Display Technology

Q1 earnings keep Creative Realities on path toward growth

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May 19, 2021

Digital marketing solutions provider Creative Realities generated $5 million in revenue in the first quarter of 2021, achieving "breakeven operating results," which will keep it on its expected return to growth in the second half of the year.

The company generated net income, in the quarter ended March 31, 2021, of $1.3 million and as with the last two quarters of 2020 it generated positive EBITDA and Adjusted EBITDA, according to a press release. Those earnings achievements highlight that the company has "continued focus on cost control and revenue-generating activities," stated the release.

"During the quarter, CRI undertook and achieved significant capital activities, including achieving forgiveness of our PPP Loan, completion of a registered direct offering, and a refinancing of all outstanding debt facilities. These activities provide the foundation and runway for the company's continued investment in customer acquisition and an expected return to growth in the second half of 2021. We continue to expect that the second half of 2021 will present opportunities for CRI as a result of strengthening the company's market perception and competitive position during the COVID-19 pandemic, and through improvement of our balance sheet through activities executed in the first quarter of 2021," CEO Rick Mills stated in the release.

Additional financial highlights include:

Revenues represented an increase of $1.3 million, or 35%, as compared to the same period in 2020.
Hardware revenues were $2.8 million, an increase of $1.4 million, or 106%, as compared to the prior year, driven by Thermal Mirror and other Safe Space Solutions products.
Services and other revenues were $2.2 million, a decrease of $0.1 million, or 6.8%, as compared to the same period in 2020.
Managed services revenue were $1.3 million.
Gross profit was $2.2 million, an increase of $0.6 million, or 39%, compared to the same period in 2020.