NASDAQ$KUST

Kustom Entertainment Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Digital Ally reported an improved net income and nearly $7.7 million in quarterly revenues.

Digital Ally reported first quarter 2023 operating results, with total revenues of $7.7 million and an improved net income. The company saw continued success with new video products and growth in deferred revenue. The Digital Ally Healthcare venture is right-sizing to maximize profitability.

  • Reported nearly $7.7 million in quarterly revenues for Q1 2023.
  • Deferred revenue balance nearly doubled, reaching nearly $8.9 million at the end of Q1 2023.
  • New video products, including FirstVu Pro, FirstVu II, and QuickVu docking stations, are gaining traction.
  • Digital Ally Healthcare venture is focused on maximizing profitability through acquisitions.

Headline financials

Total Revenue

$37M

Previous: $10.3M+259.4%
EPS (adj)

-$2.22

Previous: -$2.60+14.6%
Capital Expenditures

-$23.7K

Previous: -$1.77M+98.7%
Free Cash Flow

-$6.13M

Previous: -$8.37M+26.8%
Net Income

-$6.11M

Previous: -$6.6M+7.5%
Operating Income

-$6.17M

Previous: -$6.8M+9.3%
Gross Profit

$1.54M

Previous: $1.94M-20.4%
Cash & Equivalents

$2.86M

Previous: $20.6M-86.1%
Total Assets

$55.4M

Previous: $79M-29.8%
Stock-Based Comp

$115K

Previous: $395K-70.9%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$37M

Q1 2023+259.4%vs Q1 2022
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 is focused on maximizing the profitability of its entertainment segment and growing it organically with the new Kustom 440 subsidiary. The company will continue to take advantage of new business opportunities and maximize existing business lines to benefit the company and its shareholders through 2023 and beyond.

Tailwinds

  • Continued success and traction in the marketplace with new video products.
  • Deferred revenue balance nearly doubled.
  • Momentum being gained in Digital Ally Healthcare venture.
  • Roll-up strategy for medical billing companies is effective and attractive to potential targets.
  • Partnership between TicketSmarter and Kustom 440 will benefit shareholders.

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 2023

Historical avgQ1 2023

-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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