DGLY - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Digital Ally First Quarter Earnings Conference call. [Operator Instructions] This call is being recorded on Tuesday, May 21, 2024. This conference may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We may use words and other expressions that are predictions of or indicate future events and trends and that do not relate to external matters, rather they represent forward-looking statements.

These forward-looking statements are based largely on our expectations or forecast of future events can be affected by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control. forward-looking differ call the not and undue on could in statements to results reliance conference this readers such actual materially forward-looking from expressed place Therefore, statements. are cautioned update We generally in conference or new whether call, otherwise. revise a forward-looking a or future statements this result or as information, do expressed any publicly not events or There document will, this statements contained prove be can to in be no assurance that accurate. fact, forward-looking transfer the in Canara, to I the hand CEO. would to over like now conference Please ahead. go

Stanton E. Ross

calls, Thanks, in you. us and I our Thank update. while call. is for everybody, today. it's not numbers since last first has all been preferral we know joining call a And Obviously, happened our too we our this -- the gave a year-end regards to had everyone quarter you. a X far talk excited is chance really to back had short what a to period, such timing between

and on also, you the Obviously, ones And Kan Chiefs. you've including seen City video Ally with received, releases some the Digital probably contracts some they've the press that solutions have of regards concerning that the entertainment very had turn in on we've purchase S-X that the Ally was by Clover from seen of filing Digital SPAC acquisition. custom quick done an another to

pleased be be of shareholders obviously, the on, stuff we're do realize completion be that. close move to Ally getting forward the stock along really get will it you to very of completion, in new that days then upon to and nicely. the all for that, you we'll necessary those there progressing we're would that Digital is call, votes shared that something dividends may move then with finalized that having So that coming Hopeful to the hear to and and this

excited it. So really about

get. close Digital still in stock is will point. the Ally what regards to the very a real still strong holding ratio around about shareholders to We're up $XX Clover X:X

moving something Green this forward that been Digital from of President Brody me do said, quarter here you Ally. I the hear and just get is go said, buttoned being on and and coming With thing ahead hopefully, in quickly numbers. first rather SEC the So a recap back with up Like is we'll it. the days. of

I'll Brody, So take let you it.

Brody Green

Stan. you, probably only Thank we days spoke. as Stan And mentioned, been it's last XX since

the whole a as of not it and far goes, changes, sheet compare well as quarter lot least XXXX's balance to So through as numbers. at QX substantial and we'll the P&L run first

working of noticed XX-K Q the late. after probably That couple we the a wrapped sorry, due filings some to the was our Q and -- filed days for combination. been up pace it the fast annual a through the little audit, in of to we've all just You with business rest S-X right the this guys along time Q or -- gets get

XX-hour a here we just do delay that forward. on moving apologize, So that, a trend don't and being anticipate we

within goes. just along far that's here couple with stock probably decreases attributable have we as as write-offs in more our reserve really -- a assets to $XX.X so million in assets million Going XXXX, $X.X sheet. the mostly At due total of through were at QX current million to our change total far as as to what mostly included compared $XX.X a -- as inventory that current well year-end, balance

accounts the liabilities up on payable obligations was debt $XX.X $XX million at that's million slightly well. assets some of A related quarter Total first we compared year-end, to current the and had were lot as asset to an end compared $XX.X Total to during during taken quarter. to year-end. at largely million $XX.X million related sale quarter at to

again, million, accounts at million to similar compared of about quarter. a on year-end, first increase $XX.X million $XX.X $X some to debt payable to liabilities, so related that during and taken up Total up

million our assets see $XX.X and million increase compared first in liabilities. a of in small end at to in stockholders' year-end. a quarter $X.X at line the equity decrease with is small You'll That's just

were the As million $X.X about in QX the in as last $X.X P&L down far goes, of to first revenues million to 'XX quarter. year compared

and real focusing is focused just of revenues really to profitable the However, sticking for flat revenues us on really testament towards which revenue. rather our sake first gross million on is remained and profit $X.X working the a quarter million, to point compared right profitability -- at the of than rightsizing $XX

a million change number is at as is million to gross million in revenue remain for as then our exactly total quarter in far prior are So year. $X.X what And big we for SG&A the $X.X total $X.X compared was profit seeing profit the decrease another million the $X.X gross comes. with that hoping

compared decrease $X.X million SG&A, which to million $X.X a So -- million, million to brings last million very loss $X.X in $X.X year. $X.X which our operating is substantial,

in quarter loss our to large of our improvement So XXXX. first operating a compared

Obviously, still gross to but loss our right profit substantially work done, to a be keep definitely in and big flat a of the direction lower. step lot operating that's our

it. just X:X you'll there. our A stockholders' keep that equity the We're minor We're for really touch business can. Stan mentioned, see we in section, some the as close section, -- as really to grants to things on. the stock close in during finish that other ratio to trying as quarter other few no Some change combination, about to line

compared to million time up $XX.X is to year. revenue last million deferred 'XX at $X.X this at XX, March Our

larger every we anticipate quarter after pile just that as we each $X.X So up million. year-end million about deferred continuing up to every revenue I is as decrease in Like earlier, down quarter attributable and million, at from on continuing mentioned about which to subscription gets larger $X.X and here those contracts inventory $X.X this. the our to quarter model talk

was year-end. million $X.X inventory about gross million to at compared Our $X.X

acquisition that the we on quarter, item I of think and So that's large March touched Stan X during the decrease Stampede really on yet in attributable One net Country was completed of to 'XX. the don't inventory. this

