Rekor Systems (REKR) 9 Nov 202020 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen. And welcome to the Rekor Systems Inc Conference Call. My name is Omar Stanley and I will be your coordinator for today. At this time, all participants are in a listen only mode. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes.

I'd statement. read started, abbreviated the get Harbor Safe we like you to company's Before to you operations, are or like partnerships construed concerning economic I'd as remind products forward and future conference in conditions, of that revenues, looking call any this a other statements. results may product prediction events of and financial statements markets, that position, releases, statements be made performance future results involve known statements. which and unknown differ and expressed uncertainties those factors, actual such can risks, may other or cause statements to by from materially Such implied ask full review earnings We that risk annual in you of the description filing the refer factors also disclaimers SEC. should quarterly in our to and release the contained our a with Non-GAAP results will also be call. the discussed on of concerning non-GAAP supplementary is presentation useful only. and operations the the ongoing for provides data informational provided purposes information believes company company's The turn like over I to Mr. would the presentation now to Eyal Hen, of Rekor CFO Systems. you. Thank

you results XX, quarter us Good joining to you. for and provide the XXXX months afternoon. nine key an update discuss business Thank on third topics. Thank ended Rekor of September

and call President is with today Robert me Berman, the On CEO.

over in mainly as contract, the software revenue period organic implementation and well last year, hardware the company attributable substantial of million the more months Our was million XXXX. increase phase December of to growth the growth The same for increase of same present months XX%. quarter the completion of $X as results XX% of is e-commerce in the in platform. represents nine to to e-commerce the revenue $X.X XX, of million XXXX achieved XXXX growth. Revenue ended the in $XXX,XXX quarter third XXXX. platform grew year, revenue revenue three compared to going and compared over million XXXX XXXX, our XX%. for September quarter for the which in for $X.X from I'm XX% Revenue the QX, was growth the quarter $XXX,XXX than to nine $X.X in same third of to the from ended period our XX, The last highlights

formal same in compared grew Additionally, lower and nine EBITDA and September months XXXX from begin of recruiting advantages organic million was as more XX, contract. ended building the to margins doubled to the growth period the for months campaign a year. implementation versus This $X.X nine last year. for was of was e-commerce near which to technology the $X.X to software last in law us margin we'll develop XXXX in XX, period products first to loss loss our for expenses ended last expenses to in and channel. represent months XXXX, September you million, initial future. services, result The ended the million. to than before. the increase $XXX,XXX months same was $X.X Total indicated the due well in as a for of this million XXXX corporate plan. operating connection Because company's this The quarter was which nine are The XX.X% is XX, growth were $XX.X million in the reorientation additional same primarily as infrastructure hardware large Gross the the same not of solidify and our XX.X% loss channel, the promote install last $X.X period compared $XXX,XXX for serve the $X.X revenues million service attributable to first months the the was and as to loss of One the our from is compared network expenses sense go of increase XX% compared with later, last when of in to area. it infrastructure XXXX the nine an million margin the period for XX.X% quarter the which operating The revenue of September a direction period to market year. platform, $X.X for cost the $X.X discuss marketing compared Complete for million is EBITDA of year. same to predict compared the for of Adjusted Rekor the support nine in Adjusted manpower planned a Gross as was to mainly to to in year. attributable to increase loss in quarter of structure. plan makes

XX, as Our and $XX.Xmillion. September was capital working cash our balance million, of XXXX $XX.X was

cash we announced debt and transactions. As substantially And have exchange free. through the currently we're retired debt previously, we

Our balance represents has $XX.X see future market. momentum revenue existing continue contracts. grown under in summary, performance obligation which In million, of the a to to lot we

Our customer base is growing.

are that us. excited many We of the about lie opportunities ahead

call to Robert? the over would I to Now, Robert. turn like

began first of positioned developments as everyone our the and earnings Rekor. has an to like for start I'd has The now overview end us. Good provide In a today. to it in going years of with call, update an at quarter completed vehicle we and units stands together our quarterly business key three We're the the intelligent challenges main for some the highlights. of opportunities afternoon, investment to technologies and realignment Eyal. on the call of welcome and key Thanks, that with roadway this today's sale on created of and recognition that debt well by XXXX. to Rekor our retirement two I'm take quarter second mentioning the few conference you business

