Core Insights - Creative Realities, Inc. reported a first quarter revenue of $9.7 million for fiscal 2025, down from $12.3 million in the same period of fiscal 2024, primarily due to installation timing issues [4][10] - The company announced a significant contract with a well-known restaurant chain to transform hundreds of locations across the U.S., which is expected to drive growth in the second half of 2025 [3][10] - The company ended the first quarter with an annual recurring revenue (ARR) of approximately $17.3 million, an increase from $16.8 million at the end of 2024 [5][10] Financial Performance - Consolidated gross profit for the first quarter was $4.5 million, compared to $5.8 million in the prior-year period, with a gross margin of 45.7% [5][10] - Operating loss for the first quarter was approximately $0.7 million, compared to a loss of $0.1 million in the same period last year [7][10] - The company reported a net income of $3.4 million, or $0.32 per diluted share, in the first quarter of fiscal 2025, compared to a net loss of $0.1 million, or $(0.01) per diluted share, in the prior-year period [7][10] Cost Management - Sales and marketing expenses decreased to $1.2 million from $1.5 million in the prior-year period, while general and administrative expenses fell to $3.9 million from $4.4 million [6][10] - Adjusted EBITDA for the first quarter was $0.5 million, down from $0.8 million in the prior-year period [8][10] Balance Sheet and Debt - As of March 31, 2025, the company had cash on hand of approximately $1.1 million, compared to $1.0 million at the end of 2024 [11][10] - Total debt was approximately $23.2 million, down from $25.8 million at the start of the fiscal year, primarily due to a $5.8 million reduction in contingent liabilities [11][10] - The trailing twelve-month gross and net leverage ratios utilizing Adjusted EBITDA were 4.91x and 4.67x, respectively, compared to 2.59x and 2.39x at the beginning of 2025 [12][10]

Core Viewpoint - Creative Realities, Inc. is set to release its financial results for Q1 2025 on May 14, 2025, with a conference call scheduled for the same day to discuss the results and engage in a Q&A session [1][2]. Company Overview - Creative Realities, Inc. specializes in designing, developing, and deploying digital signage solutions for enterprise-level networks, utilizing platforms such as Clarity™, ReflectView™, and iShowroom™ [3]. - The company provides recurring SaaS and support services across various sectors, including retail, automotive, digital-out-of-home advertising, convenience stores, foodservice, gaming, theater, and stadium venues [3]. - Creative Realities assists clients in leveraging place-based digital media to enhance revenue, customer experiences, and productivity, including managing Retail Media Networks through its AdLogic™ and AdLogic CPM+™ platforms [3].

Core Insights - Creative Realities, Inc. (CRI) has been selected by a prominent upscale Quick Service Restaurant (QSR) chain to transform its indoor and outdoor menu boards, marking a significant step in the restaurant's digital transformation strategy [1][2] Group 1: Project Overview - The project involves shifting from static displays to dynamic digital signage, enhancing customer engagement through personalized messaging and real-time promotions [2] - CRI will provide a comprehensive solution that includes consulting, content strategy, hardware provisioning, deployment support, and ongoing service, all utilizing CRI's proprietary CMS platform, ClarityTM [2][3] Group 2: Technology and Features - ClarityTM is designed specifically for the food and beverage industry, offering features such as remote content management, POS integration, geo-targeted promotions, and time-based segmentation [3] - The platform simplifies drive-through operations with capabilities like order confirmation and intelligent upsell and cross-sell features, which are expected to improve customer experience and reduce vehicular bottlenecks [4] Group 3: Implementation Timeline - The full rollout of the project is contingent upon a successful pilot, which is set to begin in select locations during the third quarter of 2025 [4]

Company Overview - Creative Realities, Inc. is a leading provider of digital signage and media solutions, focusing on enterprise-level networks [2] - The company utilizes its ClarityTM, ReflectViewTM, and iShowroomTM Content Management System (CMS) platforms to design, develop, and deploy digital signage-based experiences [2] - Creative Realities offers recurring SaaS and support services across various vertical markets, including retail, automotive, digital-out-of-home advertising, convenience stores, foodservice, gaming, theater, and stadium venues [2] Business Objectives - The company assists clients in leveraging place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity [2] - Creative Realities designs and manages Retail Media Networks to monetize on-premise foot traffic through its AdLogicTM and AdLogic CPM+TM programmatic advertising platforms [2] Upcoming Events - Creative Realities will participate in the Planet MicroCap Showcase Conference in Las Vegas on April 23 and 24, 2025 [1] - Management will provide a general presentation on April 23 at 4:00 pm Pacific Time and will host one-on-one meetings with investors throughout April 24 [1]

This confirms CRI as a SaaS provider that ensures security, stability, and privacy in its products.LOUISVILLE, Ky., March 25, 2025 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ: CREX), a leading provider of digital signage and media solutions, is pleased to announce the successful completion of its Systems and Organizations Controls (SOC) 2 Type 1 audit. This audit achieved compliance with the leading industry standards for customer data security. This ...

