Creative Realities, Inc.

Good morning. At this time, I would like to welcome everyone to Creative Realities Incorporated 2023 Year-End Earnings Conference Call. This call will be recorded and a copy will be available on the company's website at cri.com following the completion of the call. The company has prepared remarks summarizing the fourth quarter and calendar year 2023 financial results along with additional industry and company updates. Joining me on the call today is Rick Mills, CEO and Will Logan, CFO. Thank you very much. Mr. Logan, you may begin.

Thank you and good morning. I am Will Logan, Chief Financial Officer of Creative Realities, Inc. Welcome to our financial results and earnings call for the year ended December 31st, 2023. I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. The words anticipated, will, believes, expects, intends, plans, estimates, projects, should, may, propose and similar expressions or the negative versions of such words or expressions as they relate to us or our management are intended to identify forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in our annual report on Form 10-K filed with the SEC on March 21, 2024. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our public filings in our earnings release that was issued this morning. The use of non-GAAP measures such as adjusted EBITDA and several other important KPIs will be discussed by management during today's conference call because we believe they represent meaningful ways to track our performance. After several years of economic, geopolitical, and healthcare uncertainties, we are very pleased with the progress our business has made, particularly through the course of 2023. It is our intent to provide investors with appropriate disclosures and transparency to measure our success. With that, it is now my pleasure to introduce Rick Mills, CEO of Creative Realities, Inc., to kick things off.

Thanks, Will. Good morning, everybody. Thank you for joining the call. For fiscal 2023, we posted record quarterly and annual results in almost every aspect with which we measure our company today. I want to thank everybody at CRI for making it happen day in and day out. Let's get started. I'm really pleased to report the following. For Q4 2023, an all-time quarterly record revenue of $14.5 million, an all-time quarterly record gross profit of $7.5 million, an all-time quarterly record of adjusted EBITDA of $2.8 million. And for fiscal year 2023, all-time annual record revenue of $45.2 million, all-time annual record gross profit of $22.2 million. I know it sounds like a broken record, all-time annual, but we are. We're achieving great results. Operating income of $1.3 million, which marks the first time that the company has posted a positive result on an annual basis. All-time annual record of adjusted EBITDA of $5.1 million, and an all-time annual record of 11.2% of revenue for the EBITDA. Growth of annual recurring revenue, or ARR, to an all-time record 16.3 million run rate exiting 2023. Additionally, our ARR run rate as we sit today here in the middle of March now stands at an all-time high of 17.7 million. This is an important metric as it provides enhanced visibility into our high margin revenues as well as the increasing trust our customers are placing in our enhanced solutions. I hope everyone can see the spectacular performance, tremendous execution, and continued focus on profitability and debt reductions. Well done, team. I will turn it back over to Will for a few notes on our business activity.