Destiny Media Technologies Inc. Announces Fiscal 2024 Third Quarter Results

Rhea-AI Summary

Destiny Media Technologies Inc. (TSXV: DSY) (OTCQB: DSNY), the maker of Play MPE®, announced financial results for Q3 fiscal 2024 ended May 31, 2024. Highlights include:

- Revenue of $1.2M, up 8.2% year-over-year
- Global independent record label growth of 11.9%
- Net income of $0.13M
- Adjusted EBITDA of $0.22M

The company reported sustained revenue growth averaging 9.1% over the past year. During Q3, Destiny Media repurchased 149,900 shares for $0.16 million under a normal course issuer bid (NCIB). The NCIB ceased on May 2, 2024, and has not been renewed.

Positive

• Revenue increased by 8.2% year-over-year to $1.2M
• Global independent record label growth of 11.9%
• Net income of $0.13M
• Adjusted EBITDA of $0.22M
• Average revenue growth of 9.1% over the past year

Negative

• None.

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

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216425

FAQ

What was Destiny Media Technologies' (DSNY) revenue for Q3 2024?

Destiny Media Technologies (DSNY) reported revenue of $1.2 million for Q3 2024, representing an 8.2% increase year-over-year.

How much was Destiny Media Technologies' (DSNY) net income in Q3 2024?

Destiny Media Technologies (DSNY) reported a net income of $0.13 million for Q3 2024.

What was the growth rate for global independent record labels in Destiny Media Technologies' (DSNY) Q3 2024 report?

Destiny Media Technologies (DSNY) reported a global independent record label growth of 11.9% in their Q3 2024 financial results.

How many shares did Destiny Media Technologies (DSNY) repurchase in Q3 2024?

Destiny Media Technologies (DSNY) repurchased 149,900 shares for a total cost of $0.16 million during Q3 2024 under a normal course issuer bid (NCIB).