DGLY - Earnings call transcript Q3 2021

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Operator

This conference call contains forward-looking statements within the meaning of Section 27E of the Securities Exchange Act of 1934 as amended relating to Digital Ally's future business expectations and projections and financial condition and results of operations. These forward-looking statements involve certain risks and uncertainties. Digital Ally has listed some of the important factors that could cause actual results to differ materially from those discusses such forward-looking statements, which are referred to as cautionary statement in its earnings press release, which can be viewed under company's website. All subsequent listed are forward-looking statements, attributable to the company at present acting on its behalf are expressly qualified in their entirety by such cautionary statements. I would like to turn the call over to our speaker today Stan Ross.

begin. may You

Stanton Ross

recap much that. is very We're everybody joining is over for excited Tom numbers Thank our Heckman, to and be This CFO, and go to going be to call. third quite us. quarter to with. do you here able thanks the an very exciting

give valuations on for time, we to give those including insight we'll what before have elaborate some We also acquisitions, year opportunity we what in some the done into to first have you that products, to guidance haven't in going I right -- made XXXX with remainder think we offer, acquisitions. associated quarter we're lines. XXXX we give on as little and And new the bit this you in the on see want and then some up And to of then I playing of to acquisitions to how with come to fourth of clarity the we've it our you the with close close guess along go the also, will we have out then where along to how really also insight regards a to regards the believe on Q&A. guidance and stuff I'm we time, because date, but that at

today. -- But couple with me get cover a with things quarter let to the numbers Heckman. So Tom of exciting started let's third

Tom Heckman

today. I you us and everyone. Stan welcome appreciate you, Thank joining

our will filing be We XX-Q shortly.

release segment. our morning quarter happened during Shield our on new more business -- do and for showing Video segment of acquisitions really not discussion can of results the a the core financials, the review quarter is which what and did third and the first that see of please XX-Q strategy So, relying our quarter. just We this everyone the press complete

it so much hit, especially had video really forth. cruise pretty so when our commercial and as The just COVID segment. shutdown, on impact, on a taxicabs So, recap, a damaging shutdown, lines

Board Not decided and So, the business. somewhat strategy our on through from we're core focus acquisition going embark to from away not to that, grow accretive Stan's little finalize acquisitions. company the go a and that to diversify leadership, core on we'd out and wanted we to an go that three the over like to we business, here but we And year-to-date further. by acquisitions did

company I'm consolidated capital corporate see of done, hopeful is goal the through access that our our look acquisitions and that's for to synergies did, deeper and we synergies leadership. capital as into And infrastructure, benefit companies Our and that to as these the impact we from and well overall access, type acquisitions our as positively get the the our we've that how can that acquisitions you'll infrastructure acquisition. going after we

If really two you look areas. at the we did different acquisitions,

strategy. up it's was right it roll doctor the a a fragmented where professional is services, There's And and medical -- business steady now. a service, healthcare a bill marketplace they very the business. just It's It's services. really billing services, very out -- really First that in division. hospital a

of over the over No individual with out we're companies X,XXX seeing companies In fact, business. there. X% total

did So, XXth. a two doing believe it June up one consolidation we roll is an and on area for ripe closed is that acquisitions, We strategy.

healthcare all We September medical on had the did terms it or in impact acquisition the last second complete third was quarter. revenue three billing then impact in a quarter. we sheet, had the quarter of Xst. And in months in but we So, operating balance no larger

one that. one. size the times the of that had only And operations from three we So, first month was

successful were doing we acquisitions there. in two So,

ticket And TicketSmarter.com. company online event bigger much acquisition an number TicketSmarter.com it's you that it's and so marketplace those is, but for NBA and website bowl so we sell the a is conferences, area -- will, for you know team, on They second sponsorships teams, one, ticket hope a a place forth, to bigger soon marketplace. of use their create distribute, tickets. and The NFL who don't do tickets. games, and They with much

bit As for expect, time you what $XX in capital, with liked to shortly that. working saw. terribly infrastructure XXXX. the That little COVID damaged at million might But some And a looked and We've revenues with and talking business $XX really of were business past. million obviously done in it then business was has needed COVID, into that the damaged in really in annually seriously. XXXX, we been TicketSmarter they

from So, complete an a -- much have standpoint, that revenue had, of TicketSmarter. to able how notice we these We impact especially acquisition. acquisitions you'll were