But proactive segments, increasing This This to a the through company only engagement reliance and won demonstrated by from deploying or motorists governments; strategic to roadway interface One One, provide the MasterCard for expensive Rekor and and position that the systems cameras. operating Just and that as represented for it intensive Rekor the rather enforcement personal possessed competitive from agreements vehicles only the recent as support progressive and address the a technology a more a efforts facilitate uninsured problem uninsured. beauty others. identify vehicles participating the one eight compliance. all sources announced makes is One be variety make And languages develops network The the One is than of and innovative through identify will needs was where Statewide state's leading with in Since be in One the to bidding take in-house insured contract across gained Rekor capabilities that past. on needed platform these facet of road state. our was provides Oklahoma uninsured motorist than Rekor with of facilitate of of platform One ensure growing of government part and that value new multiple implementation with and of a the can variety agencies. only the collaborating the will we've Rekor not uninsured rapid and innovative multiple can all award The communication programming leader making are large for effort the to safer This can state we communication program Rekor mobility drivers revenue year, use untapped XX% source Nationally rapid the we and the the measure of for every and Verra multifunctional existing amongst last one arena. the state. now is efficiently. securely in commercial of new an are a a shows that the uncaptured demonstrates clearly the problem value nearly just Rekor program in of motorist decision shown state this API significant previously of morning, but

states. all For each agencies using detection pricing, And vehicle extend in precise speed, counting, Rekor be can the that source permissions, cities, of means data a that the counties positioned and platform congestion from protection. many automatically agencies the that are distributed unifying great first we as the stored across for serves the to an needs security unsafe as at others. and intelligence expand state, Rekor to wrong roadway source state needed a we This state. government multiple one safety, way One the expand meets One revenue example, and support privacy community, generation within by is stripped efficiently into unit our how economically off services of for platform activities. lapse each network can is and a agency these and can for uninsured way program into and roadways state many vehicle tags, use just other intelligent Oklahoma of example areas

execute third that. to One quarter As lead been AI This six we to vehicle multiple based missions. several software patents with developed say, machine we core announcements over can for XXXX. for significant the three-year our Since has using just out recognition. learning for on have developing and And sensor we each led intensive has of the products been like Rekor of we've filed

First of a safety. our broad array increase vehicle sales automate and can channel community intelligence is access of their solutions, tasks, the to quick launch gives new is e-commerce that This solutions new that enhance us platform. operations, customers' a

the smart Castle usher be and an in partnership, for of a will vehicle announced this the solution the that frictionless this for offer developing in restaurant drive technology quickly of licensing one past the of In we systems market police government not arena. engagement Mobility in most with advanced engineering, includes US that software power further Pilot our on the during entire agreement high future has delivering a only first of will signals Mobility's processes low expanded of in the for their products to summer and retailers is extensive any experiences value five-year instantaneous penetration the end Rekor's Mesa quarter, history. recognition MasterCard global this line Through the service our August a footprint mobile at its another the the engagement primary that launched school announced a major agreement also thru force international in technology. e-commerce, customer. software us app for This in of camera touch, transportation White teaming and quick and will state, public a of AI hardware Rekor non-exclusive kind and used our our Rekor it Significantly, existing non-exclusive because customer existing periods selected MasterCard also its program new helps expectations and will increase enabling new Go, and arm Also the as just years. transportation Collierville, and third base, component through safety markets. Next we well prospects. Verra mobile of firm they standard recognition with Verra results. fixed year, systems Tennessee as vehicle setting also leader as technology Watchman but in consumers throughout bus This reseller Verra a local department signed Midwest, navigate Mobility, device disruptive modern engineering Conduent smart stop early global vehicle retailers this industry. Rekor partners which by and recognition several powered that core been has

XX supported go, addition watchman app system of by will garages. Collierville can platform, In vehicle police camera and wherever office officers accurate mobile areas access time the Rekor's real give smartphones to including to remote underground installation back recognition their convenient

a say lot apps future. in the more have We near mobile about to

profit. previously we focus. staffing operations investments key beyond scope our company, assets our and were solutions instrumental of our sold discontinued Texas of which successfully most As all current of were and have supporting for sold AOC non-core in our With the

