LOUISVILLE, Ky., March 17, 2025 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ:CREX), a leading provider of digital signage and AdTech solutions, today announced that it settled and resolved its dispute with former stockholders of Reflect Systems, Inc. ("Reflect") related to the Company's obligation to pay to former Reflect stockholders contingent supplemental cash payments under the terms of the Company's merger with Reflect (the "Guaranteed Considerati ...

Group 1 - Wireless Ronin Technologies Inc. reported a quarterly loss of $0.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.11, and compared to earnings of $0.21 per share a year ago, representing an earnings surprise of -145.45% [1] - The company posted revenues of $11.01 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 6.40%, but down from $14.46 million in the same quarter last year [2] - Wireless Ronin Technologies has surpassed consensus revenue estimates three times over the last four quarters [2] Group 2 - The stock has underperformed, losing about 25.7% since the beginning of the year, compared to the S&P 500's decline of -6.1% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.01 on $14 million in revenues, and $0.32 on $60.25 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Internet - Software is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance and Profitability - The company reported a significant loss, indicating ongoing challenges in achieving profitability[18] - The company has generally incurred losses and may never become profitable[18] - The company has never paid dividends and does not anticipate doing so in the foreseeable future[23] Market and Industry Challenges - The digital marketing business is evolving in a rapidly changing market, impacting long-term operational success[18] - The company anticipates continued consolidation in the industry, which could affect access to financing and customers[18] - Uncertain global macro-economic conditions could materially adversely affect results of operations[23] Operational Risks - The company lacks sufficient capital for material research and development, which may hinder long-term growth[18] - There is a variable sales cycle for some products, complicating the prediction of operating results[18] - The lengthy sales cycle, especially during economic downturns, makes it difficult to predict operating results[20] - Most contracts are terminable by customers with limited notice, posing risks to financial stability[20] Technological and Cybersecurity Risks - The company faces risks related to technological changes and competition, particularly in AI and ML[20] - Cybersecurity risks are a concern, with potential impacts on operational disruption and financial loss[20] - The company is subject to cyber security risks that could lead to operational disruptions and financial loss[20] Human Resources and Management - The reliance on key personnel is critical for future success and growth[20]

Core Insights - Creative Realities, Inc. reported its financial results for the fiscal fourth quarter and year ended December 31, 2024, highlighting a decline in hardware revenue but an increase in service revenue, indicating a mixed performance for the company [1][4][7]. Financial Performance - Total sales for the fourth quarter of fiscal 2024 were $11.0 million, down from $14.5 million in the same period of fiscal 2023 [4][8]. - Hardware revenue decreased to $3.9 million from $7.7 million year-over-year, while service revenue increased to $7.2 million from $6.8 million [4][8]. - Consolidated gross profit was $4.9 million, compared to $7.5 million in the prior-year period, resulting in a gross margin of 44.2%, down from 51.8% [5][8]. - The company reported an operating loss of approximately $0.7 million in the fourth quarter, contrasting with an operating income of $2.0 million in fiscal 2023 [7][8]. - Net loss for the quarter was $2.8 million, or $(0.27) per diluted share, compared to net income of $1.4 million, or $0.14 per diluted share, in the prior-year period [7][8]. Annual Performance - For the full year 2024, total sales were $50.9 million, up from $45.2 million in 2023, driven by a significant increase in service revenue [4][8]. - Annual recurring revenue (ARR) at the end of the fourth quarter was approximately $16.8 million, slightly up from $16.3 million at the end of 2023 [5][8]. Cost Structure - Sales and marketing expenses decreased to $1.4 million from $1.6 million year-over-year, while general and administrative expenses rose to $4.2 million from $3.9 million [6][8]. - The gross margin on hardware revenue improved to 26.3% from 22.5% in the prior-year period, while gross margin on service revenue decreased to 53.9% from 85.2% [5][8]. Balance Sheet - As of December 31, 2024, the company had cash on hand of approximately $1.0 million, down from $2.9 million at the end of 2023 [8][9]. - Outstanding debt was approximately $13.0 million, with trailing twelve-month gross and net leverage ratios of 2.59x and 2.39x, respectively [9][8]. Strategic Outlook - The CEO expressed optimism for fiscal 2025, anticipating solid revenue growth, particularly in the second half, as new deployments come online [3][4]. - The recent launch of the AdLogic CPM+ platform is expected to enhance the company's advertising capabilities and drive additional SaaS revenue [3][4].