Core Insights - Creative Realities, Inc. has successfully modernized Rogers Arena, marking its first full-scale deployment in Canada's IPTV and live venue industry [1][2] - The project enhances fan engagement, operational efficiency, and advertising opportunities through over 900 digital displays [2][4] Company Overview - Creative Realities specializes in digital signage and media solutions, focusing on enhancing customer experiences through omnichannel technologies [11] - The company has a strong presence in the US market, servicing over 50 professional sports venues, and is now expanding into Canada [7][10] Project Details - The modernization includes a venue-wide technology refresh, integrating Uniguest's Tripleplay IPTV and Digital Signage solution with LG Electronics' high-definition screens [2][3] - The deployment features advanced content strategies to maximize fan engagement and drive higher-value interactions [4][5] Strategic Importance - This project is seen as a milestone for the Canadian sports and entertainment market, showcasing how digital solutions can transform live venues [4][9] - The integration of customized content strategies aims to enhance premium hospitality experiences, aligning with the Canucks' brand identity [5][7] Future Prospects - Phase One focused on infrastructure and content strategy, with discussions for Phase Two already underway [9] - The successful deployment at Rogers Arena sets a benchmark for future stadium transformations and potential partnerships across the NHL [10]

Next-generation IPTV and digital signage make waves at live venues, setting new standards for fan experiences.LOUISVILLE, Ky., March 19, 2025 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (NASDAQ: CREX), a leading provider of digital signage and media solutions, announces the successful modernization of Rogers Arena, home of the Vancouver Canucks, marking the company’s first full-scale deployment in Canada’s IPTV and live venue industry. As part of a broader venue-wide technology refresh, Creative Realities ...

Financial Data and Key Metrics Changes - The company reported revenue of $11 million for Q4 2024, down from $14.5 million in Q4 2023, with gross profit decreasing to $4.9 million from $7.5 million year-over-year [8][9] - Adjusted EBITDA for Q4 2024 was approximately $0.5 million, compared to $2.8 million in the same quarter last year [8] - Annual recurring revenue (ARR) is at a run rate of $16.8 million, with expectations for revenue acceleration in fiscal 2025 [9][10] - The company achieved over $50 million in revenue for the full year, with an adjusted EBITDA margin of 10% [7] Business Line Data and Key Metrics Changes - The company is focusing on its new AdLogic CPM+ platform, which is expected to enhance revenue through targeted advertising solutions [10][11] - The deployment of on-premise screens and sophisticated ad serving tools is part of the full-service approach to address modern retail media network challenges [12] Market Data and Key Metrics Changes - The company has seen increased demand for its solutions, particularly in the quick-service restaurant and retail sectors, indicating a growing market for its services [16] - The company has completed significant installations, including 56 site installations in Q4 2024, with an average sale price of $30,000 [24] Company Strategy and Development Direction - The company aims to leverage its AdLogic CPM+ platform to position itself as a one-stop shop for AdTech solutions, enhancing its competitive advantage [11][12] - The management is optimistic about the active pipeline of opportunities and anticipates record performance in fiscal 2025 [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter was negatively impacted by deployment timing but expects strong revenue growth in the second half of 2025 [9][10] - The company is not providing specific guidance but anticipates a year of accomplishments and new records [17] Other Important Information - The company resolved a contingent liability related to the purchase of Reflect Systems, which is expected to provide financial flexibility [14][15] - The company has minimal cash on hand, approximately $1 million, down from $2.9 million at the end of 2023, with gross and net debt at approximately $13 million and $12 million, respectively [19][20] Q&A Session Summary Question: Can you provide commentary on customer conversations regarding the frozen pipeline? - Management expects some projects to finalize soon, but customers are concerned about potential tariffs affecting their projects [28][30] Question: How are existing customers embracing the new AdLogic platform? - Customers are transitioning to retail media networks, which incorporate the AdLogic platform, solving significant operational challenges [44][46] Question: What is the impact of the new ERP system on infrastructure control? - The new ERP system is expected to provide significant cost management benefits and improve expense controls [49][51] Question: Can you quantify the number of warrants issued to Reflect? - The company issued 777,790 warrants with a strike price of $3.25, valid for six years [61] Question: What is the expected revenue growth in the second half of the year? - Management expects adjusted EBITDA profitability in Q1 and anticipates year-over-year growth exceeding 2024 levels [64][66] Question: What is the average contract value for MLB or NHL stadium projects? - Projects can range from $150,000 for menu boards to $2 million to $3 million for full stadium refreshes [66][68] Question: What led to the 90-day pause on BCTV? - The pause was due to funding discussions between BCTV and its investors, with expectations to resume in June [76] Question: What is the current status of the credit facility? - The company has a maximum capacity of $22.1 million on its revolver, with approximately $6 million to $7 million available [80][82] Question: How does cash flow work for major projects? - Cash flow can vary, with significant deposits required for private projects, while public partnerships may experience negative cash flow initially [92][96] Question: What are the expectations for adjusted EBITDA margins? - The company aims to achieve a 15% adjusted EBITDA margin by the end of the year, with expectations for revenue growth [98][100]

