efficiencies like these also deliver substantial operational and fiscal benefits to our customers. And that's a good tens of millions of dollars in potential direct and indirect savings per year to the state. All of these compounding advantages work together. And it's why customers choose Rekor.

這不僅可以減少道路擁擠和二次事故，更重要的是，它可以挽救生命。 Rekor 在向交通管理中心提供此類即時和預測性見解方面獨樹一幟。由於這些原因以及其他原因，我們觀察到每位客戶的年收入、每位客戶的成長和獲利能力都在增加，並且新功能的參與度、採用和使用量急劇上升。我們相信這種勢頭將繼續增強，原因如下。這樣的效率也為我們的客戶帶來了巨大的營運和財務效益。這意味著每年可以為國家節省數千萬美元的直接和間接成本。所有這些複合優勢共同發揮作用。這就是客戶選擇 Rekor 的原因。

Supporting this, I'm pleased to report that we strengthened and deepened our position with the largest states in the United States and on the largest roadway networks in the nation including Texas, Florida and California. We also advanced our work with the Oregon Department of Transportation where we are partnering with Cintra and serving as the core technology platform and hub for all data and connected vehicle providers.

為了支持這一點，我很高興地報告，我們加強並深化了我們在美國最大的幾個州以及德克薩斯州、佛羅裡達州和加利福尼亞州等全國最大的公路網絡中的地位。我們也推進了與俄勒岡州交通部的合作，我們與 Cintra 合作，作為所有數據和互聯車輛提供者的核心技術平台和中心。

Oregon aims to deploy a first-of-its-kind, comprehensive, ambient computer solution for roadway usage charging across what is today the highest concentration per capita of electric and hybrid vehicles on roadways in the US. Many other states are closely monitoring our work in Oregon as a potential template for their own road usage programs in the coming year.

俄勒岡州的目標是在當今美國道路上人均電動和混合動力汽車集中度最高的地區部署首個全面的環境電腦解決方案，用於道路使用充電。許多其他州正在密切關注我們在俄勒岡州的工作，作為他們明年道路使用計劃的潛在模板。

In addition to this, we also kicked off new projects in multiple other states, counties and municipal districts as part of a targeted sales campaign and marketing initiatives to reach 800 cities, counties and municipal planning organizations in the US. We believe this is a segment of the transportation market that is wildly underserved today. And Rekor can deliver unique and disproportionate impact as we do at the state level. We are well-positioned to help connect the dots and enable sharing and collaboration between agencies at all levels across the state and even across multiple states.

除此之外，我們還在其他多個州、縣和市轄區啟動了新項目，作為有針對性的銷售活動和行銷活動的一部分，以涵蓋美國 800 個城市、縣和市政規劃組織。我們相信，這是目前交通市場服務嚴重不足的一個部分。 Rekor 可以像我們在州一級所做的那樣產生獨特且不成比例的影響。我們有能力幫助連接各個點，並實現全州甚至多個州各級機構之間的共享和協作。

As we look ahead, customers in this segment have told us they often struggle to manage through arcane complexities and timeliness of traditional government procurement systems and processes. To aid in this and to accelerate growth in this segment this quarter, we also announced deepened partnership and a co-selling channel relationship with Amazon, its AWS marketplace and its public sector team. Making the record command platform available and accessible for easier government procurements.

展望未來，該領域的客戶告訴我們，他們經常難以管理傳統政府採購系統和流程的神秘複雜性和及時性。為了幫助實現這一目標並加速本季該細分市場的成長，我們也宣布與亞馬遜、其 AWS 市場及其公共部門團隊加深合作夥伴關係和共同銷售通路關係。提供記錄指揮平台，方便政府採購。

This will make technology adoption and deployment much simpler for states, counties and municipalities and ensures immediate and continuous access and scalability on demand for them as they adopt and expand usage of our roadway intelligence solutions. Overall, we are encouraged with the progress that we've made this quarter in the transportation management customer segment and believe the best is yet to come as we continue to expand and scale our technology, partners and customer growth.

這將使州、縣和市的技術採用和部署變得更加簡單，並確保他們在採用和擴大我們的道路智慧解決方案的使用時按需進行即時、持續的存取和可擴展性。總體而言，我們對本季在運輸管理客戶領域的進展感到鼓舞，並相信隨著我們繼續擴展和擴大我們的技術、合作夥伴和客戶成長，最好的尚未到來。

In summary, the third quarter has been another period of solid performance for our company. Marked by substantial product innovations across each of our customer markets and growth in both the size and the strength of our relationships with clients. At the same time, we've continued to aggressively innovate and expand our range of products and services with each new product designed to modularly to integrate seamlessly with our Rekor One roadway intelligence engine.

總而言之，第三季是我們公司業績穩健的另一個時期。其特點是我們每個客戶市場的實質產品創新以及我們與客戶關係的規模和強度的成長。同時，我們繼續積極創新並擴展我們的產品和服務範圍，每款新產品均採用模組化設計，可與我們的 Rekor One 道路智慧引擎無縫整合。

Designing our systems wisely in this way, optimizes our technology investments for speed, reuse and scale and shortens time to market and profitability for each segment. By almost any measure, Rekor is in a stronger position now than at any time in our past. We have momentum and believe our relentless focus and execution against our vision and mission will continue to propel us into further exceptional growth and opportunity ahead.

