Financial Data and Key Metrics Changes - The company reported record first-quarter revenue of $12.3 million, a 23.5% increase from $9.9 million in the prior year [18] - Gross profit for the first quarter was $5.8 million, up from $5.1 million in 2023 [18] - Adjusted EBITDA was approximately $0.8 million compared to $1 million last year [18] - Annual recurring revenue (ARR) reached an all-time high of approximately $17.7 million, an increase of $1.4 million from the end of 2023 [20] Business Line Data and Key Metrics Changes - Service revenue grew by 45% year-over-year, driven by higher installations, although this led to slightly lower gross margins [9] - The company expects that increased installation activity will lead to higher subscription revenue in the future [9] Market Data and Key Metrics Changes - The company is experiencing strong demand in the quick-service restaurant (QSR) sector, particularly for drive-thru solutions [44] - Engagement with professional sports teams for large stadium overhauls is also significant, with ongoing discussions with 10 to 15 teams [44] Company Strategy and Development Direction - The company is focused on disciplined debt deleveraging and has secured a new $20 million senior revolving credit facility to enhance financial flexibility and support growth [34][35] - The management is optimistic about the potential for acquisitions, given the new financing capacity, while maintaining a focus on reasonable valuations [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of $60 million for the year, despite some slower ramp-up in certain projects [31] - The company anticipates a return to a higher mix of hardware sales in the upcoming quarters, which should positively impact EBITDA margins [32] Other Important Information - The company is on track for an ERP transition to NetSuite on July 1, which is expected to improve operational efficiency [42] - The backlog remains significant, although slightly reduced from previous figures, indicating ongoing demand [71] Q&A Session Summary Question: Can you talk about business development and demand in verticals? - Management highlighted strong activity in the QSR space and ongoing engagements with professional sports teams for large projects [44] Question: Is there any change to the revenue guidance range? - Management confirmed that they are still firm on the $60 million revenue guidance and expect to make up for any slower ramp in other business areas [31] Question: What is the status of the Panera relationship? - The company is fully integrated with Panera's point of sale and expects to open 40 to 60 new locations annually [48][77] Question: How are you deepening relationships with existing customers? - Management noted that existing customers are expanding their services, leading to increased revenue from previously acquired customers [54] Question: What is the competitive environment like? - Management indicated that they are winning about 70% of engagements and are increasingly invited to participate in proposals [51][58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 001-33169 Creative Realities, Inc. (Exact Name of Registrant as Specified in its Charter) | Minnesota | 41-1 ...

LOUISVILLE, Ky., May 10, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ:CREX), a leading provider of digital signage and media solutions, announced its financial results for the fiscal first quarter ended March 31, 2024. Highlights: Record first quarter revenue of $12.3 million, up 24% from $9.9 million in the prior-year periodGross profit of $5.8 million for the three months ended March 31, 2024 versus $5.1 million in the first quarter of fiscal 20 ...

LOUISVILLE, Ky., May 03, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "company") (NASDAQ:CREX, CREXW))), a leading provider of digital signage solutions, announced today that it will release its financial results for the three months ended March 31, 2024 before the market open on Friday, May 10, 2024. A conference call to review the results is scheduled for Friday, May 10, 2024 at 9:00 am Eastern Time, which will include prepared remarks and materials from managemen ...

