Rekor Systems Inc (REKR) 2025 Q1 法說會逐字稿

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

女士們、先生們，下午好，歡迎參加今天的 Rekor's Systems, Inc. 電話會議。我叫馬特，今天我將擔任你們的協調員。（操作員指示）提醒一下，本次會議正在錄音。

Before we start, I want to review the company's abbreviated Safe Harbor statement. I want to remind you that statements made in this conference call concerning future revenues, results of operations financial position, markets, economic conditions, products and product releases, partnerships, and any other statements that may be construed as 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，我想回顧一下公司的簡短安全港聲明。我想提醒您，本次電話會議中有關未來收入、經營業績、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。此類聲明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聲明表達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.

我們請您參閱我們收益報告中的完整免責聲明。您還應該查看我們向美國證券交易委員會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.

電話會議中也將討論非公認會計準則結果。該公司認為，非公認會計準則資訊的呈現為公司持續經營提供了有用的補充數據，僅供參考。

I would now like to turn the conference over to Mr. Robert Berman, Interim President and CEO of Rekor Systems. Thank you. You may begin.

現在，我想將會議交給 Rekor Systems 臨時總裁兼執行長 Robert Berman 先生。謝謝。你可以開始了。

Thank you, Matt, and good afternoon, everyone. We appreciate you joining us today to discuss Rekor Systems' first-quarter 2025 results.

謝謝你，馬特，大家下午好。感謝您今天加入我們，討論 Rekor Systems 2025 年第一季的業績。

Normally, we begin our presentation by having our CFO Eyal Hen, review the numbers. But as described in our last earnings call, we've been going through an extensive review and realignment of our operations since the end of last year. We anticipated that the market and the economy might face a period of uncertainty. For the long-term benefit of our shareholders, we felt it would be less important to concentrate on future projects at this point than it would be to emphasize the revenue potential of what we've already achieved.

通常，我們的演示都是由我們的財務長 Eyal Hen 回顧數字來開始的。但正如我們上次財報電話會議所述，自去年年底以來，我們一直在對營運進行廣泛的審查和調整。我們預期市場和經濟可能會面臨一段不確定的時期。為了股東的長期利益，我們認為現在專注於未來專案並不重要，而應該強調我們已經取得的成就的收入潛力。

As you've been told repeatedly, Rekor has seen adoption of its tech and is now in the early stages of launching into larger markets that are overdue for it. Competitors are racing to catch up, but everyone is meeting the current challenges in the markets and the economy. So for now, we want to remain focused on exploiting the commercial potential of what we've already produced. So it's important to put the numbers Eyal discusses into perspective as we began our review process. We prioritized steps that would immediately reduce our expenses.

正如您一再被告知的那樣，Rekor 的技術已被廣泛採用，並且目前正處於向更大的市場推出的早期階段。競爭對手正在競相追趕，但每個人都在應對當前市場和經濟的挑戰。因此目前，我們希望繼續專注於挖掘我們已經生產的產品的商業潛力。因此，當我們開始審查過程時，正確看待 Eyal 討論的數字非常重要。我們優先採取可以立即減少開支的措施。

In some cases, this led to a temporary increase in expenses, but you'll see solid evidence of the success of these efforts. These expense reductions haven't been done blindly and they are not finished.

在某些情況下，這會導致費用暫時增加，但您會看到這些努力成功的確鑿證據。這些費用削減並不是盲目的，也還沒結束。

But our overall objective was to position Rekor for stronger, more predictable and scalable growth moving forward. We've learned that our prior approach, while visionary was not sufficiently grounded in the revenue-driven execution our shareholders deserve. We spent too much time building a company in anticipation of growth rather than ensuring that our approach and leadership were structured toward delivering revenue sustaining revenue against defined milestones. That was a mistake and it needed to be addressed.

但我們的總體目標是讓 Rekor 在未來實現更強勁、更可預測和更具可擴展性的成長。我們體認到，我們先前的方法雖然富有遠見，但並不足以立足於股東應得的收入驅動執行。我們花了太多時間建立一家預期成長的公司，而不是確保我們的方法和領導力能夠按照既定的里程碑實現可持續的收入。這是一個錯誤，需要解決。

Beginning in Q2, Rekor is implementing a new general manager structure to sharpen our focus on customers and accelerate the adoption of our products in a way that produces a business with sustainable revenues. We've been in the process of evolving the structure over the last few months and expect you to see the benefits very shortly. Under this structure, each core business unit is led by a dedicated general manager with clear profit and loss responsibility.

從第二季開始，Rekor 將實施新的總經理結構，以加強我們對客戶的關注，並加速我們產品的採用，從而產生可持續收入的業務。過去幾個月我們一直在改進結構，希望您很快就能看到其好處。在這種架構下，每個核心業務部門都由一位專門的總經理領導，並明確承擔盈虧責任。

By reorganizing into focused units, we aim to improve operational accountability, foster greater innovation and enhance our customer focus. This structure also positions Rekor to scale revenue more effectively as we expand our reach into domestic and international markets.

透過重組為重點部門，我們的目標是提高營運責任感，促進更大的創新並增強我們的客戶關注度。隨著我們擴大國內和國際市場的影響力，這種結構也使 Rekor 能夠更有效地擴大收入。

Our new GM structure is anchored by experienced leaders who bring deep industry expertise and a global perspective to Rekor. One of these is Mark Phillips, a seasoned roadway technology executive with significant international experience. Mark's global background of Q-Free and elsewhere in scaling businesses will help position Rekor solutions on a worldwide stage. He will leverage his international expertise to drive global market penetration and ensure that Rekor's offerings meet the needs of customers across different regions. Mark's leadership is also expected to strengthen Rekor's domestic presence, aligning our products with international opportunities and partnerships.

我們的新 GM 結構由經驗豐富的領導者組成，他們為 Rekor 帶來深厚的行業專業知識和全球視野。其中一位是馬克‧菲利普斯 (Mark Phillips)，他是一位經驗豐富的道路技術主管，擁有豐富的國際經驗。Mark 在 Q-Free 和其他業務擴展方面的全球背景將有助於 Rekor 解決方案在全球舞台上佔有一席之地。他將利用他的國際專業知識推動全球市場滲透，並確保 Rekor 的產品滿足不同地區客戶的需求。馬克的領導力還有望加強 Rekor 的國內影響力，使我們的產品與國際機會和合作關係保持一致。

Mark is both a talented business leader and a skilled electrical engineer. In the early 2000s, Mark founded a company that developed an innovative data logger used by DOTs around the world, which was later acquired by Q-Free, a Norwegian technology company specializing in intelligent traffic systems. The company operates globally with offices in Europe, Asia, Australia and the Americas. And following the acquisition, he remained with Q-Free to help establish a global distribution network.

馬克既是一位才華洋溢的商業領袖，也是一位技術嫻熟的電氣工程師。21 世紀初，馬克創立了一家公司，開發了一個供世界各地交通部使用的創新數據記錄器，該公司後來被專門從事智慧交通系統的挪威科技公司 Q-Free 收購。該公司的業務遍及全球，在歐洲、亞洲、澳洲和美洲設有辦事處。收購後，他留在 Q-Free 協助建立全球分銷網絡。

We expect the full scope of our organizational changes to be completed and are formally announced in Q2. Leaders will manage their respective business units with an entrepreneurial approach, enabling each unit to respond quickly and effectively to customers' needs. The GMs will be supported by shared services, including engineering, which is now led by Shobhit Jain as Chief Product and Technology Officer. Shobhit has held senior leadership roles at both Verra Mobility and HERE Technologies. He served as Vice President of Product and innovation for Government Solutions at Verra Mobility, a leading provider of smart mobility technology solutions for government agencies and commercial fleets.

我們預計我們的組織變革將全面完成，並於第二季正式宣布。領導者將以企業家精神管理各自的業務部門，使每個部門能夠快速有效地回應客戶的需求。總經理將獲得共享服務的支持，包括工程部門，目前該部門由首席產品和技術長 Shobhit Jain 領導。Shobhit 曾在 Verra Mobility 和 HERE Technologies 擔任高階領導職務。他曾擔任 Verra Mobility 政府解決方案產品和創新副總裁，Verra Mobility 是一家為政府機構和商業車隊提供智慧行動技術解決方案的領先供應商。

He was previously head of Innovation at HERE Technologies, a global leader in mapping and location-based platform services.

他曾擔任 HERE Technologies 的創新主管，該公司是地圖和基於位置的平台服務的全球領導者。

Under the GM structure, Rekor's operations are now organized into dedicated business units centered around our customers' needs in each of our core solution areas. Each unit is empowered to focus on its product portfolio and customer base enabling more agility and specialized attention. While restructuring Rekor around these solution-focused units, each led by strong management, we can better serve the needs of each new and existing customer. Customer centricity is a core objective and each GM is tasked with staying close to the customer base and their domain and rapidly responding to feedback and tailoring offerings to solve specific problems for those user groups.

在 GM 架構下，Rekor 的業務現已組織成專門的業務部門，以我們每個核心解決方案領域的客戶需求為中心。每個部門都有權專注於其產品組合和客戶群，從而實現更高的靈活性和更專業的關注。在圍繞這些以解決方案為中心的部門重組 Rekor 的同時，每個部門都由強大的管理層領導，我們可以更好地滿足每個新舊客戶的需求。以客戶為中心是一個核心目標，每個總經理的任務是密切關注客戶群及其領域，快速回應回饋並客製化產品以解決這些用戶群的特定問題。

The shift to a GM structure led organization is designed to deliver several strategic benefits: greater accountability, where each GM will be responsible to build a team that focuses on sustainable growth within their own segment, enhanced innovation. By giving them more control, each unit will be able to concentrate on innovations that are most valuable to their customers on a near-term basis. Top priority in product development will be given to customer value, improved customer focus, by concentrating more intensively on the needs of new and existing customers, our teams will be more focused on learning what their current needs are rather than imagining what their needs might be in the future; scalable revenue growth. By concentrating on distinct product lines and regions, each unit can pursue growth opportunities more effectively.

轉向由總經理結構主導的組織旨在帶來多項策略優勢：更強的責任感，每位總經理將負責建立一支專注於各自領域可持續成長的團隊，增強創新。透過賦予他們更多的控制權，每個部門將能夠專注於短期內對客戶最有價值的創新。產品開發的首要任務是考慮客戶價值，提高客戶關注度，透過更集中地關注新舊客戶的需求，我們的團隊將更加專注於了解他們當前的需求，而不是想像他們將來的需求；可擴展的收入成長。透過專注於不同的產品線和地區，每個部門可以更有效地尋求成長機會。

Mark Phillips international expertise, for example, will help replicate successful go-to-market strategies across global markets. This focused approach lays the groundwork for scalable revenue streams as each business unit expands its market share. The new structure also makes it easier to integrate future acquisitions or partnerships directly into the relevant unit fueling further growth.

例如，馬克·菲利普斯 (Mark Phillips) 的國際專業知識將有助於在全球市​​場複製成功的市場進入策略。這種專注的方法為每個業務部門擴大市場份額時可擴展的收入流奠定了基礎。新的結構也使得未來的收購或合作更容易直接整合到相關部門，從而推動進一步的成長。

We expect the structure to unlock new levels of performance, resulting in a more agile company that can sustainably scale revenue and maintain a leadership role in our industry.

我們期望該結構能夠開啟新的績效水平，從而打造一家更靈活的公司，能夠持續擴大收入並在行業中保持領導地位。

So thank you for your continued support as we embark on this new chapter, and we're confident that these changes will drive meaningful improvements in our operations and accelerate Rekor's growth trajectory on a global stage.

因此，感謝您在我們開啟新篇章時給予的持續支持，我們相信這些變化將推動我們營運的有意義的改進，並加速 Rekor 在全球舞台上的成長軌跡。

Now I'll turn the call over to our CFO, Eyal Hen for a deeper look at our financial results for Q1 2025. Eyal?

現在，我將把電話轉給我們的財務長 Eyal Hen，以深入了解我們 2025 年第一季的財務表現。埃亞爾？

Thank you, Robert, and thanks to all of you joining us today to discuss our first quarter of 2025 results. We reported revenue of $9.2 million for Q1 2025, representing a 6% decrease compared to the same quarter last year. Despite this reduction, we achieved a $2 million improvement in our adjusted EBITDA loss, thanks to meaningful reductions in our operating expenses.

