Will Logan | CFO |
Rick Mills | CEO |
Good morning. This is Will Logan, Chief Financial Officer of Creative Realities Inc. Welcome to our first quarter 2022 financial results and earnings call. All lines have been placed on mute to prevent any background noise. The company has prepared remarks summarizing the Q1 results along with additional industry and company updates. joinwebinar.com will can brief through be by into remarks financial of this prepared meeting logging which the results, seen the company's include overview a our webinar ID The XXXXXXXXX. entering and and heard
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obligation will we plans, me financial Realities may, estimates, are results forward they Factors management forth no on contemplated are based words negative of The statements. events. believes, today identify call differ undertake with this filed Inc. Joining on expressions result information these to versions cause opportunity in update and XX expressions March or looking to make materially our is as or forward-looking of statements Any future expects, XXXX. today, such Creative similar are as form on those these to we anticipated, us the on on by new these intents, and like a as and from our words CEO results that forward-looking assumptions statements or to differ our could materially today take that this form or XX-K of XX-Q that statements. to call forward-looking quarterly include the in I'd statements relate report projects, set annual you the SEC of to propose statements. Rick on intended may remind Mills, should, remarks Actual our
non-GAAP was Realities yesterday. our present filings now may It release non-GAAP that my pleasure in is those reconciliation A of Rick we financial released Mills, GAAP earnings call, public Inc. and Creative and GAAP in of measures. to measures introduce both to included this During our is CEO
important everybody. morning, Revenue pleased revenue in call Good announce year-over-year. revenue tell $X.X million, $XX.X or the of annual revenue increase, signage this These and XXX% our Will. want targets digital very end at a million XXXX record core results we're our of for you an our XXX% And, $X.X in QX from I are shareholders. as with end I million. be investors million start to new heading we rate recurring discussed first, the million a to XXXX. or to year this But run over line is shared thoughts That's Logan services just Thanks. to in run for increased and I that million of ARR rate in have year on expect $XX.X understanding, QX. XXXX. the I've our of at what stated QX are we provide previously record we expected $XX And XXXX. added Systems, would I results, who more a this our many incredibly did found expectations and Is helpful. just merger do. so Reflect going around into XXXX. earnings detail as capabilities are new we our call, $XX some detail last Will and to well completed calls. to On my people and which of balance with like because and of I number on previous build
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three will XX now summarize ended March for financial same the results XXXX. I Thanks, our the to compared as period for XXXX, Rick. months
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to services revenue not XXXX, XX, March Our the to services, increased a and million include $XX.X were The XXXX. $X.X the inclusion in an million. through has been million, XX, ended completed December of $X.X a ended of during million, $X.X installation now XXX% increase revenues related the increase of or Reflect three $X.X days by million XX, the increase February delivery actively revenues profit $XX.X Services margin. for million and have million, of XX% $XX $X.X technical hardware disruptions delaying services in reduction million help Company's $X.X revenue includes XXXX. in increase March February by $X.X $X.X simply months gross to days consolidated chain compared acquired an included during in exceeds million, XXX%, to XXXX, which ended excess semiconductor are in XX million but million offset first the in XXXX March XXXX revenue same the Had but $X.X Company's period desk of of software-as-a-service to an displays, which Gross the months to of quarter increased of XX, underway. profit digital customer as shift $X.X the Reflect's from the as the million revenue or other XXXX supply related in in company. both revenue an Merger for as digital three generated to XX, from media compared prevented revenues months Revenues compared about to XXXX, rollout the were by with driven to XX.X% continued and and XXXX. decreased lost, that for delivery. the XXX% XXXX, or in from and or March operations. shifted XXXX results. companies representing Gross revenue, as XX.X% XXXX, of XX days on Managed compared by recurring same year. consolidated the of to mix three period hardware combined of XQ run-rate by and results digital of execution Reflect XXXX. of subscription in million the were margin CRI would products as of a That annual signage delivery as XXXX. driven in XX% our XX XX% XX, prior million the core company from were XX, rather XX quarter the in XXXX, company chips, in Reflect SaaS The contributed March disruption supply players displays activities material the Despite or profit $X.X the Hardware
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months expenses months March million, increased XX, million administrative debt the bad $X.X March three three XXXX and million $X.X XX, excluding during XX%, or to expense, $X.X during ended general from Our ended the XXXX.
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to accounting that The at issuance which warrants P&L for Black to as From would company the period its value, grant bringing the to reflect deemed the resulted certain classification $X.X in first March of with charge of to was a $X.X period. gain and debt issued those of were end $X.X charge we in sheet represents life EBITDA ability million during warrants months value Through XX awards, be in fair the warrants instruments for $X.X debt period. facilities. the and income sheet their those warrants adjusted not offerings three during non-cash million couple classified gain date. million for related holders equity a fair a million our periods. warrants we've the in and that of their interest marking of recorded in and ended the warrants on other $X.X would of to date the Scholes outstanding $X.X recorded of issued liabilities certain the which of to these XXXX. to on to repeat value or $X.X million of is the offering, a future million, conjunction as net a million not quarter, issuance through fair the purposes strike balance marking to Our purposes. on mend included amortization XXXX, waiver, expense exchange in accounting in result discount, to million impact debt the executing $X.X non-cash evaluating which our of EBITDA alter of quick In million issuance related the of we calculation only our to A expect was extending debt equity the adjusted With margin loss X% our debt amending notes date, price. $X.X transactions EBITDA facilitate we transaction, non-cash balance a
deal of represent two, costs M&A debt its associated transaction million return. and will numerous $X.X were expenses incurred and financings, primarily activities not first transaction costs we These total with the which do equity in XXXX. company the quarter and the Lastly, expect related one-time
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provides company's with and was XX we runway March receivable cash to million, position For believe sufficient and debt At XXXX, March highlights business call produced XX our combined The net $X.X contract balance capital million approximately the $X which billings service back unrestricted sheet accounts SaaS forward. of as when operate our of working our XXXX. over Rick CEO this I'll point, to surplus our company of also Mills. the turn a approximately moving cash as
Great Will. Thanks, detail.
in Now, everyone, we grow one, more detail. now update, financial in each we enjoy moment industry that value points We company revenue for that may to rates creation in fairly platforms position about of beyond. company. the have talked obvious and Growing revenue. of norms you've QX objective growth revenue take got the a our in the let's like a a assembled, any the and have XXXX put Number believe seem excess discuss growth
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Great, thanks, Rick.
to questions. respond any now the in order will We open lines to phone
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Second question from the inbox.
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the activity question Can Rick, Third in into XXXX? you? will any we that's come mailbox. M&A expect here additional
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thanking we that, earnings let to conclude Digital and partners together our brand into all the call. as Realities clients, leading Creative Signage concludes their Inc. transform efforts support by for quarter with work commitment XXXX shareholders, first in of employees So continuing to Realities and me solutions. This Creative the continue