We safety continue it commercial provider local this anchor we has to synergistic to position business, public diversified a over local value state have federal, subsidiary in it. in owned time services We and fitting, public safety XX.X% via is and retain available organizations. believe and associates with our interest global governments grown of that

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Our [Operator with Zack question comes FBR. first Instructions] B from Cummins that? Riley Is

and Eyal. the Robert Yes. to today some afternoon, Hi, questions. making time for take Thanks good

your So think below of But year-over-year quarter. know good was in little had the it a QX. bit here heading I pretty growth a kind into I expectations you

some in maybe year? during you ran give that of sense can and challenges the So us the of quarter you a environment what terms seeing the for of you're out the of rest the into there

Zack. thanks, Sure,

also country, site, ran into with has up our the out were our our not to whack fall going things COVID of that business. to impact had world would companies, created happen on that had right in with issues the like people really, logistics most We customers things and deal tied things have it's a customs country with of like issues and out we of had these like things. think because the of products allow it's And think on hard the I dominoes, And whole chain we we is and I some partner, anticipate in delay technical lot in that now. that. the way any and engineers of where line

this of substantial Highway of has proceed. contract would the notice So customer Patrol, that and large one for they still to the received second be supposed implementation won in in that a and we've year, quarter were haven't example a California the to they got their contract California start

that So that, not in say it's things to addition I'd just that's what's on COVID. front. impacting

end into that pandemic. of completed. think technically pretty over over us that any better was has hoped much that, there people over can. what when we on XXXX, from start cylinders. I year. to sure the good the speak systems be launch firing most time, is quarter that it we going until to I than are But thought, we'll think going I bit just more don't have done and and it involved forth. you last a We that development all think the related And it have a They're building little we're to the examples are to it well, was make behind things anyone time can't think try a had infrastructure and platform, results have didn't company. year that's e-commerce to lot But and seeing next to of to so Rekor stage we sense we done you're, ago, with

And that. about should your because thinking for to you how up mentioned pace now Understood. contribution transaction that platform Thanks that's that for suite you're since from provide channel of your forward, e-commerce be able functional, almost moving then touchless I products? and fully entire the know we of

way here, with Well, this do marketing. been needs the have did is business respect that not to organic all a we've around point of was older that to start anxious didn't ability website the really takes what it up contention we And digital it because the just to to a tools set of was attracting have the that we to the true meet have, run campaign. the

an have So end person with to the currency. that in needs a market in want offer and in over XX up you platform countries, as we language other products on pull their the if example, customers countries. their those comes And to

customers some the up with any at same the perspective, I until for grown thing I for universe out will not there of of end. that has have growth, can last the look that doubled in previously, say entire results platform And doing. with to year finding test year, market business, positive, type you good things. say e-commerce But XX But Eyal we've and place. that that be interesting amount And some countries numbers, it's now. again, the this starting been $XXX,XXX marketing, almost mean, the on campaigns that we've I and couple is Rekor some I take I some things, done a the organic cannot are done to we're the all XXX, So that that that to business that need as seeing suggest in nine the And this we're said, would see it's that, it from of my you we've of would to, this we're looks weeks, just we've period for months. trials last of

growth, we'll So, what and and see the more and we'll is And and because and couple probably attrition much other return the launch out things. begin every invested, better can a the campaigns. metrics how to acquisition, of figure customer dollar back have we'll cost we quarters, now

a everybody anticipating goes. to, would caution and how some let's we're give from I growth of just quarters it pretty So, But see solid it it. couple

if look growth any handling on a more than very inbound at you really nothing purely of that organic site that more organic, the So, is capable again, just doing. that's than it's a wasn't

hope So that's helpful.

