Destiny Media Technologies Inc. Announces Third Quarter Fiscal Year 2021 Results
Vancouver, British Columbia–(Newsfile Corp. – July 14, 2021) – Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY) (the “Company”) or (“Destiny”), the makers of Play MPE®, a cloud-based SaaS solution for digital asset management in the music industry, today announced financial results for its fiscal 2021 third quarter ended May 31, 2021.
Highlights for Q3 2021
(all figures are USD, and comparisons are to Q3 2020):
- Play MPE® revenue grew by 15.2% (9.7% currency adjusted);
- Independent label revenue increased 29.7% (26.8% currency adjusted);
- Sends activity up 26.5%;
“Continued independent record label growth has been a significant driver of our overall Play MPE® revenue growth in the current quarter and over the trailing twelve months,” said Fred Vandenberg, President and CEO. “In the current quarter, we have added key industry professionals to our business development group in the United States and these additions have had an immediate impact adding key US Major Label distributions in the Play MPE® platform.”
The stock repurchase program that commenced in January 2021, resulted in market purchases to May 31, 2021 of 155,685 shares for a total cost of USD $218,682.
Fiscal 2021 Third Quarter Earnings Webinar
Destiny Media Technologies will host a webinar at 5:00 p.m. ET (2:00pm PT) on Wednesday, July 14, 2021, to further discuss its 2021 third quarter results. Investors and interested parties may participate in the webinar by registering at the following:
https://investors.dsny.com/investors/financials/
or directly on the REGISTRATION FORM by clicking here.
Attendees are encouraged to register prior to the scheduled time.
Attendees viewing the webinar can voluntarily submit either verbal and written questions during the live presentation. Attendee cameras will remain off throughout the presentation. Attendees’ microphones will remain off unless the attendee voluntarily selects to engage in verbal questions similar to the format available on traditional conference call format.
The webinar format will provide the Company an opportunity to present visual information and provide attendees an opportunity for written questions.
For those without internet access, the webinar can be accessed via the following dial in details:
Direct dial in: +1 301 715 8592 or +1 647 374 4685
Webinar ID: 848 9340 6221
Attendees participating via dial in will not have access the webinar video stream, and will not have access to question and answer functions.
A recording of the webinar will be available after the event on https://investors.dsny.com/investors/financials/.
CONSOLIDATED BALANCE SHEETS
As at,
| May 31, | August 31, | |||||
| 2021 | 2020 | |||||
| $ | $ | |||||
| ASSETS | ||||||
| Current | ||||||
| Cash and cash equivalents | 2,934,575 | 1,841,340 | ||||
| Short-term investments | – | 781,490 | ||||
| Accounts receivable, net of allowance for | ||||||
| doubtful accounts of $20,618, [August 31, 2020 – $23,412] | 403,196 | 426,832 | ||||
| Other receivables | 46,869 | 26,083 | ||||
| Prepaid expenses | 69,444 | 78,562 | ||||
| Total current assets | 3,454,084 | 3,154,307 | ||||
| Deposits | 37,131 | 34,316 | ||||
| Property and equipment, net | 166,913 | 194,277 | ||||
| Intangible assets, net | 86,376 | 22,952 | ||||
| Right of use asset | 258,286 | 403,961 | ||||
| Total assets | 4,002,790 | 3,809,813 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current | ||||||
| Accounts payable | 140,989 | 119,399 | ||||
| Accrued liabilities | 355,766 | 353,235 | ||||
| Deferred revenue | 18,210 | 19,638 | ||||
| Current portion of operating lease liability | 280,028 | 238,261 | ||||
| Total current liabilities | 794,993 | 730,533 | ||||
| Operating lease liability, net of current portion | 24,418 | 219,063 | ||||
| Total liabilities | 819,411 | 949,596 | ||||
| Contingencies | ||||||
| Stockholders’ equity | ||||||
| Common stock, par value $0.001 | ||||||
| Authorized: 20,000,000 shares | ||||||
| Issued and outstanding: 10,294,961 shares | ||||||
| [August 31, 2020 – issued and outstanding 10,450,646 shares] | 10,295 | 10,451 | ||||
| Additional paid-in capital | 9,186,881 | 9,366,290 | ||||
| Accumulated deficit | (5,880,238 | ) | (6,171,068 | ) | ||
| Accumulated other comprehensive loss | (133,559 | ) | (345,456 | ) | ||
| Total stockholders’ equity | 3,183,379 | 2,860,217 | ||||
| Total liabilities and stockholders’ equity | 4,002,790 | 3,809,813 |
CONSOLIDATED STATEMENTS OF INCOME