So large very will country It's very that I that's once X-day I sure mean, between that's a I prominent in touch Stan Midwest. think people very, Stampede, XX,XXX Country day a in on XX,XXX a throughout. the festival festival it's brings wrap I'm But further and -- up.

well-established very in festival a I that XX date it's the is through this XX Midwest it So the here whether was there's -- year. -- June think

Stanton E. Ross

Through this XXth, I year. believe

Brody Green

XX. XX June to

very up about exciting here well. customer month, entertainment again, So in that's the and as and for for acquisition company that coming is sector the a

it's footnote, As you'll see in think I footnote the have our segment XX. we XX-Q,

$X.X of management did cycle the million, quarter. about video -- did You'll Revenue revenues and million the net this million. each see for entertainment $X.X section $X.X the segment did about

to So that total brings revenues the million. $X.X

Revenue almost was and You'll profit in see $X.X the our was also section million, cycle video about was the million. management gross about entertainment side $XXX,XXX. $X.X

solutions That's see depreciation on entertainment both You'll with video to the side a side. entertainment and amortization and the done. amortization acquisitions the due large there's section have

the hits with large the amortization through that So flows quarter, P&L, have which TicketSmarter, unfortunately. every they

Now video video side, it's depreciation some side. the on books on of the the assets on here

to and very signs compared profitability everything to year So our on in revenues last goal exciting quarter, is that this because overall, flat focus our to of getting coming this on is rightsize even means a time remain together. gross lower profit lot positive

on on about those. we're that the SEC. Obviously, now but the the One -- to got continue the still as right We on we're continue some we excited X continue last as work file and Amendment we Stan turning file with very S-X least future here. in to May direction XX. at do, mentioned, item, for on And

So just ago. days X

SEC. only week expect We yet had They last your the on comments back this comments X from this version.

are our we'll file numbers QX those up, here are numbers wrapped version with stale. then hopefully, once we get can included So as we and back now another and then promptly -- our

further And both that's back to quarter. NASDAQ, So we'll for in obviously the responses it you posted encourage shortly XX-Q their to can on And hopefully, over within look S-Xs EDGAR our filings, jump activity on for where the will turn filed please about quarter QX financials more our first you the and effective any on details we'll Form for go into our at numbers comments, Clover's read thereafter. Stan. the and And X details that the that. XXXX, spec. And on I'll version C-L-O-E for drop keep be guys I throughout custom get SPAC. the then those

Stanton E. Ross

pursue Yes, a enforcement video law things. aligns Brody. its is still with [indiscernible] to thriving commercial customers in Thanks, of the still new position couple its and Obviously, continue solutions they in and those areas, division. strong and

so that. very excited And about

on it's the and the have at festival that that Stampede, state past. years. around the in world, from of others the numbers acquisition been Country big I was Shelton, everyone at Brody drawn this past, for talking has has a at performed is festival used The depending it many XX a Taylor Swifts of it and that about think And Blake in it be to lot years, the the over And on, park. venue particular

a back the larger numbers But have moved with quarter, now. get to weekend what The capabilities being do hit couple than we'll a look it this got of at second the right in need June. of and to to quarter what times, we It's very last we we'll venue the of excited.

We lineup. also will the XXXX be announcing

We also be that will that doing entertainment yet going -- customer festivals were year. have additional this

Stampede, that growth its to the we're so platform such utilize platform as TicketSmarter. own Country for alone using we're through our excited And let well, ticketing as able ticketing

we And ticket as the just to in have associated I've place, these as so -- helps profits and this events. be also it's sales doing benefit the will something well, the events, and time the time with we again, venue which added nice also is doesn't do and an said providing already because

business in around the turn them hear effective. as go excited we that back right numbers, And on and to we and finish these hopefully do close combination back line we're very then that plug the So agreement. soon we as to could

with this any questions up that Julie may of type will have then for our So open listeners. we

Operator

to [Operator remarks. this for time. back Instructions] questions will Ross There call are the over Stan turn I no closing at

Stanton E. Ross

us. we be like everybody. about XX this call know very going have were with the days was another thanks, happened we potentially that having We for to know ago everybody, here coming exciting again, share joining it of Well, and said, things we so And a call we in can only weeks that that lot that there's positively.

Julie. day, we'll wonderful a Have and you. thank Thanks, wrap up. this anyways, So

Operator

Ladies and you. concludes for gentlemen, today. your conference this Thank call

You now disconnect. may

Digital Ally (DGLY) 21 May 242024 Q1 Earnings call transcript