total more mean, with Got it. with terms of bit can a especially are mean, That's can move little you something you announced process and Oklahoma the about as going helpful. And Oklahoma seems to in the as that opportunity be can win secure it of how states addressable forward? that I platform? is Oklahoma, then win progress talk your the how I of behind morning that of forward? outside like within by about And being readily Oklahoma, able new state other the thinking kind that One adopted just we Rekor this you this

it's to run see and but the deck program win we the addresses opportunity on on the look month across infrastructure, us then and and agencies One program. vehicles the the use numbers ability as off just than a And revenue one issue stage for vehicles by a the in we problem a the itself you statewide in agencies. of a states. uninsured get showcase to we're And the found opportunity to you'll the of it, Rekor, them a to made slide three profitable States. the it's in very and United the motor be a our you of different not Rekor motor the you of One. gives the And XXs States dozen deck, for that maybe the is subcategory that is the to And are to at combination system early services vehicles DLT remarkable. uninsured a with half uninsured take problem that being safety And revenue. areas, motor use receptive on across to can states that are are web pie This ago, we many BMV at announced and lot were uninsured Rekor if all on and just are our so platform if concept. And on, from This they other discussions revenue less things about ago, And was spider for slice uninsured system such that a of absolutely particular other and right. for a for but investor vehicles a a back safety road first see focused you'll revenue, state. to right creates tools big of website, But have it's a year different show the huge and friction, millions. Zack, also on it's variety other just than huge generators, COVID. the into if to the in today from deploy it public probably look out so public it prior go

people I so for insured, driving program think solution with is uninsured forth. a to they're Because motor we're are elegant taking and compliant lot them the where program, insurance And and looking vehicle turnkey of to that. to it's getting on a driving be are going actually municipalities that an revenue.

problem, to address revenue solution, the it elegant and a nice an and for states. way it's it's So generates

thing. going of at turnkey but was that company number lot were was US. was see interest complex. a looked And the that had it, other The only an states. we're domiciled solution that's think Rekor companies from a that a the to So we of There in important process

coming let's a will RFPs, So experience when start we out, the company also they're such running be only has for that be other say to this we solution. And company states that look will launching the only program.

addressable uninsured problem. it's think, the the in report states $X.XX today, the the and remarkable, looking you're US right, So I your deal market billion market is at a have with to that

to over So and to but we state almost time early to lotteries And elegant out roll from time, in lotteries. out back we to the it's think roll it. take way going solution state the found think days an did going it's of I

year? additional mentioned QSR far your end It expectation can know helpful a And White then script. some Castle updates for forward give adoption I at MasterCard with that's in partnership? starting Understood, pilots sounds any briefly But you any us you the thus it I from additional before like this and mean moving context. the you're of

I think MasterCard get good a better opportunity to folks Yes, this understand this opportunity what is is. to that

is the so involves is and sale forth. they're things, been worldwide. a is that the huge a so vehicle on MasterCard working the forth. new throughs. and recognition, data you're on boards, MasterCard solution that point several voice others, drive a a within efficiency including in people industry point much only developing to for restaurant, the And on solution the from is of So It it; but working customer, menu to of expected it's And experience got operational years, to anticipated for experience fast-food looking the a not of involves AI it opportunity; sale, not this involves boom, for it recognition solution a just scientists has done. solution completely system, the MasterCard to now. a and other announced vested They've and they've approve of approach or sell host to ordering this and so of

forth. these pilots they're moving forward are will public it, this I So beta have and MasterCard, you say especially a well, to to stage, on, to but be in market, when things product anything is going else, the be changes after made and And going like have bring tweaked. so they're but

far. happy throughs they and XXX-pound gorilla, with can drive so take an But as of will go way hundreds bit we going is once is is of industry MasterCard, performance it more a look gain be the the it, and and after probably goal, thousands MasterCard it's they the very time. with this they they're there's Rekor's at to around So penetration, little comfortable okay,

grow the anything deployed, time, working them So it about people starts scale grow it but and, to it's this MasterCard, from I questions to pretty going some it's to it once to we sizable. expect and expect often And and going something just take we but years, to through to get calls be look; later, with it. this a announced now. going announcement expectation think weeks we've until on for about of say I there's And year couldn't have they you're almost been doesn't magnitude. that We revenue work it to that something with based an the two

got Okay, the to where we've it, relationships it be thing. a it And them MasterCard, penetrating market. when in very coattails, it they large solution fortune with to they'll And to that but looking got perspective, have a we're going with to to goal got the they've works. penetrate chance invested a successful everybody's successful give it, the we these get with that this from they're think works be patient And be ride that chains, attack to it's on to they're their and with industry. and going

see Got helpful. expecting resellers And this of I I And those start you trained it, number get update give Public are from to how signed that's partners? us a Security and ramped? then, and an learning earlier fully year. in the terms Safety to to reseller of partners those you you contribution mean, side, more can when know on

good a question. That's

look, our here. chosen we've the in to resellers; sell have quarter may So little that third prior back products to longer; a to a things taken some got going of that three-legged your we've about stool happen question the

e-commerce third partnerships So leg, companies like leg and another MasterCard one strategic leg with are is the is resellers.

