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].
Creative Realities Reports Fiscal 2024 Fourth Quarter Results