than only traditional any the including look If TicketSmarter, TicketSmarter It of produced in segments, segment. largest It was other month time. $X.X one revenue third you revenues activity more quarter, our Video and produced million at month's was of our but -- yet it the of segment. it one in

run of rate at. is can going that see the TicketSmarter you So kind

look kind in at sales did quarter if one-time million not the sales, look year prior million. or revenues. ThermoVu Product really about of $X.X third however, at sale were was event. it, overall $X it Let's included you a million that XX%. product But for Overall increased down -- revenues year-over-year $X.X

take in you out, decline sales. it if product was still about that million So, $X.X

hardware to subscription We model. from upfront sales are a a seeing movement

quarter, million to product go look So, XXX% to in a quarter, sales go the service you at And would revenues down up. the year-over-year. was revenues for you if service that's and expect increase it $X.X

increase seen service sales. So, obviously, an in we've

a was and of of was one revenue again, it TicketSmarter only TicketSmarter was the piece we about all year-over-year count It it quarter -- for that the increase. activity. again $XX,XXX because video was alone was service X% month million The as revenue. subscriptions, Now, largest $X.X

smaller the first the acquisition The of Again, division a So, was high quarter. of we're months. three very two. healthcare for on worth revenue in the $XXX,XXX place that. It was produced for

in closed only was month. one We one second that for place X. on September The

So, just at acquisitions. it, in probably rate more pretty million running least the really by the two annual pending due close And at our into have end several run look then if we're more we revenues year. early at looking do XXXX. these one of acquisition steady you $X are closing And a at in diligence

at up total. really trying roll -- as to business our generating or we're quite when strategy the buy and division annual is approximately -- they And the working, -- healthcare accretive those really you're one-times So, in there are opportunities margins, revenue, frankly, is a which that there. are company is to companies the healthcare

gross and margins. you're been in quarter. prior gross has than seeing overall higher goal We year. we a XX% at the margin XXXX impact XX% quarter achieved in gross Historically, the much acquisitions, look margin this in had TicketSmarter Nobility. is You of versus both our But what third

around to are We will And And the or with COVID further the XX%. quarter. around in some create away some that Our XX% from as TicketSmarter did of improve we're the get we margins level. Nobility believe margins corporate run our at impact. synergies able those and further activities

is into the expect have We improvement to yet billing in our because our division, services people. we substantial Nobility the our margins. Nobility healthcare and consolidate platform some

margin. the and old our improve And running Nobility on significantly given and that we'll the that hopefully integrated time the platform. platform get format the that's really platform, So, into

on overall margin in that improve integrate advertising gross XX% that So, media increase digital QX, on, continue believe Promotions because and the all SG&A with to these represented they $XXX,XXX as going of over Again, gross roughly TicketSmarter acquisitions alone will increase, part from acquisitions. increase. our $X.X A that is overall we year-over-year. are XX% very is million website. of we dependent margin expense a that is $XXX,XXX. which marketing,

leveraging other on that there's NFL, of and TicketSmarter affiliations leveraging platform. those Indy advertising, and NBA looking the at activities. But near future, Car, promotions NASCAR, the pretty those an the has. some such, a model TicketSmarter how great and impact corporate teams because on based in the with standpoint, obviously, we're So, into we'll hopefully from announcements and have our business And we're

up impact $XXX,XXX captive small we're looking contain and insurance those up control at was really, year-over-year. costs. company went insurance own as insurance our the developing significantly us, company for difficult that The Another a cost to actually been has marketplace costs, that public to really almost

have and fair we've some gains. items, And that operating change in in about derivatives. non-cash warrant a in we they're gain of value impact discard they talked value I announcements warrant may the on near So, market the past, line very the Below we of future the -- derivatives, usually from unpredictable. the are and well. million this worth market as the charges fair because the Again, $XX.X had the

$XX.X was quarter million This gain. of

with moves be could mean, loss. quarter the of just $XX.X million market. it I Next

impact I line. So, or we credence, share. a but income Net $X.XX give quarter on did bottom the it don't have $X our made that wise, per much million for huge

you our If we remained over balance balances very capital over million, working look $XX positive million. Cash at $XX strong. sheet,

net $XX Our over equity is million.