Financial Data and Key Metrics Changes - The company reported revenue of $11 million for Q4 2024, down from $14.5 million in Q4 2023, with a gross profit of $4.9 million compared to $7.5 million last year [7] - Adjusted EBITDA for Q4 2024 was approximately $500,000, a decrease from $2.8 million in the previous year, with annual recurring revenue (ARR) at a run rate of $16.8 million [7][10] - The company achieved a record annual revenue exceeding $50 million with an adjusted EBITDA margin of 10% for the full year [6] Business Line Data and Key Metrics Changes - The company completed 56 site installations in Q4 at an average sale price of $30,000, with expectations for a moderate increase in installations in the second half of 2025 [18] - The introduction of the AdLogic CPM plus platform is expected to enhance targeting precision and reduce costs for customers, positioning the company as a comprehensive ad tech solution provider [9] Market Data and Key Metrics Changes - The company is experiencing strong demand for its solutions, particularly in the quick-service restaurant and retail sectors, with significant projects in the pipeline [12][16] - The sports and entertainment sector has seen growth, with three MLB projects awarded in Q1 2025 and additional POCs ongoing at various venues [17] Company Strategy and Development Direction - The company aims to accelerate revenue growth in the second half of 2025, driven by better economies of scale and higher margins [10] - The focus is on enhancing customer experience through innovative solutions and expanding the retail media network offerings [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming the current operational challenges and anticipates a strong performance in 2025, despite a weaker Q1 [52] - The company is optimistic about the resolution of contingent liabilities, which will provide financial flexibility and allow a focus on growth [10][11] Other Important Information - The company has settled its contingent liability related to the acquisition of Reflex Systems, involving a $3 million cash payment and a $4 million promissory note [10][11] - The company achieved SOC2 Type one compliance, with expectations to reach Type two certification by year-end, enhancing its credibility with enterprise customers [19] Q&A Session Summary Question: Commentary on customer conversations regarding the frozen pipeline - Management noted that customers are beginning to move projects forward after a period of stagnation, with expectations for several projects to finalize soon [21][22] Question: Impact of tariffs on business - Management indicated that while there are concerns about tariffs, most components are domestically sourced, and only slight increases in costs are expected [24] Question: Adoption of the new AdLogic platform by existing customers - Customers are embracing the AdLogic platform as it enhances their digital operations, leading to potential margin improvements [34] Question: Visibility and flexibility from the new ERP system - The new ERP system is expected to provide significant cost management benefits and improve operational metrics [37][38] Question: Progress with channel partners - The company is actively recruiting and signing new channel partners, with demand for licenses increasing [42] Question: Details on the contingent consideration settlement - The settlement includes a six-year warrant with a strike price of $3.25, totaling approximately $800,000 [48] Question: Expectations for revenue growth in 2025 - Management expects year-over-year revenue growth in 2025 to exceed 2024 levels, with adjusted EBITDA profitability anticipated in Q1 [52][53] Question: Dynamics of customer adjustments impacting ARR - Two large customers made adjustments that led to a temporary decline in ARR, but management expects to recover this revenue in 2025 [101][102] Question: Future cash flow dynamics on major projects - Cash flow can vary significantly based on whether projects are privately or publicly funded, with deposits typically required for private projects [78] Question: Clarification on adjusted EBITDA margin expectations - Management aims to achieve a 15% adjusted EBITDA margin by the end of the year, with expectations for revenue growth to support this target [81][84]

Core Viewpoint - Creative Realities, Inc. has settled its dispute with former stockholders of Reflect Systems, resolving its obligation to pay contingent supplemental cash payments related to the merger with Reflect [1][2] Group 1: Settlement Details - The settlement includes a cash payment of $3 million, a $4 million 30-month promissory note, and the issuance of warrants to purchase common stock [1][2] - The promissory note is unsecured, accrues interest at 14.0% per annum, and requires a balloon payment of $2.3 million on September 14, 2027 [1][2] Group 2: Management Commentary - The CEO expressed satisfaction with the settlement, highlighting its benefits for the company, investors, and former Reflect stockholders [2] - The settlement is seen as providing financial flexibility and removing uncertainty, allowing the company to focus on growth and improved operating results for fiscal 2025 [2] Group 3: Company Overview - Creative Realities designs and deploys digital signage solutions for enterprise-level networks, utilizing platforms like Clarity™, ReflectView™, and iShowroom™ [3] - The company provides recurring SaaS and support services across various sectors, including retail, automotive, and digital-out-of-home advertising [3] - It aims to enhance customer experiences and productivity through place-based digital media and Retail Media Networks [3]