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Mar 31, 2022
Digital Ally Q1 2022 Earnings Report
Reported a significant revenue increase driven by recent acquisitions and growth in both legacy product lines and the revenue cycle management segment.
Key Takeaways
Digital Ally, Inc. reported a 306% increase in total revenues for the first quarter of 2022, driven by acquisitions and growth in its legacy product lines and revenue cycle management segment. The company's revenue cycle management segment is following a roll-up strategy in the medical billing industry.
Total revenue increased by 306% compared to Q1 2021.
Gross profit increased by 138.9% compared to Q1 2021.
TicketSmarter generated nearly $6.4 million in revenue, representing almost 62% of the Company’s overall revenues.
Completed one business acquisition in January 2022 and an asset purchase in February 2022 within the revenue cycle management segment.
Digital Ally
Digital Ally
Forward Guidance
Digital Ally anticipates further revenue increases in 2022 and beyond, attributable to Nobility Healthcare and TicketSmarter. The company plans to continue pursuing and reviewing several opportunities, but proceeding cautiously given the current environment and future uncertainties.
Positive Outlook
- Expects further increases in revenues for 2022 and beyond attributable to Nobility Healthcare.
- Roll-up strategy is effective and attractive to potential targets.
- TicketSmarter acquisition proved to be accretive to revenues.
- Substantial liquid resources available to pursue organic expansion and potential acquisitions.
- Legacy product lines gaining traction throughout the marketplace.
Challenges Ahead
- Proceeding cautiously given the current environment and future uncertainties.
- Operating loss reported for the three months ended March 31, 2022.
- Overall cost of sales as a percentage of overall revenues increased.
- Selling, general and administrative expenses increased.
- Decrease in other income was attributable to the change in fair value of warrant derivative liabilities.