NASDAQ$KUST

Kustom Entertainment Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Digital Ally's first quarter results for 2024 were announced, revealing improved gross profits in the video solutions and entertainment segments, offset by a decline in the revenue cycle management segment, and an overall decrease in total revenues.

Digital Ally reported a decrease in total revenues but an improvement in operating losses for the first quarter of 2024. Gross profit saw mixed results across different segments, with video solutions and entertainment showing improvements, while revenue cycle management experienced a decline. The company is also progressing with its proposed business combination involving Kustom Entertainment.

  • Total revenues decreased by 28% year-over-year, amounting to $5,529,351.
  • Operating losses improved by 41% year-over-year, totaling $3,639,034.
  • Gross profit in the video solution segment increased by 6%, while the entertainment segment improved by 111%.
  • Deferred revenue balance reached $10.6 million, growing by approximately $1.7 million from the previous year.

Headline financials

Total Revenue

$100K

Previous: $37M-99.7%
EPS

-$0.06

Previous: -$2.22+97.3%
Capital Expenditures

-$18.5K

Previous: -$23.7K+21.9%
Free Cash Flow

-$3.95M

Previous: -$6.13M+35.6%
Net Income

-$343K

Previous: -$6.11M+94.4%
Operating Income

-$451K

Previous: -$6.17M+92.7%
Gross Profit

-$351K

Previous: $1.54M-122.7%
Cash & Equivalents

$5.78K

Previous: $2.86M-99.8%
Total Assets

$12.7M

Previous: $55.4M-77.1%
R&D Expense

$487K

No prior period
Stock-Based Comp

$40.7K

Previous: $115K-64.6%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$100K

Q1 2024-99.7%vs Q1 2023
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 new product releases, patent filings, and the business combination of Kustom Entertainment with Clover Leaf Capital Corp. The company anticipates growth opportunities and maximizing existing business lines.

Tailwinds

  • New video products (EVO-HD, FirstVu Pro, QuickVu docking stations) are gaining traction.
  • Deferred revenue balance is growing.
  • Digital Ally Healthcare venture (Nobility Healthcare, LLC) is maintaining profitability.
  • Kustom Entertainment's business combination is progressing with SEC filings.
  • KustomTickets.com launched as an advanced online ticketing platform.

Headwinds

  • Overall gross profit slightly decreased by 1%.
  • Total revenues decreased by 28%.
  • Revenue cycle management segment's gross profits deteriorated by 40%.
  • The company has a history of losses in recent years.
  • The company is operating in developing markets with uncertainty regarding market acceptance of its technology and new products.

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 2024

Historical avgQ1 2024

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro