Destiny Media Technologies Inc. Announces Fiscal Year 2022 Results
Vancouver, British Columbia–(Newsfile Corp. – November 14, 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 year ended August 31, 2022.
“The launch of Play MPE®’s browser based global distribution components was a major accomplishment for fiscal 2022,” said Fred Vandenberg, President and CEO. “With this launch, we moved resources in the latter half of the year to advance new products and new functionality designed to accelerate revenue growth.”
“While a devaluation of the Euro resulted in a small revenue decline for the year, we expect our increased investments in product and business development to impact 2023,” continued Fred Vandenberg.
Fiscal 2022 Highlights
- FX adjusted revenue increased by 1%; unadjusted revenue declined by 3%;
- Renewal of Universal Music Group agreement with 10% increase in annual fees;
- Warner Music Group revenue grew by 48% in the USA; 30% worldwide;
- Latin market development continues with a 64% increase in active users; signing of first pilot agreement.
- Launched Play MPE®’s global distribution infrastructure in browser platform; development staffing moving to new product development.
During the year under a normal course issuer bid, the Company repurchased and cancelled 143,100 shares for a total cost of $0.179M.
Fiscal 2022 Earnings Webinar
Destiny Media Technologies will hold a live webinar on Tuesday, November 15 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss financial results for its fiscal year ended August 31, 2022. The Company plans to release financial results for the year before market open on November 14, 2022.
The live webinar will include comments from President, Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Allan Benedict.
Date: Tuesday, November 15, 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 directly on the REGISTRATION FORM by clicking here.
Attendees viewing the webinar can voluntarily submit verbal 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 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: +1 312 626 6799 or +1 253 215 8782
Webinar ID: 860 4865 3403
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.
CONSOLIDATED BALANCE SHEETS
As at August 31, (Expressed in United States dollars)
| 2022 | 2021 | ||||
| $ | $ | ||||
| ASSETS | |||||
| Current | |||||
| Cash and cash equivalents | 2,095,928 | 2,752,662 | |||
| Accounts receivable, net of allowance for doubtful accounts of $39,518 [2021 – $19,743] | 483,774 | 400,233 | |||
| Other receivables | 29,600 | 53,172 | |||
| Prepaid expenses | 83,242 | 103,463 | |||
| Deposits | 33,305 | ||||
| Total current assets | 2,725,849 | 3,309,530 | |||
| Deposits | 35,556 | ||||
| Property and equipment, net | 311,792 | 143,487 | |||
| Intangible assets, net | 529,717 | 187,622 | |||
| Right of use assets | 190,253 | ||||
| Total assets | 3,567,358 | 3,866,448 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current | |||||
| Accounts payable | 116,290 | 202,722 | |||
| Accrued liabilities | 319,738 | 309,839 | |||
| Deferred revenue | 21,043 | 8,511 | |||
| Operating lease liability | 226,978 | ||||
| Total current liabilities | 457,071 | 748,050 | |||
| Operating lease liability, net of current portion | – | – | |||
| Total liabilities | 457,071 | 748,050 | |||
| Commitments and contingencies | |||||
| Stockholders’ equity | |||||
| Common stock, par value $0.001 authorized: 20,000,000 shares Issued and outstanding: 10,122,261 shares [2021 – issued and outstanding 10,265,361 shares] | 10,122 | 10,266 | |||
| Additional paid-in capital | 9,115,848 | 9,157,804 | |||
| Accumulated deficit | (5,639,465) | (5,788,539) | |||
| Accumulated other comprehensive loss | (376,218) | (261,133) | |||
| Total stockholders’ equity | 3,110,287 | 3,118,398 | |||
| Total liabilities and stockholders’ equity | 3,567,358 | 3,866,448 |
Destiny Media Technologies Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years ended August 31, (Expressed in United States dollars)
| 2022 | 2021 | Q4 2022 | Q4 2021 | ||||||||
| $ | $ | $ | $ | ||||||||
| Service revenue | 4,023,910 | 4,172,473 | 994,057 | 1,033,810 | |||||||
| Cost of revenue | |||||||||||
| Hosting costs | 178,567 | 131,325 | 40,168 | 39,034 | |||||||
| Internal engineering support | 61,793 | 29,723 | 18,084 | 8,725 | |||||||
| Customer support | 350,161 | 168,428 | 102,476 | 49,439 | |||||||
| Third party and transaction costs | 66,278 | 64,449 | 17,592 | 16,711 | |||||||
| 656,799 | 393,925 | 178,320 | 113,909 | ||||||||
| Gross Margin | 3,367,111 | 3,778,548 | 815,737 | 919,901 | |||||||
| 84% | 91% | 82% | 89% | ||||||||
| Operating expenses | |||||||||||
| General and administrative | 980,381 | 666,485 | 180,208 | 139,663 | |||||||
| Sales and marketing | 1,011,199 | 1,433,232 | 239,036 | 428,394 | |||||||
| Product development | 1,099,618 | 1,194,976 | 154,677 | 233,046 | |||||||
| Depreciation and amortization | 142,662 | 105,357 | 52,603 | 27,969 | |||||||
| 3,233,860 | 3,400,050 | 626,524 | 829,072 | ||||||||
| Income from operations | 133,251 | 378,498 | 189,213 | 90,829 | |||||||
| Other income | |||||||||||
| Interest income | 9,153 | 4,031 | 4,460 | 869 | |||||||
| Gain on disposal of assets | 11,018 | – | 0 | – | |||||||
| Income before provision for income taxes | 153,422 | 382,529 | 193,673 | 91,698 | |||||||
| Income tax expense – deferred | (4,348) | – | – | – | |||||||
| Net income | 149,074 | 382,529 | 193,673 | 91,698 | |||||||
| Foreign currency translation adjustments | (115,085) | 84,323 | (106,446) | (127,573) | |||||||
| Total comprehensive income | 33,989 | 466,852 | 44,542 | (35,875) | |||||||
| Net income per common share, basic and diluted | 0.01 | 0.04 | 0.01 | 0.01 |
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, 2022, 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/144088