In This Article:
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Revenue: $9.7 million in Q1 2025, down from $12.3 million in Q1 2024.
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Gross Profit: $4.5 million in Q1 2025, compared to $5.8 million in Q1 2024.
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Gross Margin: 46%, consistent with the prior year period.
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Annual Recurring Revenue (ARR): $17.3 million at the end of Q1 2025, up from $16.8 million at the start of 2025.
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Adjusted EBITDA: $0.5 million, nominal change from the previous year and quarter.
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SG&A Expenses: Reduced by 11% to $5.2 million in Q1 2025 from $5.8 million in Q1 2024.
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Operating Costs: Decreased sequentially from $5.6 million in Q4 2024.
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Cash on Hand: Approximately $1.1 million as of March 31, 2025.
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Gross Debt: $23.2 million at the end of Q1 2025, up from $13 million at the start of 2025.
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Net Debt: $22.1 million at the end of Q1 2025.
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Leverage Ratio: Gross leverage at 4.91% and net leverage at 4.67% as of Q1 2025.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Creative Realities Inc (NASDAQ:CREX) secured a significant contract with a well-known upscale quick service restaurant chain, which is expected to enhance their market credibility and lead to additional large wins.
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The company achieved a reduction in SG&A expenses by 11% compared to the previous year, indicating effective cost management.
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Creative Realities Inc (NASDAQ:CREX) resolved a $12.8 million contingent liability for $7 million, providing long-term financial visibility and flexibility.
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The introduction of the Ad Logic CPM platform has been well-received, with potential clients showing interest in its capabilities for targeted high-performance campaigns.
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The company is on track to achieve SOC 2 Type 2 compliance by year-end, enhancing the trustworthiness and credibility of its products to enterprise customers.
Negative Points
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Revenue for the first quarter decreased to $9.7 million from $12.3 million in the same period last year, primarily due to installation timing issues on several large projects.
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Gross profit declined to $4.5 million from $5.8 million in the previous year, reflecting the impact of delayed project deployments.
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Debt levels increased to $23.2 million from $13 million at the start of 2025, largely due to the settlement of a contingent liability.
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The BCTV project experienced slower progress in the first two quarters of 2025, impacting expected revenue generation.
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The company faces potential risks from global trade uncertainties and tariffs, which could affect the cost of materials and project timelines.