COLUMBIA, MD / ACCESSWIRE / September 6, 2023 / Rekor Systems (NASDAQ:REKR), an innovator in roadway intelligence, is redefining transportation safety norms with a trailblazing application of Artificial Intelligence (AI) technology. The company is best known for its AI-driven digital infrastructure operating system, Rekor One^TM. This system ingests billions of data points from multiple sources to transform data into knowledge that can be used to improve transportation systems into fully functioning and safe roadways. Rekor can obtain data from its IOT roadside sensors and also collect, connect and organize third-party data sources like Waze, proprietary data capture, and existing infrastructure information and then process those data points through Rekor One^TM, which customers can then use to make the best decisions for infrastructure investment.

Here are 5 reasons to keep your eye on this company:

Effectively One Of A Kind

According to data obtained by Finbold, the AI industry's estimated market size was valued at $207.9 billion in 2023 and is expected to increase dramatically by 788.64% to reach a colossal $1.87 trillion by 2030. Rekor's ability to bring AI to roadway intelligence potentially puts them years ahead of any competitors. The company reports that there are essentially no strong competitors for roadway intelligence. The transportation infrastructure market is only expected to grow.

The Transportation Industry Is Going Through A Revival

The transportation infrastructure market was worth $1.7 trillion in 2021, and the market is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2022 to 2031, bringing the total market size to $3.6 trillion.

Infrastructure is on legislators' minds. In November 2021, President Joe Biden passed the Infrastructure Investment and Jobs Act (IIJA) with bipartisan support. The bill includes roughly $1.2 trillion for infrastructure projects, and approximately $283.8 billion has been budgeted for transportation needs, with roads and bridges making up a significant portion of transportation. However, the Global Infrastructure Hub projects that there will be a significant investment gap between the projected investment and the investment required to match the best-performing peer countries. This is why advanced technology is so important to help close the gap in the coming decades.

Insider Transactions Signal Confidence In The Company

In the past 12 months, insiders at Rekor have purchased shares worth over $20 million, or 7.7% of the company's total shares. Most recently, CEO Robert A. Berman exercised stock options worth 100,000 shares of Rekor stock with an exercise price of $1.25. In addition to exercising options, Berman also purchased 25,000 shares of the company's stock at $3.137 per share. As of this writing, his investment has already more than paid off.

Investors often keep an eye on insider ownership, as it can indicate that company leadership is more mindful of shareholder interests. With insiders at Rekor Systems holding a notable portion of the company's shares, it suggests they have an invested interest in driving its success. Additionally, the gain in market value resulting from insider purchases indicates that these individuals have strong confidence in the company's future prospects.

Increase In Contracts

Rekor Systems has witnessed a significant boost to its revenue in the first half of 2023 and won contracts worth $29,738,000. This marks a 497% increase compared to the previous year's contract wins of $4,979,000 during the same period. The company's remarkable surge in total contract value is primarily attributed to the involvement of large statewide contracts that have closed across all three product lines. Such an increase highlights the company's successful efforts in establishing its position in the market and boosting its positive outlook.

Substantial Revenue Increase

In Q2 2023, the company experienced a noteworthy 132% growth in gross revenue, reaching $8.6 million compared to $3.7 million in Q2 2022. Recurring revenue in Q2 2023 saw an impressive 178% increase, amounting to $5.8 million, compared to $2.1 million in Q2 2022. This expansion in recurring revenue highlights the company's success in establishing long-term contracts and building a steady revenue stream.

The increase in gross revenue, recurring revenue, performance obligations and total contract value collectively signifies Rekor Systems' success in securing more contracts this year. This accomplishment boosts the company's financial performance and contributes to its positive outlook for future growth and success.

Roadways Of The Future?

With AI's promising growth prospects predicted to surpass the $1 trillion threshold by 2028, the AI market seems to hold unheard-of potential. When you pair the projected growth of AI with the much-needed infrastructure updates in the United States, Rekor and its proprietary systems seem well-positioned to continue to grow revenue in a rapidly growing industry. The company's advanced artificial intelligence, machine learning technologies, and IoT Edge devices create a unique opportunity for continuous operational learning to accelerate the digitalization of America's and the world's roadways.

Featured photo byDenys Nevozhai onUnsplash.

Contact:

Charles Degliomini
ir@rekorsystems.com

SOURCE: Rekor Systems