NASDAQ$KUST

Kustom Entertainment Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Digital Ally's revenue increased significantly due to recent acquisitions and growth in legacy product lines.

Digital Ally reported a 275% increase in total revenues for the second quarter of 2022 compared to the same period in 2021. The growth was driven by recent acquisitions, particularly in the revenue cycle management segment, and increased interest in the company's legacy product lines.

  • Total revenue increased by 275% compared to Q2 2021.
  • Gross profit increased by 36.3% compared to Q2 2021.
  • Revenue cycle management segment generated $2,120,738 in service revenues.
  • Contract liabilities (deferred revenue) increased by 39% from December 31, 2021 to June 30, 2022.

Headline financials

Total Revenue

$9.35M

Previous: $2.49M+275.0%
EPS (adj)

-$0.40

Previous: -$2.00+80.0%
Capital Expenditures

-$1.92M

Previous: -$5.45M+64.7%
Free Cash Flow

-$2.99M

Previous: -$10.8M+72.4%
Net Income

-$1.07M

Previous: -$5.38M+80.2%
Operating Income

-$6.66M

Previous: -$2.62M-154.5%
Gross Profit

$1.72M

Previous: $1.26M+36.3%
Cash & Equivalents

$13.5M

Previous: $58.3M-76.9%
Total Assets

$70.7M

Previous: $83.1M-14.9%
Stock-Based Comp

$382K

Previous: $330K+15.6%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$9.35M

Q2 2022+275%vs Q2 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

The company anticipates further revenue increases in 2022 and beyond, driven by Nobility Healthcare and TicketSmarter, while cautiously pursuing new business opportunities.

Tailwinds

  • Further increases in revenues are expected for 2022 and beyond, attributable to Nobility Healthcare.
  • TicketSmarter's acquisition proved to be accretive to revenues in the first six months of 2022.
  • TicketSmarter added five very exciting partners to its vast partnership network.
  • Enthusiasm around the steady success within our revenue cycle management operating segment.
  • Numerous acquisitions of medical billing companies demonstrate that our roll-up strategy is effective and attractive to potential targets.

Headwinds

  • The Company is proceeding cautiously given the current environment and future uncertainties.
  • The Company reported an operating loss of ($6,661,252) for the three months ended June 30, 2022.
  • The overall cost of sales as a percentage of overall revenues to 82% for the three months ended June 30, 2022 from 49% for the three months ended June 30, 2021.
  • Selling, general and administrative expenses increased approximately 116% to $8,380,330 in the three months ended June 30, 2022 versus $3,877,684 in 2021.
  • The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements.

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 Q2 2022

Historical avgQ2 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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