謝謝你，羅伯特，也謝謝大家今天加入我們討論 2025 年第一季的業績。我們報告 2025 年第一季的營收為 920 萬美元，與去年同期相比下降了 6%。儘管有所減少，但由於營運費用大幅減少，我們的調整後 EBITDA 損失仍改善了 200 萬美元。

Revenue was impacted across all 3 of our business segments. Factors such as adverse weather conditions in the Southeast, delays in contract signings and budget constraints from DOTs and public safety agencies, largely due to the uncertainties surrounding the new administration created significant headwinds to sales execution.

我們所有三個業務部門的收入都受到了影響。東南部惡劣的天氣條件、合約簽署的延遲以及交通部和公共安全機構的預算限制等因素（很大程度上是由於新政府的不確定性）給銷售執行帶來了巨大的阻力。

That said, we did see stability in our recurring revenue which totaled $5.1 million for the quarter, making a modest 3% increase from Q1 2024.

話雖如此，我們的經常性收入確實保持穩定，本季總計 510 萬美元，較 2024 年第一季小幅成長 3%。

Adjusted gross margin for the first quarter of 2025 was 48.2%, up from 46% in the same period last year, primarily driven by a higher mix of margin accretive offerings.

2025 年第一季調整後毛利率為 48.2%，高於去年同期的 46%，主要得益於利潤加值產品組合的增加。

Looking forward, we anticipate continued gross margin expansion, supported by growing share of SaaS-based revenue and increased contributions from our pay for data contracts.

展望未來，我們預計毛利率將繼續擴大，這得益於基於 SaaS 的收入份額不斷增長以及數據付費合約貢獻的增加。

Adjusted EBITDA loss was $7.4 million, significantly improved from $9.4 million in Q1 2024. This was a result of the efforts Robert mentioned to optimize our cost structure, which we started in November of 2024.

調整後的 EBITDA 虧損為 740 萬美元，較 2024 年第一季的 940 萬美元有顯著改善。這是羅伯特提到的優化成本結構的努力的結果，我們從 2024 年 11 月開始進行這項努力。

Moving forward, we will continue to work towards steady declines in adjusted EBITDA losses as revenue grows, supported by an improving gross margin. It's worth noting that our cost optimization initiatives, which include targeted workforce realignment and voluntary compensation reductions in exchange for equity were initiated to improve our cash flow and operational efficiencies.

展望未來，隨著營收的成長和毛利率的提高，我們將繼續努力實現調整後 EBITDA 損失的穩定下降。值得注意的是，我們的成本優化措施旨在改善我們的現金流和營運效率，其中包括有針對性的勞動力調整和自願削減薪酬以換取股權。

By sharpening our focus and reducing expenses, we have been able to deliver tangible financial benefits. As a result, operating expenses in Q1 2025 were significantly lower than they would have been without these initiatives, contributing directly to our newer EBITDA loss.

透過集中精力和削減開支，我們已經能夠實現切實的財務效益。因此，2025 年第一季的營運費用明顯低於沒有這些措施時的營運費用，這直接導致了我們新的 EBITDA 損失。

We remain diligent in managing our cost structure as we balance growth investment with path to profitability. Our first quarter in 2025 was affected by seasonal and other factors that we do not expect to continue throughout the year.

我們在平衡成長投資和獲利路徑的同時，繼續努力管理我們的成本結構。2025 年第一季我們受到了季節性和其他因素的影響，我們預計這些影響不會持續全年。

Looking ahead, we anticipate continued improvement in adjusted EBITDA as we progress through 2025. The combination of revenue growth and expanding gross margin gives us confidence that our adjusted EBITDA losses will keep narrowing down in upcoming quarters.

展望未來，我們預計到 2025 年調整後的 EBITDA 將持續改善。營收成長和毛利率的提高讓我們有信心，調整後的 EBITDA 損失將在未來幾季繼續縮小。

We expect gross margins to improve steadily, driven by an increasing mix of higher-margin SaaS revenue and data services as well as efficiency in our delivery of solutions. At the same time, our cost optimization efforts are ongoing. We will maintain the discipline that we established last year, ensuring that any expense growth stays well below our revenue growth rate.

我們預計，毛利率將穩步提高，這得益於高利潤率的 SaaS 收入和數據服務組合的不斷增加以及我們交付解決方案的效率的提高。同時，我們的成本優化工作正在進行中。我們將保持去年建立的紀律，確保任何費用成長都遠低於我們的收入成長率。

In practical terms, this means we plan to deliver sequentially better EBITDA results as the year unfolds, supported by both top line momentum and margin expansion. Our sales pipeline remains strong and remain encouraged by the traction we're seeing with state department of transportation and public safety agencies.

從實際意義上講，這意味著我們計劃在新的一年裡，在營收成長動能和利潤率擴大的支持下，實現連續更好的 EBITDA 表現。我們的銷售管道依然強勁，並且受到州交通部和公共安全機構的青睞。

As these opportunities convert into revenue, the incremental sales should flow through at higher contribution margin, further bolstering our profitability. We are also targeting additional operation efficiencies in 2025, which we expect will help offset inflationary pressures and sustain the trajectory of EBITDA in progress.

隨著這些機會轉化為收入，增量銷售額將以更高的貢獻利潤率流入，從而進一步增強我們的獲利能力。我們還計劃在 2025 年提高營運效率，預計這將有助於抵消通膨壓力並維持 EBITDA 的成長軌跡。

Overall, our goal is to exit 2025 on significantly stronger financial footing than we entered it. We are working towards achieving breakeven adjusted EBITDA in the foreseeable future and each quarter, we intend to move closer to that milestone. The first quarter results, while not where we ultimately wanted to be show that we are making progress in the right direction.

