NASDAQ$REKR

Rekor Systems Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a decrease in revenue but an increase in recurring revenue due to new sales model.

Rekor Systems reported a decrease in overall revenue for Q1 2022 compared to Q1 2021, but experienced significant growth in recurring revenue. The company is focusing on subscription contracts and expanding its customer base through strategic initiatives and potential acquisitions.

  • Recurring revenue increased by 96% compared to the same quarter last year.
  • Total revenue decreased due to a shift towards subscription-based contracts.
  • The company announced its intent to acquire Southern Traffic Services (STS).
  • Rekor Systems was selected for Amazon Web Services Partner Network and Public Sector Partner Program.

Headline financials

Total Revenue

$3.61M

Previous: $4.22M-14.4%
EPS (adj)

-$0.29

Previous: -$0.15-93.3%
Free Cash Flow

-$12.6M

Previous: -$5.41M-133.1%
Net Income

-$12.6M

Previous: -$5.41M-133.1%
Operating Income

-$12.6M

Previous: -$5.31M-137.5%
Gross Profit

-$1.98M

Previous: $2.25M-188.0%
Cash & Equivalents

$14.6M

Previous: $62.8M-76.8%
Total Assets

$120M

Previous: $108M+10.8%
Stock-Based Comp

$1.9M

Previous: $781K+143.3%

Revenue & EPS history

Rekor Systems · Revenue · Quarterly

$3.61M

Q1 2022-14.4%vs Q1 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

Rekor anticipates strong contributions from channel partners and organic growth, along with potential M&A prospects to expand revenues, capabilities, and market presence. The company expects recurring revenue growth in future periods.

Tailwinds

  • Strong contributions from channel partners expected.
  • Potential M&A prospects to expand revenues.
  • Recurring revenue growth expected in future periods.
  • Rekor One platform continues to provide momentum for go-to-market strategy.
  • Acquisition of STS would be accretive to Rekor’s earnings immediately upon closing.

Headwinds

  • Decrease in total contract value and performance obligations.
  • Pilot programs have lower margins due to upfront costs.
  • Shift in emphasis from point-in-time revenue has had a near term impact on overall revenues.
  • Operating expenses increased significantly.
  • Gross revenue decreased compared to the same quarter last year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-3.7%

Avg return

Earnings day

-6.7%

Avg return

5 days after

+0.1%

Avg return

30 days after

33%

12 / 36 earnings

Positive

+19.2%

Q4 2020

Best reaction

-40.5%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+8.1%-2.2%
Q1 2026+1.4%-12.4%-21.6%
Q3 2025+6.0%-6.4%-14.2%
Q4 2024+1.5%-21.1%+15.0%
Q3 2024-21.5%-20.2%-25.9%
Q2 2024-8.6%-1.4%-12.9%
Q1 2024-16.9%-8.8%-11.8%
Q4 2023+0.5%+13.9%-10.4%
Q3 2023-1.5%+1.9%+6.3%
Q2 2023-5.7%+19.4%+40.3%
Q1 2023+0.8%+10.4%+46.7%
Q4 2022-5.8%-10.1%-12.9%
Q3 2022-1.9%-13.0%-26.9%
Q2 2022-5.4%-4.3%-37.3%
Q1 2022-11.8%-14.2%-24.6%
Q4 2021+0.4%-17.0%-39.4%
Q3 2021-36.6%-31.4%-38.6%
Q2 2021+0.0%-0.6%+45.6%
Q1 2021-40.5%-48.9%-39.7%
Q4 2020+19.2%+18.9%+46.1%
Q3 2020+3.7%+9.3%+36.9%
Q2 2020-4.3%+4.8%+62.5%
Q1 2020-11.0%-14.5%-15.5%
Q4 2019+16.7%+4.1%+19.9%
Q3 2019-8.8%-7.5%+35.0%
Q2 2019-10.3%+6.3%-22.5%
Q1 2019+0.0%-5.7%+14.1%
Q4 2018+0.0%-5.7%+14.1%
Q3 2018-5.0%+10.0%-11.9%
Q2 2018-7.0%-29.2%-34.1%
Q1 2017-6.2%-15.4%-27.4%
Q4 2017+9.4%-22.6%-19.4%
Q1 2018+9.4%-22.6%-19.4%
Q3 2017+0.0%-1.4%+28.8%
Q3 2016+0.0%-1.4%+28.8%
Q4 2016+0.0%-1.4%+28.8%
Q2 2017
Q2 2016
Q1 2016
Q4 2015

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