DGLY - Earnings call transcript Q2 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Digital Ally Second Quarter Earnings Conference Call. [Operator Instructions]. This call is being recorded on August 19, 2024.

This conference call 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. they and events that do and to matters, words or predictions not use historical future statements. indicate trends rather may other are expressions, of relate We forward-looking represent and that

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

I would to conference the to Ross, now CEO. ahead. go turn Stan Please over like

Stanton E. Ross

last for e-mails the and Thanks, numbers, text messages do the joining weeks With you. of had Brody we'll Leaf the today. several start the Kustom Green, concerning the group. then with and merger everybody, Clover Thank high-level overview is a Entertainment answering company's of lot me he'll status our President, us a of getting of over into we've

this round maybe just timing dividends its in round share regards Digital happened issues shareholders. and that as then the stock that with some second entails to and associated some like of well. lot's would and that, to a so And value on you on dividends And concerning Ally insight give the first of you we

that will Brody. being pass I call over with to So said, the

Brody Green

the to a financials. further overview Greater just XX-Q you there the free for in in Yes. the Form dive do on detail said, up take Like a be deep I'll Feel Thanks, will of details. brief just Stan. website. SEC's

pressing be regarding going I the think is business the more combination. to conversation

to So as we can. get we'll as that soon

at about XX. the million were the XXXX, from was company year-end assets $X.X of million, the total that down XX, Similarly, $XX.X June million at $XX compared million So December on with current assets, to $XX.X

Total of from liabilities, warrant $X $XX.X liabilities than the the million. that earlier chunk some is a about to million just nonetheless but transaction to bumped Total up and million. the The which the warrants, of some liability liability XX transactions derivative $XX.X noncash is books. little a well. attributable value Black-Scholes from on is liabilities current the That's less as June

current million $X.X revenue for X- as Now you sheet sitting on portion contracts. contract our for can see were That's the our term. deferred and and our million about long $X balance liabilities -- deferred X-year

end up -- the are way of that's and due. the QX a equity stockholders their to -- find million. Total find those going a So $X come mature to way into P&L really the over was little at as those

net call were to shares $X.X revenue of up out deferred wraps We for So $XXX,XXX. then -- a One loss had -- the million. on our net of $X.X QX, think further good our And of that's X.X for gross the side, is a And our current thing million of per P&L outstanding at then profit $X details the end really operating continues And million. current of grow. summary. $X.XX. then that balance with quarter loss share Q. total the you'll what our And to Again, the find the was an total with loss sheet. revenue a million

it's a million I -- to at this think little up believe. I point, over $XX.X it's

again, recognized be it's in to quarter the continue So in renewed. grow which to will quarter-over-quarter it continuing and

to the to model. goal with P&L increases what year the balance grow of we're So as much this subscription and do just continue hit the every moving trying pretty And that's forward. that

it continues we entertainment this work, few So know at as the to with had and having side a of June. on their festival quarter I events big well end them the

a on that let I'll And other items. Stan touch few along with

So I'll to over turn it Stan. back

Stanton E. Ross

currently even a $XX.XX. text NASDAQ Digital Ally the dividends. Yes, combination We've lot the and of up been just one Clover still they its Good. around done already subsidiaries, stock. said, I Leaf to selling Brody. Capital of which much the a is Entertainment business looked the -- It's agreement messages company. Thanks, calls where first round as their have e-mails, I Kustom record for are nicely, is trading date of

be that Digital So the shareholders. to be almost there X.X will approximately Ally shares of million out Clover sent will

That's just the today's equivalent, using price.

say, Let's completed record it's and a August dividend last so be be $X.XX almost on those shareholders it those say, And stays week. the of is at, record were where that shareholders the XX, that shareholders at business let's the of just of were after that'd the price, stock will merger getting. end

holding So to million Digital shares. that I'll should is also be receiving What Ally almost itself happening. then and will on be transpire X.X

Digital lot the that. comes and strong holds a back can It's of And at. that if especially envelope of on do the an astronomical the math into Ally where value number stock it's so you

time go period new shares is a out as in goal a There'll and And as be well. eventually, and those the be dividend well. out date those established will sent record X-month ahead of to about

timing the the of been now that approval know registration. SEC their -- Clover following closely got So have who those

shareholder then the we'll been transaction. into this to there, that active. and are move I the all agreed complete sure week cross upon continue that that combination say the having we making this i's it's the business it's the following time XX:XX forward t's and Once are and agreement forward vote things They in So at dot completed, Eastern is completing have transaction. to Friday. want on to move their now coming