總體而言，我們的目標是在 2025 年結束時，財務狀況比 2025 年開始時更加穩健。我們正致力於在可預見的未來實現盈虧平衡的調整後 EBITDA，並且每個季度我們都打算更接近這一里程碑。第一季的業績雖然沒有達到我們最終想要的結果，但顯示我們正朝著正確的方向前進。

Before I conclude, I want to acknowledge our shareholders. We recognize that our Q1 performance came in below our expectations and likely below the expectation of some of you listening today. We do not take this lightly. Rest assured the entire management team is focused on improving execution and delivering the results you expect from us. We have a clear plan in place to drive growth and margin improvement, and we are confident in our path forward.

在結束之前，我想感謝我們的股東。我們認識到，我們的第一季業績低於我們的預期，並且可能低於今天聽眾中一些人的預期。我們對此十分重視。請放心，整個管理團隊都致力於提高執行力並實現您期望的結果。我們制定了明確的計劃來推動成長和利潤率提高，我們對未來的道路充滿信心。

Importantly, we are grateful for the continued support and patience of our investors as we navigate these changes and strive to unlock Rekor's full potential. Your support has been crucial as we implement necessary changes and invest for future success. We remain committed to building shareholder value and rewarding that trust through our actions and results in the coming quarters.

重要的是，我們感謝投資者在我們應對這些變化並努力釋放 Rekor 的全部潛力時給予的持續支持和耐心。當我們實施必要的變革並為未來的成功進行投資時，您的支持至關重要。我們將繼續致力於創造股東價值，並透過未來幾季的行動和成果回報這種信任。

Thank you for your attention and for your support. We are confident that the steps we've taken to optimize costs directing our capital structure and drive growth will position Rekor for improved performance throughout 2025.

感謝您的關注與支持。我們相信，我們為優化成本、指導資本結構和推動成長而採取的措施將使 Rekor 在 2025 年實現業績的提升。

Now I'll turn the call back to Robert. Robert?

現在我將把電話轉回給羅伯特。羅伯特？

Yes, thank you. I'd now like to open the call for questions from our shareholders. Operator?

是的，謝謝。現在我想開始回答股東們的提問。操作員？

(Operator Instructions) Mike Latimore, Northland Capital.

（操作員指示）Northland Capital 的 Mike Latimore。

This is Aditya on behalf of Mike Latimore. Could you give some color on the pipeline for Scout and how are the bookings in 1Q for Scout?

我是邁克·拉蒂莫爾 (Mike Latimore) 的代表阿迪亞 (Aditya)。您能否介紹一下 Scout 的研發線以及第一季 Scout 的預訂情況？

Sorry, I'm not clear with the question.

抱歉，我不清楚這個問題。

So how has the pipeline been for Scout and bookings -- how are the bookings for Scout in 1Q?

那麼 Scout 的管道和預訂情況如何——第一季 Scout 的預訂情況如何？

I think that's a fair question. We were just looking at Scout the other day since launching Scout in 2019, it's grown by more than 700% revenue. And frankly, we dropped the ball with it a bit in 2024 and part of this reorganization is getting back to Scout, less on the law enforcement side and more on the commercial side, which is where the majority of our ARR is from Scout. So I think that you'll see a lot more activity with Scout as a product over the next actually 30 to 60 days.

我認為這是一個合理的問題。前幾天我們剛剛關注了 Scout，自 2019 年推出 Scout 以來，它的收入增長了 700% 以上。坦白說，我們在 2024 年在這方面有些失誤，這次重組的一部分就是回歸 Scout，減少執法方面的投入，增加商業方面的投入，我們的大部分 ARR 都來自 Scout。因此我認為在接下來的 30 到 60 天內你會看到 Scout 產品有更多活動。

Got it. And are there any partnerships that you're working on just like sound thinking last year?

知道了。您是否正在與哪些合作夥伴合作，就像去年的明智之舉一樣？

We do have some that are actively in discussion that we just can't talk about because they're not concluded, and it's not public, but we're always working on those and primarily with Scout for sure. But also with Discover now having brought Mark Phillips on in changing a little bit the way we approach the sales methodology with Discover as a piece of technology that's fully productized that we can sell out of the box through distributors and others in markets that we've not penetrated yet. We're just entering now.

我們確實有一些正在積極討論的問題，只是我們不能談論，因為它們還沒有結束，而且沒有公開，但我們一直在努力解決這些問題，而且主要肯定是與 Scout 合作。而且現在 Discover 已經聘請了馬克·菲利普斯 (Mark Phillips) 來稍微改變我們的銷售方法，Discover 是一種完全產品化的技術，我們可以透過分銷商和其他方式在我們尚未滲透的市場中銷售。我們剛剛進入。

Tim Moore, Clear Street.

蒂姆·摩爾，Clear Street。

Just trying to build a bit more conviction the possibility for maybe double-digit organic sales growth drivers this year. I know there was a weather issue and the election overhang in the March quarter. I think the September quarter was probably negative organic growth. If you strip out the ETD acquisition contribution.

只是想讓人們更加確信今年有機銷售額可能實現兩位數的成長。我知道三月季度存在天氣問題和選舉懸而未決的問題。我認為九月季度的有機成長可能為負。如果去掉 ETD 收購貢獻。

So we know that many legacy transportation and monitoring device systems are inaccurate or not effective. And they're pretty much simply obsolete. Can you provide us maybe a better sense of how the task order side, not big projects or new big wins, but the task order size might backfill or help sales growth this year instead of waiting for a lumpy new sales state win. Are you expecting to roll out a lot of Discover and Edge units for repair and placement this year waves?

因此我們知道許多傳統的運輸和監控設備系統不準確或無效。而且它們基本上已經過時了。您能否讓我們更了解任務訂單方面的情況，雖然不是大項目或新的大勝利，但任務訂單規模可能會填補或幫助今年的銷售增長，而不是等待新的銷售狀態勝利。您是否預計今年將推出大量 Discover 和 Edge 設備進行維修和安置？

That's a really good question. And I think as we said earlier in the call with regard to the reorg, the way we're structured now with this GM structure. Discover is fully productized. It takes time to get governments to adopt technology. We're seeing broad adoption with Discover.

這真是一個好問題。我認為，正如我們之前在電話會議上談到的重組一樣，我們現在採用的是這種 GM 結構。Discover 已完全產品化。讓政府採用技術需要時間。我們看到 Discover 被廣泛採用。

And I think as we get deeper into this quarter, okay? And we announced a reorg, we'll be able to give you some clarity with respect to the growth in that. And I think you're going to see a substantial change with that because of a little bit of modification with our pricing structure on Discover and the go-to-market strategy with it. Look, we it's been a learning process, right? We're dealing with government.

