Destiny Media Technologies Inc. Announces Fiscal 2024 Second Quarter Results

Rhea-AI Summary

Destiny Media Technologies Inc. reports positive financial results for the fiscal 2024 second quarter, showcasing growth in revenue and independent record label sector. The company focuses on enhancing product development and marketing strategies to drive expansion into new markets.

Positive

• Currency adjusted revenue grew by 9.0% (9.7% unadjusted) in Q2 2024 compared to Q2 2023.
• Independent record label revenue increased by 10.3% globally in Q2 2024.
• Adjusted EBITDA was -$0.05 million in Q2 2024.
• Under a normal course issuer bid, the company repurchased 137,300 shares for $0.14 million in Q2 2024.
• Currency adjusted revenue grew by 9.9% (11.5% unadjusted) in FY2024 compared to FY2023.
• Independent record label revenue increased by 15.6% globally in FY2024.
• Adjusted EBITDA was $0.3 million in FY2024.
• Under a normal course issuer bid, the company repurchased 309,300 shares for $0.31 million in the first half of FY2024.

Negative

• None.

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

FAQ

What is Destiny Media Technologies Inc.'s ticker symbol?

Destiny Media Technologies Inc.'s ticker symbol is DSNY.

What were the financial highlights for Q2 2024 compared to Q2 2023?

In Q2 2024, currency adjusted revenue grew by 9.0% (9.7% unadjusted) and independent record label revenue increased by 10.3% globally.

What was the adjusted EBITDA for Q2 2024?

The adjusted EBITDA for Q2 2024 was -$0.05 million.

Did Destiny Media Technologies repurchase any shares in Q2 2024?

Yes, under a normal course issuer bid, the company repurchased 137,300 shares for a total cost of $0.14 million in Q2 2024.

What were the financial highlights for FY2024 compared to FY2023?

In FY2024, currency adjusted revenue grew by 9.9% (11.5% unadjusted) and independent record label revenue increased by 15.6% globally.

What was the adjusted EBITDA for FY2024?

The adjusted EBITDA for FY2024 was $0.3 million.

Did Destiny Media Technologies repurchase any shares in the first half of FY2024?

Yes, under a normal course issuer bid, the company repurchased 309,300 shares for a total cost of $0.31 million in the first half of FY2024.

When will Destiny Media Technologies hold a webinar to discuss the fiscal 2024 second quarter results?

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).

How can attendees register for the webinar?

Attendees are encouraged to register prior to the scheduled time at the following link: https://investors.dsny.com/investors/financials/ or by clicking on the Webinar Registration Form.

What options are available for attendees without internet access to join the webinar?

Attendees without internet access can access the webinar via direct dial-in using the provided phone numbers and webinar ID.