acquisition discussion our implemented. ours, us of with like bit we've a special hold of XXth. on with provides I'd about and great going is meeting it continue a our that to to with So, that sheet little strategy balance strength to platform a the already shareholders we're end December

increase, know is authorized proxy sorts but at a to those a shares shares that reason because you not have all pass issued outstanding, XXX voted of have in doing I from that the increase million. that. like shares proposing of We're million We majority huge with we're meeting. regarding the the XXX the seems just changes to

passed in all authorized, results the majority was back outstanding. you'd If majority look our at a increase an but that shares annual meeting, overwhelming it of of not

back compounded outstanding, and to brokers call which beneficial owners. shares do try vote. Novos, -- we a get is all the of some not majority going we're difficulties So, to non-objecting larger of because the shareholders

TD broker vote one to the their includes base Charles shareholders own in So, has each that Schwab, of And Ameritrade. shares. individual their

it larger to. the on shares difficult way, that voted makes need the brokerages we where really and way of getting numbers of are the Some it

the this the looking in the need paid in requesting the cases form the done at So, is, of are stock. increase wanting future, the consideration that doing reason and many the of in or portion are of and those acquisitions have the owners we least we want sellers a in at common past or

see we complete as to we issue So, to ability want to the fit. shares those acquisitions, have

XXX a from going to is two -- million management years, this it's time We taken don't it get to or want this of do just have jump. to a time And costly large a passed. lot a of to to process. get professional because is hopefully lot every three Now, XXX and

their management and with increase hope along recommendation hopefully in will line on approve shares. So, vote today shares we the look everyone and the at the proxy, Board's and authorized the to

Stan. to So, back I'll with that, turn it

Stanton Ross

again, our can they side do see contacts, acquisitions quickly and some And get by in I whether make there Tom. law them -- very be selling sit lot look we're and some be to, that know have or country. those healthcare. with very there hospitals someone enhancing Nobility a could it ahead security, I And the them, they clinics our opportunities the and touch of will things the relationships, the may our the Thanks made. that the one our other the And those at possibly of on been TicketSmarter Nobility this products billing of And successful able that one as to it, regards excited we're or And into maybe our and and it. we we've nice we are are whether I do it how that to to on well handle they've through they do Great. situational acquisition could over is and think just that for or introduction fee that enhance outright out looking sure. acquisition throughout about had there, starting in of partnerships a And that to potential or that opportunities the We've we acquisitions be for Nobility. that at mean, it when are we number we we is go for rather want and and already that very years. defer enforcement the we're ThermoVu get with

-- we've talked Indy, at situational NASCAR, we them the have of security TicketSmarter, and about continue talked I So, level would some a that and our guidance primary here And to of Again, for highest introducing the of at the to the relationships, them of of enhance these of to bit. want business day, you make obviously, we've capability the maybe a little also we're end we I'll NFL look like able of their the sure either teams. on shareholders we give secondary things of believe when being being -- to sense. but will even for clearly and because look do we those make we But in involved lot seeing. we're elaborate our hopefully accretive and market, numbers, we've type about that about and talked getting acquisitions in which

is equations. have of do look I okay, enforcement you there the who's on? sector and public in how just really Ally to sit so what's From hidden Digital this out And compare at, with sector private well, side there and going to the and law

out public about company. RCM. out When there they find ticker a almost companies basically is their by RCM talking the XX just that there And number. couple, five to the NASDAQ And revenue EBITDA so, homework, what out They're go Inc. in are there I'm point medical times are a and medical They out a number, billing, symbol trying I'm or a are trading one times a NASDAQ, you RX space. is today your at billing do can is if in you that to do particular

value market And picking when now one-time market and the is to the go Tom mentioned call we been in so, trading, it five, revenue, up when accretive shareholder. at could a the had successful acquisitions bringing when fragmented there we're very that earlier that's is out so traditional have you right that in and

about X,XXX that and the excited for there. do out continuing look consolidate agencies and to that to that different continue opportunities very with are those So,

and there's with. that that in there So, a are we're get small lot of touch ones -- get out able to

