The following is a summary of the Creative Realities, Inc. (CREX) Q1 2025 Earnings Call Transcript:
Financial Performance:
Creative Realities Inc. reported Q1 revenue of $9.7 million, down from $12.3 million in the previous year's first quarter, mainly due to timing in large project installations.
Gross profit for Q1 2025 was $4.5 million with a gross margin of 46%, consistent with the previous year.
Adjusted EBITDA remained stable at $0.5 million despite the revenue decline, attributable to a reduction in SG&A expenses by 11%.Net debt increased to $23.2 million due to resolving a $12.8 million contingent liability and short-term working capital usage.
Business Progress:
Engaged in a new partnership with a well-known QSR chain to revamp their digital presence, beginning pilot installations in Q3 of 2025.
Introduced AdLogic CPM platform, enhancing advertising and campaign management capabilities for clients.
Achieved SOC 2 Type 1 compliance and expecting Type 2 by year-end, enhancing product trustworthiness.
Enhanced operational capabilities by relocating to a larger warehouse space, preparing for increased activities expected in the latter half of the year.
Opportunities:
Expansion in the Sports and Entertainment vertical, with engagements in several stadium projects and potential long-term agreements promising predictable revenue streams.
Potential marked revenue and additional SaaS revenue through engagement in Digi Point Media Network for deployment in IceBoxes at groceries and C-Stores scheduled to start in the third quarter.
Risks:
Project delays experienced in the first quarter could impact short-term revenue, although the company is confident over overcoming these delays.
Tariffs and global trade uncertainties could potentially affect the procurement and cost structures for the company's future projects.
More details: Creative Realities IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
