News Release

- Nine months ended September 30, 2017 revenue grew 66% and gross profit increased 41% versus prior year
- Q3 2017 revenue grew 32% versus prior year
- Q3 2017 new booked orders were $5 million, compared to just under $2 million in Q3 2016
- Current 2018 backlog of booked orders exceeds $12 million
- Earnings call scheduled for Wednesday, November 15th at 9:00 am Eastern

LOUISVILLE, KY – November 14, 2017 – Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (OTCQX: CREX), a leading provider of digital marketing solutions, announced its financial results for the quarter ended September 30, 2017.

Net revenues were $3.6 million in the third quarter of 2017, compared with $2.7 million in the same period last year. This represents a 32% increase over the same period last year.  Rick Mills, Chief Executive Officer, remarked, “This was a quarter of continued progress as this represents our fourth consecutive quarter of year-over-year growth.  During the quarter, we wrote in excess of $5 million of new orders on which we will execute over the next twelve months, evidencing our continued accelerated top-line momentum.”

Third Quarter Financial Highlights

• Revenues were $3.6 million for the three-month period ended September 30, 2017, an increase of 32% compared to the same period in 2016
• Gross profit was $1.4 million for the three-month period ended September 30, 2017, a slight increase of $0.1 million from the corresponding period in 2016. Growth in revenue outpaced growth in gross profit for the period as a result of a revenue mix which included a higher ratio of nonrecurring hardware sales in the period. Services and Other gross margin percentage remained strong at approximately 60%.  
• Revenues were $13.6 million for the nine-month period ended September 30, 2017, an increase of 66% compared to the same period in 2016
• Gross profit was $5.9 million for the nine months ended September 30, 2017, up $1.7 million, or 41%, from the corresponding period in 2016
• Net loss before income taxes was approximately $5.3 million for the nine months ended September 30, 2017, which includes a one-time, non-cash charge of $2.0 million in Q3 for stock issuance expenses as a result of the ConeXus acquisition. Excluding this Q3 charge, net loss before income taxes for the nine months ended September 30, 2017 was $3.3 million, an improvement of $1.1 million, or 25%, compared to the same period in 2016 

2017 Updated Financial Outlook

Given the uncertainty regarding the ability to recognize a $1.8 million order prior to the year-end date as a result of manufacturing backlog, the Company is revising its 2017 financial guidance provided in connection with an investor presentation at a financial conference in January 2017 (which is available on our website at www.cri.com):

Organic revenue growth (i.e. excluding acquisitions) is now expected to exceed 31%, translating to FY17 revenue of not less than $18 million. Adjusting for the delay of two orders totaling $8 million, 2017 revenue would have met the original guidance of $26 million. 

Comments on 2018

“We have exited our transition period of the merger with Conexus and are lazer-focused on growth in 2018”, stated Rick Mills.  “We are excited to be working on a $1.8 million smartcity project in Toronto.  There is currently $12 million in confirmed backlog, which will be converted to revenue in 2018, setting us up for a very good new year ahead.”  

Conference Call Details

The Company will host a conference call to review the results and provide additional commentary about the Company’s recent performance, which is scheduled for Wednesday, November 15, 2017 at 9:00 am Eastern Time.  

Prior to the call, participants should register at bit.ly/criearnings2017q3. Once registered, participants can use the weblink provided in the registration email to dial-in by phone or use your computer to listen to the live webcast.  

Following the live webcast, a replay will be available approximately two hours after the webcast on our website at www.cri.com for at least 30 days. 

About Creative Realities, Inc.
Creative Realities helps retailers and brands use the latest technologies to inspire shopper engagement in and around the Store.  Founded 16 years ago, the firm's evolving client base has led to recognized leadership in deploying technology aligned with strategic and consumer behavior goals at Retail. The firm has created and delivered consumer/shopper experiences, designs and installs high-end audio-visual networks, and is actively providing recurring SaaS and support services across diverse categories: Automotive, Apparel & Accessories, Banking, Baby/Children, Beauty, CPG, Department Stores, Digital Out-of-Home (DOOH), Electronics, Fashion, Fitness, Foodservice/QSR, Financial Services, Gaming, Luxury, Mass Merchants, Mobile Operators, and Pharmacy Retail.

Cautionary Note on Forward-Looking Statements
This press release contains certain statements that would be deemed "forward-looking statements" under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and includes, among other things, discussions of our business strategies, future operations and capital resources.  Words such as “may,” “likely,” “anticipate,” “expect” and “believe” indicate forward-looking statements.

These forward-looking statements may reflect management’s present expectations and estimates regarding future expenses, revenue and profitability, trends affecting our financial condition and results of operations, operating efficiencies, revenue opportunities, potential new markets, and the ability of the Company to effectively compete in a highly competitive market. Nevertheless, and despite the fact that management’s expectations and estimates are based on assumptions management believes to be reasonable and data management believes to be reliable, the Company’s actual results, performance, or achievements are subject to future risks and uncertainties, any of which could materially affect the Company’s actual performance.  Risks and uncertainties that could affect such performance include, but are not limited to:  the adequacy of funds for future operations; future expenses, revenue and profitability; trends affecting financial condition and results of operations; ability to convert proposals into customer orders; the ability of customers to pay for products and services; the impact of changing customer requirements upon revenue recognition; customer cancellations; the availability and terms of additional capital; ability to develop new products; dependence on key suppliers, manufacturers and strategic partners; industry trends and the competitive environment; the impact of the Company’s financial condition upon customer and prospective customer relationships; and the impact of losing one or more senior executives or failing to attract additional key personnel.  These and other risk factors are discussed in Company reports filed with the Securities and Exchange Commission.

Given these uncertainties, and the fact that forward-looking statements represent management’s estimates and assumption as of the date of this press release, you should not attribute undue certainty to these forwardlooking statements.  We assume no obligation to update any forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in any forward-looking statements contained in this press release, even if new information becomes available in the future.

Investor Relations Contact:
Andrew J. Barwicki
Barwicki Investor Relations Inc.
Tel: (516) 662-9461  andrew@barwicki.com

Company Contact:
John Walpuck
Chief Operating Officer & Chief Financial Officer  Creative Realities, Inc. 
Tel: (949) 228-7777 john@cri.com