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Destiny Media Technologies Inc. Announces Fiscal 2023 Second Quarter Results
April 17, 2023 9:00 AM EDT | Source: Destiny Media Technologies, Inc.
Vancouver, British Columbia--(Newsfile Corp. - April 17, 2023) - Destiny Media Technologies (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 2023 second quarter ended February 28, 2023.
"Revenue continued to improve throughout the quarter," said Fred Vandenberg, President and CEO. "Growing independent label and artist distribution, increased global list offerings, and price adjustments all contributed to a foreign exchange-adjusted revenue increase of 7%. These results were partially offset by a decline in the value of the Euro where the Company generates 50% of its revenue."
"Our focus for the quarter was increasing our investments in product development designed to expand the addressable market and accelerate revenue growth," continued Vandenberg.
Highlights
Highlights for Q2 2023 include (all figures are USD, and comparisons are to Q2 2022):
- Foreign exchange-adjusted revenue increased 7% for the quarter (including increases in Major Label revenue (+9%), independent record label revenue (+5%));
- Adjusted EBITDA (non-GAAP) was $63,984 for the quarter compared to an EBITDA loss of ($109,211) in the prior period. As described below, the Company commenced capitalizing certain software developments in the prior year. Assuming no software development costs were capitalized in either period, EBITDA for the quarter would be ($137,494) compared to ($191,472) for Q2 fiscal 2022;
- During the quarter the Company capitalized $201,478 in software development costs (prior year's quarter $82,261) as the Company invested in new product development intended to expand the Company's addressable market.
Fiscal 2023 Second Quarter Earnings Webinar
Destiny Media Technologies will hold a live webinar on Monday, April 17 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss its 2023 second quarter results.
The live webinar will include comments from President, Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Allan Benedict.
Date: Monday, April 17, 2022
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 directly on the REGISTRATION FORM by clicking here.
Attendees viewing the webinar can voluntarily submit verbal 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 questions similar to the format available on traditional conference call format.
The webinar format will provide the Company an opportunity to present visual information and provide attendees an opportunity for questions.
For those without internet access, the webinar can be accessed via the following dial in details:
Direct dial in: +1 312 626 6799 or +1 253 215 8782
Webinar ID: 850 1233 0609
Attendees participating via dial in will not have access 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/.
Destiny Media Technologies Inc.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
As at February 28, 2023
| 2023 | 2022 | |||||||
| $ | $ | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | 1,974,019 | 2,095,928 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $41,148 (August 31, 2022- $39,518) | 531,982 | 483,774 | ||||||
| Other receivables | 48,320 | 29,600 | ||||||
| Prepaid expenses | 50,097 | 83,242 | ||||||
| Deposits | 32,069 | 33,305 | ||||||
| Total current assets | 2,636,487 | 2,725,849 | ||||||
| Property and equipment, net | 237,497 | 311,792 | ||||||
| Intangible assets, net | 953,792 | 529,717 | ||||||
| Total assets | 3,827,776 | 3,567,358 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payable | 103,072 | 116,290 | ||||||
| Accrued liabilities | 367,521 | 319,738 | ||||||
| Deferred revenue | 26,070 | 21,043 | ||||||
| Total current liabilities | 496,663 | 457,071 | ||||||
| Total liabilities | 496,663 | 457,071 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity | ||||||||
| Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 10,122,261 shares (August 31, 2022 - issued and outstanding 10,122,261 shares) | 10,122 | 10,122 | ||||||
| Additional paid-in capital | 9,190,090 | 9,115,848 | ||||||
| Accumulated deficit | (5,382,475 | ) | (5,639,465 | ) | ||||
| Accumulated other comprehensive loss | (487,624 | ) | (376,218 | ) | ||||
| Total stockholders' equity | 3,331,113 | 3,110,287 | ||||||
| Total liabilities and stockholders' equity | 3,827,776 | 3,567,358 |
Destiny Media Technologies Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in United States dollars)
Period ended February 28, 2023
| 2023 | 2022 | ||||||
| $ | $ | ||||||
| Service revenue | 899,042 | 896,420 | |||||
| Cost of revenue | |||||||
| Hosting costs | 25,526 | 45,611 | |||||
| Internal engineering support | 12,883 | 13,812 | |||||
| Customer support | 73,008 | 78,266 | |||||
| Third-party and transactions costs | 15,177 | 13,622 | |||||
| 126,594 | 151,311 | ||||||
| Gross margin | 772,448 | 745,109 | |||||
| 86% | 83% | ||||||
| Operating expenses | |||||||
| General and administrative | 175,345 | 314,941 | |||||
| Sales and marketing | 258,300 | 251,875 | |||||
| Product development | 312,904 | 367,311 | |||||
| Depreciation and amortization | 35,952 | 26,574 | |||||
| 782,501 | 960,701 | ||||||
| Income from operations | (10,053 | ) | (215,592 | ) | |||
| Other income | |||||||
| Interest and other income | 8,777 | 1,964 | |||||
| Gain on disposal of assets | - | 11,018 | |||||
| Income before provision for income taxes | (1,276 | ) | (202,610 | ) | |||
| Current income tax expense | - | - | |||||
| Net income | (1,276 | ) | (202,610 | ) | |||
| Foreign currency translation adjustments | (18,922 | ) | 1,961 | ||||
| Total comprehensive income | (20,198 | ) | (200,649 | ) | |||
| Net income per common share, basic and diluted | 0.00 | (0.02 | ) |
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, 2022, which will be available on www.sedar.com or www.sec.gov.
Contact:
Fred Vandenberg
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/162601