NASDAQ : DGLY
Company Overview
Research Profile Company Website
Digital Ally, Inc. is a diversified holding company with operations in video solution technology, human and animal health protection products, healthcare revenue cycle management, ticket brokering and marketing, and event production. The Company pursues an acquisition strategy that targets organizations with positive earnings, strong growth potential, innovation, and operational synergies. To maximize long-term shareholder value, Digital Ally intends to spin-off its ticketing and entertainment business lines into a separate public company in 2023. The spin-off will create two optimized, tech-driven public companies with strong growth opportunities and operating metrics.
Value Proposition
Digital Ally’s diversified holdings generated 73% year-over-year revenue growth in 2022. The Company’s acquisition of new business lines and its evolution from hardware-focused sales to a subscription-based model for its legacy video technology solutions business over the past 24 months have been key drivers for its strong growth. To maximize value for its diverse operations, Digital Ally intends to spin-off its ticketing and entertainment business into a separate public company in 2023. TicketSmarter, acquired in 2021, currently offers over 48 million tickets to over 125,000 live events. TicketSmarter is now the preferred ticketing solution for several professional and collegiate sports teams and has secured the title sponsorship of the Birmingham Bowl with ESPN events. TicketSmarter contributed approx. 56% of DGLY’s total revenues in 2022, and with new partnerships with Gannett Media/USA Today, Sinclair Broadcast Group, iHeart Media, Sporting News, and MinuteMedia/Fansided signed last year, growth should accelerate moving forward. Recent acquisitions of two additional companies in Digital Ally’s revenue cycle management segment provide additional near-term revenue acceleration potential.
Market Data
Investment Highlights
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Recent accretive acquisitions driving dramatic improvements to revenue and gross profit
- Trailing 12-month revenue surpassed $33.3M as of June 30, 2023
- Completed two additional acquisitions of businesses in revenue cycle management segment in Q1 2023
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Spin-off of ticketing and entertainment businesses expected to unlock shareholder value
- Spin-off enables optimization of investment and capital allocation
- Spin-off anticipated to be completed in second half of 2023
- Enhanced ability to pursue accretive M&A opportunities, including rollup strategy in medical billing industry that capitalizes on highly fragmented market with more than 6,000 providers
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Legacy video technology solutions segment continues to gain traction with law enforcement, security, and commercial customers
- Launched new bodycam and docking technologies in 2022
- Subscription model with flexible payment options addresses limited funding for capital purchases
- EVO product launch in commercial segment
- Developing broader product offering
- Expanded and restructured sales team
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High profile partners and customers
- Marquee relationships include NASCAR, ESPN, iHeart Media, zTrip, and more