我認為隨著我們深入本季度，好嗎？我們宣布了重組，我們將能夠為您提供有關重組增長的一些清晰資訊。而且我認為您將會看到一個實質性的變化，因為我們對 Discover 的定價結構和市場進入策略進行了一些修改。看，這是一個學習的過程，對吧？我們正在與政府打交道。

We're replacing legacy technology that they've been using for decades and decades. And to think that we were trying to push certain business models into the way governments do business, maybe was a mistake on our part. And I think now that we understand more the way that the DOTs buy, I think you're going to see a lot more growth with Discover.

我們正在取代他們幾十年來一直在使用的傳統技術。而我們試圖將某些商業模式強加在政府的經營方式中，這也許是我們的一個錯誤。我認為，現在我們對 DOT 的購買方式有了更多的了解，你會看到 Discover 實現更大的成長。

And it's a fantastic model because it's got a strong ability to deliver a piece of a device that does provides a service, but also has strong recurring revenue and higher margins to it. So a little bit of a learning curve, right, but having launched in 2022, takes some time, but I think we're there. And I think they'll see more than in the coming weeks.

這是一個非常棒的模式，因為它不僅擁有強大的交付能力，能夠提供服務，還能帶來強勁的經常性收入和更高的利潤率。所以有一點學習曲線，對吧，但在 2022 年推出，需要一些時間，但我認為我們已經做到了。我認為他們將在未來幾週看到更多。

That's helpful to hear on that color. Now just switching gears. As you mentioned, you narrowed the EBITDA loss by $2 million despite the sales decline. That was pretty good. Just wondering how much of the $15 million annualized cost savings, expense realignment, have you implemented this year?

聽到這個顏色很有幫助。現在只需切換齒輪。正如您所說，儘管銷售額下降，但 EBITDA 損失仍減少了 200 萬美元。那非常好。只是想知道今年您實現了多少 1500 萬美元的年度成本節約和費用調整？

And I was just wondering if that $15 million figure from -- I think it was November. Is that dependent on a certain level of sales growth this year? Like you got to put up teens growth to achieve that? I'm just curious if you have any color on cost implementation.

我只是想知道 1500 萬美元這個數字是否來自——我想那是 11 月。這是否取決於今年的一定程度的銷售成長？就像你必須支持青少年的成長才能實現這一目標嗎？我只是好奇您是否了解成本實施的情況。

Yes, I think it's realizing that we've got things that are fully productized, and we're focusing on those. We have a lot of expenses that were related to R&D of products that we can't tie revenue to in the near term. So it's changing our focus and looking at things that we can do today. And I think you're going to see more reductions. And I think as you see additional revenue, you're going to see incremental margin along with the reduction in cost.

是的，我認為我們意識到我們已經擁有完全產品化的產品，並且我們專注於這些產品。我們有許多與產品研發相關的費用，但短期內我們無法將這些費用與收入掛鉤。因此，它改變了我們的關注點，並著眼於我們今天可以做的事情。我認為你會看到更多的減幅。我認為，當您看到額外的收入時，您將看到利潤的增加以及成本的降低。

Eyal would you agree with that?

Eyal，你同意嗎？

Yes, absolutely. That's true. And then as we said, the $15 million will go along the year and not just the first quarter. So we'll see as we mentioned, continued reduction in the cost improved in the EBITDA as we go.

是的，絕對是。這是真的。正如我們所說，這 1500 萬美元將用於全年，而不僅僅是第一季。因此，正如我們所提到的，我們會看到，成本的持續降低會提高 EBITDA。

Look, it's a really good point you're raising. We're developing technology to replace a decades-old legacy tech, and it's a learning curve, and we had to get there and understand the customer. And I think now with the approach we're taking to it, we get it. We don't need to do the R&D, the products there works. It's just delivering a product and not thinking about three years from now, it's about thinking about today.

瞧，你提出的觀點非常好。我們正在開發技術來取代已有幾十年歷史的傳統技術，這是一個學習過程，我們必須到達那裡並了解客戶。我認為，透過我們現在採取的方法，我們能夠實現這一目標。我們不需要做研發，那裡的產品就可以發揮作用。這只是交付產品，並不考慮三年後的事情，只考慮今天的事情。

And I think that's the big change here. And I think you'll see the incremental savings as well as the revenue growth come from that, which is going to give us margin to eliminate the burn and drive the company to profitability.

我認為這就是巨大的改變。我認為你會看到由此帶來的增量節省和收入成長，這將為我們提供利潤空間以消除虧損並推動公司獲利。

No. That would be really good if you can come up with the $15 million. My last question is really a different question. I mean, you aggregate, I think, more than 20 trillion data points for roadway intelligence. Is there any other way to maybe monetize that?

不。如果你能拿出 1500 萬美元那就太好了。我的最後一個問題實際上是一個不同的問題。我的意思是，我認為，你為道路情報收集了超過 20 兆個數據點。還有其他方法可以將其貨幣化嗎？

Or can you license some of that out to maybe a user fee to some cities that you don't have any contracts with?

或者您可以將其中一部分授權給一些尚未簽訂合約的城市，以收取用戶費用的方式？

That's also a good question. I think I'm going to drop back and say, what we've realized is we've got 3 really healthy product platforms here, Discover, Command, and Scout. Scout is the most mature. Obviously, it's been out there for a while. We're focused more on the commercial side now than on law enforcement.

這也是一個很好的問題。我想我要退一步來說，我們已經意識到我們這裡有 3 個非常健康的產品平台，Discover、Command 和 Scout。Scout 是最成熟的。顯然，它已經存在有一段時間了。我們現在更關注商業方面而不是執法方面。

But with the Command and Discover, I think what I'm trying to say is we're going to stop where we are and sell what we have, and we've realized that, that's what we need to do because there's demand for it. So that's where we're going to stay focused. And the nice thing about the way the technology has developed is that we can always import additional data and provide additional services, But that's not a necessity in driving revenue today and growth today and profit today.