以這種方式明智地設計我們的系統，可以優化我們在速度、重複使用和規模方面的技術投資，並縮短每個細分市場的上市時間和盈利能力。幾乎從任何角度來看，Rekor 現在都比過去任何時候都處於更有利的地位。我們充滿動力，相信我們對願景和使命的不懈關注和執行將繼續推動我們實現進一步的卓越成長和未來的機會。

In closing, I want to recognize that while we're not immune to the significant and continuous market, financial and geopolitical upheavals faced here in the US and around the world, we are resolute in our vision and are working hard to build something important. Something durable. Something that matters to our customers. And something that we can tell our grandchildren about.

最後，我想認識到，雖然我們無法免受美國和世界各地面臨的重大且持續的市場、金融和地緣政治動盪的影響，但我們堅定地堅持我們的願景，並正在努力建立一些重要的東西。耐用的東西。對我們的客戶來說很重要的事。我們可以告訴我們的孫子們一些事情。

Such things are not meant to be easy. We are incredibly fortunate to have a group of dedicated Rekor employees around the world whose sacrifices, dedication and passion for our shared vision is what builds Rekor. And we remain ever grateful to our customers for their business and trust and to you, our shareholders, for your continued encouragement and support. Thank you for spending time with us today. And I look forward to keeping you up-to-date on our continued progress.

這些事情並不容易。我們非常幸運，在世界各地擁有一群敬業的 Rekor 員工，他們為我們的共同願景所做的犧牲、奉獻和熱情造就了 Rekor。我們始終感謝客戶的業務和信任，並感謝您，我們的股東，感謝您持續的鼓勵和支持。感謝您今天與我們共度時光。我期待著向您通報我們不斷取得的進展。

At this point, I'll turn the call over to Robert Berman, our CEO and Chairman of Rekor, for final remarks and Q&A. Robert?

此時，我將把電話轉給 Rekor 執行長兼董事長 Robert Berman，讓其進行最後發言和問答。羅伯特？

Thank you, David. Good afternoon, everyone. I'd like to underscore what Eyal presented earlier with his CAGR and AI tech companies comparison slides. Since we began tracking our roadway Intelligence revenue in 2018, Rekor has experienced a 268% compounded annual growth rate. This demonstrates our ability to sustain growth through challenging times and periods of limited resources. We've constantly enhanced our technology and successfully completed key acquisitions. And at the same time, we've also solidified our market presence and emerge as industry top leaders in roadway intelligence.

謝謝你，大衛。大家下午好。我想強調一下 Eyal 之前在複合年增長率和人工智慧科技公司比較幻燈片中所展示的內容。自 2018 年我們開始追蹤道路情報收入以來，Rekor 的複合年增長率達到了 268%。這表明我們有能力度過充滿挑戰的時期和資源有限的時期來維持成長。我們不斷增強技術並成功完成關鍵收購。同時，我們也鞏固了市場地位，成為道路智慧領域的產業頂尖領導者。

Our acquisition of Waycare in August of 2021 and SDS in June of 2022 brought combined revenue of approximately $15 million. Since then and despite the sale of our last non-core asset in the fourth quarter of 2022 which resulted in a reduction of $2.5 million of gross revenue, our top line continues to climb. I am particularly proud of the fact that the revenue growth the company has experienced over the last 12 months is entirely organic.

我們於 2021 年 8 月收購了 Waycare，並於 2022 年 6 月收購了 SDS，帶來的合併收入約為 1,500 萬美元。從那時起，儘管我們在 2022 年第四季出售了最後一個非核心資產，導致總收入減少了 250 萬美元，但我們的營收仍在繼續攀升。我感到特別自豪的是，公司在過去 12 個月中實現的收入成長完全是有機的。

As we expect to have yet another record quarter meeting or beating the current revenue estimates for the fourth quarter of 2023, Rekor will have again more than doubled its top line. Driving this organic growth is the adoption of the company's technology and we're just getting going. What you are seeing is just the tip of the iceberg.

由於我們預計 2023 年第四季將再次創紀錄的季度業績或超過目前的收入預期，Rekor 的營收將再次增加一倍以上。推動這種有機成長的是公司技術的採用，而我們才剛開始。您所看到的只是冰山一角。

Thanks to the continued execution of the entire team, this remarkable growth was achieved more swiftly than many of our peers has reflected in the revenue per share comparisons that they all shared with you earlier. As David outlined, the strength of our differentiated products and technology nor our ability to scale is allowing us to grow more quickly with less equity investment than comparable companies.

由於整個團隊的持續執行，這種顯著的成長比我們的許多同行更快實現，他們在先前與您分享的每股收入比較中反映了這一點。正如大衛所概述的，我們差異化產品和技術的優勢以及我們的擴展能力使我們能夠以比同類公司更少的股權投資更快地發展。

As we work to prudently manage our equity, we've been able to reach these milestones while avoiding the heavy dilution that is often seen in the sector. This strategic approach has allowed us to advance steadily, mindful of preserving and maximizing shareholder value as the company moves towards breakeven between Q4 this year and Q1 of 2024.

