NASDAQ$KUST

Kustom Entertainment Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced operating results for the second quarter of 2024.

Digital Ally reported a decrease in total revenues and gross profit for the second quarter of 2024 compared to the same period in 2023, but showed an improvement in operating losses. The company is focusing on margins and working towards profitability, with success in new video products and the Digital Ally Healthcare venture.

  • Deferred revenue balance reached $10.1 million as of June 30, 2024, growing by approximately $0.6 million from $9.5 million as of June 30, 2023.
  • The company is seeing continued success and traction in the marketplace with new video products, like the EVO-HD, FirstVu Pro, and QuickVu docking stations.
  • Net losses decreased compared to the second quarter of 2023, indicating progress towards profitability.
  • Kustom Entertainment's business combination with Clover Leaf Capital Corp. is expected to provide clarity and show two distinct entities: Digital Ally and Kustom Entertainment.

Headline financials

Total Revenue

$100K

Previous: $8.28M-98.8%
EPS

-$0.07

Previous: -$2.33+97.0%
Capital Expenditures

-$24.9K

No prior period
Free Cash Flow

-$8.98M

Previous: -$8.39M-7.0%
Net Income

-$350K

Previous: -$8.39M+95.8%
Operating Income

-$446K

Previous: -$4.94M+91.0%
Gross Profit

-$346K

Previous: $2.74M-112.7%
Cash & Equivalents

$51.1K

Previous: $2.92M-98.3%
Total Assets

$13M

Previous: $53.5M-75.7%
R&D Expense

$546K

No prior period
Stock-Based Comp

$60.8K

Previous: $179K-66.1%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$100K

Q2 2024-98.8%vs Q2 2023
Beat estimate in 4 of 10 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 anticipates benefits from the Kustom Entertainment business combination and aims to maximize existing business lines.

Tailwinds

  • Continued success and traction in the marketplace with new video products.
  • Growth in deferred revenue balance.
  • Potential benefits from the Kustom Entertainment business combination.
  • Focus on organic growth opportunities with the Kustom 440 subsidiary and the acquisition of Country Stampede.
  • Launch of KustomTickets.com, an advanced online ticketing platform.

Headwinds

  • Losses in recent years, including fiscal years 2023 and 2022.
  • Economic and other risks from the effects of the COVID-19 pandemic.
  • Uncertainty as to market acceptance of the company's technology and new products.
  • Competition from larger, more established companies.
  • Dependence on a few manufacturers and suppliers for components of 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 Q2 2024

Historical avgQ2 2024

-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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