Business
Creative Realities announces 2Q19 financial results
LOUISVILLE, Ky., Aug. 8, 2019 /PRNewswire/ -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ: CREX, CREXW), a leading
About this update from Creative Realities, Inc.
[{"type":"text","content":"\n \n \n LOUISVILLE, Ky., Aug. 8, 2019 /PRNewswire/ -- Creative Realities, Inc. (\"Creative Realities,\" \"CRI,\" or the \"Company\") (NASDAQ: CREX, CREXW), a leading provider of digital marketing solutions, announced its financial results for the three- and six-months ended June 30, 2019. \n\n \nRick Mills, Chief Executive Officer, remarked, \"CRI achieved quarterly revenue in excess of $9 million for the second straight quarter. During the second quarter we improved margins resulting in record quarterly Adjusted EBITDA of $1.1 million on an operating profit of $0.5 million. Our results for the first half of 2019 provide evidence of both the Company's strong market momentum and ability to produce further positive results through scale.\"\n2019 Second Quarter Financial Overview\nRevenues were $9.3 million for the three-month period ended June 30, 2019, an increase of $2.1 million, or 30%, compared to the same period in 2018. Hardware revenue decreased approximately $1.2 million, or 42%, in the second quarter of 2019 as compared to the same period in the prior year driven by a $1.7 million hardware-only project in the second quarter of 2018 which did not recur in 2019, partially offset by an increase in hardware sales to other customers. Gross margin on hardware revenue was 20% in 2Q19 as compared to 35% in 2Q18. Services and other revenue grew approximately $3.3 million, or 77%, in the second quarter of 2019 as compared to the same period in the prior year. Gross margin on services and other revenue increased to 51% in 2Q19 from 48% in 2Q18. Managed services revenue, which includes both SaaS and help desk technical subscription services, represented approximately $1.6 million revenue in the second quarter of 2019, an increase of $1.1 million, or 211%, as compared to the same period in the prior year. Gross profit was $4.2 million for the second quarter of 2019, an increase of $1.1 million, or 37%, compared to the same period in 2018. Gross margin increased to 45% in 2Q19 from 43% in 2Q18, driven primarily by the aforementioned mix of hardware and services and other revenue. The company achieved operating income of $0.5 million during 1Q19 as compared to operating breakeven in 1Q18. General and administrative expenses increased $0.5 million to $2.4 million in 2Q19 as compared to 2Q18 made up of $0.2 million in incremental stock c...