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Jun 30, 2021

Rekor Systems Q2 2021 Earnings Report

Rekor Systems' revenue increased significantly, gross margin improved, and operating loss widened due to increased expenses.

Key Takeaways

Rekor Systems reported a strong revenue growth of 60% in Q2 2021, reaching $4.3 million compared to $2.7 million in Q2 2020. The gross margin also improved to 66% from 52% in the same period last year. However, the operating loss increased to $4.7 million due to higher operating expenses related to expansion and strategic initiatives.

Second quarter gross revenue increased 60% to $4.3 million compared to Q2 2020.

Gross margin increased to 66% in Q2 2021 from 52% in Q2 2020.

Signed a definitive agreement to acquire Waycare Technologies, Ltd.

Operating loss increased to $4.7 million compared to $2.8 million in the same period last year.

Total Revenue
$4.27M
Previous year: $2.68M
+59.7%
EPS
-$0.12
Previous year: -$0.17
-29.4%
Gross Profit
$2.84M
Previous year: $1.4M
+102.9%
Cash and Equivalents
$69M
Previous year: $1.93M
+3471.2%
Total Assets
$105M
Previous year: $22.6M
+362.6%

Rekor Systems

Rekor Systems

Forward Guidance

Rekor Systems aims to drive meaningful and sustainable long-term revenue growth by strengthening its product portfolio and expanding its geographic footprint.

Positive Outlook

  • Continuously strengthening product portfolio
  • Acquisition of Waycare to enhance traffic management solutions
  • Hiring a new Chief Revenue Officer to refine go-to-market strategy
  • Focusing on growing geographic footprint
  • Leveraging hardware and software capabilities for growth

Challenges Ahead

  • Increased operating expenses due to team expansion and service offerings
  • Operating loss increased due to higher expenses
  • Net loss per share increased due to the increase in net loss from continuing operations
  • Uncertainties related to general economic conditions
  • Potential adverse developments in the markets for the company's products and services