Rekor builds AI-driven software and data platforms that collect, process, and analyze traffic and vehicle data from roadways. Rekor's primary customers are state DOTs, law enforcement agencies, and municipalities. Rekor operates three core platforms: Scout, an automatic license plate recognition (ALPR) and vehicle recognition tool used by law enforcement and commercial customers; Discover, a traffic data collection and analytics platform that captures vehicle counts, speeds, and federally-mandated vehicle classifications using AI-powered roadside sensors; and Command, a traffic operations and incident management platform that aggregates roadway, weather, and connected vehicle data into a real-time dashboard for DOTs. Rekor sells primarily through direct government sales via RFP and grant processes, with an eCommerce channel for smaller commercial and international customers. Rekor generates revenue through recurring software subscriptions and Data-as-a-Service (DaaS) contracts, as well as hardware sales and project-based work. The DaaS model — where Rekor installs sensors and sells data output rather than hardware — is the company's preferred direction, as it produces higher margins and more predictable revenue. Hardware sales typically serve as the entry point for new customers, with migration to recurring contracts over time. Rekor's growth strategy centers on landing state DOT pilots and expanding to statewide contracts, converting hardware customers to DaaS, growing Scout's commercial use cases in parking and retail, and pursuing international expansion in European markets.
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