Creative Realities reports Q3 revenue $11.2M, consensus $10.97

CEO Rick Mills commented, "I am pleased to report that the company generated record revenue of $11.2M for Q3, a $6.4M, or 135%, improvement over the same period in 2021. Importantly, this represents a $3.5M increase over the pro forma combination of Creative Realities and Reflect Systems in 2021, indicative of both organic and strategic growth through the merger of the companies. The company’s run-rate on annual recurring revenue is also at a record level of $14.5M, on track for a 25% growth rate in this key profitability driver in the current year…With the expansion of our SaaS revenue and the momentum within our pipeline, we reiterate our expected target to generate revenue in excess of $43M during 2022, which would amount to an organic growth rate in excess of 40% on a pro forma combined company basis, as compared to 2021. We are ahead of schedule on delivering the goal of 25% growth in our annual recurring revenue on a pro forma, combined company basis in 2022. Our primary focus continues to be expanding the number of devices managed via our digital signage software platforms generated SaaS revenue, thereby increasing the value of our company through our growing annual recurring services revenue. As we grow the software subscription base and continue to integrate Creative Realities and Reflect, we expect to further enhance our profit margins over operating leverage and improve financial results…As we look forward to 2023, we are excited to announce our revenue target of at least $54 million, with targeted Adjusted EBITDA of 15%. Despite market and macroeconomic conditions, our industry remains positioned to capitalize on strategic tailwinds and we remain excited about the platform and our prospects for ongoing value creation. Creative Realities is uniquely positioned to service enterprise customers with our end-to-end offering and to drive profitability through our increased scale."