Destiny Media Technologies Inc. Announces Fiscal Year 2021 Results

Vancouver, British Columbia--(Newsfile Corp. - November 23, 2021) - 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 year ended August 31, 2021

Highlights

Fred Vandenberg, President and CEO said, "Fiscal 2021 grew by 9.1% to $4.172 million. We continue to experience strong growth in our independent label revenue for a total annual increase of 23.1% for the year.

"The Company continued to make investments into business development staffing and the Play MPE® platform that are designed to accelerate new market acquisition and revenue growth. The Company is also nearing the transition of all administration functions of Play MPE® to the web-based platform."

"We continued to see significant progress in new markets with expanded use in Canada and Central and South America. As well, Play MPE® completed a trial with Warner Music South Africa leading to a multi-year exclusive agreement that became effective after year-end," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies.

Q4 2021 Financial Results

Highlights for Q4 2021 include (all figures are USD, and comparisons are to Q4 2020):

  • Successful trial with Warner Music South Africa completed;
  • Web-based Contacts and Release Scheduling of Play MPE® released;
  • Q4 revenue up 0.2% to $1.034M;

Fiscal 2021 Results

Highlights for fiscal 2021 include (all figures are USD, and comparisons are to fiscal 2020):

  • Revenue growth of 9.1% to $4.172M.
  • Independent label revenues up by 23.1%;
  • Canadian distributions up more than 500%;
  • Latin active recipients up 130%;
  • USA Urban, Rhythmic and Top 40 releases up 28%.

During the year under a normal course issuer bid, the Company repurchased 185,285 shares for a total cost of $0.260M.

On November 2, 2021, the Company granted 40,000 stock options to each of its directors and 40,000 stock options to CEO and president Fred Vandenberg. All options are exercisable at $1.50.

Fiscal 2021 Earnings Webinar

Destiny Media Technologies will hold a live webinar on Tuesday, November 23 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss financial results for its fiscal year ended August 31, 2021. The Company plans to release financial results for the year before market open on November 23, 2021.

This webinar replaces the Company's traditional conference call format.

The live webinar will include comments from President, Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Glenn Mattern.

Date: Tuesday, November 23, 2021
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 written 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: 879 3173 3657

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

As at August 31, (Expressed in United States dollars)

 
2021

2020
 
$

$
ASSETS
 

 
Current
 

 
Cash and cash equivalents
2,752,662

1,841,340
Short-term investments
-

781,490
Accounts receivable, net of allowance for
 

 
doubtful accounts of $19,743 [2020 - $23,412]
400,233

426,832
Other receivables
53,172

26,083
Prepaid expenses
103,463

78,562
Total current assets
3,309,530

3,154,307
Deposits
35,556

34,316
Property and equipment, net
143,487

194,277
Intangible assets, net
187,622

22,952
Right of use assets
190,253

403,961
Total assets
3,866,448

3,809,813
 
 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
Current
 

 
Accounts payable
202,722

119,399
Accrued liabilities
309,839

353,235
Deferred revenue
8,511

19,638
Operating lease liability
226,978

238,261
Total current liabilities
748,050

730,533
Operating lease liability, net of current portion
-

219,063
Total liabilities
748,050

949,596
 
 

 
Commitments and contingencies
 

 
       
Stockholders' equity
 

 
Common stock, par value $0.001
 

 
Authorized: 20,000,000 shares
 

 
Issued and outstanding: 10,265,361 shares
 

 
[2020 - issued and outstanding 10,450,646 shares]
10,266

10,451
Additional paid-in capital
9,157,804

9,366,290
Accumulated deficit
(5,788,539)
(6,171,068)
Accumulated other comprehensive loss
(261,133)
(345,456)
Total stockholders' equity
3,118,398

2,860,217
Total liabilities and stockholders' equity
3,866,448

3,809,813

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years ended August 31,
(Expressed in United States dollars)

 
2021

2020

Q4 2021

Q4 2020
 
$

$

$

$
Service revenue
4,172,473

3,824,565

1,033,810

1,032,107 
 
 

 

 

 
Cost of revenue
 

 

 

 
Hosting costs
131,325

106,804

39,034

33,443
Internal engineering support
29,723

24,303

8,725

5,025
Customer support
168,428

137,720

49,439

28,475
Third party and transaction costs
64,449

49,806

16,711

10,304
 
393,925

318,633

113,909

77,247 
 
 

 

 

 
Gross Margin
3,778,548

3,505,932

919,901

954,860
 
91%

92%

89%

93%
Operating expenses
 

 

 

 
General and administrative
666,485

798,120

139,663

89,453
Sales and marketing
1,433,232

1,084,364

428,394

297,518
Product development
1,194,976

1,343,084

233,046

379,734
Depreciation and amortization
105,357

135,385

27,969

34,641
 
3,400,050

3,360,953

829,072

801,346 
Income from operations
378,498

144,979

90,829

153,514
Other income
 

 

 

 
Interest income
4,031

24,415

869

4,672
Other income (expense)
-

21

-

2 
Income before provision for income taxes
382,529

169,415

91,698

158,188
Income tax expense - deferred
-

-

-

- 
Net income
382,529

169,415

91,698

158,188
Foreign currency translation adjustments
84,323

46,403

(127,573)
66,617
Total comprehensive income
466,852

215,818

(35,875)
224,805 
Net income per common share, basic and diluted
0.04

0.02

0.01

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, 2021, 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/104733

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