The following is a summary of the Creative Realities, Inc. (CREX) Q4 2023 Earnings Call Transcript:
Financial Performance:
Creative Realities Inc. reported record Q4 2023 revenue of $14.5 million, gross profit of $7.5 million, and adjusted EBITDA of $2.8 million.
Posted a record annual revenue of $45.2 million, gross profit of $22.2 million, and adjusted EBITDA of $5.1 million in FY 2023.
For the first time, the company reported a positive result on an annual basis with an operating income of $1.3 million.
The Annual Recurring Revenue (ARR) grew to a record $16.3 million by the end of 2023, standing at a record high of $17.7 million midway through March.
The company had outstanding principal debt of about $15.1 million as of December 31, 2023, and a net debt of around $12.2 million.
Business Progress:
Creative Realities expects growth in 2024 and beyond, raising its 2024 guidance for exit run rate ARR for SaaS-based subscription license revenue from $18 million to $20 million.
There are plans for reducing company debt and focusing on profitability and free cash flow.
Plans for continuous investment in platforms and exploration for potential future acquisitions were announced.
Due to customer acquisition in 2022 and 2023, no single customer exceeded 10% of the company's revenue in 2023.
The company began a channel program, targeting to quickly reach 1,000 licenses to generate additional SaaS revenue, and is transitioning to a comprehensive, company-wide ERP solution. It also anticipates rapid sales growth in their drive-thru product.
More details: Creative Realities IR
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