但對於 Command 和 Discover，我想說的是，我們將停下腳步，出售我們擁有的東西，我們已經意識到，這就是我們需要做的，因為有需求。所以這就是我們要集中精力的地方。技術發展方式的優點在於，我們可以隨時匯入額外的數據並提供額外的服務，但這並不是推動當今收入、成長和利潤的必要條件。

And I think that was the mistake that we made historically. And as I said earlier, building a company for future growth in revenues as opposed to focusing and realizing what we have is, I hate to say good enough, but it is good enough, okay? And there's demand for it, and we're seeing adoption, and that's where we need to focus rather than confusing customers, right, with just more and more and more.

我認為這是我們歷史上犯下的錯誤。正如我之前所說，建立一家公司是為了未來的收入成長，而不是專注於實現我們所擁有的，我不想說“足夠好”，但這已經足夠好了，好嗎？而且它有需求，我們也看到了它的採用，這就是我們需要關注的重點，而不是讓客戶感到困惑，對吧，只是越來越多。

(Operator Instructions) Noah Levitz, William Blair.

（操作員指示）Noah Levitz，William Blair。

To start off, I thought it was interesting about your new GM structure, your particular hire of Mart. You noted that he has a lot of international experience in particular. And I'm curious if with the procurement environment being as difficult as it is in the U.S. Are you already selling in international markets? Or do you see a particularly high level of demand there and opportunity there?

首先，我認為你們新的 GM 結構以及你們對 Mart 的特別聘用很有趣。您特別提到他擁有豐富的國際經驗。我很好奇，如果採購環境和美國一樣困難，您是否已經在國際市場上銷售了？或者您看到那裡的需求和機會特別高？

That mark, for example, could help Rekor take advantage of?

例如，那個標記可以幫助 Rekor 利用？

We do. Almost every developed nation uses some form of collection of data for planning, but also for traffic operations. And that's the thing about Rekor Discover. It does both. So it eliminates the need for multiple devices out on the roadway.

是的。幾乎每個已開發國家都採用某種形式的資料收集來規劃，也用於交通運作。這就是 Rekor Discover 的特色。它同時做到了這兩點。因此，無需在道路上使用多個設備。

And we do see demand, and it's a subtle difference of classifications here in the US. We have 13 bends in places like Ireland, as an example, they have seven.

我們確實看到了需求，而且在美國，分類有細微的差別。以愛爾蘭等地為例，我們有 13 個彎道，而他們只有 7 個。

Other countries have more or less, but they're all pretty much the same. It's just a matter of machine learning and training, and I think our customers understand that. Mark is actually in Europe right now, doing an installation for a pilot in another country. So we think there's demand for this product across the board. And that's our point about being box ready and the point about having the GM structure because we've got these products, they're proven.

其他國家的情況或多或少，但都大致相同。這只是機器學習和訓練的問題，我認為我們的客戶明白這一點。實際上，馬克現在正在歐洲，為另一個國家的飛行員進行安裝。因此我們認為該產品有廣泛需求。這就是我們做好包裝盒準備以及建立通用汽車結構的意義所在，因為我們擁有這些產品，它們已經得到驗證。

The adoption is there, and we need the ability for the people that are leading each one of these verticals to be able to control the P&L be responsible for sales and make it happen.

採用已經存在，我們需要讓領導每個垂直領域的人員有能力控制損益表、負責銷售並實現這一目標。

And I think we're shifting from this mentality of R&D for this tech for this changing world that we're living in to, hey, we've got some good stuff here, let's go sell it, and let's go from there. And I think that's where we are.

我認為，我們正在從為這個不斷變化的世界進行技術研發的心態轉變為，嘿，我們這裡有一些好東西，讓我們去賣掉它，然後從那裡開始。我想這就是我們現在的狀況。

That's great. And then my last question is on your partnership for PlateRanger with SoundThinking. Can you just provide a little bit of color on the adoption of that system and whether or not you're currently recognizing any revenue or when you would hope to see that start to hit?

那太棒了。我的最後一個問題是關於 PlateRanger 與 SoundThinking 的合作關係。您能否稍微介紹一下該系統的採用情況，以及您目前是否確認了任何收入，或者您希望何時開始看到收入？

So we have a contract that was negotiated with SoundThinking that gives us guaranteed revenue at '25, '26 and '27. They're out there selling, and they're a great company. And I think the law enforcement market is a market that they're built to operate in, a lot of blocking and tackling and so forth. So you'll have to talk to them about that, but we think they're going to be successful with it.

因此，我們與 SoundThinking 協商簽訂了合同，保證我們在 25、26 和 27 年獲得收入。他們在那裡銷售，他們是一家很棒的公司。我認為執法市場是他們為開展業務而建立的市場，其中有許多阻擋、鏟球等等。所以你必須和他們談論這件事，但我們認為他們會成功的。

And the early indications are that they will be. They've committed to it, put some dollars behind it. So we'll let them do that while we're working on the commercial side of it because that's what differentiates what Scout does from folks that are purely in law enforcement and doing LPR, right?

早期跡象表明他們會這麼做。他們已承諾並投入了一些資金。因此，當我們致力於商業方面時，我們會讓他們這樣做，因為這就是 Scout 與純粹執法和從事 LPR 的人所做的事情的區別，對嗎？

And frankly, that's the majority of the ARR in Scout. And it's just that -- I said it earlier, we dropped the ball with it in 2024, having grown it from over 4,000% in a few years, mostly on the commercial side, we just dropped the ball, and we're going back to that now. But I think SoundThinking will do well with the product, and I think their focus is there, and you should chat with them about that.

坦白說，這就是 Scout 中 ARR 的大部分。就是這樣——我之前說過，我們在 2024 年就失敗了，在幾年內，我們的成長速度超過了 4,000%，主要是在商業方面，我們只是失敗了，現在我們又回到了原來的狀態。但我認為 SoundThinking 的產品會做得很好，而且我認為他們的重點就在那裡，你應該和他們聊聊這個。

[Ray Yeagle], a private investor.

私人投資者[Ray Yeagle]。

A couple of questions. Actually, the last caller tapped into my question. I had mentioned a couple of quarters ago to David about overseas contracts. And you mentioned there was enough revenue to be focused in U.S. What I saw, I believe you will be attending the ITS European Congress May 19.

