Daktronics, Inc. (DAKT): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the company behind the dazzling displays at sports stadiums and bustling commercial centers? Let's dive into Daktronics, Inc. (DAKT), a leader in the audio and visual communication systems industry since 1968, and explore its journey from a small venture founded by two university professors to a global powerhouse with a $818.1 million revenue in fiscal year 2024. Keep reading to uncover the history, ownership structure, mission, and how Daktronics continues to innovate and make money in the dynamic world of digital displays.

Daktronics, Inc. (DAKT) History

Daktronics Founding Timeline

Year established

Daktronics was established in 1968.

Original location

The company was founded in Brookings, South Dakota.

Founding team members

The founding team members were Aelred Kurtenbach and Duane Sander, who were electrical engineering professors at South Dakota State University.

Initial capital/funding

The initial capital for starting Daktronics was $3,000.

Daktronics Evolution Milestones

Daktronics Transformative Moments

• Technological Innovation: Early adoption and development of LED technology significantly enhanced the quality and energy efficiency of their displays.
• Market Diversification: Expanding beyond sports scoreboards into transportation, advertising, and commercial displays broadened their revenue streams.
• Strategic Acquisitions: Acquisitions like ADFLOW Networks Inc. in 2023 have allowed the company to integrate complementary technologies and expand its market reach, particularly in the retail sector.
• Going Public: Becoming a publicly traded company provided the capital necessary for significant expansions and innovations.

Learn more about the company's Mission Statement, Vision, & Core Values of Daktronics, Inc. (DAKT).

Daktronics, Inc. (DAKT) Ownership Structure

Daktronics, Inc. (DAKT) operates with a mixed ownership structure, featuring a combination of institutional, insider, and public shareholders. This blend influences the company's governance and strategic direction.

Daktronics, Inc.'s Current Status

Daktronics, Inc. is a publicly traded company, listed on the NASDAQ under the ticker symbol DAKT. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC). More information about the financial health of Daktronics can be found at Breaking Down Daktronics, Inc. (DAKT) Financial Health: Key Insights for Investors.

Daktronics, Inc.'s Ownership Breakdown

The ownership of Daktronics, Inc. is distributed among various types of shareholders. Here's an overview:

Daktronics, Inc.'s Leadership

Key figures at Daktronics, Inc. drive the company's vision and execution. As of April 2025, the leadership team includes:

• Reece Kurtenbach serves as the Chairman, President, and Chief Executive Officer.
• Sheila M. Anderson is the Chief Financial Officer and Treasurer.
• Jeremy Johnson is the Chief Technology Officer.

These individuals, along with other key executives and board members, guide Daktronics' strategic initiatives and operational performance.

Daktronics, Inc. (DAKT) Mission and Values

Daktronics' Core Purpose

Official mission statement

Daktronics' official mission statement is:

• To be the world leader in designing, manufacturing, selling, and servicing electronic display systems.

This mission is further supported by:

• Providing the highest quality standard products and custom-designed systems.
• Treating each customer and employee with honesty, integrity, and respect.
• Continually improving in all aspects of our business.

Vision statement

Daktronics' vision is to be recognized as the leading provider of innovative video solutions across various markets. This vision encompasses:

• Expanding its global reach and market presence.
• Driving innovation in display technology and solutions.
• Delivering exceptional value to customers through high-quality products and services.

Company slogan/tagline

Daktronics' tagline, 'We create the spectacular,' encapsulates the company's commitment to delivering visually impressive and engaging display solutions. This slogan reflects:

• The company's focus on innovation and creativity in its product offerings.
• The impact and visual appeal of Daktronics' display systems.
• The company's dedication to helping customers create memorable and impactful experiences.

For further insights into Daktronics' financial standing, explore: Breaking Down Daktronics, Inc. (DAKT) Financial Health: Key Insights for Investors

Daktronics, Inc. (DAKT) How It Works

Daktronics, Inc. engineers, manufactures, and sells a wide range of electronic display systems and related products and services, serving various markets across the globe.

Daktronics's Product/Service Portfolio

Daktronics's Operational Framework

Daktronics operates through a vertically integrated model, managing most aspects of product development, manufacturing, and service delivery. This approach allows for greater control over quality and supply chain efficiency.

