Water Tower Hour Recap: CRI Highlights 50% Growth for 2024 and the Latest in Digital Displays
Creative Realities (CRI) uplisted to the NASDAQ in 2018 and acquired Allure and Reflect to create the company of today. The company helps clients use place-based digital media to achieve business objectives, such as increased revenue, enhanced customer experiences, and improved productivity. CEO Rick Mills joined WTR’s Head of Business Development Tim Regan and WTR’s Managing Director of Technology Dr. John Roy on The Water Tower Hour to discuss CRI’s history, products, customers, differentiation, and outlook for 2024. The discussion also highlighted the company’s progress on its gross margin (more SaaS in the mix), debt leverage (targeting leverage ratio below 1.5x by the end of 2024), and confidence in its 50% revenue growth (at the midpoint) guidance for 2024. According to Mills, CRI’s competitive advantage is its laser focus on digital signage to drive recurring SaaS, integrated product/service, and ad trafficking revenue beyond a cost advantage on hardware. This is how it is able to win and keep large, brand name clients such as Best Buy, Verizon, Macy’s, Target, Panera, Human Bean, 7-11, Texas Christian University, and the Dallas Cowboys. While 2023 did see one client slip its deployment out due to supply chain issues (not CRI’s), the pipeline and outlook for 2024 are giving management the confidence to guide for revenue of $60-70 million (roughly 50% Y/Y growth). The company expects to narrow the range when it reports 4Q23 numbers. In addition to solid revenue growth, the company expects the mix shift to SaaS to continue. With SaaS gross margin more than 80%, the current corporate gross margin of 45.8% is expected to expand. As the company is getting to positive free cash flow, paying down debt, and anticipating record profit margins, Mills said he expects the stock to respond positively. Those interested can listen to the episode on Apple Podcasts, Google Podcasts, Spotify, or on our website. Links accessible in our full report.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.