有幾個問題。事實上，最後一個打電話的人已經回答了我的問題。幾個季度前我曾向大衛提到海外合約的事。您提到有足夠的收入可以集中在美國。就我所見，我相信您將參加 5 月 19 日的歐洲 ITS 大會。

Can we expect more of that?

我們還能期待更多嗎？

Yes, we're over there. And I think that's one of the things that we're trying to point out here. Once you have a technology that's productized, that's, let's call it, box ready. And you have the support materials necessary to sell that through channel partners. Then you can go ahead and do that.

是的，我們在那裡。我認為這是我們在此試圖指出的事情之一。一旦你擁有了產品化的技術，我們就稱之為「準備就緒」技術。並且您擁有透過通路合作夥伴銷售產品所需的支援材料。然後你就可以繼續做這件事了。

And again, there are -- every develop nation does some form of count class of speed, just like we do here in the U.S., and they use that same data for traffic operations and -- we have the ability to sell that product now internationally, and that's exactly what we're doing.

再說一次，每個已開發國家都會採取某種形式的速度統計方式，就像我們美國一樣，他們使用相同的數據進行交通運營，我們現在有能力在國際上銷售該產品，而這正是我們正在做的事情。

Not that we've even penetrated the tip of the iceberg here in the US but we're starting to see the adoption. Things take a little longer. We know we've talked about a lot of states and contracts and other things, but nothing's changed.

這並不是說我們已經觸及了美國的冰山一角，但我們已經開始看到它的採用。事情需要更長的時間。我們知道我們已經討論了很多州、合約和其他事情，但什麼都沒有改變。

We think those things are coming. But there's no reason for us not to be focused on the international market because there's demand for the product, and we can send it there. So that's our plan.

我們認為這些事情即將發生。但我們沒有理由不把重點放在國際市場上，因為那裡有產品需求，我們可以將其運送到那裡。這就是我們的計劃。

And last quarter, you mentioned a little over 15 proof of concepts. And I would have thought maybe by this today's release of the new revenue that we would have maybe heard one or two. Can we expect that full drift to continue throughout the year? Or would they be a little bit of a quicker process?

上個季度，您提到了 15 多個概念證明。我原本以為，透過今天發布的新收入，我們或許會聽到一兩個消息。我們能預期這種趨勢會持續一整年嗎？或者說他們的處理速度會比較快一些？

I can tell you that almost all of the states where we have proof of concept systems. New York, as an example, has actually acquired technology in the majority of the other states. When I say adoption, we're now seeing more orders, we're seeing larger contracts. And I think that to be frank about it, I think we had the sales approach and pricing in such a way that wasn't consistent with the way that these agencies procure.

我可以告訴你，幾乎所有的州都有概念驗證系統。以紐約為例，它實際上已經獲得了大多數其他州的技術。當我說採用時，我們現在看到更多的訂單，我們看到更大的合約。我認為坦白說，我們的銷售方式和定價與這些機構的採購方式不一致。

And if you think about how complicated it is, we needed to make sure that we configured the way we sell and to the way they buy as opposed to swimming upstream. And I think we figured that out over the last few months, and we made those changes. And I think you'll see the results of that very soon.

如果你想想它有多複雜，我們需要確保我們配置了我們的銷售方式和他們的購買方式，而不是逆流而上。我認為我們在過去幾個月已經意識到了這一點，並且做出了這些改變。我想您很快就會看到結果。

In today's press release, you mentioned about the adverse weather conditions with a slowdown in the revenue. With Hurricane seen not too far away, do you focus on planning on having more personnel in that area before that happens?

在今天的新聞稿中，您提到了惡劣的天氣條件導致收入成長放緩。颶風距離我們不遠了，您是否計劃在颶風來臨之前向該地區派遣更多人員？

Well, it's funny, but like in one of our customers in the most southern state, we actually had to get out there and help them in between the two hurricanes they had last year. and the technology performed well. I don't think it's a question of having the personnel out there. I think it's the ability to have the product ready to be deployed as a technology company as opposed to being a contractor. And that's the difference.

嗯，這很有趣，但就像我們最南部州的一位客戶一樣，我們實際上必須在去年兩次颶風之間前往那裡幫助他們。且該技術表現良好。我認為這不是一個人員配備的問題。我認為，作為一家科技公司而不是承包商，我們有能力準備部署產品。這就是差別所在。

At the end of the day, Rekor is technology software data company and not a construction company and -- that's why we've changed the model of the way we run the company and manage the company because we can deploy the technology, and we don't necessarily have to do that work. And we can get the same revenue and recurring revenue from having others do it because the products are ready to be deployed that way.

歸根結底，Rekor 是一家技術軟體資料公司，而不是建築公司——這就是為什麼我們改變了公司營運和管理模式，因為我們可以部署技術，而不一定要做這項工作。而且，我們可以從其他人那裡獲得相同的收入和經常性收入，因為產品已經準備好透過這種方式部署。

But it took a little bit of time to get it there, and now we're there. So I think it's not a question of how much manpower we have. I think it's a question of the demand for the product. And I think now that we've modified the way we're doing business, I think you're going to see the scale coming with that. And that's frankly what we were hoping to do -- that's what we are hoping to do.

但我們花了一點時間才實現這一目標，現在我們已經實現了。所以我認為這不是我們有多少人力的問題。我認為這是一個產品需求的問題。我認為，既然我們已經改變了經營方式，您將看到隨之而來的規模經濟。坦白說，這正是我們所希望做的事——這也是我們所希望做的。

And my last question, is, I mentioned a couple of quarters ago to David, and he said, stay tuned. But is the QSR kind of a debt sector right now? Or are you still focused on that or revenue isn't high there?

我的最後一個問題是，幾個季度前我曾向戴維提到過，他說，請繼續關注。但是 QSR 目前屬於債務業嗎？或者您仍然專注於此，或者那裡的收入不高？

That's a good question. So I can tell you that the -- it's an interesting area because Scout started out as LPR vehicle recognition. We produce a lot more data from Scout and hold a variety of patents on how to anonymize that data. So privacy information that goes out doesn't become a problem with respect to commercial customers not wanting the same information that, let's say, a law enforcement agency would have.