當我們努力謹慎管理我們的股權時，我們已經能夠實現這些里程碑，同時避免該行業常見的嚴重稀釋。這種策略方法使我們能夠穩步前進，在公司從今年第四季到 2024 年第一季實現損益平衡的過程中，注意維護和最大化股東價值。

As the company scales its growth, most of the capital will need is directly related to the installations of roadside IoT sensors nationwide. We're going to continue to be efficient, avoid using equity and work to address this funding with debt and other mechanisms as much as possible.

隨著公司規模的發展，所需的大部分資金與在全國範圍內安裝路邊物聯網感測器直接相關。我們將繼續保持高效，避免使用股權，並盡可能透過債務和其他機制來解決此融資問題。

In addition as our footprint grows from east to west, the opportunity to transact in states where we have no direct presence or people continues to be a challenge. We don't see these as problems but more as challenges and opportunities that our technological lead puts us in a position to seize. And we'll have more to say about this in the coming weeks.

此外，隨著我們的足跡從東向西擴展，在我們沒有直接業務或人員的州進行交易的機會仍然是一個挑戰。我們不認為這些是問題，而更多地視為我們的技術領先地位使我們能夠抓住的挑戰和機會。在接下來的幾週內，我們將對此進行更多討論。

In closing, I want to express my deep gratitude to our shareholders for your trust, support and belief in our vision. You've been the foundation of our achievements. And together, we are just not navigating the future, we're shaping it.

最後，我要向我們的股東表達深深的感謝，感謝你們對我們願景的信任、支持和信念。您是我們成就的基礎。在一起，我們不是在引領未來，而是在塑造未來。

Now, I'd like to open the floor for any questions you may have. And please don't hesitate to ask. We're here to provide transparency and clarity. And we're eager to address any concerns or inquiries you may have. Operator?

現在，我想回答大家可能提出的任何問題。請隨時詢問。我們在這裡提供透明度和清晰度。我們渴望解決您可能有的任何疑慮或問題。操作員？

(Operator Instructions) Mike Latimore, Northland Capital Markets.

（操作員說明）Mike Latimore，Northland Capital Markets。

All right. Thanks so much. Yeah. Congrats on the strong organic growth here. Yeah. You mentioned in the prepared remarks, strength in Urban Mobility. I don't know if you can give a little more quantification, but was it over half, under half of bookings in the quarter?

好的。非常感謝。是的。祝賀這裡的強勁有機成長。是的。您在準備好的發言中提到了城市交通的實力。我不知道你是否可以提供更多的量化信息，但是該季度的預訂量是超過一半還是低於一半？

Mike, I don't know that I can speak directly to the percentage, but it was a large percentage of bookings in the quarter and will continue to be in the fourth quarter and that's where our focus is and what I referenced with respect to rolling out these IoT sensors nationwide.

麥克，我不知道我可以直接談論這個百分比，但它在本季度的預訂中佔很大比例，並且將繼續在第四季度，這就是我們的重點所在，也是我提到的滾動方面的內容在全國部署這些物聯網感測器。

And yeah. As you look to the fourth quarter, do you see kind of all three business segments driving the planned sequential growth there or is one more pronounced? Is this Urban Mobility more pronounced? How do I think about kind of drivers in the fourth quarter?

是的。當您展望第四季度時，您是否認為所有三個業務部門都推動了計劃中的連續成長，還是其中一個更為明顯？這種城市流動性是否更加明顯？我如何看待第四季的驅動因素？

I think, we believe that Urban Mobility will lead the way, and if you think about our Public Safety and Licensing business where we started, that will continue to grow. The concept of building, which is what's necessary, a digital layer of infrastructure over our existing road system requires IoT nodes, right?

我認為，我們相信城市交通將引領潮流，如果您考慮我們起步時的公共安全和許可業務，您會發現該業務將繼續成長。在我們現有的道路系統上建立基礎設施的數位層的概念是必要的，需要物聯網節點，對吧？

So as we get these across the states and then across the country, it pulls in Transportation Management. So I think Urban Mobility will lead the way and that's a great business, because long-term state contracts, recurring revenue, very profitable and that pulls in the ability to do the other pieces.

因此，當我們將這些跨越各州，然後跨越全國時，它會引入運輸管理。因此，我認為城市交通將引領潮流，這是一項偉大的業務，因為長期的國家合約、經常性收入、非常有利可圖，這會帶來做其他事情的能力。

So I think Urban Mobility, they will all scale. Urban Mobility probably will lead the way in scale, in percentage of scale. And I would say that, Public Safety and Licensing will continue to scale and traffic management is not far behind.

所以我認為城市交通，它們都會規模化。城市交通可能會在規模、比例方面處於領先地位。我想說，公共安全和許可將繼續擴大規模，交通管理也不落人後。

There may be a point a couple of years down the road where Traffic Management starts to kind of catch up like a horse race and that's understandable, because that's how everything comes together and that's the secret sauce of what we're doing. So I think that's a good way of looking at it right now. David, do you have any thoughts in that regard?

