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Creative Realities shares pop as 1Q revenue doubles on strong growth in services segment

The digital marketing company brought in revenue of $9.5 million, up from $4.1 million a year ago
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Revenue from its managed services, which include SaaS and help desk subscription services, tripled to $1 million

Creative Realities Inc (NASDAQ:CREX), a digital marketing company, posted first-quarter revenue late Wednesday that more than doubled year over year.

The company brought in revenue of $9.5 million, up from $4.1 million a year ago and ahead of Street expectations of $9.1 million. Revenue from its managed services, which include SaaS and help desk subscription services, tripled to $1 million.

Shares rocketed 22% to $2.92 in morning trading.

The Louisville, Kentucky-based company saw a loss of $0.02 per share, beating expectations of a $0.04 loss. Losses were $0.81 per share in the year-ago quarter.

Looking ahead, the company expects to bring in between $18 million and $20 million in revenue in the first half of 2019. Analysts expect $18.9 million on average.

"CRI achieved record quarterly revenue of approximately $9.5 million in the first quarter of 2019 and we are on track to our previously issued guidance for the first half,” CEO Rick Mills said. “As we finalize the integration of financial and operating activities of Allure, we expect to drive reductions in operating expenses and take further advantage of the economies of scale achieved thus far. We are proud of the continued progress."

CRI acquired digital signage company Allure Global Solutions Inc in November.

Contact Andrew Kessel at [email protected]

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