And about we increases, Obviously, there's and in felt side clearly, for excited there. a of the $X Nobility goal a billion. the our we're of billing would hopefully, there larger value caps So, that's it's underlying it acquisitions million very when are that run today. great $XX come to about And million, made medical $XX attractive a that, excess getting much out rate market at entities year. trading the we've in

visiting. on So, billing the be we'd to receptive medical side. That's

we going think to probably an $XX -- on at run around valuations got number, to is have they still in giving the million -- market regards out over with, names a lot average but what's trading And consistent them a homework our there's TicketSmarter, number an that of take you're Well, I be being out acquisition, a publicly of one-time very done You That that at some number a and We've you possibly there familiar that's come not with familiar average may are they that with has price rate. roughly. that this again, revenue number? publicly and a is probably TicketSmarter, and have on to an What's are public revenue a held did the at they again, EBITDA and I'm looked six. there. our is it's where that in ability full held. we're said,

have again, I in been into we million. excess little So, more when touch guidance. Street when get announced gave that that would because day I And they a on will bit accretive. anticipated the should -- accretive, The that of I we very in notice XXXX, do very that the $XX here we it

of -- relationships benefits synergies and and we we to to, these just introduce right and that guys fact alone in so into we away. partnerships, is starting the at have, and a we our valuation and brings NASCAR to with So, bring NASCAR, show it's the Tracks look I that all lot can it if do NASCAR can get where with back you have TicketSmarter that value-added that the

accretive little two that So, big of a of said, homework, this these and making, do with to we're going a acquisitions realize acquisitions. that. that's expand our to on those knowledge trying touching that we're on being shareholders lot them All that's into value

about We coming have talk let's that -- got prepared Now camera seeing a are -- clearly with. new we we're we've announced the body and core out are that the business.

to body and areas We security for that to market very cameras been So, the now that. that enforcement can very look handy has very the the offer and that impact have we a in market for situational law in other good receptive a related a as The would a where fact the subscription model to be value agencies. of XXXX. convenient and lot

core to business with So, be we continue our camera body in we're technology. where about headed our excited

product. EVO Our

release press law well. our in-car video well system successful where has You've very seen in as numerous been that's very enforcement received and

to of of And be of have any will lot will that's be XXXX. a anticipate really of yet now again, at. commercial strong launching fleet very, very type and some tremendous in division, sit that That in keeping technology able -- to let their tracking We there, the their a out launching behavior, vehicles, version where driver that to people commercial features there are quarter. second monitor we again be

subscription we So, anticipate on that lot XXXX, side had with other in down A of grow. COVID, and model continues to to couple such are have having Obviously, things, where is it at there, the do definitely MetLife or now that XXXX of as body and control to the big we've Tom have sit so now importance growth our that Stadium body hungry that like we've starting cameras security, venues many at incidences request our We've and very slowed do to demand, been got in will everyone events, COVID. mentioned, seeing excited situational a capability, for currently We're wonderful being chiefs stuff having in security, continue security do demand. escalated. shutting seen had utilized. occurred, has the things. play, A we're so cameras of that and that events the -- of And is strong whether these concert be start got with all whatever, up into to because attending, you of crowd XXXX. a

our and international open up. really So, similar our security situational now strong. market, looks just We with expand situations see starting to very

we're this the So, of the outlook excited remainder and like about looks year. what for XXXX

So, instead was here, numbers the very TicketSmarter, looks continue interested quarter give industries exceeded things the Street enhancement we I we'd with seeing we But know up get some our guidance growth where billing in it's to -- fourth say -- important we in the some waking side very be at now that clearly full think of to beginning did the of that on coming anticipating. just We one we're we in, what that good. see the acquisitions had, of medical laws as well. and

maybe quarter us get anticipate think exceed quarter a it I'd So, fourth we we anticipate have should right Again, revenue that we a the everyone's quarter, be refreshing will the beginning that some XXXX, $X go that of for do in, revenue. was for $XX,XXX,XXX. would big to in eclipse to the one of excess the in million. $X days that able just we there, to coming but which a million than in XXXX. in $X That's number finished we million revenue beginning of memory very $XX.X to of our days, for us. at early in If fourth million back was higher number the so

some our able of of So we've comments. since the come and start $X acquisition implementing excess to million, in of of out great been COVID increase

division, million, creating talking we heavy we Now not again, that of our got putting a on come Again, which making did that is have some Shield we're loss we will acquisitions. there additional billing. in said in products in million. $XX good is But about the sense for for is of our burden our have $XX to Shield maybe and and capability we've We We're what going of TicketSmarter. number of I'm this where we're five-fold pretty brand. including have a anticipate in, very What not understanding looked in revenues our -- know strong real XXXX. PPE we of medical at excess we've almost XXXX, it, XXXX, we guidance a developing

So, this have is we've acquisitions with with enthusiasm in. to our We're that expand already contacts see foothold And you made. solid and can we've coming security. obviously, excitement and a still where relationship about the in situation very, my where is very law our excited enforcement using

the said, With as very well. of being the I business for open will look side So, all to floor continues Q&A. video our up strong this

