Destiny Media Technologies Inc. Announces Fiscal 2023 Third Quarter Results
Vancouver, British Columbia–(Newsfile Corp. – July 17, 2023) – 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 2023 third quarter ended May 31, 2023.
“We saw strong independent revenue growth throughout the quarter resulting in a 13.5% increase in this segment,” said Fred Vandenberg, President and CEO. “Independent record label represents 52% of our total revenue and this growth was seen throughout all major market segments and is derived from growing sales numbers and revenue per release. Total revenue grew by 6.9%.”
“The Company increased its product development expenditures throughout the second half of 2022 to execute on earlier successful research and development expenditures. These investments continue through the first three quarters of fiscal 2023 where we see an increased in capitalized development costs,” continued Vandenberg. “These costs are largely financed by ongoing operations.”
Highlights
Highlights for Q3 2023 include (all figures are USD, and comparisons are to Q3 2022):
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Quarterly revenue up 6.9% (6.3% foreign exchange adjusted);
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Independent record label revenue, representing 52% of total revenue, up 13.5%;
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EBITDA is $176,726 and capitalized development costs are $237,640.
During the quarter, the Company restarted a Normal Course Issuer Bid and repurchased 5,685 shares for a total cost of $3,923. Total repurchases under the normal course issuer bid to July 12, 2023 of 9,585 shares for a total of $7,463.
Fiscal 2023 Third Quarter Earnings Webinar
Destiny Media Technologies will hold a live webinar on Monday, July 17 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss its 2023 third quarter results.
The live webinar will include comments from President, Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Allan Benedict.
Date: Monday, July 17, 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 with an opportunity for 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: 890 0812 8337
Attendees participating via dial in will not have access to 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
(Expressed in United States dollars)
As at May 31, 2023
| 2023 | 2022 | |||||
| $ | $ | |||||
| ASSETS | ||||||
| Current | ||||||
| Cash and cash equivalents | 1,825,172 | 2,095,928 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $41,166 (August 31, 2022- $39,518) | 561,424 | 483,774 | ||||
| Other receivables | 51,042 | 29,600 | ||||
| Prepaid expenses | 47,073 | 83,242 | ||||
| Deposits | 32,083 | 33,305 | ||||
| Total current assets | 2,516,794 | 2,725,849 | ||||
| Property and equipment, net | 206,427 | 311,792 | ||||
| Intangible assets, net | 1,199,648 | 529,717 | ||||
| Total assets | 3,922,869 | 3,567,358 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current | ||||||
| Accounts payable | 108,779 | 116,290 | ||||
| Accrued liabilities | 300,116 | 319,738 | ||||
| Deferred revenue | 40,758 | 21,043 | ||||
| Total current liabilities | 449,653 | 457,071 | ||||
| Total liabilities | 449,653 | 457,071 | ||||
| Commitments and contingencies | – | – | ||||
| Stockholders’ equity | ||||||
| Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding – 10,122,261 shares (August 31, 2022 – issued and outstanding 10,122,261 shares) |
10,122 | 10,122 | ||||
| Additional paid-in capital | 9,224,712 | 9,115,848 | ||||
| Accumulated deficit | (5,275,423 | ) | (5,639,465 | ) | ||
| Accumulated other comprehensive loss | (486,195 | ) | (376,218 | ) | ||
| Total stockholders’ equity | 3,473,216 | 3,110,287 | ||||
| Total liabilities and stockholders’ equity | 3,922,869 | 3,567,358 |
Destiny Media Technologies Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in United States dollars)
Period ended May 31, 2023
| 2023 | 2022 | |||||
| $ | $ | |||||
| Service revenue | 1,068,007 | 999,282 | ||||
| Cost of revenue | ||||||
| Hosting costs | 30,555 | 50,604 | ||||
| Internal engineering support | 12,707 | 21,497 | ||||
| Customer support | 72,001 | 121,816 | ||||
| Third-party and transactions costs | 18,490 | 15,688 | ||||
| 133,753 | 209,605 | |||||
| Gross margin | 934,254 | 789,677 | ||||
| 87% | 79% | |||||
| Operating expenses | ||||||
| General and administrative | 314,387 | 318,995 | ||||
| Sales and marketing | 237,834 | 113,172 | ||||
| Product development | 247,392 | 326,125 | ||||
| Depreciation and amortization | 37,182 | 36,313 | ||||
| 836,795 | 794,605 | |||||
| Income from operations | 97,459 | (4,928 | ) | |||
| Other income | ||||||
| Interest and other income | 9,593 | 1,686 | ||||
| Gain on disposal of assets | – | – | ||||
| Income before provision for income taxes | 107,052 | (3,242 | ) | |||
| Current income tax expense | – | – | ||||
| Net income | 107,052 | (3,242 | ) | |||
| Foreign currency translation adjustments | 1,429 | 28,168 | ||||
| Total comprehensive income | 108,481 | 24,926 | ||||
| Net income per common share, basic and diluted | 0.01 | (0.00 | ) |
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/173699