In This Article:
Release Date: November 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Destiny Media Technologies Inc (DSNY) reported a revenue growth of 9.6% for the year, with Q4 revenue up by approximately 7.5%.
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The company launched a new product, MTR, in June, which is showing growth potential despite its current small contribution to total revenue.
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Destiny Media Technologies Inc (DSNY) has completed a year-long project to build out international capabilities for its largest client, which is expected to drive future growth.
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The company is focusing on expanding its Plan B ecosystem, which connects record labels to various promotional destinations, potentially increasing its market value.
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Efforts to improve marketing strategies, including global marketing preparations and rebranding, are beginning to positively impact revenue.
Negative Points
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EBITDA decreased to 577K, slightly down from the previous year, due to investments in product growth.
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The new MTR product currently contributes less than 0.2% to total revenue, indicating its early-stage development and limited immediate impact.
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The company is still in the process of negotiating a longer-term contract with Universal, currently operating on a month-to-month basis.
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International distribution, although growing, still represents less than 5% of total revenue, highlighting a need for further expansion.
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The company has not yet activated a share buyback program, despite considering it due to the current stock price.
Q & A Highlights
Q: What catalysts should investors look for to signal revenue growth above 10% for Destiny Media Technologies? A: The CEO mentioned that the checkout feature being developed will be a game changer, allowing sales in markets where they currently have no sales. Improvements in marketing and a fully automated sales process are expected to drive growth. Additionally, MTR's revenue is improving and will see inflection points when they can sell to larger customers and expand globally.
Q: Should we expect the current revenue growth rate of 9-10% to continue, or will it increase? A: The CEO expects growth in the independent record label segment, driven by improved marketing and international sales. Major labels may see smaller growth, but MTR, as a new product, should have a higher growth rate, impacting overall growth at certain inflection points.
Q: What portion of your business is now from labels distributing internationally? A: International distributions are less than 5% of total revenue, but this area is growing, with a 67% increase last year. The company is focusing on expanding international lists and acquiring new markets, which should drive further growth.