NASDAQ$KUST

Kustom Entertainment Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported an 83% increase in total revenues compared to Q3 2021, driven by recent acquisitions and growth in legacy product lines and subscription models.

Digital Ally reported an 83% increase in total revenue for Q3 2022, reaching approximately $8.5 million compared to $4.6 million in Q3 2021. The increase was primarily driven by recent acquisitions, particularly in the revenue cycle management segment, and growth in legacy product lines. However, gross profit decreased by 57% due to an increase in the cost of sales as a percentage of revenue, and the company reported an operating loss of $6,567,023.

  • Total revenue increased by 83% compared to the third quarter of 2021.
  • Revenue cycle management segment contributed significantly through recent acquisitions.
  • Legacy product lines, including FirstVu Pro, FirstVu II, and QuickVu docking stations, gained momentum.
  • Contract liabilities (deferred revenue) increased by 65% from December 31, 2021, evidencing the success being found in the marketplace for our new products and subscription models.

Headline financials

Total Revenue

$8.48M

Previous: $4.64M+82.9%
EPS (adj)

-$0.80

Previous: $3.20-125.0%
Capital Expenditures

-$1.95M

Previous: -$5.58M+65.1%
Free Cash Flow

-$3.85M

Previous: $2.49M-254.4%
Net Income

-$1.9M

Previous: $8.07M-123.6%
Operating Income

-$6.57M

Previous: -$3.6M-82.5%
Gross Profit

$596K

Previous: $1.4M-57.5%
Cash & Equivalents

$6.3M

Previous: $40.7M-84.5%
Total Assets

$68.4M

Previous: $91.9M-25.6%
Stock-Based Comp

$252K

Previous: $492K-48.8%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$8.48M

Q3 2022+82.9%vs Q3 2021
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

The company plans to continue refining and optimizing operations, determining synergies, and taking advantage of new business opportunities to expand existing business lines. They anticipate further revenue increases from Nobility Healthcare and are enthusiastic about TicketSmarter's potential.

Tailwinds

  • Continued optimization of Nobility Healthcare's profitability.
  • Potential for growth in the revenue cycle management segment.
  • Anticipated benefits from synergies and unique opportunities across reporting segments.
  • Expected full year of results from recent acquisitions.
  • Enthusiasm around TicketSmarter's results.

Headwinds

  • The company does not provide specific negative forward-looking statements in the text.

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 Q3 2022

Historical avgQ3 2022

-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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