NASDAQ$KUST

Kustom Entertainment Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Digital Ally reported an increase in total revenues and a significant improvement in net loss for 2020, despite challenges from the COVID-19 pandemic.

Digital Ally, Inc. announced its 2020 operating results, highlighting a revenue increase and a substantial reduction in net loss compared to the previous year. The company's strategic expansion into new product lines, including ThermoVU and Shield, contributed approximately $1.65 million in revenue, offsetting the impact of the COVID-19 pandemic on its legacy business. Cost-saving measures and successful public offerings have also strengthened the company's financial position.

  • Total revenue increased by 1% year-over-year to approximately $10.5 million.
  • Net loss improved by 74% compared to 2019, with a reported loss of $2,625,881.
  • ThermoVU and Shield product lines generated approximately $1.65 million in combined revenues.
  • The company completed an underwritten public offering in February 2021, raising approximately $37.45 million for working capital and product development.

Headline financials

Total Revenue

$2.77M

Previous: $2.42M+14.4%
EPS (adj)

-$1.60

Previous: -$5.80+72.4%
Net Income

-$2.63M

Previous: -$10M+73.8%
Operating Income

-$7.66M

Previous: -$6.03M-27.0%
Gross Profit

$4.06M

Previous: $3.23M+25.7%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$2.77M

Q4 2020+14.4%vs Q4 2019
Beat estimate in 6 of 15 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's forward guidance is uncertain due to the ongoing COVID-19 pandemic and its potential impacts. The company is focused on expanding into new markets and managing its expenses, but faces risks related to competition, supply chain issues, and changing economic conditions.

Tailwinds

  • The company plans to use the net proceeds from the public offering for working capital, product development, order fulfillment and for general corporate purposes.
  • Expansion of product offerings to include the ThermoVU and Shield lines has proven to be successful.
  • The company is considering further expansion of the ThermoVU and Shield product lines to include complementary products.
  • SG&A expenses (excluding the effect of the $6 million patent litigation settlement in 2019) significantly by reducing staffing levels, limiting travel and reducing many advertising and promotional activities.
  • The company has improved its balance sheet and liquidity position substantially during 2020 and in early 2021 through several public offerings.

Headwinds

  • The COVID-19 pandemic represents a fluid situation that presents a wide range of potential impacts of varying durations.
  • The company observed decreases in demand from certain customers, including primarily law-enforcement and commercial customers.
  • The company expects its sales will experience more volatility as a result of the changing and less predictable operational needs of many customers as a result of the COVID-19 pandemic.
  • Travel restrictions impacting people can restrain our ability to assist our customers and distributors as well as impact our ability to develop new distribution channels
  • The company faces risks related to competition from larger, more established companies, supply chain issues, and changing economic conditions.

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 Q4 2020

Historical avgQ4 2020

-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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