幾年後，交通管理可能會開始像賽馬一樣迎頭趕上，這是可以理解的，因為這就是一切的結合方式，也是我們正在做的事情的秘密武器。所以我認為這是現在看待這個問題的一個好方法。大衛，你對此有什麼想法嗎？

No. Nothing more than you said there, Robert. I think you captured it well.

不，除了你剛才說的，羅伯特。我認為你捕捉得很好。

Okay.

好的。

Great. And how many on the Urban Mobility side of things, how many deployments or site deployments can you do per day? How many -- do you have enough resource to deploy at certain amounts per day now?

偉大的。您每天可以進行多少次城市交通方面的部署或站點部署？您現在有足夠的資源來每天部署一定數量的資源嗎？

David, do you want to take that?

大衛，你想接受這個嗎？

Yeah. There is a -- it's a multi-stage process. Like in poor concrete, you have to wait for it to set, et cetera. But after that, you can do this pretty efficiently, four-day to six-day if the crews are all operating. That's pretty typical.

是的。這是一個多階段的過程。就像在劣質混凝土中一樣，你必須等待它凝固，等等。但在那之後，如果工作人員都在工作的話，你可以非常有效地完成這項工作，四天到六天。這很典型。

That would be per crew, right? And we have multiple crews.

那是每個船員的數量，對嗎？我們有多名工作人員。

That --

那 -

Yeah.

是的。

Per crew, yeah, per crew, per like region or segment of roadway. Yeah.

每個工作人員，是的，每個工作人員，每個類似的區域或道路段。是的。

They go in like four hours, five hours, six hours, you can put a system on.

他們大概需要四個小時、五個小時、六個小時，你就可以安裝一個系統了。

Okay. And how many crews do you have then? Four per crew to six per crew, how many crews?

好的。那麼你們有多少船員？每個船員四到六個，總共有多少船員？

David right now.

大衛現在。

Four and building a fifth.

四個，正在建造第五個。

So four?

那麼四個？

Call it four and a half.

稱為四個半。

Yeah.

是的。

Yeah. Yeah. That makes sense. Okay. Great. Thanks.

是的。是的。這就說得通了。好的。偉大的。謝謝。

But I know, Mike, I just want to add to that. Once the process is down, which it is, it's pretty much stamp and repeat. And the labor that it takes to address this is, labor that's out there. You can think about field technicians that have installed things like 5G towers for cell companies and others. So, that's the nature of the labor required. So it's pretty well expandable.

但我知道，麥克，我只是想補充一點。一旦這個過程結束，事實上，它幾乎就是重複。解決這個問題所需的勞動力是現有的勞動力。您可以想想為手機公司和其他公司安裝 5G 塔等設施的現場技術人員。這就是所需勞動力的性質。所以它的可擴展性非常好。

And that's why I had mentioned earlier the challenge that Rekor has, which is really an opportunity is that we've got a lot of business in states where we can transact but have no presence and we're working to solve that. So, which means adding crews, right? I mean, that's really what that's all about.

這就是為什麼我之前提到 Rekor 面臨的挑戰，這確實是一個機會，因為我們在可以進行交易但沒有存在的州有很多業務，我們正在努力解決這個問題。那麼，這意味著增加人員，對嗎？我的意思是，這就是真正的意義。

Sure. Sure. Great, well, congrats again. Thanks very much.

當然。當然。太好了，好吧，再次恭喜。非常感謝。

Yeah. Thank you.

是的。謝謝。

Thank you.

謝謝。

Zach Cummins, B. Riley Securities.

康明斯 (Zach Cummins)，B. 萊利證券 (Riley Securities)。

Hi. Good afternoon. Thanks for taking my questions. I just wanted to ask around the weather delays that you mentioned in the southeastern United States. I mean, you give us an update. Was it really more of just kind of a one-time delay in terms of project implementations? And then second part of the question is, it seems like you're in pilot with 14 additional states now. How many of those do you expect to move forward with more commercial deployment as you get towards the year end?

你好。午安.感謝您回答我的問題。我只是想詢問一下你提到的美國東南部的天氣延誤。我的意思是，你給我們提供了最新消息。就專案實施而言，這真的只是一次性的延遲嗎？問題的第二部分是，看來你們現在正在另外 14 個州進行試驗。隨著年底的臨近，您預計其中有多少會進行更多的商業部署？

Hey. David, do you want to take that.

嘿。大衛，你想接受這個嗎？

So on the -- yeah. Sure. So on the deployments with weather concerns, it's not just the weather event itself. It's the inability to get out there in preparation for the weather and then if there is a weather event, it's the cleanup afterwards. So it's really the -- it's not the event itself. It's all the stuff that the threat of the event that slows things down because you can't put crews out there.

所以關於——是的。當然。因此，在涉及天氣的部署中，不僅僅是天氣事件本身。這是無法出去為天氣做好準備，然後如果發生天氣事件，那就是事後的清理工作。所以這其實不是事件本身。事件的威脅會減慢事情的進展，因為你無法派出工作人員去那裡。

Second of all, and in the nature of some of the work that we do, even rain -- heavy rain can make an impact and so you don't send crews out in the dangerous kind of weather like that. So it's episodic and it's something that we dealt with, certainly, in the hurricane season in the southeast. So we'll come back to that if you have additional questions.