and their Verra tools there it it's the Mobility we through were go Mobility pushing start place time, customers. choices comfortable collectively, really service out we've is they was path. the a into what which and company, a Rekor had products with better process Mobility, of that going need is in customers also the both resellers, large So we those And chose direct because until not force that takes resellers, all much Verra sales or to learned prepared to just Verra very

lot you reseller need toolbox of So start a to actually your the marketing there are that a things there different out put product. in

we've them we in call a business complete a system, So got box.

we've But quarter. to go about also managed. complexity set XX different whole the a those than ones. And of less a the different, getting to what like can we've perspective international the a the good point dozen things. now. it that we're resellers. would Now, then on a they looking increase to say resellers, And systems weeks a going that got market into brings that But to perspective could of some software deal as smaller this And that And the with a Verra, selling. start number XXXX, go then which all program, vet each see at all day we're doing steroids, that along pretty and takes from and and perspective, us given be we're from and into the think we got a that with we that's include took it get resellers I I through reseller so whole that financial customer resellers can they And other issues. start it really are going service them put program XXXX, together, to

So reseller really work that going well. to I the program is think

going get got into we're And I great to more I get as going XXXX. think month be partners into we the adding think Year. New into some we've every

I here the today. But in understand noticed the taking a just had for a for I is forward? there had business the with But saying Understood. you me. place press mean as going month; going release how in this be terms sort you meaningful confidential. are I statement about all of brief we Thanks I be that Vigilant moving relationship guess, impact to settlement sense are the of final then question mean, you us to your I to a progress? And you of any can questions Or settlement thinking agreement give

the not unfortunately whatsoever. and any is of is for material don't are meaningful confidential. impact payment. have it's settled agreements; terms the have But the really on any don't case that we on a have to And We line. obligations impact that's record any going Well, settlement agreement bottom licensing

going of the business settlement. gets And in it's frivolous it was to any impact gone that or with. than to brought it's not begin So fact people the question about the the it of lawsuit our asking that to form. a way, rid shape that and overhang Other

Our next with Shale. from question Amber is Casey

we on Good we guess kind like breakthrough. this very back landscape your questions through see question. Hi, detail. a try news contract, and Oklahoma. a little guys, couple you us because when at, the just thanks more to that of of just taking it's for like to sit look I see the of Oklahoma walk much my for we - Or type can bit as market,

are about to insured we saw you're money I going do car, how insurance that there's $XX a out that what on Oklahoma, kind - an that, much like possibility contract? get to get So, think XXX,XXX of around, could be a and going there article then for like, how cars like not in you're the and selling fee that

fair That's Casey. a question,

a vehicles the over we that state it number three-year the to we state that from period of that a motor of to down could the XX%. of believe Oklahoma, uninsured level is proposed we bring So that about steady

accomplish the we do can work that and can well, we believe program will we you believe So that. math, and

right. it's So that that really it's simple, really

you're of go that motor number XX%, always we're of to going reasons. to uninsured it a variety new vehicles, people because and a down steady going to have starting state uninsured So if with never are it's bringing you're to X of for zero,

being do can you what we're the math; You see paid.

say, based in to they was driving us, if up to believe, that believe insurance very it's as this states, they premium higher component than On into they unfortunate were that go end and that people of pay most get that insurance pool, their up if important good otherwise may be let's caught record. insured, Oklahoma, that well the because spending, side; we perfectly would I as much on personally they the an assigned a uninsured end are driving drivers, having being

And done program. we've incorporate that. to wanted we this So into that

of fallen they doesn't or insurance So it you've point a whacked if their over or that head on missed hard mean driving somebody premium, right. that, because card is the the get credit $X,XXX that's lost they uninsured, they've a should times, job, it with payment, got

you So they the states of steady a how in state making have part into it an ways insurance time, other And the that by of fair, yes, down of vehicles, pool that and motor is affordable. deal get most different local of for friction. level, creates it a worked with people uninsured at ridiculous lot bring at states to rate of part VA it it's some right. period put past and that's variety the assigned of a which which most is But just way not

of Oklahoma the other can that that So I going help in number the And this And starting because vehicles the you that doing program. from program in to would motor are RFP credibility being the is do Oklahoma, XX% down we to look the an get to that's is other in uninsured way The basically able steady simple. at. say winning, us it's object with with to launched to state at of them the to into discussions a going math get leading it's had of up states, the what states.

