NASDAQ$KUST

Kustom Entertainment Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Digital Ally's total revenue increased, and the company reported net income due to a gain in the fair value of warrant derivative liabilities.

Digital Ally reported a 4% increase in total revenue and a net income for the first quarter of 2021, driven by the success of its ThermoVU and Shield product lines and a gain from the change in fair value of warrant derivative liabilities.

  • Total revenue increased by 4% compared to the first quarter of 2020.
  • Gross profit decreased by 36% due to an increase in the cost of sales as a percentage of revenues.
  • Operating loss was $2,865,693, compared to an operating loss of $1,927,368 in 2020.
  • Net income was $21,721,858, or $0.49 per share, compared to a net loss of ($2,334,110) or ($0.17) per share in the prior year.

Headline financials

Total Revenue

$2.54M

Previous: $2.43M+4.5%
EPS (adj)

$9.80

Previous: -$3.40+388.2%
Capital Expenditures

-$77K

Previous: -$1.67K-4522.5%
Free Cash Flow

$21.6M

Previous: -$2.34M+1026.7%
Net Income

$21.7M

Previous: -$2.33M+1030.6%
Operating Income

-$2.87M

Previous: -$1.93M-48.7%
Gross Profit

$812K

Previous: $1.27M-35.8%
Cash & Equivalents

$67.6M

Previous: $329K+20484.7%
Total Assets

$84.6M

Previous: $9.24M+815.7%
Stock-Based Comp

$326K

Previous: $312K+4.6%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$2.54M

Q1 2021+4.5%vs Q1 2020
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Digital Ally · $4.31M total across 2 segments · Q1 2026

  • Entertainment
    $3.21M
  • Video Solutions
    $1.11M

Forward guidance

Digital Ally is considering further expansion of the ThermoVU and Shield product lines and is pursuing organic expansion and potential acquisitions, cautiously navigating the current environment and future uncertainties.

Tailwinds

  • Substantial liquid resources available to pursue organic expansion.
  • Actively pursuing and reviewing several acquisition opportunities.
  • Considering further expansion of ThermoVU and Shield product lines.
  • ThermoVU and Shield lines continue to generate significant revenues.
  • Proactively expanding product offerings has proven successful.

Headwinds

  • Challenges to legacy business caused by the COVID-19 pandemic.
  • Future uncertainties in the current environment.
  • Cautious approach to acquisitions due to the current environment.
  • Gross profit decreased 36% compared to the same period last year.
  • Operating loss reported for the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.2%

Avg return

Earnings day

-4.9%

Avg return

5 days after

+5.3%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+41.8%

Q1 2013

Best reaction

-25.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-7.7%
Q3 2025-4.6%-18.7%-27.1%
Q2 2025-0.6%+8.1%+16.2%
Q1 2025-19.8%-42.2%-46.3%
Q4 2024+1.0%-37.5%-39.7%
Q3 2024-0.5%+13.2%-54.7%
Q2 2024-25.3%-25.3%-22.6%
Q1 2024-3.5%-7.5%-13.5%
Q4 2023-6.0%-2.0%-3.6%
Q3 2023-13.5%-17.1%-24.2%
Q2 2023-6.7%-8.9%-21.0%
Q1 2023+6.8%+9.3%+42.2%
Q4 2022-14.7%-17.7%-29.2%
Q3 2022+0.0%+0.0%-24.3%
Q2 2022-11.2%-13.5%-39.3%
Q1 2022-4.0%-14.9%-20.8%
Q4 2021+4.6%+3.7%-10.1%
Q3 2021+3.2%-0.8%-13.5%
Q2 2021+0.8%+0.0%-0.8%
Q1 2021+1.8%+1.8%+9.0%
Q4 2020+0.0%-0.6%+4.0%
Q3 2020+5.0%+0.4%+8.3%
Q2 2020-24.9%-31.0%-34.0%
Q1 2020-4.8%-4.8%+435.7%
Q4 2019+0.0%+11.7%+13.0%
Q3 2019-0.8%-0.8%-3.4%
Q2 2019-14.3%-14.3%+20.2%
Q1 2019-10.1%-13.3%-21.0%
Q4 2018+2.4%+2.7%+15.3%
Q3 2018-1.8%-0.4%-7.4%
Q2 2018-3.8%+0.0%+62.3%
Q1 2018-7.4%+0.0%-4.4%
Q4 2017+17.4%+15.2%+13.0%
Q3 2017+8.0%+10.3%+31.5%
Q2 2017+1.7%+13.6%-1.7%
Q1 2017+2.7%-7.2%-7.2%
Q4 2016+2.2%+4.6%+3.4%
Q3 2016+3.0%+12.0%-4.4%
Q2 2016-9.0%-11.8%+3.2%
Q1 2016+1.3%
Q4 2015-12.1%
Q3 2015-1.0%
Q2 2015-17.9%
Q1 2015-7.8%
Q4 2014+19.2%
Q3 2014-11.5%
Q2 2014-19.2%
Q1 2014+3.7%
Q4 2013-22.0%
Q3 2013-17.0%
Q2 2013+6.7%
Q1 2013+41.8%
Q4 2012+3.4%
Q3 2012+13.3%
Q2 2012+5.1%
Q1 2011+11.1%
Q1 2012-10.4%
Q4 2011+40.0%
Q3 2010-3.3%
Q3 2011-3.3%
Q4 2010+10.7%
Q2 2010+10.7%
Q2 2011+10.7%
Q1 2010+2.9%

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