NASDAQ$KUST

Kustom Entertainment Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a significant revenue increase driven by recent acquisitions and growth in both legacy product lines and the revenue cycle management segment.

Digital Ally, Inc. reported a 306% increase in total revenues for the first quarter of 2022, driven by acquisitions and growth in its legacy product lines and revenue cycle management segment. The company's revenue cycle management segment is following a roll-up strategy in the medical billing industry.

  • Total revenue increased by 306% compared to Q1 2021.
  • Gross profit increased by 138.9% compared to Q1 2021.
  • TicketSmarter generated nearly $6.4 million in revenue, representing almost 62% of the Company’s overall revenues.
  • Completed one business acquisition in January 2022 and an asset purchase in February 2022 within the revenue cycle management segment.

Headline financials

Total Revenue

$10.3M

Previous: $2.54M+306.0%
EPS (adj)

-$2.60

Previous: $9.80-126.5%
Capital Expenditures

-$1.77M

Previous: -$77K-2204.3%
Free Cash Flow

-$8.37M

Previous: $21.6M-138.7%
Net Income

-$6.6M

Previous: $21.7M-130.4%
Operating Income

-$6.8M

Previous: -$2.87M-137.4%
Gross Profit

$1.94M

Previous: $812K+138.9%
Cash & Equivalents

$20.6M

Previous: $67.6M-69.6%
Total Assets

$79M

Previous: $84.6M-6.6%
Stock-Based Comp

$395K

Previous: $326K+21.0%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$10.3M

Q1 2022+306%vs Q1 2021
Beat estimate in 3 of 9 quarters(33%)
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 anticipates further revenue increases in 2022 and beyond, attributable to Nobility Healthcare and TicketSmarter. The company plans to continue pursuing and reviewing several opportunities, but proceeding cautiously given the current environment and future uncertainties.

Tailwinds

  • Expects further increases in revenues for 2022 and beyond attributable to Nobility Healthcare.
  • Roll-up strategy is effective and attractive to potential targets.
  • TicketSmarter acquisition proved to be accretive to revenues.
  • Substantial liquid resources available to pursue organic expansion and potential acquisitions.
  • Legacy product lines gaining traction throughout the marketplace.

Headwinds

  • Proceeding cautiously given the current environment and future uncertainties.
  • Operating loss reported for the three months ended March 31, 2022.
  • Overall cost of sales as a percentage of overall revenues increased.
  • Selling, general and administrative expenses increased.
  • Decrease in other income was attributable to the change in fair value of warrant derivative liabilities.

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 2022

Historical avgQ1 2022

-1.2%

Avg return

Earnings day

-4.9%

Avg return

5 days after

+3.9%

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%-50.7%
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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