其次，就我們所做的一些工作的性質而言，即使是下雨，大雨也會產生影響，所以你不會在這樣危險的天氣下派出工作人員。所以這是偶發性的，當然，這是我們在東南部颶風季節處理的事情。因此，如果您還有其他問題，我們會再討論這個問題。

In terms of deployments across the 14, these are in different stages right now. And partially as we're moving crews westward and trying to schedule them with the existing work that we're doing in the southeast becomes a race condition, right? And so it's really just a matter of scheduling right now. And so those are progressing well and we have two that are in process right now and will continue to schedule as quickly as we can for the rest as we look to add crew members, as well as expand our footprint westward.

就 14 個國家的部署而言，它們目前處於不同的階段。部分原因在於，當我們將工作人員向西轉移，並試圖將他們與我們在東南部正在進行的現有工作安排在一起時，這就變成了一種競爭條件，對嗎？所以現在這其實只是一個安排問題。因此，這些進展順利，我們現在正在處理兩個項目，並將繼續盡快安排其餘的項目，因為我們希望增加船員，並向西擴大我們的足跡。

Understood. And then final question for me. It seems like the real gating factor here is just the ability to have crews to implement some of these deployments and really do that at a pretty quick pace. How are you thinking about options? I know, Robert, you've mentioned pursuing some sort of debt financing to potentially fast track some of this. So I'm just curious of how you're thinking about potential solutions to really fast track some of these deployments.

明白了。然後是我的最後一個問題。看起來真正的限制因素只是讓工作人員能夠以相當快的速度實施其中一些部署。您如何考慮選擇？我知道，羅伯特，你曾提到尋求某種債務融資來可能快速解決其中的一些問題。因此，我只是好奇您如何考慮潛在的解決方案來真正快速追蹤其中一些部署。

Yeah. Good question, Zach. So, as we approach break even here, the majority of the capital that Rekor will need will be for the implementation of these systems. And the most efficient way to do that is with debt and we've been working for months on creating a structure that can be stamped and repeated with regard to being able to fund those systems.

是的。好問題，扎克。因此，當我們接近收支平衡時，Rekor 所需的大部分資金將用於實施這些系統。最有效的方法是透過債務，我們已經花了幾個月的時間來創建一個可以被標記和重複的結構，以便能夠為這些系統提供資金。

The good news is if you think about the counterparty, it's a state with good credit, long-term contracts, highly profitable. So we think we have an answer to that and we're hoping to be able to talk more about that in this quarter.

好消息是，如果你考慮交易對手，你會發現它是一個信用良好、簽訂長期合約、利潤豐厚的國家。因此，我們認為我們已經找到了答案，並且希望能夠在本季度更多地討論這個問題。

But we think we have no guarantees, but we think we have that problem solved and if we solve that problem, then that's just an accelerant for the company's growth and that's the most efficient way to fund that and today we've been funding a lot of these deployments with equity, which is terribly inefficient. So that's how we're thinking about it going forward.

但我們認為我們沒有任何保證，但我們認為我們已經解決了這個問題，如果我們解決了這個問題，那麼這只是公司發展的促進劑，這是最有效的融資方式，今天我們已經提供了大量資金這些部署都是公平的，效率極低。這就是我們未來的想法。

Understood. Well, thanks for taking my questions and best of luck with the rest of the year.

明白了。好吧，感謝您提出我的問題，並祝您今年餘下的時間一切順利。

Yeah. Yeah. Thank you, Zach.

是的。是的。謝謝你，扎克。

Thanks, Zach.

謝謝，扎克。

(Operator Instructions) KC Ambrecht, Shay Capital.

（操作員指令）KC Ambrecht，Shay Capital。

Hi. Thank you very much for taking the questions. Really good to see the growth accelerator. Just a couple ones on the state contracts. How should we think about the cadence of these contracts? Are they rolling up a bunch of cities and municipalities or can we think about actually landing some large actual state contracts and then across -- rolling your footprint out across that region?

你好。非常感謝您接受提問。很高興看到增長加速器。只有幾個國家合約上的。我們應該如何考慮這些合約的節奏？他們是否會建立一些城市和直轄市，或者我們是否可以考慮實際簽訂一些大型的實際國家合同，然後將您的足跡擴展到該地區？

Well, that's a good question, KC. So, there's multiple pieces of this business, but the states are required to do this data collection, as are other municipalities like counties and towns, villages, cities and so forth. These state contracts are typically done with one or two vendors the way they've been done with legacy technology for years. So this is changing because we're changing the way they do it with the technology they do it. So these contracts are fairly large.

