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 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.
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)
