In This Article:
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Revenue: $11 million for Q4 2024, down from $14.5 million in Q4 2023.
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Gross Profit: $4.9 million for Q4 2024, compared to $7.5 million in Q4 2023.
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Adjusted EBITDA: Approximately $0.5 million for Q4 2024, down from $2.8 million in Q4 2023.
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Annual Recurring Revenue (ARR): Run rate of $16.8 million.
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Cash on Hand: Approximately $1 million as of December 31, 2024, compared to $2.9 million at the end of 2023.
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Gross Debt: Approximately $13 million at the end of Q4 2024.
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Net Debt: Approximately $12 million at the end of Q4 2024.
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Leverage Ratio: Gross leverage of 2.59 times and net leverage of 2.39 times at the end of fiscal 2024.
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Settlement Payment: $3 million in cash and a $4 million 30-month promissory note related to Reflect Systems acquisition.
Release Date: March 17, 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) closed out its best year in company history with revenue exceeding $50 million and an adjusted EBITDA of 10%.
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The company resolved its outstanding contingent liability from the purchase of Reflect Systems in 2022, providing financial flexibility and eliminating uncertainty.
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The introduction of the AdLogic CPM+ platform is expected to drive growth by offering a comprehensive ad tech solution, enhancing targeting precision, and reducing costs.
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Creative Realities Inc (NASDAQ:CREX) anticipates revenue acceleration and improved performance in the second half of 2025, driven by a strong pipeline of opportunities.
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The company achieved SOC 2 Type 1 compliance and expects to achieve SOC 2 Type 2 certification, enhancing the credibility of its enterprise-grade offerings.
Negative Points
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Fourth-quarter revenue decreased to $11 million from $14.5 million a year ago, with gross profit also declining from $7.5 million to $4.9 million.
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Adjusted EBITDA for the fourth quarter was approximately $0.5 million, down from $2.8 million in the previous year.
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Cash on hand decreased to approximately $1 million at the end of 2024, compared to $2.9 million at the end of 2023.
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The company expects minimal or no tariff issues, but potential increases in steel prices could impact costs.
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Creative Realities Inc (NASDAQ:CREX) anticipates a slow start to 2025, with adjusted EBITDA profitability expected to be just barely positive in the first quarter.
Q & A Highlights
Q: Can you provide insights into the current state of customer conversations and the potential impact of tariffs on your business? A: Richard Mills, CEO: We have a frozen pipeline of projects nearing completion, with some expected to finalize soon. Tariffs are a concern, particularly regarding steel and display screens, but we anticipate minimal impact on most projects. The market is still assessing tariff implications.