Destiny Media Technologies Inc. Announces Fiscal 2024 Second Quarter Results
Vancouver, British Columbia–(Newsfile Corp. – April 15, 2024) – Destiny Media Technologies Inc. (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 2024 second quarter ended February 29, 2024.
“Following substantial investments to elevate our product development processes in the latter half of the previous year, we are now bolstering our marketing efforts to harmonize with our product and business development strategies,” stated Fred Vandenberg, President and CEO. “During the initial months of fiscal 2024, we’ve observed significant growth, particularly within the independent record label sector, culminating in an overall growth rate of approximately 10%. Our focus remains on achieving even greater revenue growth through these strategic investments in marketing and product development, strategically positioned to fuel our expansion into new markets.”
Financial Highlights
Q2 2024 vs Q2 2023
- Currency adjusted revenue grew by 9.0% (9.7% unadjusted)
- Independent record label revenue saw a 10.3% increase globally
- Adjusted EBITDA -$0.05 million
During the second quarter of the fiscal 2024, under a normal course issuer bid, the Company repurchased 137,300 shares for a total cost of $0.14 million.
FY2024 vs FY2023
- Currency adjusted revenue grew by 9.9% (11.5% unadjusted)
- Independent record label revenue saw a 15.6% increase globally
- Adjusted EBITDA $0.3 million
During the first half of the fiscal 2024, under a normal course issuer bid, the Company repurchased 309,300 shares for a total cost of $0.31 million.
Fiscal 2024 Second Quarter Earnings Webinar
Destiny Media Technologies will hold a live webinar on Monday, April 15, 2024 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss financial results for its fiscal 2024 second quarter ended February 29, 2024.
Date: Monday, April 15, 2024
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 US: +1 346 248 7799 or +1 360 209 5623 or More International numbers
Webinar ID: 835 2205 8363
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/
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, 2023, which is available on www.sedar.com or www.sec.gov.
Contact:
Fred Vandenberg
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236
DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
| Three months ended | Six months ended | ||||||||||||
| February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||
| Service revenue | $ | 986,338 | $ | 899,042 | $ | 2,141,140 | $ | 1,919,779 | |||||
| Cost of revenue | |||||||||||||
| Hosting costs | 32,383 | 25,526 | 60,656 | 53,485 | |||||||||
| Internal engineering support | 12,926 | 12,883 | 29,996 | 25,453 | |||||||||
| Customer support | 73,247 | 73,008 | 169,975 | 144,236 | |||||||||
| Third-party and transactions costs | 16,790 | 15,177 | 38,137 | 32,867 | |||||||||
| 135,346 | 126,594 | 298,764 | 256,041 | ||||||||||
| Gross margin | 850,992 | 772,448 | 1,842,376 | 1,663,738 | |||||||||
| 86.3% | 85.9% | 86.0% | 86.7% | ||||||||||
| Operating expenses | – | ||||||||||||
| General and administrative | 205,255 | 175,345 | 353,147 | 338,406 | |||||||||
| Sales and marketing | 285,001 | 258,300 | 500,858 | 432,526 | |||||||||
| Product development | 419,183 | 312,904 | 727,730 | 576,330 | |||||||||
| Depreciation and amortization | 87,026 | 35,952 | 168,124 | 72,331 | |||||||||
| 996,465 | 782,501 | 1,749,859 | 1,419,593 | ||||||||||
| Income (loss) from operations | (145,473 | ) | (10,053 | ) | 92,517 | 244,145 | |||||||
| Other income | |||||||||||||
| Interest and other income | 15,461 | 8,777 | 26,987 | 16,445 | |||||||||
| Net income (loss) before income tax | $ | (130,012 | ) | $ | (1,276 | ) | $ | 119,504 | $ | 260,590 | |||
| Current income tax expense | – | – | – | (3,600 | ) | ||||||||
| Net income (loss) | $ | (130,012 | ) | $ | (1,276 | ) | $ | 119,504 | $ | 256,990 | |||
| Foreign currency translation adjustments | 2,341 | (18,922 | ) | (10,351 | ) | (111,406 | ) | ||||||
| Total comprehensive income (loss) | $ | (127,671 | ) | $ | (20,198 | ) | $ | 109,153 | $ | 145,584 | |||
| Net income (loss) per common share | |||||||||||||
| Basic and diluted | $ | (0.01 | ) | $ | (0.00 | ) | $ | 0.01 | $ | 0.03 | |||
| Weighted average common shares outstanding: | |||||||||||||
| Basic | 9,842,720 | 10,122,261 | 9,926,627 | 10,122,261 | |||||||||
| Diluted | 10,107,554 | 10,122,261 | 10,191,461 | 10,122,261 | |||||||||
DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
| February 29, 2024 |
August 31, 2023 |
||||||
| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 1,539,685 | $ | 2,002,769 | |||
| Accounts receivable, net of allowance for doubtful accounts of $38,436 (August 31, 2023 – $41,331) |
634,465 | 432,501 | |||||
| Other receivables | 63,750 | 58,519 | |||||
| Prepaid expenses | 40,297 | 72,014 | |||||
| Deposits | 32,174 | 32,214 | |||||
| Total current assets | 2,310,371 | 2,598,017 | |||||
| Property and equipment, net | 531,853 | 642,207 | |||||
| Intangible assets, net | 872,752 | 645,474 | |||||
| Total assets | $ | 3,714,976 | $ | 3,885,698 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current | |||||||
| Accounts payable | $ | 101,067 | $ | 110,203 | |||
| Accrued liabilities | 294,031 | 267,144 | |||||
| Deferred revenue | 19,304 | 34,710 | |||||
| Total current liabilities | 414,402 | 412,057 | |||||
| Total liabilities | 414,402 | 412,057 | |||||
| Commitments and contingencies | – | – | |||||
| Stockholders’ equity | |||||||
| Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding – 9,787,310 shares (August 31, 2023 – 10,096,610 shares) |
9,787 | 10,096 | |||||
| Additional paid-in capital | 8,960,760 | 9,242,671 | |||||
| Accumulated deficit | (5,184,863 | ) | (5,304,367 | ) | |||
| Accumulated other comprehensive loss | (485,110 | ) | (474,759 | ) | |||
| Total stockholders’ equity | 3,300,574 | 3,473,641 | |||||
| Total liabilities and stockholders’ equity | $ | 3,714,976 | $ | 3,885,698 |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/205391