嗯，這是個好問題，KC。因此，這項業務涉及多個部分，但各州需要收集數據，其他城市（如縣、城鎮、村莊、城市等）也是如此。這些國家合約通常是與一兩個供應商簽訂的，就像多年來使用遺留技術一樣。所以這種情況正在改變，因為我們正在用他們的技術改變他們的工作方式。所以這些合約相當大。

And that was the reason we acquired SDS, because SDS had pioneered the concept of installing using legacy technology, these systems under a different model that you would typically see, which is just a contractor deploying equipment with some type of maintenance contract. Where this is here now pay for data. So I think you're going to see some significant contracts with states. But there's a whole other side of this business, which we're attacking right now, which is at the more local level and that's probably equal in size to that happens at the state level. So I think it's going to be a combination of both. But I think you'll see some really --

這就是我們收購 SDS 的原因，因為 SDS 開創了使用傳統技術安裝的概念，這些系統採用您通常會看到的不同模型，這只是承包商透過某種類型的維護合約部署設備。現在這裡是支付數據費用。所以我認為你會看到與各州簽訂的一些重要合約。但我們現在正在攻擊這項業務的另一面，它是在地方層面，其規模可能與州層面的情況相當。所以我認為這將是兩者的結合。但我想你會看到一些真的——

Okay.

好的。

Significant state contracts. We already have. I mean, we already have some pretty significant state contracts. So I think --

重大國家合約。我們已經有了。我的意思是，我們已經簽訂了一些非常重要的國家合約。所以我認為 -

Right. In terms of -- Robert, in terms of like these large state contracts, like, what's the -- is there like a K like a duration? Are they five-year contracts for X million? Like, how do we think about kind of the --

正確的。就羅伯特而言，就這些大型國家合約而言，有什麼像 K 這樣的期限嗎？他們的五年合約是X百萬嗎？就像，我們如何思考——

There are two -- yeah. This is a good question. So the best the best way I can answer you is by telling you, history. So, as an example, the State of Georgia has been a customer of ours through our acquisition of SDS since 1997. So, the contracts typically run five years, seven years, 10 years and it's a very sticky business.

有兩個——是的。這是一個很好的問題。所以我能回答你的最好的方式就是告訴你歷史。舉個例子，自 1997 年以來，我們收購了 SDS，喬治亞州就成為了我們的客戶。因此，合約通常為期五年、七年、十年，這是一項非常具有黏性的業務。

And the DOT is very seldom change their service providers because they can't afford to lose the service and the data. So they stick with what they have if it's working. So these are usually very long-term contracts and it's a very sticky business where they just continue to renew.

而且交通部很少更換他們的服務供應商，因為他們無法承受失去服務和資料的損失。因此，如果有效的話，他們就會堅持使用現有的東西。因此，這些合約通常是非常長期的合同，而且是一項非常黏性的業務，他們只能不斷續約。

That kind of leads me to my next question. Like when you think about other companies you're familiar with that are like another record out there that's kind of rolling out this national footprint.

這引出了我的下一個問題。就像當你想到你熟悉的其他公司時，它們就像另一張唱片，正在全國推廣。

There is nobody that we know of.

據我們所知，沒有人知道。

Competitor.

競爭者。

No. There is nobody that we know of that's putting IOT sensors roadside for the purposes of what we're talking about doing here. And none specifically that have the service side of the business, which is what makes Rekor different.

不。據我們所知，沒有人出於我們在這裡討論的目的而將物聯網感測器放置在路邊。而且沒有一家專門從事業務的服務方面，這就是 Rekor 的不同之處。

KC, look, if you think about new technology and dealing with government, right? So they have this technology that they've been using for 50 years, 60 years, 70 years. It could be an induction loop and piezos. It could be bending plates, a whole bunch of different things, right?

KC，聽著，如果你考慮新技術和與政府打交道，對嗎？所以他們擁有這項技術，並且已經使用了 50 年、60 年、70 年。它可以是感應迴路和壓電元件。它可能是彎曲的板，一大堆不同的東西，對吧？

So what has happened through the years is that, there are limited companies that actually can service the old stuff and deploy new technology if it existed. Well, up until recently, it hasn't existed. So the service side of our business is what makes us unique, okay? And I say that, in the same way that when you think about Amazon, what are they.

因此，多年來發生的情況是，實際上能夠為舊設備提供服務並部署新技術（如果存在）的公司有限。嗯，直到最近，它還不存在。因此，我們業務的服務方面使我們與眾不同，好嗎？我這麼說，就像你想到亞馬遜時，它們是什麼一樣。

Okay.

好的。

A technology company or are they a real estate owner or are they -- do they own an airline or they own -- are they like UPS? So, this is a business where being able to service the customer roadside and then have the proprietary technology that goes along with that makes all the difference in the world, because you can service the legacy stuff while you're rotating the legacy stuff out to new equipment, because they can't have the legacy stuff go down while you're replacing it, right?

一家科技公司，或者他們是房地產所有者，還是他們擁有一家航空公司，還是他們擁有一家航空公司，他們是像 UPS 一樣嗎？因此，這是一家能夠為路邊客戶提供服務，然後擁有與之相伴的專有技術的企業，這使得世界變得不同，因為你可以在將遺留的東西輪換到其他地方的同時為遺留的東西提供服務。新設備，因為更換舊設備時不能讓舊設備失效，對吧？

So I think, Rekor, in that way is very, very unique. It's very unique. And I can't think of another company like Rekor, right? Like, there are companies that sell equipment. There are companies that, maybe do construction or maintenance.

