Creative Realities, Inc. Files 10-Q for Q1 2024
Ticker: CREX · Form: 10-Q · Filed: May 10, 2024 · CIK: 1356093
Sentiment: mixed
Topics: 10-Q, Creative Realities, Revenue, Hardware, Services
TL;DR
<b>Creative Realities, Inc. reported mixed revenue results for Q1 2024, with hardware sales declining but service revenue increasing.</b>
AI Summary
CREATIVE REALITIES, INC. (CREX) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Revenue for the three months ended March 31, 2024, was $10.4 million, a decrease from $10.4 million for the same period in 2023. Hardware revenue was $6.7 million for Q1 2024, down from $7.9 million in Q1 2023. Service and Other revenue was $3.7 million for Q1 2024, up from $2.5 million in Q1 2023. Total assets were $66.7 million as of March 31, 2024. Total debt was $10.4 million as of March 31, 2024.
Why It Matters
For investors and stakeholders tracking CREATIVE REALITIES, INC., this filing contains several important signals. The decrease in hardware revenue may indicate a slowdown in customer spending on physical installations or a shift in product mix. The growth in service and other revenue suggests a potential strategic shift towards recurring revenue streams or successful expansion of service offerings.
Risk Assessment
Risk Level: medium — CREATIVE REALITIES, INC. shows moderate risk based on this filing. The company experienced a year-over-year decrease in hardware revenue, which is a significant portion of its business, indicating potential challenges in sales or market demand.
Analyst Insight
Investors should monitor the company's ability to sustain growth in its service segment to offset potential declines in hardware sales.
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Hardware | 6.7 | -15.19% |
| Service and Other | 3.7 | 48.00% |
Key Numbers
- 10.4 — Revenue (Q1 2024) (Millions USD)
- 10.4 — Revenue (Q1 2023) (Millions USD)
- 6.7 — Hardware Revenue (Q1 2024) (Millions USD)
- 3.7 — Service and Other Revenue (Q1 2024) (Millions USD)
- 66.7 — Total Assets (as of March 31, 2024) (Millions USD)
- 10.4 — Total Debt (as of March 31, 2024) (Millions USD)
Key Players & Entities
- CREATIVE REALITIES, INC. (company) — Filer name
- CREX (company) — Ticker symbol
- 10-Q (filing) — Form type
- 2024-03-31 (date) — Reporting period end date
- $10.4 million (dollar_amount) — Revenue for Q1 2024
- $10.4 million (dollar_amount) — Revenue for Q1 2023
- $6.7 million (dollar_amount) — Hardware revenue for Q1 2024
- $3.7 million (dollar_amount) — Service and Other revenue for Q1 2024
FAQ
When did CREATIVE REALITIES, INC. file this 10-Q?
CREATIVE REALITIES, INC. filed this Quarterly Report (10-Q) with the SEC on May 10, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by CREATIVE REALITIES, INC. (CREX).
Where can I read the original 10-Q filing from CREATIVE REALITIES, INC.?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by CREATIVE REALITIES, INC..
What are the key takeaways from CREATIVE REALITIES, INC.'s 10-Q?
CREATIVE REALITIES, INC. filed this 10-Q on May 10, 2024. Key takeaways: Revenue for the three months ended March 31, 2024, was $10.4 million, a decrease from $10.4 million for the same period in 2023.. Hardware revenue was $6.7 million for Q1 2024, down from $7.9 million in Q1 2023.. Service and Other revenue was $3.7 million for Q1 2024, up from $2.5 million in Q1 2023..
Is CREATIVE REALITIES, INC. a risky investment based on this filing?
Based on this 10-Q, CREATIVE REALITIES, INC. presents a moderate-risk profile. The company experienced a year-over-year decrease in hardware revenue, which is a significant portion of its business, indicating potential challenges in sales or market demand.
What should investors do after reading CREATIVE REALITIES, INC.'s 10-Q?
Investors should monitor the company's ability to sustain growth in its service segment to offset potential declines in hardware sales. The overall sentiment from this filing is mixed.
Risk Factors
- Dependence on Key Customers [medium — market]: The company's revenue is significantly dependent on a small number of key customers, making it vulnerable to changes in demand or contract terminations from these customers.
- Supply Chain and Manufacturing Risks [medium — operational]: Disruptions in the supply chain or manufacturing processes for hardware components could impact the company's ability to deliver products and fulfill customer orders.
- Liquidity and Debt Covenants [medium — financial]: The company's ability to meet its financial obligations, including debt repayment and compliance with loan covenants, is crucial for its ongoing operations.
Filing Stats: 4,494 words · 18 min read · ~15 pages · Grade level 17.8 · Accepted 2024-05-10 08:22:02
Key Financial Figures
- $0.01 — ch registered Common Stock, par value $0.01 per share CREX The Nasdaq Stock Mar
Filing Documents
- crex20240331_10q.htm (10-Q) — 872KB
- ex_632214.htm (EX-31.1) — 12KB
- ex_632215.htm (EX-31.2) — 12KB
- ex_632216.htm (EX-32.1) — 5KB
- ex_632217.htm (EX-32.2) — 5KB
- ex_671394.htm (EX-99.1) — 252KB
- crexlogonew.jpg (GRAPHIC) — 7KB
- 0001437749-24-015814.txt ( ) — 5185KB
- crex-20240331.xsd (EX-101.SCH) — 43KB
- crex-20240331_cal.xml (EX-101.CAL) — 34KB
- crex-20240331_def.xml (EX-101.DEF) — 299KB
- crex-20240331_lab.xml (EX-101.LAB) — 260KB
- crex-20240331_pre.xml (EX-101.PRE) — 322KB
- crex20240331_10q_htm.xml (XML) — 785KB
Financial Statements
Item 1. Financial Statements CREATIVE REALITIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, December 31, 2024 2023 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 2,899 $ 2,910 Accounts receivable, net 9,516 12,468 Inventories, net 3,065 2,567 Prepaid expenses and other current assets 837 665 Total Current Assets $ 16,317 $ 18,610 Property and equipment, net 464 499 Goodwill 26,453 26,453 Other intangible assets, net 23,985 24,062 Operating lease right-of-use assets 875 1,041 Other non-current assets 112 112 Total Assets $ 68,206 $ 70,777 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 4,788 $ 7,876 Accrued expenses and other current liabilities 3,955 3,761 Deferred revenues 1,777 1,132 Customer deposits 4,411 3,233 Current maturities of operating leases 431 505 Short-term portion of related party Acquisition Term Loan, net of $ 613 and $ 0 discount, respectively 9,387 - Short-term portion of related party Consolidation Term Loan, net of $ 655 and $ 747 discount, respectively 3,383 3,690 Short-term portion of contingent consideration, at fair value 10,603 - Total Current Liabilities 38,735 20,197 Long-term related party Acquisition Term Loan, net of $ 0 and $ 787 discount, respectively - 9,213 Long-term related party Consolidation Term Loan, net of $ 0 and $ 94 discount, respectively - 616 Long-term obligations under operating leases 444 536 Long-term contingent consideration, at fair value - 11,208 Other non-current liabilities 178 176 Total Liabilities 39,357 41,946 Shareholders' Equity Common stock, $ 0.01 par value, 66,666 shares authorized; 10,447 and 10,409 shares issued and outstanding, respectively 104 104 Additional paid-in capital 82,200 82,073 Accumulated deficit ( 53,455 ) ( 53,346 ) Total Shareholders' Equity 28,849 28,831 Total Liabilities and Sha