So very, haul. well, very, a been this very has long

going December 'XX. 'XX, negotiating I And agreement, 'XX. an this entered of then recall, to March June sort path actually into of back about you project say As started down in want we in it of of this in and was announced

long as the been brings road I'm just the Ally a the it's for the on it companies for well. So about Digital excited long, into and clarity that but prospects its and shareholders value opportunity

ticketing So platform of is the own. now it there festival puts the situation on where the a out and platform its one

part company, little and getting they So have essentially define solutions Ally a you of they're it and to moved who by Ally and customer the entertainment Digital medical it billing a this are Digital now clearer video down. makes

have know time, soon the about outcome well. as importance the as will be sure us I'm the that this, it's trying excited that, running to And establish something clearly, try excited votes, be we'll but date always will release a of what will as that closing of point value. a outcome So the not in companies in include Friday, probably going both we -- was. on that that be I'm the that at vote to we of for to doing releases sure we news reporting

state With I that Digital a been Country on had offers already that like XX-year-old Stampede real one acquired long for said, Festival, year location. that new it's We to was also were said, shareholders, the a very new largest Exciting We've into first future holds. We Kansas Digital of got again, the all quickly Ally here Stampede. It's touch throughout It's the look a at -- being not in We next time that, game it's our for, Kustom probably good, our XXXX. a and bit the a and that the the So Country up about Ally lineup we'll and, our and if coming. we're little festivals. a largest we excited of year. Entertainment. Midwest. the new lineup Country

looking And that part the entertainment multiple spin-off. under Kustom we'll at as Kustom be of XXX the doing festivals

lines we up ahead Q&A, that please. So and why go said, being don't open with the for

Operator

Capital. Rommel Your from first [Operator from question Instructions] comes Aegis Dionisio

Rommel Dionisio

you Could like my outstanding? just on it thought million like turned would off I there's housekeeping more X.X just be is please first where's thought million and clarify question. math the X.X -- X.X X.X to a I that? see... had from The I million, offering, but and you could shares million I

Brody Green

Yes.

end prefunded had the million be because the yet deal. warrants it's So from at quarter exercised to X.X

at the all So X quarter little million now million were less end, X.X what face it of be [indiscernible]. Yes, is But -- now was at the was I believe X.X was double me you're And check little let then end. -- shouldn't up but I X.X to than number? of think exercised. it it point -- -- was now. less this just after the yes million -- it -- than quarter sort it's It at a warrants

Rommel Dionisio

Great. Perfect.

of I these that number question. the Okay. wonder some a just you really deferred first And we've fundamental of more if on us over sounds update like revenue [indiscernible] launched give year. an models few the It the is just growing. could

comment just all and execution the how last quarters the of you been that's few strategy you've that on can So going? laying for that out

Brody Green

Yes.

too. a for out instead of that I versus are in it's the in massive side, to kind municipalities 'XX. -- more undertaking kind we fee CapEx -- than and docking they time ] mean [ It you model stations, did massive there continue them a it's pro it all -- first We the on purposes, a year they years. commercial rather It's of of of for subscription financing X the than -- used for cities X more gives a annual these especially in

have worked well Royal X-year whatnot subscription well our and that they the can these massive sports as enforcement other as make investment. as of flow or teams, off off X- the they law cash than just So big and several which spends up well -- the of contracts lines a to colleges throughout in rather enjoyed Caribbean to say it's the on outside cruise they've don't -- model sign they CapEx

compile yes, we the not that for from but us continue recurring grow -- also to cash year-over-year, happy for revenue balance then continuing So reporting from obviously, with standpoint, hope just a just to standpoint. and we're financial to flow and a

Operator

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

Stanton E. Ross

want and the Digital Capital quick to everybody, Leaf agreement. on real thanks, shareholder that here also this point currently Friday Well, on also I both concerning again, Ally has jumping again up combination vote and one coming have business out Clover the for Friday

we And soon so both those we will posted through numbers. the outcome as of X-K as have press release and keep you the

talk everybody. a Thanks, great and Have So we'll soon. week,

Operator

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

Thank You you. may now disconnect.

Digital Ally (DGLY) 19 Aug 242024 Q2 Earnings call transcript