Digital Ally Concludes 2023 With Over 110 New Subscription Customers During the Year
Digital Ally, Inc. (NASDAQ: DGLY) announced over 110 new subscription contracts in 2023, bringing the total to over 300 since the adoption of this model in mid-2020. The switch to a subscription program model has proven to be a great success, surpassing $10 million in deferred revenues. The company continues to display strong demand for its FirstVu Pro body-worn cameras and EVO-HD in-car video solutions.
The substantial increase in subscription contracts for Digital Ally signifies a positive reception of their business model shift. This strategy, which reduces upfront costs for customers, aligns well with the financial pressures faced by many municipalities. By offering multi-year subscription plans, Digital Ally not only ensures a steady revenue stream but also deepens customer loyalty and increases the predictability of future earnings.
From a market perspective, this approach can lead to more stable and recurring revenue, which is often valued higher by investors compared to one-time sales. The deferred revenue exceeding $10 million represents unearned revenue that will be recognized over time, improving financial visibility and potentially leading to a higher valuation of the company. Additionally, the emphasis on body-worn cameras and in-car video solutions meets the growing demand for accountability and transparency in law enforcement and security sectors.
Reaching over 300 subscription contracts is a strong indicator of Digital Ally's growth trajectory. The deferred revenue milestone is particularly noteworthy as it reflects not only current sales success but also future income. This is a key metric for investors as it provides insight into the company's financial health and its ability to generate cash flow over the coming years.
However, it's important to consider the cost of acquiring these contracts and the company's churn rate. The long-term sustainability of the subscription model will depend on the balance between customer acquisition costs, retention rates and the lifetime value of a customer. Investors should monitor these metrics closely, as they will have a significant impact on the company's profitability and stock performance in the long run.
The legal landscape surrounding law enforcement technology is complex and ever-changing, with increasing calls for regulation. Digital Ally's focus on advanced video recording products places it at the forefront of this evolving market. The company's subscription model may offer a competitive advantage by making it easier for law enforcement and security agencies to adopt new technologies amidst budget constraints and regulatory compliance requirements.
Moreover, the legal implications of body-worn cameras and in-car video solutions, such as privacy concerns and data storage regulations, will play a significant role in shaping the industry. Digital Ally's ability to navigate these legal challenges while providing flexible financial options to its customers could be a key factor in its continued success and expansion.
01/03/2024 - 08:50 AM
The Company’s subscription model continues its momentum in 2023, bringing in over 110 new contracts, bringing the total to over 300 contracts since the adoption of this model in the middle of 2020.
LENEXA, KS, Jan. 03, 2024 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”) , which develops, manufactures, and markets advanced video recording products and other critical safety products for law enforcement, emergency management, fleet safety and event security, today announced over 110 new subscription contracts were signed throughout 2023, a notable milestone that brings the Company’s total to exceed 300 contracts, continuing to display the strong demand for our FirstVu Pro body-worn cameras and EVO-HD in-car video solutions.
The Company’s switch to a subscription program model in mid-2020 has proven to be a great success and widely accepted in the industry, already surpassing $10 million in deferred revenues, as adequate funding for many municipalities can often be a rigorous and slow process. The subscription model minimizes their upfront capital expenditure and allows flexibility for the customer based on their current financial situation, without having to sacrifice their urgency for video evidence technology.
“We’re thrilled to announce another great year, securing over 110 new contracts for the Company as we continue to stack these three- and five- year subscription plans and take a larger foothold throughout the marketplace. Surpassing over 300 contracts is a great accomplishment, after making this business adjustment just over three years ago,” said Brody Green, President of Digital Ally, adding, “We are excited to continue to build on this success and expect even better results in 2024, with new innovation and notable contracts secured throughout this upcoming year and beyond. We are excited about the continued milestones and forward progress being made, as this shows the potential and expected growth the Company will have as it becomes disciplined and attentive moving forward.”
The milestone comes as the Company continues with its filing of the S-4/A Registration Statement Amendment with the U.S. Securities and Exchange Commission, the announcement of several notable law enforcement orders and patents, as well as the addition of its InterVu Room solution. Digital Ally continues to demonstrate its commitment to innovation and a world-class video solutions ecosystem with the FirstVu Pro body-worn camera, EVO-HD in-car system, InterVu Room system, EVO Web and QuickVu docking stations.
About Digital Ally
Digital Ally, Inc. (NASDAQ: DGLY) through its subsidiaries, is engaged in video solution technology, human & animal health protection products, healthcare revenue cycle management, ticket brokering and marketing, and event production. Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential, innovation and organizational synergies.
For additional news and information please visit www.digitalally.com
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Contact Information info@digitalallyinc.com
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts 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 the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: whether the Company will be able to maintain or expand its share of the markets in which it competes with the Video Room solution, FirstVu Pro body cameras, EVO HD in-car camera, QuickVu docking stations and EVO Web; whether the Company will make a global impact with its technology innovations; whether the Company will be able to adapt its technology to new and different uses, including being able to introduce new products; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; the effect of changing economic conditions; whether the technology referenced in this release will work as anticipated and meet the needs of the Company’s customers; and changes in government regulations, tax rates and similar matters. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2022, and quarterly report on Form 10-Q for the three and nine months ended September 30, 2023, as filed with the Securities and Exchange Commission.
Digital Ally, Inc. announced over 110 new subscription contracts in 2023.
The total number of contracts Digital Ally, Inc. has since the adoption of the subscription model in mid-2020 is over 300.
Digital Ally, Inc. achieved a notable milestone, surpassing over 300 contracts with the new subscription contracts in 2023.
The ticker symbol for Digital Ally, Inc. is NASDAQ: DGLY.
Digital Ally, Inc. develops, manufactures, and markets advanced video recording products and other critical safety products for law enforcement, emergency management, fleet safety, and event security.
Brody Green is the President of Digital Ally, Inc.