Operator

line [Operator Aegis Instructions] of Our from Capital. first the question Dionisio from comes Rommel

Rommel Dionisio

the Congratulations quarter. Good morning. on

I Sounds impact could maybe about had talk things the chain to parts do of But like the a ask, shipping. Thanks. the you are some [core talking margin many more I the and your to walk than challenges core this to there's that? regards about lot customers And forward this top of might supply could business exciting wanted that, or Could on maybe realize probably going outlook and have with through moving through so -- to you a us going guys us for else. maybe chatting lot increases on. your you there. with pass-through components it's you maybe Ally[ happened that price of to extent anything also, just and just impact (ph)?

Stanton Ross

one Tom but make handle Yeah. a I comment. the bit, will just let I'll little

in, early One rather did quantities. of company, at of the additional some have capital in did crucial and and come bought ahead large items we and were that lead we when into went on some more the long we things our fortunate look the to items

it is For some that. But that and discounts And and could a out to products, of supply pricing there facing get wouldn't lead if make be truly a become [C&B that such effected] did our because sure with the of the -- we be that the seeing position (ph). PPE knowing a we -- issue, there. it. we're reasons, in couple that associated needed just one, time, we And

Tom Heckman

difficult. very From Yeah. time shipping a shipping been and just it's very, costs,

the as Just difficult well. very the difficult ship on and getting of been a pricing has been cargo shipping has

direct -- We've do challenges a taken of difficult salaries, but to people. increase our stock the compensation retain our of seeing would for number very, the one challenged we're in of to the side. -- like initiatives sales getting that, it's on out there Video of results But segment couple with really salesmen And market. think especially a that salesmen more have. our to them. of on is and labor people We're So we bigger little very the I quality

sides, getting difficulties both and the itself. cost shipping supply we're So, of the in labor and chain

Rommel Dionisio

And us Okay. just the that very was for for very, and Stan, and helpful clarify to guidance, you to do.

Looking said in with you've think all excess, at year, would does that is that million the $XX be I -- what announced, you from acquired for and additional that assume what acquisition. far next just you've company or so

clarify that. So to I just wanted

Stanton Ross

on, now going No. you the it's -- XX. they've think company, I of and right that they somewhere really right, more got on I And little rate intent little medical and I'll bit. already I'm just in and mean, as come insight, billing talking I some give between a about run it a a a probably mean, got right to of now letters eight acquisitions couple what

that I'd if again, Okay? TicketSmarter performing already of mentioned NASCAR, around how there, times, look And introduce then excited about a to at lot surprised we've as be in such our they're out if them opportunities come but so, XX. and and have they'll to you the so numerous I partners

you when lot over and you a too model, our is cost the our better, subscription you lot to that run five look five deferring at you're crazy look the don't so, to and obviously, get or new try three And different know products because revenue rate you years. years looking at

million. no you try dramatically, million to $XX it's going So, $XX that don't do but just there's to again, not up ramp to reason

the so, new And us, putting to on putting and on having there any not Shield. any I'm burdens burden I'm acquisitions. new not out go create

you're opportunities. So, question, more now, where as a finding successful in run where believe alone but I much pretty right be rate what -- the I you're let I that's we we see can if going on know know

Rommel Dionisio

guys. Congratulations again. Great. All right. again, Thanks

Stanton Ross

you. Thank

Operator

comes next Aegis Capital. Our question from Bryan of the line from Lubitz

Bryan Lubitz

Morning, gentlemen.

Stanton Ross

Bryan. morning, Good

Bryan Lubitz

moving Nice in quarter, like going we're and have it forward. to sails wind some looks our

In terms of Stan, guidance you -- million and just $XX elaborated. the and

you're anticipate to the more you just million companies and acquiring, consistent where of $XX from growth, you to that leverage acquire basic and that'll year-over-year, you're your are run going to just or add it's rate and companies, these line? bottom expect, going the the as synergies Now, grow you looking for is Rolodex you kind this