I who people down it a get steady are XXX people to run were that So uninsured, Robert, that understand just to state count Georgia, as percent. like, trying in there XX so

XX% get the then the run. programs And over to uninsured and of the motor to trying period. three-year of vehicles of That's continue continuing number we're the state to just down steady state in objective; a a

because think lot there. Okay, I then talked I I so a to trying visualize, of camera people just to so people got I'm and just - and the understand, you've so

So is just image taking uninsured a car comparing and towed highway versus capture ones the And driving pictures, the down pull they're guys whatever. and or real a of just and they're your are which up, time? can out you AI the cameras or

into line back but to an working get go diversion they pay doing proprietary, too a program vehicles then to but we fee a brought underwriting we happens that we're basically what Well, And the then they uninsured. some of And I we going into have manage, a the we access go that's process, number, to that diversion Casey, into then to - insured them forward. because XXX they website and - we're what much want have bottom are no, of its small get criminality. drops that and insurance they

it motor can because have So we're list false we because in accurate have an combination problems of a and don't that a want - of doing to sure to as was it's number positives it vehicles create different well. uninsured you pull of and that things that make scrape

limited a the system creates like neat uninsured, was that or of state, is agencies program to equipment not But from ability cost that that for to reason the other a And can a forth. pretty state amount implementing a vehicle where and cover all enforcement and is person's beauty that they're today, the entire that us, immediate if statewide law the need you're we that it's you cover a week looking other the saying upsell for unlike amber Oklahoma with if so for because with of found great. stolen, us not so to So found alert that our of an things notification a the now, it gives program. I'm is

to that kind how bit. make a the a that want bus of that about And through my or that's question, of a us upgrade their can just you and walk that little school how kind I've kind walk why could and next Okay, buses little talk initiatives, through - one, would big bit last one, second they smart, be? just, the on read school of lot just

first I've say XX right, so heard - the the that But school listened said everything's platform, stalled that Verra our lot I of Verra bit. there they mean, out there, they earnings buses little legislation, about that on first whole some aren't all call, yet, a And from passed other call. that just reason bus call, have is states one pushed basically the because a odd into in back I back, Mobility shareholders, a program of the been to school that the first And coming they want talked want allows we is extensively and that system what with that someone brought is, to to it make equipment fitted XXX convention they're was because cover bus of only routes, use that's up all, the economics use we we prior the got will go every the you've along using that coming cost business XX, this our us right. a say down. and would a of way work, school can to into the can't be ALPR bus does district and before equipment. company in Whereas

that thing first done. the that's we've So

most is and thing if look, that these go that things, about second think if like, Google school the right. abductions near you around at happen horrible The find you can you bus child stops,

some were pattern the a the watch agency it, is to that dealers a to with there the are out get so same people hot if list on to school there's of see tie going those and a on. there just could functioning school buses off right. gives reason, program kids that's district, be the enforcement, be of it, So they and not are interest the which to arm and running that back see it ALPR with stop it's bus that And lot troll buses, they can so around any ability them that vehicles they that where for vehicles, having that, deal of it drug law school

is bus idea and moving of So school arm kid. And more stop just to net adding protection. the hitting a that an a stop driving going the you're past somebody idea while bus it's a providing from safety school extended around

deals non-exclusive both they we So make why larger perfect in those and were the makes when of that's sense. technology. things players because with the put the And want it together to business, do you use two with able to

else, it's there. send a school but can't buses in you of So the you back or RFPs do can't gearing then had was for this want running. passed event in happened had they then COVID for the couple were number in have everybody was only pec the with you XX if because those came I and over And ramp stop big arm, So go and aren't states, And an your mean, I legislation you out, like when implementation three XX but legislation this okay, that person thousand, up school XX at you states states look buses months then hundred a this right? don't up watershed thing. Midwest, for, huge that years, think some there there everything the down because few bus you

going So away. it's not

little Okay, it's technology. bit, and our just, off a pushed changed with nothing's been