Financial Data and Key Metrics - Operating income for 2023 was $1.3 million, marking the first time the company achieved a positive annual result [6] - Adjusted EBITDA reached an all-time annual record of $5.1 million, representing 11.2% of revenue [6][7] - Annual Recurring Revenue (ARR) grew to a record $16.3 million run rate exiting 2023 [7] - Cash on hand as of December 31, 2023, was approximately $2.9 million [8] - Net debt reduced to $12.2 million as of December 31, 2023, down from $19 million at the end of 2022 [9] - Leverage ratio improved to 2.7 times on gross debt and 1.9 times on net debt, down from 5.4 and 5.0 times respectively at the end of 2022 [14] Business Line Data and Key Metrics - The company performed eight installations in 2023 at an average sale price of $27,000 per location [16] - Q1 2024 is expected to see 50 to 60 installations, with acceleration throughout Q2 and Q3 [16] - The new retail media network secured another customer in the financial sector, chosen as their deployment partner [16] - Starlite Media is transitioning from static to digital, with several hundred locations expected to convert or add digital displays every quarter through 2024 and 2025 [17] Market Data and Key Metrics - The company projects 20% to 40% revenue growth for each year-over-year quarter in 2024, accounting for seasonality [12] - The company's debt stood at approximately $14 million as of the call date, down $2 million since the start of the year [14] - The leverage ratio improved to 2.4 times on trailing 12-month adjusted EBITDA by the end of 2023 [28] Company Strategy and Industry Competition - The company is at an inflection point where new revenue is coming with improved margins, benefiting from operating leverage [13] - The company is focusing on strengthening its balance sheet by increasing revenue, improving profitability, and managing debt leverage [27] - The company competes with STRATACACHE and Coates in the digital signage market, particularly in the QSR industry [42] Management Commentary on Operating Environment and Future Outlook - Management believes the risk profile of the company has substantially improved and will continue to do so throughout 2024 [10] - The company is increasing its 2024 guidance for exit run rate ARR on SaaS-based subscription license revenue from $18 million to $20 million [34] - Management expects to continue paying down debt, deleveraging the company, and strengthening the balance sheet in 2024 [35] Other Important Information - The company modified its accounting for media sales to be recorded at net rather than gross beginning in Q4 2023, which will continue to affect revenue recognition [10] - The company launched a channel program on February 1, 2024, and is already approaching 100 licenses [36] - The company is transitioning to a comprehensive company-wide ERP solution, with the first departments expected to come online in Q2 2024 [18] Q&A Session Summary Question: Backlog and Opportunities - The backlog has remained relatively flat, with 18 to 24 months of revenue in the pipeline [40] - The company expects the backlog to change over the next two quarters as they close significant opportunities [40] Question: Drive-Thru Success and Brand Awareness - The company's success in drive-thru upgrades has led to greater brand awareness and more enterprises looking to work with them [59] - The company is now included in conversations with midsize and large QSR brands evaluating drive-thru solutions [59] Question: Gross Margin Dynamics - Gross margin percentages on hardware and services in Q4 2023 were affected by cleanup in gross-to-net accounting, particularly with media sales [81] - Full-year figures are a better proxy for gross margins, with hardware typically in the low-20s and services in the low-60s [82] Question: Channel Partner Program Feedback - The channel partner program has received positive feedback, with 100 licenses already secured [67] - The company expects the program to grow quickly, driven by higher-margin SaaS revenue [67] Question: New Opportunities in Convenience Stores and Supermarkets - QSR remains a hot market, particularly for digital drive-thru solutions [71] - Supermarkets are exploring whole-store ecosystems with digital advertising, menu boards, and wayfinding solutions [72] Question: IceBox Media and Black Rifle Deals - IceBox Media is a digital advertising network with limited hardware and a focus on software [74] - The Black Rifle deal involves converting existing digital signage to the company's software platform, with potential for significant scale [92] Question: Software Pricing and Growth - The company is increasing software pricing for new customers and renegotiating existing contracts to drive growth [94] - New customers are being added at higher prices per endpoint, contributing to an increase in average SaaS revenue [102]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-33169 Creative Realities, Inc. (Exact name of registrant as specified in its charter) | Minne ...

LOUISVILLE, Ky., March 14, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ:CREX, CREXW))), a leading provider of digital signage solutions, announced today that it will release its financial results for the year ended December 31, 2023 before the market open on Thursday, March 21, 2024. A conference call to review the results is scheduled for Thursday, March 21, 2024 at 9:00 am Eastern Time, which will include prepared remarks from management followe ...

LOUISVILLE, Ky., March 13, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (NASDAQ:CREX, CREXW))), a leading provider of digital signage solutions, continues its longstanding collaboration with airport advertising company Departure Media to create an immersive advertising experience at Cincinnati/Northern Kentucky International Airport (CVG). With a focus on enhancing the traveler experience through innovative technology-driven advertising solutions, Departure Media operates in 14 airports nationwide, inc ...

LOUISVILLE, Ky., Feb. 27, 2024 (GLOBE NEWSWIRE) -- Digital signage and media solutions leader Creative Realities, Inc. (NASDAQ:CREX, CREXW))) today announced its partnership with IceBox Network, a new ad-based network concept under digital out-of-home (DOOH) technology provider Digi Point Media, to revolutionize retail advertising with exclusive digital display placements atop ice suppliers across retail stores for the first time. This collaboration will leverage Creative Realities' ReflectView™ CMS and Ref ...

gorodenkoff/iStock via Getty Images Creative Realities (NASDAQ:CREX) is relatively cheap, poised for impressive growth in 2024, and possesses good operating leverage. In this article, I'll introduce the company briefly, but spend more time discussing why I think the business will do well in Q4 and 2024. Introduction CREX's business revolves around deploying and managing screens for enterprises. It includes the sale of the hardware, installation, software development, managing the content (SaaS), maintenance ...