Stanton Ross

hit the Rolodex. the very, don't knife. We're to we You a looking catch stuff looking look thing falling get mean, on companies are Bryan. I for like startups first it involved head, and very that obviously, want We're to that. I in too at, not

that got can Our numbers turned a and into to relationship with around market, the on business helped the have them. just helped other much back absolutely going their all it's two we we stay there, relationships, get that of although that the and one that here them PPP in need time, one. the maybe on mean, our our to -- because and even it turning monies We market this and COVID more and of the for more healthy have expand infrastructure. maybe the the number number if like the that, let's get there secondary sit introduced companies or open, of I doors get and get play. afloat, could Rolodex we into game, Number were corner. instead and but after TicketSmarter. really we take little the partners could to there, are the It's capital out distribution be was the is to can that And money there's find channel that what and is where there party much recover the know primary still box. like some that comes they maybe -- to say, If trying that's they is see the can TicketSmarter or medical from billing,

that, So, but those capital lot a taking without are not healthy, having to not heal what real and them them can instead up on jumpstart them gives get years of to the overnight help recover a leg and of do needed slowly. -- up couple that a we to them of

be web things and assistance really So, the at whether that, two, of be if insurance, table accommodating that in design, in one I on those corporate it that we have number you where look entities really all out a the some some HR, there our mean, -- well. can the engineering, above. it assistance we there's very our that and there's bring as in I then to I mean, assistance level, like guess, lot again, infrastructure --

And so, that sure are that we accretive then, to believe to the very also those And things that make really things are to checking we're our doing we are want the shareholders. boxes three see. we

Bryan Lubitz

Okay.

the is your the that doing guys your service for the mentioned, $XX more I've margins. been look I five long has business guys exciting. your being million I you revenue than you you all that body off the shifting And where just all -- EVO with I've business the core business? revenue or just released that's generate not a seen guys you do the seen from is Now, you know The time with very Are does years, ticket camera. time sales on six over going model program, that, features guys core to spread as alone X, be it. going in out great to said, because which subscription you mean, from cameras.

Stanton Ross

body our we million, were in-car I cameras system. think sales. that know annual had in time high high was And $XX many all all-time -- just way back when mean, Bryan, was the when I even that don't with I Yeah. we in an that

obviously, in we're, at So, it shattering looking XXXX.

is The more that a being instead lose only the we business. our focus core video business law core enforcement. on difference solutions. look of got not at will it little to differently We a It's

-- So, or That same commercial you five-year continue the additional our they're that as five notice, because we a in want pound thing into they agency or pretty has enforcement XXX is years, XX,XXX much or now up another warranty, business side subscription sell for you into mean, getting the upgrade because market body well, has of system at the a And out least, with footprint, go in-car car an the is to only camera. a to on may I industry get expand for, personnel. five-year agencies. unless started the dabbling to or law gorilla sector you the of

to expand type different got technology taxicabs So, have and of like sit areas you've fleets, and -- we with this in. the markets where into other the and there in comes the other

into a So, good a of we a areas are at not we because got just enforcement, law started -- have XX position that other enforcement. what look going we'll company, We're law to ourselves abandoning. extensions of while in solutions lot we've ago, video are or we in get to always as better years

Bryan Lubitz

you -- saying are I'm not I'm that -- just curious. Okay. I'm

on product Shield to to to Now when those goal to goal over the only is and not cameras college get company and that the you Is XXX Kansas at ticket the your see get these stadiums, you acquisitions, that doesn't goal partnerships, is to people get introduce tickets the there, work them stadiums. where and MetLife for is your the sales, get example, you the synergy? NASCAR hopefully but City it body manage

Stanton Ross

Absolutely. Yeah.

You're dead on.

You're Because of very very at infrastructure deals negotiated or areas level -- has, are his some to some good dead those mean, highest you so where it, the there want they certain say very have good distribution on. I mean, institutions. however channel, I he's contacts.

went Digital a or we And mean, division, the now Ally we family they that have, they And so, Ally. again, in And at slash he seeing introduction a Digital look make understand all us don't of where on of our capabilities ticket company, division. he's that products sudden I'm this incidents we it. and and for Shield couple hopefully again, Then and all meaning -- companies they our a already to right of going there's and solutions talked when I can services secondary video as them products, expand there. differently.

to important networking -- we're very, very So, yes. acquisitions us. The web, that these are the

Bryan Lubitz

question. Okay. Last

is of Tom. covered, currently think this I'm position. your more if sit for in sure, I Tom, where terms you not cash guys you've

Tom Heckman

million we're $XX Yeah. Bryan, over cash. in

positive and plenty on got equity. million million XX sheet. $XX in $XX in we So, balance of -- cash net working We've got the capital

do in acquisitions. this very get sheet more increase gives right strong it's and balance great And -- us it so now. by That's our is go So, platform authorized very, out shares to we the these a do that approved why shareholders. important