所以我認為，Rekor 在這方面是非常非常獨特的。這是非常獨特的。我想不出還有像 Rekor 這樣的公司，對嗎？例如，有些公司出售設備。有些公司可能從事建築或維護工作。

But I can't think of any other company that has the proprietary tech that we have that also has, as David mentioned earlier, thousands of man hours of understanding the way all this works roadside and has it all under one roof and is able to deploy it and work and gain the trust of these agencies, okay, to be able to service them. So that's what makes this so special and I think we shouldn't lose sight of that. It's very important.

但我想不出任何其他公司擁有我們所擁有的專有技術，並且正如大衛之前提到的那樣，花費數千工時了解所有這些在路邊工作的方式，並將所有這些都集中在一個屋簷下，並且能夠部署它並工作並獲得這些機構的信任，好吧，能夠為他們提供服務。這就是它如此特別的原因，我認為我們不應該忽視這一點。這很重要。

Okay. And then just two quick questions on the numbers. What jumped out to me was your comment that you plan on being break even in 4Q or 1Q. Is that -- I'm looking at the analyst models here. Are we talking like adjusted EBITDA, because they have losses throughout next year?

好的。然後是關於數字的兩個簡單問題。我突然想到的是您的評論，即您計劃在第四季度或第一季實現收支平衡。是嗎——我正在看這裡的分析師模型。我們是否在談論調整後的 EBITDA，因為他們明年全年都會虧損？

I want to answer.

我想回答一下。

Well, Eyal. Answer that question.

嗯，埃亞爾。回答這個問題。

KC can you say again.

KC你能再說一次嗎？

Can you ask again, please?

可以再問一下嗎？

Yeah. So you guys mentioned that you plan on being break even in 4Q or 1Q of going forward. Is that -- how should we think about that? Is that like an adjusted EBITDA basis, because I'm looking at analyst.

是的。所以你們提到你們計劃在第四季或第一季實現收支平衡。那是──我們該如何思考這個問題？這是否類似於調整後的 EBITDA 基礎，因為我正在尋找分析師。

Yeah.

是的。

Models and you have losses.

模型和你都有損失。

Yeah.

是的。

Have fallen throughout all of next year?

明年一整年都在下跌嗎？

Yeah, KC. It's on an adjusted EBITDA basis. Yes. Cash flow positive or breakeven.

是的，KC。它是在調整後的 EBITDA 基礎上計算的。是的。現金流為正或損益平衡。

Okay.

好的。

And this fourth quarter or first quarter next year?

今年第四季還是明年第一季？

Okay.

好的。

Yeah. And I think, again, KC, the challenge we have, which we've been working on for months, is how we fund these implementations, right? So that's what we've been solving for and we think we have a solution for it. Again, no guarantees, but we feel pretty confident that we've got a solution for that. That is something that is replicable and something that's elastic that can grow with the company that solves that problem.

是的。我再次認為，KC，我們幾個月來一直在努力解決的挑戰是我們如何為這些實施提供資金，對嗎？這就是我們一直在解決的問題，我們認為我們已經找到了解決方案。再說一次，我們不能保證，但我們非常有信心我們已經找到了解決方案。這是可複製的、有彈性的東西，可以與解決問題的公司一起成長。

Okay. Like some sort of funding mechanism that can flex with your growth.

好的。就像某種可以隨著你的成長而改變的融資機制。

Yeah. Exactly. Something that's a funding mechanism that is on terms that are favorable to a company like Rekor that can flex with our growth and give us the ability to do exactly what we're talking about doing here.

是的。確切地。這是一種對像 Rekor 這樣的公司有利的融資機制，可以隨著我們的發展而靈活調整，讓我們有能力準確地完成我們在這裡所說的事情。

Okay. And then one last question, Robert, I know you guys don't give guidance on a year out and it's only third quarter. But can you just kind of help us think about how to think about the revenue profile for 2024 as these state contracts kind of come online and you have this new perhaps funding and maybe you tack on some acquisitions. Like, how do you think about what this company looks like this time next year in terms of revenues?

好的。最後一個問題，羅伯特，我知道你們不會為一年後的情況提供指導，現在只是第三季。但是，您能否幫助我們考慮如何考慮 2024 年的收入狀況，因為這些國家合約已經上線，您可能有新的資金，也許您還會進行一些收購。例如，您如何看待這家公司明年這個時候的收入狀況？

I think we've all seen young companies that have crazy CAGRs, right? Like, when you look at Rekor from 2018 forward and remember the revenue that we have is, there's no legacy revenue here from anything that's not related to what we're doing today.

我想我們都看過年複合成長率瘋狂的年輕公司，對吧？就像，當你回顧 2018 年的 Rekor 並記住我們擁有的收入時，這裡沒有任何與我們今天所做的事情無關的遺留收入。

So, I said in the script that, we expect to double revenue again this year. So when you think about that, I think you can expect that to continue at that type of growth rate and it will accelerate if the funding mechanisms are -- there's two challenges, the funding mechanism, which we think we have solved, right? But no guarantees, but we think we have it solved.

