Creative Realities Inc. (NASDAQ: CREX) reported Q4 revenue for the quarter came in at $5.2 million versus the consensus estimate of $7.7 million.

Rick Mills, Chief Executive Officer, remarked, "During 2018, our management team executed on several key initiatives supporting our strategic vision, including continuing our double-digit organic revenue growth, simplifying our capital structure, up-listing to Nasdaq, and gaining scale through the acquisition of Allure Global Solutions, Inc. Allure's expertise strengthened our market presence in fast growing verticals such as quick service restaurants, theater and sports venues. We anticipate opportunities to cross-sell Allure's analytical services into the CRI customer base. Our progress throughout 2018 is attributable to continued investments made into our sales organization and a commitment by our management team in executing of our strategic plan for profitable growth."

4Q18 Financial Overview

• Revenues were $5.2 million for the three-month period ended December 31, 2018, an increase of $1.1 million, or 26%, compared to the same period in 2017. Organic revenues excluding the one month of Allure ownership increased $0.5 million, or 12%, for the same comparable period.
• Gross profit was $1.9 million for the fourth quarter of 2018, an increase of $0.4 million, or 26%, compared to the same period in 2017.
• Gross margin remained flat at 36% in 4Q18 versus 4Q17. Service revenues represented approximately 73% of total revenue in the fourth quarter of 2018 compared to 58% in 2017.
• Operating loss was $2.1 million in 4Q18 as compared to $1.6 million in 4Q17. Excluding the effects of one-time charges in both periods, including lease severance expense and noncash charges for acquisition expenses, operating loss declined to $1.1 million, or a reduction of $0.5 million from 4Q17.

2019 Financial Guidance

The Company is announcing financial guidance 2019 as follows:

• Anticipated 1H 2019 revenue of $18 to $20 million.
• Anticipated 1H 2019 revenue from new customers in excess of $3 million.

Mr. Mills concluded, "We expect to continue our trend of strong organic growth in 2019 through a combination of new customer relationships and further broadening our existing relationships. We entered 2019 with approximately $18 million in signed orders and believe the combined sales organization has strong forward momentum. We have made significant progress in integrating both the financial and operating activities of Allure and expect the combination to drive continued economies of scale resulting in improved operating performance in the second half of 2019. We remain focused on our dual strategy of accelerating organic growth and in identifying opportunities for inorganic growth as we expect to participate in consolidation within the digital signage and digital out of home sectors."

For earnings history and earnings-related data on Creative Realities Inc. (CREX) click here.