這是個好問題。所以我可以告訴你——這是一個有趣的領域，因為 Scout 最初是用於 LPR 車輛識別的。我們從 Scout 中獲得了更多數據，並擁有關於如何匿名化這些數據的多種專利。因此，對於不想獲得與執法機構相同的資訊的商業客戶來說，洩露隱私資訊不會成為問題。

And I think that, that sector is going to open up more floors. We've had success with it in the past with companies like Six Flags and others, casino companies that we've announced, and we see a lot more value to that data today than we did even six months or a year ago.

我認為該領域將會開放更多的樓層。我們過去曾與六旗等公司以及我們宣布的賭場公司合作，並取得了成功，現在我們看到這些數據的價值比六個月或一年前要大得多。

And again, it's the way we were marketing and where we were focused. And I think we're turning our focus back towards commercial. So the answer is yes, QSRs are very much a part of that. Look, there's an article you guys can Google and go search it, but Chick-fil-A was flying drones over their properties to look at the traffic flow coming in and out of some of their stores.

再說一次，這是我們的行銷方式和我們的關注重點。我認為我們將把重點重新轉向商業。所以答案是肯定的，QSR 是其中非常重要的一環。看，有一篇文章你們可以穀歌一下並去搜尋一下，但是 Chick-fil-A 正在用無人機飛越他們的店鋪，以查看進出他們一些商店的客流量。

So if you can just envision that and think about -- and it's all on our websites, the data that we can produce from Scout for our customers, there's a lot of valuable data there for folks that are in retail businesses, whether it's a QSR, a big box store, a sports stadium, a casino, whatever it might be, and that's where our focus is now. And I think you're going to see more of that in the coming weeks and months.

所以如果你能想像一下並想一想——這一切都在我們的網站上，我們可以從 Scout 為我們的客戶提供數據，對於零售行業的人來說，那裡有很多有價值的數據，無論是 QSR、大型倉儲式商店、體育場、賭場，無論是什麼，這就是我們現在關注的重點。我認為在接下來的幾週和幾個月裡你會看到更多這樣的情況。

And you believe we're still on track then for profitability by the end of the year?

您認為我們仍有望在年底前獲利嗎？

I personally believe that we are on track for profitability before the end of the year. I don't want to commit to it, but I think we're going to get there. I think it's around the corner. And that's what we're doing. We're working to drive the company to scale revenue, become efficient, not just from the standpoint of being efficient, I mean cutting costs and overhead by being able to deliver the product to the customer with less bureaucracy.

我個人相信我們有望在年底前實現盈利。我不想承諾這一點，但我認為我們會實現目標。我認為它就在附近。這正是我們正在做的事情。我們正在努力推動公司擴大收入，提高效率，這不僅僅是從提高效率的角度考慮，我的意思是透過減少官僚主義，向客戶交付產品來削減成本和管理費用。

And look, Rekor was just overbuilt, okay, too bureaucratic for its size, with great products that there was demand for that we couldn't get out the door because we just had this process here that just didn't work. And we're going to fully announce the structural changes that are coming with this GM structure and the Board has looked actively looking.

看看吧，Rekor 的建設太繁瑣，相對於它的規模來說，官僚主義太嚴重了，雖然有很多優秀的產品有需求，但我們卻無法將其推出去，因為我們的流程根本行不通。我們將全面宣布即將出現的通用汽車結構變化，董事會也一直在積極考慮。

I'll stay here as long as it takes to make this work and help to continue to stay on the Board because I believe in the company, but we're going to find the right person to manage it and write people to do what we're doing. And I think we have that structure in place now. And I think you're going to see the results of that, and it's not going to take a long time.

我會一直留在這裡，直到公司順利運作，並繼續留在董事會，因為我相信公司，但我們會找到合適的人來管理公司，並安排人員來做我們正在做的事情。我認為我們現在已經建立了這種結構。我認為你會看到結果，而且不會花很長時間。

Okay. And will there be any update on Mexico?

好的。有關墨西哥的情況有什麼最新消息嗎？

I can't speak to that right now because it's just -- again, it's non-public stuff. But as soon as we have something to update, we will.

我現在不能談論這個，因為這只是——再說一次，這是非公開的事情。但只要我們有需要更新的內容，我們就會更新。

This concludes the question-and-answer session. I'd like to turn the floor back to management for any closing comments.

問答環節到此結束。我想將發言權交還給管理階層，請他們發表最後的評論。

Yes. Thank you. And look, everybody, thanks again for your patience and I think every company has growing pains, and I think Rekor is on the backside of ours because I think we realized some of the things that we were doing that were inhibiting the growth and the scale and the profitability and the margins. And look, the Board is fully involved in this, and we think we've come up with the right structure, the right plan.

是的。謝謝。各位，再次感謝你們的耐心，我認為每家公司都會有成長的煩惱，而 Rekor 對我們不利，因為我認為我們意識到我們所做的一些事情正在抑製成長、規模、獲利能力和利潤率。而且，董事會已經充分參與其中，我們認為我們已經制定了正確的結構和正確的計劃。

We think we have the right people as GMs in place. And again, we're going to be talking more about that in the coming weeks this quarter. And we'll also continue to look for a permanent person to -- I'm here as an interim CEO, but not going anywhere until we make this work, right? And when we find the right person, we'll make those changes as well. But we're going to get through this.

我們認為我們已經找到了合適的人選擔任總經理。再次強調，我們將在本季的未來幾週內進一步討論這個問題。我們也會繼續尋找一位永久的首席執行官——我在這裡擔任臨時首席執行官，但在我們完成這項工作之前我不會去任何地方，對嗎？當我們找到合適的人選時，我們也會做出這些改變。但我們會渡過難關。

And I think you'll see that, and it's not going to be quarters and quarters away. I think it's just a matter of weeks here.

我想你會看到這一點，而且這不會是幾個季度之後的事情。我認為這只是幾週的問題。

So appreciate everybody's patience and thank you so much for staying with us.

非常感謝大家的耐心，非常感謝你們與我們同在。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。現在您可以斷開線路。再次感謝您的參與。