Ben Howard's questions to CREATIVE REALITIES (CREX) leadership • Q4 2024
Question
Asked about the recent decline in Annual Recurring Revenue (ARR), the risk of further customer reductions, the expected impact of the new AdLogic CPM+ platform on advertising sales, and how the new ad tech revenue will be categorized.
Answer
The ARR decline was attributed to contract adjustments by two large, long-term customers, not customer losses. The company does not see similar risk with other customers. The new AdLogic CPM+ platform represents a strategic pivot from labor-intensive media sales to a higher-margin ad tech model (SaaS fees, revenue sharing), which is expected to drive substantial uplift. This new revenue stream will likely be categorized under managed services.