Stanton Ross

sort acquisitions on there that's Bryan, made. see really to that acquisitions that the to really emphasize, out there some and going out what's you very while are made, of get there. to -- these I people to going again, get going it, And why it's point we've to some And are creative behind wanted But we're that comparisons we on get to take that you did value the Street can as anybody, compared companies mentioned, companies, lot other look there. And with TicketSmarter else, some that underlying and company, and at. if because I you to the as privately publicly held law way there's value the and and there you a medical as the prices of everything sat other billing as then held same frustrated we're stock analysts did,

Bryan Lubitz

say here. undervalued. we clear -- it's four I you a to hang guys last corona kind in York, -- calls. that in put the you five I've probably to is New get with come me said or crimp guys out again you you in know I'll on of but out got it are to Well, it And

you I've that year, do next you if analysts. You been guys need got because there. get this, wherever, with that need We out and the I've that. guys We you get get when next California, on no never year, seen to support more to we XX that million, and got a number like get $XX you show on off, quarter to a because like years to one knows, more road for word

you So, I'm real as for excited guys well.

Stanton Ross

calendar look and there. Thanksgiving. at I'll Bryan, it, be Appreciate your after

Bryan Lubitz

back Tom, up are cough All get same here. [ph] Super. that you're there. we something through right. the for going And It like thing looks

Tom Heckman

Yeah.

Bryan Lubitz

you right, to forward guys. look Thanksgiving speaking I Listen, to soon. to you. happy All

Stanton Ross

to you, Sounds Same Bryan. good.

Operator

into Patrick Capital. McGrady Our from next question Stonefish as line comes

Patrick McGrady

margins question. gross taking Thanks the it, the see net down I business to but lines? guys. for Tom, and morning, my wanted Good you Hey. the -- three missed just I for break can have may

Tom Heckman

margin in the same at line, Well, business and TicketSmarter at in margin, XX% looking about XX% as XX% gross business, the -- traditional the the in gross roughly Nobility. we're

Nobility, prior and that's billing be specialists integration XXX because partner to to that going at gosh, they leveraged any are Nobility, Now, people employ into synergies, about our that platform.

much So, looking Nobility as hopefully, segment. well we're up traditional the excuse the me for we're -- video improvement as side, TicketSmarter on and --

Patrick McGrady

have question. follow-up I And Great. Okay. one

like some have new two it guys these generating good starting you these net two seems businesses, or that income. acquired you're Now

you little You a that cash lot for in future. of hand flow can shares about more do an cash organic proposing potentially these bit I or sales got to on and on the using know But hand. talk a share you're increase cash in acquisitions?

Stanton Ross

acquire backfill is that now, to I we're lot This Tom opportunities really the prefer as utilize Stan. we do acquisitions, think with our quite and something to like undervalued at we've not have to I'm chime in that Yeah. happens will you absolutely, sure got What would well. mean, right personnel. we're -- looking cash. though, look of and a

so recognize wanting upside versus requesting stay associated publicly with privately also difference are they held and so, the the And being value are those stock. to that of it, recognize held maybe

board and get your like very management procedures, hopefully with but of be one a to in time so, a TicketSmarters can said, and we especially you medical is shares you'll that's what very accretive that that are is to Tom And reach to coming have has position numbers the you we employees said that committed it that we guy do try billing amount can and out to along shares and also more -- companies, in got find how that And have so with that we and to go expensive, can vote that ahead really this make some thousand and make grab to sure it's -- vote. support sure you we we happy do want obviously, when do and want expensive and do please? the do entity. But to something

Tom Heckman

common paid for want companies. as Stan they operating level the want just Digital And Ally of the I'll lot And the the synergies acquisition, they stock. that some cash that acquisition, as stock the They they're -- on a the flows of in echo owners restricted management joining Yeah. the the want, results. being said, and upper these and future and based well with of in part what incentive as see consideration

for not quiver -- could them here. it's and when So, a all million. to through we the stuff. increase, a realized We're as reason in is $XXX we're expensive. to asking And talk $XXX quiver on on need it's so having that be to hopefully operations that to and to focus voting we're spent going doing better stock, just use again, now we be not But away a -- just have able about that coming that's give outreaches to our potential and our of in large do shareholders and to to to darn that management and of such drag right I that are needed. that arrow lot million

judicious be accretive attract the doing for out of It's better acquisitions going management. that think, more reason. I shares. giving company in it'll to shareholders. to that's by going better going to it's those so, be the current So, the We're But to attract

Patrick McGrady

in obviously, very Are helpful. still in appreciate And that guys. getting Yeah. are for opportunities lot business growth TicketSmarter, to -- marketplace? there's those I I opportunities you it are time think types know seeing Nobility there I in future like the explanation. then, still of price That's a seems you the RCM when you in. the and points, you acquisitions, you deals seems great terms like -- and seeing -- here? at Good those of a of seem hit guys probably you good made it

Stanton Ross

Yeah.