所以，我在劇本裡說，我們預計今年的收入又會翻倍。因此，當你考慮到這一點時，我認為你可以預期這種成長率將繼續下去，如果融資機制是的話，它將會加速——有兩個挑戰，即融資機制，我們認為我們已經解決了，對嗎？但不能保證，但我們認為我們已經解決了這個問題。

And the second is, expanding our footprint so that we can do business in the states that we can transact with today, but haven't been able to get to. So, we have customers that want to do business where we can't get to them, right? Because we've been bogged down in other places, but we think we have a solution for both.

第二是擴大我們的足跡，以便我們能夠在今天可以與之進行交易但尚未到達的州開展業務。那麼，我們有一些客戶想要開展業務，但我們無法聯繫到他們，對嗎？因為我們在其他地方陷入了困境，但我們認為我們有一個解決方案。

So I would say if both of those things come together, the funding mechanism and the way we're approaching expanding the footprint so that we can handle the business, then we can exceed the growth that you've seen to this point, right? I mean, it could just accelerate and increase. So I think

所以我想說，如果融資機制和我們擴大業務範圍的方式結合在一起，以便我們能夠處理業務，那麼我們可以超過您迄今為止所看到的增長，對嗎？我的意思是，它可能會加速和增加。所以我認為

Okay.

好的。

When you look at the history of it, I think, it's pretty impressive, and I think, it's just very early stage, okay? The size of this market is massive, okay? The technology is being adopted. There's no question about it, right? And it's just a matter of being able to execute the business and get out there and do it and that's a high class problem.

當你回顧它的歷史時，我認為，它非常令人印象深刻，而且我認為，這只是非常早期的階段，好嗎？這個市場的規模很大，好嗎？該技術正在被採用。毫無疑問，對吧？這只是一個能夠執行業務並走出去去做的問題，這是一個高階問題。

So you just figure out, okay, how do we do this, and you just figure out how to do it and you go do it and that's where we are now. That's where Rekor is at a point where it's -- it just needs to execute now. The business is there and we just need to figure out a way to execute and we will.

所以你只要弄清楚，好吧，我們該怎麼做，你只要弄清楚如何做，然後就去做，這就是我們現在的處境。這就是 Rekor 所處的位置——它現在只需要執行即可。業務就在那裡，我們只需要找到一種執行方法，我們就會的。

Great. Thank you very much for all your time.

偉大的。非常感謝您抽出寶貴的時間。

Okay. Thank you.

好的。謝謝。

Thank you. And at this time, there are no further questions. Now let's turn the floor back over to Robert Berman for any closing comments.

謝謝。而此時，已經沒有其他問題了。現在讓我們將發言權交還給羅伯特·伯曼，請他發表結束語。

Yeah. Well, thanks, everybody. Thanks for the support. Thanks for your patience and time. And I think Rekor, look, I think, we had a fantastic quarter. I think we've had a fantastic year. Introducing the technology is not all that easy, right? It's not something that's black and white. There are things that happen along the way. But because of the team we have and the people we have and the hard work that they've invested in this, I mean, we've gotten through it, right?

是的。嗯，謝謝大家。感謝您的支持。感謝您的耐心和時間。我認為 Rekor，看，我認為我們度過了一個精彩的季度。我認為我們度過了美好的一年。引進這項技術並不那麼容易，對吧？這不是非黑即白的事。一路上會發生一些事情。但由於我們擁有的團隊和人員以及他們為此投入的辛勤工作，我的意思是，我們已經度過了難關，對嗎？

So this company is now at the point where it's going to scale and you're going to see it. You're already seeing it. You may not realize it, but you're seeing it, right? And it's going to continue and it's going to accelerate and it's going to grow. And this market is massive because at the end of the day, you're replacing legacy technology with something that's needed. I think everybody on this call can understand the need to have a connected layer of digital technology across these roadways. That allows for so many other things to happen, right?

所以這家公司現在正處於規模擴張的階段，你將會看到它。你已經看到了。你可能沒有意識到，但你確實看到了，對吧？它將會繼續下去，並且將會加速，並且將會成長。這個市場是巨大的，因為最終，您將用所需的東西取代傳統技術。我認為參加這次電話會議的每個人都可以理解在這些道路上建立數位技術互聯層的必要性。這允許發生很多其他事情，對嗎？

And Rekor is the company that's going to do that in the same way that the guys that rolled out electricity back in the early 20th century did what they did. That's exactly what we're doing, okay? And then once you put that electricity grid out there, somebody else comes along and says, hey, can I hang my phone line on your electric pole, right? There's a whole bunch of other things to come together with that. And we have all those pieces and that's what we're solving for and we're on a path to do that. We're going to execute that plan and we're going to get it done. And we thank you all for your support and patience, and stick with us, stick with us. It'll be worth it, okay? So much appreciated everyone.

Rekor 公司將像 20 世紀初推出電力的人們所做的那樣來做到這一點。這正是我們正在做的，好嗎？然後，一旦你把電網放在那裡，其他人就會過來說，嘿，我可以把電話線掛在你的電線桿上嗎？除此之外還有一大堆其他的事情要結合。我們擁有所有這些部分，這就是我們正在解決的問題，我們正在努力實現這一目標。我們將執行該計劃並完成它。我們感謝大家的支持和耐心，並堅持我們，堅持我們。這是值得的，好嗎？非常感謝大家。

Ladies and gentlemen, that does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。