Company Overview - Creative Realities, Inc. is a leading provider of digital signage and media solutions, focusing on enterprise-level networks [3] - The company utilizes platforms such as Clarity™, ReflectView™, and iShowroom™ for its digital signage experiences [3] - Creative Realities offers recurring SaaS and support services across various vertical markets, including retail, automotive, and digital-out-of-home advertising [3] Financial Results Announcement - The company will release its financial results for the quarter and full year ended December 31, 2024, after market close on March 14, 2025 [1] - A conference call to review these results is scheduled for March 17, 2025, at 9:00 am Eastern Time, featuring management remarks and a live Q&A session [1] Business Strategy and Services - Creative Realities assists clients in leveraging place-based digital media to achieve business objectives such as increased revenue and enhanced customer experiences [3] - The company designs, deploys, and manages Retail Media Networks to monetize on-premise foot traffic using its AdLogic™ and AdLogic CPM+™ programmatic advertising platforms [3]

Core Viewpoint - Wireless Ronin Technologies Inc. (CREX) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook due to an upward trend in earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system useful for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, influencing stock price movements through their large transactions [5]. Business Improvement Indicators - The upgrade in Zacks Rank for Wireless Ronin Technologies suggests an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [6]. Earnings Estimate Revisions - Wireless Ronin Technologies is projected to earn -$0.17 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 51.4% [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 142.3%, indicating a significant upward revision in earnings estimates [9]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 places Wireless Ronin Technologies in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11].

Group 1 - Wireless Ronin Technologies Inc. (CREX) has shown a year-to-date return of approximately 6.9%, outperforming the Computer and Technology sector average return of 2.2% [5] - The Zacks Rank for Wireless Ronin Technologies Inc. is currently 2 (Buy), indicating a positive outlook for the stock [3] - Over the past three months, the Zacks Consensus Estimate for CREX's full-year earnings has increased by 110%, reflecting improved analyst sentiment [4] Group 2 - Wireless Ronin Technologies Inc. is part of the Internet - Software industry, which consists of 151 individual stocks and currently ranks 73 in the Zacks Industry Rank [7] - The Internet - Software industry has gained about 17.2% year-to-date, indicating that CREX is slightly underperforming its industry [7] - Akamai Technologies, another stock in the Computer and Technology sector, has returned 4.1% year-to-date and also holds a Zacks Rank of 2 (Buy) [5][6]

Core Viewpoint - Wireless Ronin Technologies Inc. (CREX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Developments for Wireless Ronin Technologies - The company is projected to earn -$0.17 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 51.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Wireless Ronin Technologies has increased by 110%, indicating a significant upward revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Wireless Ronin Technologies in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Creative Realities, Inc. is expanding into live venue and IPTV verticals, building on significant success over the past 18 months [1][2] - The company has appointed Michael Baez as Vice President of IPTV Business Development to drive this expansion [1][3] Group 1: Expansion Strategy - The expansion aims to deliver integrated solutions for live venues and broaden reach into new sectors such as convention centers, transit hubs, casinos, hospitality, and corporate communications [2] - Creative Realities has established a strong presence in the sports and entertainment sector, with notable projects for teams like the San Antonio Spurs and Dallas Cowboys [2] Group 2: Leadership and Expertise - Michael Baez brings over a decade of IPTV experience and a results-driven approach to the company, focusing on technology offerings and monetization strategies [3][6] - The addition of Baez is seen as a pivotal moment for the company's growth, enhancing its sales and engineering capabilities [4] Group 3: Unique Value Proposition - Creative Realities differentiates itself by providing comprehensive "Day 2" support, ensuring systems are optimized post-installation without relying on third-party vendors [4][5] - The company leverages its procurement power with global partners like Samsung and LG to offer competitive pricing, enhancing value for clients [5] Group 4: Client-Centric Approach - The company focuses on maximizing ROI for clients through tailored content creation and monetization plans, helping clients unlock the potential of their investments [5][6] - Creative Realities positions itself as a comprehensive provider of live venue and IPTV solutions, ensuring consistent performance and measurable success for clients [6]

Core Insights - Creative Realities, Inc. has launched AdLogic CPM+, a campaign planning and management platform designed for in-store retail media networks, offering integrated and flexible solutions for advertisers and publishers [1][2][3] Product Features - AdLogic CPM+ addresses the complexities of in-store retail media networks, enhancing campaign performance, cost-efficiency, and scalability while eliminating the need for fragmented third-party systems [2][4] - The platform combines programmatic capabilities with a user-friendly interface, simplifying campaign execution and improving targeting precision [2][4] Strategic Positioning - The launch of AdLogic CPM+ positions Creative Realities as a comprehensive solution provider in the evolving retail media landscape, equipping brands to maximize their in-store advertising ROI [3][6] - The platform allows publishers to create private marketplaces, reducing reliance on third-party intermediaries and maximizing revenue retention [4][6] Key Capabilities - Dynamic campaign management allows planning based on various parameters such as impressions, budgets, and targeting [5] - Advanced targeting features leverage location-based data and audience segmentation to optimize campaign reach [5] - Real-time reporting provides detailed analytics for performance monitoring and ROI measurement [5] Industry Context - The retail media landscape is rapidly changing, and AdLogic CPM+ represents a significant advancement for brands aiming to enhance their advertising effectiveness [3][6] - The platform is set to be showcased at the National Retail Federation (NRF) 2025 event, highlighting its importance in the industry [7]