Creative Realities Q4 2024: Navigating Tariff Challenges and Project Pipeline Contradictions

These are the key contradictions discussed in Creative Realities' latest 2024Q4 earnings call, specifically including: Tariff Impacts on Business and Project Pipelines, AdLogic Platform Adoption and Impact on Margins, Pipeline Activity and Project Timing, and Customer Contract Adjustments:



Record Revenue and EBITDA Performance:
- Creative Realities, Inc. reported revenue exceeding $50 million and an adjusted EBITDA of 10% for the fiscal year 2024.
- The strong performance was driven by deploying on-premise screens and offering comprehensive ad serving and campaign execution tools.

Settlement of Contingent Liability:
- CRI resolved its outstanding contingent liability from the purchase of Reflect systems in 2022 by paying $3 million in cash and issuing a $4 million 30-month promissory note.
- This settlement provides financial flexibility and removes a significant overhang on the company's shares, allowing it to focus on growth.

Impact of Deployment Timing and Future Opportunities:
- CRI experienced a decline in Q4 revenue, with $11 million compared to $14.5 million a year ago, and adjusted EBITDA of $0.5 million against $2.8 million last year.
- Thenegative impact was due to deployment timing, but the company anticipates revenue acceleration in the second half of 2025 as it pursues several large opportunities.

Introduction of AdLogic CPM+ Platform:
- CRI introduced the AdLogic CPM+ platform, which integrates robust programmatic capabilities with a user-friendly interface, reducing intermediation fees and enhancing targeting precision.
- This platform is expected to enhance in-store media experiences, positioning CRI as a one-stop shop for required AdTech solutions and benefiting from advertising revenue.

Investment in Sports and Entertainment Sector:
- The company expanded its sports and entertainment team and completed its largest deployment in an NHL arena, with seven POCs ongoing at other venues.
- The focus on this sector is driven by the growth potential and increased demand for innovative digital signage solutions in sports and entertainment facilities.