I side, the it there's is the mean, that mom billing out guess, is, is. and no, of part medical a helps of we're can those different bigger being lot because them and along one a they and easier I is a because go now there fragmented. size hospitals employees, too, It XX XXX organization clinics so into or So, not a say, something lines. pops of

their helps too. business it core So,

good. bigger that how just excited step maybe actually bigger -- the are excited relationships numbers, there. do not made, And the key margins, along long-term just receptive And they ways, TicketSmarter, just about opportunities relationships those which entities of how maybe some a out that secondary is in as there's sure that to other a bit introductions a in is the your these the we're TicketSmarter quite well the partnership, entertain as but what The front. I'm we've contracts been sure is again, and all the make to seeing about -- there primary, potential have above. make bigger while diligence that we're on of those due the are So, out

meanwhile, them So, front eyes I'm my those open else out getting in may been focusing opportunities. But what of on really for be there.

Tom Heckman

in the we a we Yeah. been shop TicketSmarter don't fewer Really in complimentary TicketSmarter. And is, vendors There touch services seeing with. are and have that what that can want provide of not complimentary the businesses vendors. more better. to competitors customers some They we're want it's around one-stop more

now. looking number we're Nobility for So, laterals go very, us. that's there's for very that a of TicketSmarter we could And serious available at and matter, that with

Stanton Ross

talks helping the And to mean, other enhance ticket said, there been were sales. -- think to it a we continue Shield or stepping that products company. out outfit bit a cameras, I security Well with the could that utilizing the electrostatic entity, said, they with their body day, complimentary there's and Tom when realized mean in concert, I far. -- on along our our some game one Like will situational it's do, opportunities we I what security people them And all we've with from is. Because everything in HOCl like a with club. that with and quite offer professional sprayers, we said. so

Patrick McGrady

on great. A acquisition. answering the that's on you No, guys growth. lot appreciate and exciting I of congratulations and again the questions quarter Perfect. my

Stanton Ross

you -- to And take call. going go wrap one tell we're you then and very what much. We've this ahead got ahead up. thank and and one we'll more take go Well, more

Operator

Rommel Capital. of line the have Aegis from We Dionisio

Rommel Dionisio

guys. I'll one. a much, quick so you it Thank make

links financially than with the these do they of this profile, company just help I that they some you of Thanks. part just a just get credibility you that cash TicketSmarter to really traded as that does as at be -- look stable, I a to business? in of obviously enables in -- marketplace, being high the business, company ask, bigger sense it see otherwise that other of can other just the Do it win faster a your all company ESPN and feel segment want guys, the have business you So, significant to you get reserve brings for helps publicly obviously them larger that I would standalone. part sense and with, businesses have credibility, it won,

Stanton Ross

brought that that have his the has now absolutely. Ally that, I Well, some And of Yeah. that of I'm with he's we you enhanced TicketSmarter to Goodman, to has mean, up, glad other because things CEO. win offer the still and business. me Jeff the this the Digital he's to ability the reflected he because TicketSmarter, greatly of and strength financial association CEO

clearly It So, you're doing. was great assisted what in he's has dead a of question. capable on. That

Rommel Dionisio

much, Great. so guys. Thanks

Stanton Ross

Thank today. you everybody joining thanks Listen, us all. for

days. of couple a it delay to had We Sorry.

decision on XX-Q we'll your the to, really the we're submit wherever again, and you you to away, mentioned, management's encourage very -- votes. get follow And Hopefully, how just to future. right then file out you excited Tom we're your you to board then brokers going. if As about need that reach also would will and own

Thanksgiving, having wonderful wonderful holidays you XXXX. Thank all. watching a and year and happy have a strong finishing us this We're closely. be excited So, about

Operator

today's this gentlemen, everyone you concludes conference Thank for call. and participating. Ladies

disconnect. now You may

Digital Ally (DGLY) 17 Nov 212021 Q3 Earnings call transcript