Destiny Media Technologies Inc. Announces Fiscal 2024 Third Quarter Results
Vancouver, British Columbia--(Newsfile Corp. - July 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 third quarter ended May 31, 2024.
"Over the past year, we have sustained revenue growth each quarter for an average growth of 9.1%. This growth follows recent product investments into our core Play MPE platform," stated Fred Vandenberg, President and CEO. "We continue to invest in the core Play MPE platform to facilitate scalable growth, invest in new products to add new addressable markets, while concurrently enhancing our marketing strategy to drive further revenue increases."
Financial Highlights
Q3 2024 vs Q3 2023
- Revenue of $1.2M, an increase of 8.2% (FX adjusted - 8.5%)
- Global independent record label growth of 11.9%
- Net income of $0.13M
- Adjusted EBITDA of $0.22M
During the third quarter of the fiscal 2024, under a normal course issuer bid ("NCIB"), the Company repurchased 149,900 shares for a total cost of $0.16 million. During the nine months ended May 31, 2024, the Company repurchased 459,200 shares for a total cost of $0.47 million. The NCIB ceased on May 2, 2024 and has not been renewed.
Fiscal 2024 Third Quarter Earnings Webinar
Destiny Media Technologies will hold a live webinar on Monday, July 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 third quarter ended May 31, 2024.
Date: Monday, July 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 of the webinar can submit questions voluntarily during the live presentation. Cameras will remain off for all attendees throughout the session. Microphones will also remain muted unless an attendee chooses to engage in verbal questions, similar to the format used in traditional conference calls.
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: 817 1581 2583
Attendees participating via dial-in will not have access to the webinar video stream or the question and answer functions.
A recording of the webinar will be available after the event at 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 May 31, | Nine months ended May 31, | |||||||||||
| 2024 | | 2023 | | 2024 | | 2023 | ||||||
| Service revenue | $ | 1,155,442 | $ | 1,068,007 | $ | 3,296,582 | $ | 2,987,786 | ||||
| Cost of revenue | ||||||||||||
| Hosting costs | 35,036 | 30,555 | 95,692 | 84,040 | ||||||||
| Internal engineering support | 14,249 | 12,707 | 44,245 | 38,160 | ||||||||
| Customer support | 80,746 | 72,001 | 250,721 | 216,237 | ||||||||
| Third-party and transactions costs | 20,013 | 18,490 | 58,150 | 51,357 | ||||||||
| 150,044 | | 133,753 | | 448,808 | | 389,794 | ||||||
| Gross margin | 1,005,398 | 934,254 | 2,847,774 | 2,597,992 | ||||||||
| 87.0% | 87.5% | 86.4% | 87.0% | |||||||||
| Operating expenses | ||||||||||||
| General and administrative | 159,940 | 314,387 | 513,087 | 652,793 | ||||||||
| Sales and marketing | 280,308 | 237,834 | 781,166 | 670,360 | ||||||||
| Product development | 356,599 | 247,392 | 1,084,329 | 823,722 | ||||||||
| Depreciation and amortization | 87,760 | | 37,182 | | 255,884 | | 109,513 | |||||
| | 884,607 | | 836,795 | | 2,634,466 | | 2,256,388 | |||||
| Income from operations | 120,791 | 97,459 | 213,308 | 341,604 | ||||||||
| Other income | ||||||||||||
| Interest and other income | 13,685 | | 9,593 | | 40,672 | | 26,038 | |||||
| Net income before income tax | $ | 134,476 | $ | 107,052 | $ | 253,980 | $ | 367,642 | ||||
| Current income tax expense | - | - | - | (3,600 | ) | |||||||
| Net income | $ | 134,476 | $ | 107,052 | $ | 253,980 | $ | 364,042 | ||||
| Foreign currency translation adjustments | (16,714 | ) | 1,429 | | (27,065 | ) | (109,977 | ) | ||||
| Total comprehensive income | $ | 117,762 | $ | 108,481 | $ | 226,915 | $ | 254,065 | ||||
| Net income per common share | ||||||||||||
| Basic and diluted | $ | 0.01 | | $ | 0.01 | | $ | 0.03 | | $ | 0.04 | |
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 9,689,303 | 10,123,984 | 9,846,942 | 10,124,168 | ||||||||
| Diluted | 9,722,035 | 10,123,984 | 9,888,441 | 10,124,168 | ||||||||
DESTINY MEDIA TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
| May 31, 2024 | August 31, 2023 | |||||
| | (unaudited) | | | (audited) | | |
| ASSETS | ||||||
| Cash and cash equivalents | $ | 1,390,887 | $ | 2,002,769 | ||
| Accounts receivable, net of allowance for credit losses of $40,950 (August 31, 2023 - $41,331) | 682,359 | 432,501 | ||||
| Other receivables | 69,915 | 58,519 | ||||
| Prepaid expenses | 69,429 | 72,014 | ||||
| Deposits | 31,995 | | 32,214 | |||
| Total current assets | 2,244,585 | 2,598,017 | ||||
| Property and equipment, net | 474,902 | 642,207 | ||||
| Intangible assets, net | 970,663 | | 645,474 | | ||
| Total assets | $ | 3,690,150 | $ | 3,885,698 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current | ||||||
| Accounts payable | $ | 88,269 | $ | 110,203 | ||
| Accrued liabilities | 298,847 | 267,144 | ||||
| Deferred revenue | 36,930 | | 34,710 | |||
| Total current liabilities | 424,046 | | 412,057 | |||
| Total liabilities | 424,046 | 412,057 | ||||
| Commitments and contingencies | - | - | ||||
| Stockholders' equity | ||||||
| Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 9,637,410 shares (August 31, 2023 - 10,096,610 shares) | 9,637 | 10,096 | ||||
| Additional paid-in capital | 8,808,678 | 9,242,671 | ||||
| Accumulated deficit | (5,050,387 | ) | (5,304,367 | ) | ||
| Accumulated other comprehensive loss | (501,824 | ) | (474,759 | ) | ||
| Total stockholders' equity | 3,266,104 | | 3,473,641 | |||
| Total liabilities and stockholders' equity | $ | 3,690,150 | | $ | 3,885,698 |
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