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Jun 30, 2023
Remark Holdings Q2 2023 Earnings Report
Remark Holdings reported a revenue increase of 24% year-over-year, driven by strategic partnerships and project completions in China.
Key Takeaways
Remark Holdings reported a 24% increase in revenue for Q2 2023 compared to Q2 2022, driven by project completions in China. The company secured major partnerships for its AI solutions and is targeting EBITDA breakeven by the end of the year.
Revenue increased by 24% year-over-year, reaching $3.2 million in Q2 2023.
Remark AI secured a $6.0 million, 30-month recurring revenue subscription contract for license plate and mobile facial recognition capabilities in Rio De Janeiro.
Strategic partnerships with WaitTime, NVIDIA, and DSSL Group were established to expand the reach of Remark AI's Smart Safety Platform.
The company is targeting EBITDA breakeven exiting the fourth quarter of 2023.
Remark Holdings
Remark Holdings
Forward Guidance
Remark Holdings aims to achieve EBITDA breakeven by the end of the fourth quarter of 2023, driven by growth in AI investments across various markets.
Positive Outlook
- Strategic technology partnerships expected to scale innovative solutions.
- Expansion into existing and new markets anticipated in the second half of the year.
- China's reopening is expected to bolster revenue opportunities.
- AI investment growth is expected to reduce expenses and increase operational efficiencies.
- Focus on synergizing with smart city initiatives to enhance urban living.
Challenges Ahead
- Operating loss remained unchanged at $4.0 million in Q2 2023.
- Cash balance totaled $0.2 million as of June 30, 2023.
- Obligation to issue common stock to Ionic Ventures with an estimated aggregate fair value of $5.6 million.
- Received notice from Nasdaq regarding non-compliance with continued listing standards.
- Company needs to regain compliance with Nasdaq listing standards by October 24, 2023.