NASDAQ$KUST

Kustom Entertainment Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced operating results for fiscal year 2023, marked by increased gross profits and strategic advancements in video solutions and entertainment sectors.

Digital Ally, Inc. reported its 2023 operating results, highlighting a significant increase in gross profit driven by improvements in the video solutions and entertainment segments. The company is progressing with its proposed business combination involving Kustom Entertainment and Clover Leaf Capital Corp.

  • Gross profit increased by $3.4 million (148%) compared to 2022.
  • Video solution segment gross profits improved by $2.5 million (203%) year-over-year.
  • Entertainment segment gross profits saw a $1.4 million (532%) increase compared to the previous year.
  • Deferred revenue balance grew by approximately $2.3 million, reaching $10.3 million.

Headline financials

Total Revenue

$5.93M

Previous: $8.88M-33.2%
EPS (adj)

-$2.67

Previous: -$4.70+43.2%
Capital Expenditures

-$43.5K

Previous: $121K-135.8%
Net Income

-$7.48M

Previous: -$21.7M+65.5%
Operating Income

-$5.98M

Previous: -$29.7M+79.9%
Gross Profit

$77.4K

Previous: $2.32M-96.7%
R&D Expense

$579K

No prior period
Stock-Based Comp

$73.2K

Previous: $255K-71.3%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$5.93M

Q4 2023-33.2%vs Q4 2022
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 anticipates benefits from the Kustom Entertainment business combination and organic growth opportunities, while navigating risks associated with market competition, technological changes, and dependence on key personnel.

Tailwinds

  • Expected clarity and market positioning from the Digital Ally and Kustom Entertainment separation.
  • Organic growth opportunities with the Kustom 440 subsidiary.
  • Potential benefits from the launch of KustomTicket.com.
  • Continuous efforts to maximize existing business lines.
  • Commitment to innovation and success within the video solutions segment through new product releases and patent filings.

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 new technology and products.
  • Competition from larger, more established companies.
  • Dependence on key personnel.

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 2023

Historical avgQ4 2023

-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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