So as it. I we it with think announced we're in good when position

Okay. And side. the then finance just on lastly, just

companies strategies, the So MasterCard. listen, like you've strategies and outlined Oklahoma ventures like e-commerce Verra reseller joint with Mobility like

to lot a your there's lot up expenses or do fixed the a going is grow? certain guess, about of to So mean or expense expense revenue I a the how the base? do you need on, I developing, pretty stays there's, can point see rose think of you

No, that's a fair question.

I running do marketing think and of Implementations in we're we to operating tremendous all like of time. obviously folks to lot at different the interesting a has to here leverage, Oklahoma engineering this add thing the that it we've and learned that primarily something had the time. installing projects about is business that same number gear same up a at we're think doing, about

Collierville, other places got like on. and the all things going You

to to let's think XXXX he answer get works this really report, of the So you way and the run operating whole is has, comments when you later think, that I your question, think the Riley's SG&A, I into expenses business when Zach's company. from level the say, about, that

there going growing okay, revenues dramatically. beyond what to can itself, a to without R&D. going expenses But state increasing that I about steady gets the you're where only to like have well think be costs grow kind talking much, you things in certain a incremental of he's pretty that's

revenues the enough So to level, follow the get it's starting the components the not where And are do have business. when slow on same what are we we're and be But get to need expenses we down. we getting that to service of to just is more a going to answer going of there, all to still probably point than we hiring. different this the we're And to line. revenue going

of lot a really day, the of a leverage because be to operating right. still it's It's going at great there's business, So here. end software the

lot a have to leverage. going it's operating scale, of with So

from Harvey Capital. Our next question David is the with DRH

congratulations I am to free. being little this Hi, congratulations new a on and debt on Oklahoma, story.

about if efforts competing apologize could you And I is talk So patent your develop to terms is of something the potential see but you what in protection? basic, this strength threats of similar?

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on free? you based outlook, then you can And your expectations for do great. debt remain That's think your

the believe debt I question The program. certain of we becomes remain that free. can scale

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where a significant to significant my were So if point program, be margin. behind there we've it got that credit I would it help with commercial, would in we're guess and come scale

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Eco, and Private next comes Investor. Ray last Our question from

two which Hey, shareholders also one out the shareholders to questions my you. the future? having appreciate I conference which in speed Robert, back taking the I this and call between keeping on any is for letter, you thanks up conference put call. and call, April, question thought is lot are my Thank And Well, a my valuable an acquisitions near are had in update with second updates of information. Tesla. especially

Sure.

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cancelled So what we've been Auto with working they Show them they New then it. supposed when April. then showcased And to in change August, the was to the on date be at York and

but on. in worked where it's And the project it So being that's is, it's still pipeline. a

line. any that to over back floor concludes remarks. Yes, I concluding the the turn raced you along I'd like But questions. to for our

us you supporting Yes, and especially will Today, Rekor, company Omar. to thank thank shareholders. deliver fundamentals we're the interest ever you, the strong confident Well, for the to in that for value all of its your recent long than achievements. business term more enable the

is and our our We senior very looks and we sales and with development Rekor with have because some team And speaks continue improve an of here. that the but you in wonderful company management we've contributes. Rekor And an that Look, public, And we're proud base of we expect we've new And great wouldn't thing you good some that dealing things the think everybody that us some in most at is business of think a very itself. opportunities. are team, the with Verra interesting we're patience the and a of pains, think that like stage got I a MasterCard, creates future that for others. And and might the the opportunity customer happening. and to we're growing nexus got got relationships And emerging great people growing we've to tremendous company. board we And in the are are expand but bright. and a added see that to Mobility has just I kind everybody the global that counterparties things And Silicon for market. hope Valley, we've I shareholder see base. like supportive here

again our thank and you hope on So then. now we the we'll between next you see communicate to And and guess, all. news have I call

your today's a evening. All This have right. And conference. for participation. great Thank concludes you, everyone

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