| Three Months | Three Months | Nine months | Nine months | |||||||||
| Ended | Ended | Ended | Ended | |||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| $ | $ | $ | $ | |||||||||
| Service revenue |
1,083,987 | 939,873 | 3,138,663 | 2,792,458 | ||||||||
| Cost of revenue | ||||||||||||
| Hosting costs | 32,582 | 30,905 | 92,291 | 73,361 | ||||||||
| Internal engineering support | 7,375 | 5,915 | 20,998 | 19,278 | ||||||||
| Customer support | 41,794 | 33,523 | 118,989 | 109,245 | ||||||||
| Third Party and transactions costs | 16,053 | 16,641 | 47,738 | 39,502 | ||||||||
| 97,804 | 86,984 | 280,016 | 241,386 | |||||||||
| Gross Margin | 986,183 | 852,889 | 2,858,647 | 2,551,072 | ||||||||
| Operating expenses | ||||||||||||
| General and administrative | 202,878 | 273,070 | 526,822 | 708,667 | ||||||||
| Sales and marketing | 361,411 | 140,690 | 1,004,839 | 786,846 | ||||||||
| Product development | 326,450 | 355,625 | 961,930 | 963,351 | ||||||||
| Depreciation and amortization | 26,673 | 33,194 | 77,388 | 100,744 | ||||||||
| 917,412 | 802,579 | 2,570,979 | 2,559,608 | |||||||||
| Income (loss) from operations | 68,771 | 50,310 | 287,668 | (8,536 | ) | |||||||
| Other income | ||||||||||||
| Interest income | 823 | 5,266 | 3,162 | 19,743 | ||||||||
| Other income (loss) | – | (677 | ) | – | 19 | |||||||
| Net income | 69,594 | 54,899 | 290,830 | 11,226 | ||||||||
| Net income (loss) per common share, | ||||||||||||
| Basic | 0.01 | 0.01 | 0.03 | 0.00 | ||||||||
| Diluted | 0.01 | 0.01 | 0.03 | 0.00 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 10,426,961 | 10,450,646 | 10,428,809 | 10,623,432 | ||||||||
| Diluted | 10,531,708 | 10,450,646 | 10,543,442 | 10,623,432 |
Q3 Fiscal Year 2021 Financial Summary
| (millions of U.S. dollars) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| May 31, 2021 |
May 31, 2020 |
% Change |
May 31, 2021 |
May 31, 2020 |
% Change |
||||||||||||||||||
| REVENUE | |||||||||||||||||||||||
| Play MPE® | 1.082 | 0.940 | 15.2% | 3.131 | 2.772 | 13.0% | |||||||||||||||||
| Other | 0.002 | 0.000 | 0.1% | 0.008 | 0.020 | (60.0%) | |||||||||||||||||
| Total Revenue | 1.084 | 0.940 | 15.3% | 3.139 | 2.792 | 12.4% | |||||||||||||||||
| PROFITABILITY | |||||||||||||||||||||||
| Gross Margin $ | 0.986 | 0.853 | 15.6% | 2.859 | 2.551 | 12.1% | |||||||||||||||||
| Gross Margin % | 91.0% | 90.7% | 0.3% | 91.1% | 91.4% | (0.3%) | |||||||||||||||||
| Operating Expenses | 0.917 | 0.803 | 14.3% | 2.571 | 2.560 | 0.4% | |||||||||||||||||
| Cash Operating Costs | 0.878 | 0.760 | 15.5% | 2.458 | 2.445 | 0.5% | |||||||||||||||||
| Adjusted EBITDA | 0.109 | 0.098 | 11.2% | 0.404 | 0.126 | 220.6% | |||||||||||||||||
| Net Income | 0.070 | 0.055 | 27.3% | 0.291 | 0.011 | 2545.5% | |||||||||||||||||
| Earnings Per Share | 0.01 | 0.01 | 0.0% | 0.03 | 0.00 | – | |||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||
| CASH | May 31, 2021 | May 31, 2020 |
|||||||||||||||||||||
| Cash Operating Income | 0.421 | 0.156 | 169.9% | ||||||||||||||||||||
| Working Capital Changes | 0.016 | (0.391 | ) | (104.1%) | |||||||||||||||||||
| Cash Provided By (Used In) Operating Activities | 0.437 | (0.235 | ) | (286.0%) | |||||||||||||||||||
| Cash Provided By (Used In) Investing Activities | 0.702 | (0.798 | ) | (188.0%) | |||||||||||||||||||
| Cash (Used In) Financing Activities | (0.219 | ) | (0.533 | ) | (58.9%) | ||||||||||||||||||
| As at | |||||||||||||||||||||||
| CASH RESERVES | May 31, 2021 |
August 31, 2020 |
|||||||||||||||||||||
| Cash and cash equivalents | 2.935 | 1.841 | 59.4% | ||||||||||||||||||||
| Short-term investments | – | 0.781 | (100.0%) | ||||||||||||||||||||
| Total Cash Reserves | 2.935 | 2.622 | 11.9% | ||||||||||||||||||||
About Destiny Media Technologies Inc.
Destiny provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond. More information can be found at www.dsny.com.
Forward-Looking Statements
This release contains forward-looking statements that reflect current views with respect to future events and operating performance. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Destiny Media Technologies is not obligated to update these statements in the future. For more information on the Company’s risks and uncertainties relating to those forward-looking statements, please refer to the Risk Factors section in our Annual Form 10-K for the fiscal year ended August 31, 2020, which will be available on www.sedar.com or www.sec.gov.
Contact:
Fred Vandenberg
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/90162