Remark Holdings, Inc. (NASDAQ:MARK)
Shares of Remark Holdings, Inc. (NASDAQ:MARK) gained 7.93% after one of China’s largest state-owned enterprises awarded the company’s subsidiary, KanKan, a seven-figure contract. The contract is for the supply of facial and object recognition technology to a Shanghai municipal health agency.
MARK Stock Performance
Wednesday’s rally helped reverse a sell-off that had pushed Remark Holdings, Inc. (NASDAQ:MARK) from $4.20 to$3.60. Remark Holdings, Inc. (NASDAQ:MARK) has underperformed the overall industry after struggling to rise above January trading levels. It awaits to be seen if the seven-figure contract is the catalyst that will help push the stock to new highs. MARK has a 52-week high of $4.87 a share.
The technology utilizes artificial intelligence to ensure food service workers wear hats and masks all the time. KanKan is to install the technology in 200 restaurants as part of the trial phase ahead of a potential expansion to 2,000 facilities.
“This contract shows that we are able to monetize our artificial-intelligence technology, including facial and object recognition,” said Kai-Sheng Tao, Remark Holding’s Chairman and CEO, “and it sets the foundation for us to potentially triple our business with the city of Shanghai in 2018 and expand to most of the eight million restaurants located in cities throughout China.”
Remark’s Revenue Growth
The KanKan Artificial Intelligence platform has been a key driver of Remark Holdings, Inc. (NASDAQ:MARK)’s revenue. With the unit meeting and surpassing expectations, Mr. Tao remains confident of the company meeting its revenue and growth metrics for the year.
For the three months ended June 30, 2017, Remark Holdings, Inc. (NASDAQ:MARK) generated revenues of $17.3 million, compared to $15 million reported last year. Revenue for the first six months of the year totaled $32.6 million compared to $29.2 million last year.
Net loss for the quarter dropped to (-$4.3) million or (-$0.19) a share from (-$5.4) million or (-$0.27) a share as of the second quarter of 2016. Net loss for the first six months of the year nearly halved to (-$4.3) million from (-$7.8) million as of last year.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.