Destiny Media Technologies Inc. Announces Fiscal 2022 Third Quarter Results
Vancouver, British Columbia–(Newsfile Corp. – July 12, 2022) – Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), 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 2022 third quarter ended May 31, 2022.
“During our third quarter, we continued to grow our product development capacity as we address specific opportunities that we identified in order to expand addressable markets and market conversion,” said Fred Vandenberg, President and CEO. “We continue to see growing user activity and revenue in our developing markets with many positive signs for future growth.”
Q3 2022 Financial Results
Highlights for Q3 2022 include (all figures are USD, and comparisons are to Q3 2021):
- Currency adjusted Play MPE® revenue down 2.3%
- Currency adjusted European revenue grew by 5.5%
- USA revenue up 1.1%
- Capitalized software development costs of $0.18 million
Nine Months Ended May 31, 2022 Financial Results
Highlights for the nine months ended May 31, 2022 include (all figures are USD, and comparisons are to the nine months ended May 31, 2021):
- Currency adjusted Play MPE® revenue up 0.3%
- Currency adjusted Canadian revenue grew by 27.6%
- Currency adjusted European revenue grew by 3.5%
- USA revenue up 2.1%
- Capitalized software development costs of $0.33 million
During the nine months ended May 31, 2022, under a normal course issuer bid, the Company repurchased 143,100 shares for a total cost of $0.18 million.
Fiscal 2022 Third Quarter Earnings Webinar
Destiny Media Technologies will hold a live webinar on Tuesday, July 12, 2022 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss financial results for its third quarter ended May 31, 2022. The live webinar will include comments from President and Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Allan Benedict.
Date: Tuesday, July 12, 2022
Time: 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time)
Attendees are encouraged to register prior to the scheduled time at the following:
https://investors.dsny.com/investors/financials/ or by clicking on the Webinar Registration Form.
Attendees viewing the webinar can voluntarily submit 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.
For those without internet access, the webinar can be accessed via the following dial in details:
Direct dial in: +1 312 626 6799 or +1 253 215 8782
Webinar ID: 823 7596 4271
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/
| DESTINY MEDIA TECHNOLOGIES, INC. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| May 31, 2022 |
August 31, 2021 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 1,953,454 | $ | 2,752,662 | ||
| Accounts receivable, net of allowance for doubtful accounts of $24,844 (August 31, 2021 – $19,743) | 800,847 | 400,233 | ||||
| Other receivables | 23,278 | 53,172 | ||||
| Prepaid expenses | 54,937 | 103,463 | ||||
| Deposits | 45,269 | – | ||||
| Total current assets | 2,877,785 | 3,309,530 | ||||
| Deposits | – | 35,556 | ||||
| Property and equipment, net | 359,490 | 143,487 | ||||
| Intangible assets, net | 254,489 | 187,622 | ||||
| Right-of-use assets | – | 190,253 | ||||
| Total assets | $ | 3,491,764 | $ | 3,866,448 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current | ||||||
| Accounts payable | $ | 116,158 | $ | 202,722 | ||
| Accrued liabilities | 301,394 | 309,839 | ||||
| Deferred revenue | 25,523 | 8,511 | ||||
| Current portion of operating lease liability | – | 226,978 | ||||
| Total current liabilities | 443,075 | 748,050 | ||||
| Total liabilities | 443,075 | 748,050 | ||||
| Contingencies | – | – | ||||
| Stockholders’ equity | ||||||
| Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding – 10,122,261 shares (August 31, 2021 – 10,265,361 shares) |
10,122 | 10,266 | ||||
| Additional paid-in capital | 9,137,129 | 9,157,804 | ||||
| Accumulated deficit | (5,828,790 | ) | (5,788,539 | ) | ||
| Accumulated other comprehensive loss | (269,772 | ) | (261,133 | ) | ||
| Total stockholders’ equity | 3,048,689 | 3,118,398 | ||||
| Total liabilities and stockholders’ equity | $ | 3,491,764 | $ | 3,866,448 | ||
| DESTINY MEDIA TECHNOLOGIES, INC. | ||||||||||||
| Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended May 31, | Nine Months Ended May 31, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Service revenue | $ | 999,282 | $ | 1,083,987 | $ | 3,029,853 | $ | 3,138,663 | ||||
| Cost of revenue | ||||||||||||
| Hosting costs | 50,604 | 32,582 | 138,399 | 92,291 | ||||||||
| Internal engineering support | 21,497 | 7,375 | 43,709 | 20,998 | ||||||||
| Customer support | 121,816 | 41,794 | 247,685 | 118,989 | ||||||||
| Third-party and transactions costs | 15,688 | 16,053 | 48,686 | 47,738 | ||||||||
| 209,605 | 97,804 | 478,479 | 280,016 | |||||||||
| Gross margin | 789,677 | 986,183 | 2,551,374 | 2,858,647 | ||||||||
| Operating expenses | ||||||||||||
| General and administrative | 318,995 | 202,878 | 800,173 | 526,822 | ||||||||
| Sales and marketing | 113,172 | 361,411 | 772,163 | 1,004,839 | ||||||||
| Product development | 326,125 | 326,450 | 944,941 | 961,930 | ||||||||
| Depreciation and amortization | 36,313 | 26,673 | 90,059 | 77,388 | ||||||||
| 794,605 | 917,412 | 2,607,336 | 2,570,979 | |||||||||
| Income (loss) from operations | (4,928 | ) | 68,771 | (55,962 | ) | 287,668 | ||||||
| Other income | ||||||||||||
| Interest and other income | 1,686 | 823 | 4,693 | 3,162 | ||||||||
| Gain on disposal of assets | – | – | 11,018 | – | ||||||||
| Net income (loss) | $ | (3,242 | ) | $ | 69,594 | $ | (40,251 | ) | $ | 290,830 | ||
| Foreign currency translation adjustments | 28,168 | 149,774 | (8,639 | ) | 211,897 | |||||||
| Total comprehensive income (loss) | $ | 24,926 | $ | 219,368 | $ | (48,890 | ) | $ | 502,727 | |||
| Net income (loss) per common share | ||||||||||||
| Basic | $ | (0.00 | ) | $ | 0.01 | $ | (0.00 | ) | $ | 0.03 | ||
| Diluted | $ | (0.00 | ) | $ | 0.01 | $ | (0.00 | ) | $ | 0.03 | ||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 10,122,261 | 10,426,961 | 10,185,320 | 10,428,809 | ||||||||
| Diluted | 10,122,261 | 10,531,708 | 10,185,320 | 10,543,442 | ||||||||
About Destiny Media Technologies Inc.
Destiny Media Technologies (“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, 2021, which is 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/130611