• Engineering and Design: New products and solutions are conceptualized and designed in-house.
• Manufacturing: The company manufactures the majority of its products in its facilities, focusing on quality control and customization.
• Sales and Marketing: Products are sold through a direct sales force and a network of dealers and distributors.
• Project Management and Installation: Daktronics provides project management services to ensure smooth installation and integration of its systems.
• Service and Support: Comprehensive service and support are offered, including maintenance, repairs, and content creation.

More information about the company can be found here: Mission Statement, Vision, & Core Values of Daktronics, Inc. (DAKT).

Daktronics's Strategic Advantages

• Market Leadership: Daktronics holds a significant market share in the electronic display industry, particularly in the sports market.
• Vertically Integrated Model: This model provides greater control over the supply chain and product quality.
• Customization Capabilities: The company can tailor its products and services to meet the specific needs of its customers.
• Strong Service and Support Network: Daktronics offers comprehensive service and support, enhancing customer satisfaction and loyalty.
• Innovation: Daktronics is committed to innovation, investing in research and development to stay ahead of the competition.

Daktronics, Inc. (DAKT) How It Makes Money

Daktronics, Inc. generates revenue primarily through the sale of electronic display systems, related services, and other products.

Daktronics' Revenue Breakdown

Daktronics operates through several key revenue streams. These can be broadly categorized into product sales (LED display systems), and services (maintenance, installation, and content creation). Understanding the contribution of each segment helps in assessing the company's overall financial health and strategic focus.

Daktronics' Business Economics

Daktronics' business economics are influenced by several factors including:

• Project-Based Revenue: A significant portion of revenue comes from large, project-based sales, which can lead to variability in quarterly results.
• Pricing Strategy: Daktronics employs a competitive pricing strategy, balancing cost leadership with value-added features and services. They compete on both price and performance, tailoring solutions to meet diverse customer needs.
• Economic Sensitivity: Demand for large display systems is sensitive to economic conditions. Capital spending by businesses and organizations, which drives display upgrades and new installations, tends to decrease during economic downturns.
• Global Footprint: Operating globally exposes Daktronics to currency exchange rate fluctuations, which can impact revenue and profitability.

Daktronics' Financial Performance

Daktronics' financial performance can be assessed through the following metrics:

• Revenue Growth: Monitoring year-over-year revenue growth indicates the company's ability to expand its market presence and capitalize on industry trends.
• Gross Margin: Gross margin, which was around 24.4% in 2024, reflects the efficiency of Daktronics' manufacturing and supply chain operations. It is calculated as revenue less the cost of goods sold, divided by revenue.
• Operating Income: Operating income shows the profitability of Daktronics' core business operations before interest and taxes.
• Net Income: Net income represents Daktronics' total earnings after all expenses, including taxes and interest, have been paid.
• Order Backlog: The order backlog provides insight into future revenue. A growing backlog suggests strong demand for Daktronics' products and services. As of 2024, the order backlog was reported at $344.7 million.
• Cash Flow: Analyzing cash flow from operations, investing, and financing activities reveals Daktronics' ability to generate cash, fund investments, and manage debt.

To gain more in-depth insights into Daktronics' financial health, you can explore: Breaking Down Daktronics, Inc. (DAKT) Financial Health: Key Insights for Investors

Daktronics, Inc. (DAKT) Market Position & Future Outlook

Daktronics is a significant player in the audio and visual display industry, holding a strong position in the LED display market. With a history of innovation and a broad product portfolio, the company is well-positioned to capitalize on future growth opportunities.

Competitive Landscape

Opportunities & Challenges

Industry Position

Daktronics holds a prominent position in the LED display industry, particularly in the sports, transportation, and commercial sectors. The company differentiates itself through:

• Customization: Offering tailored display solutions to meet specific customer requirements.
• Service and Support: Providing comprehensive service and support, including installation, maintenance, and content management.
• Technological Innovation: Investing in research and development to stay at the forefront of display technology.

To gain more insight into Daktronics' guiding principles, explore: Mission Statement, Vision, & Core Values of Daktronics, Inc. (DAKT).