Destiny Media Technologies Inc. Announces Fiscal 2022 Second Quarter Results

Vancouver, British Columbia--(Newsfile Corp. - April 13, 2022) - 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 2022 second quarter ended February 28, 2022.

"Completing the transition of all administrative functions of Play MPE® to the online platform was a major accomplishment that was completed during the quarter," said Fred Vandenberg, President and CEO. "Following this transition, Play MPE® engineering staff can focus on developing additional revenue generating products and services within the space. During the quarter, we also continued to build out our design and development teams as we move forward with new product development."

"We continued to see growing user activity and brand awareness in Canada, Latin countries and South Africa showing increases in revenue in those territories."

Q2 2022 Financial Results

Highlights for Q2 2022 include (all figures are USD, and comparisons are to Q2 2021):

  • Currency adjusted Play MPE® revenue up 1%
  • USA major label revenue up 7.6%
  • Canadian revenue grew by 64.5%
  • Transition of all administration functions of Play MPE® to the web-based platform

During the quarter under a normal course issuer bid, the Company repurchased 112,800 shares for a total cost of $0.135M. Total repurchases under the normal course issuer bid from January 2021 to February 2022 was 328,385 shares for a total of $0.437M.

Fiscal 2022 Second Quarter Earnings Webinar

Destiny Media Technologies will hold a live webinar on Wednesday, April 13, 2022 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss financial results for its second quarter ended February 28, 2022.

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

Date: Wednesday, April 13, 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 by clicking on the Webinar Registration Form

Attendees viewing the webinar can voluntarily submit questions during the live presentation. Attendees' 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 a traditional conference call.

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: +1 312 626 6799 or +1 253 215 8782

Webinar ID: 834 1401 6179

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 at https://investors.dsny.com/investors/financials/

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

(Expressed in United States Dollars)
Unaudited

As at,
 

 
 
February 28,

August 31,
 
2022

2021
 
$

$ 
 
 

 
ASSETS
 

 
Current
 

 
Cash and cash equivalents
2,433,506

2,752,662
Accounts receivable, net of allowance for
 

 
doubtful accounts of $30,895, [August 31, 2021 - $19,743]
414,720

400,233
Other receivables
28,181

53,172
Prepaid expenses
83,959

103,463 
Total current assets
2,960,366

3,309,530
Deposits
10,730

35,556
Property and equipment, net
113,129

143,487
Intangible assets, net
318,854

187,622
Right of use asset
-

190,253 
Total assets
3,403,079

3,866,448 
 
 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
Current
 

 
Accounts payable
72,342

202,722
Accrued liabilities
379,638

309,839
Deferred revenue
-

8,511
Current portion of operating lease liability
-

226,978 
Total current liabilities
451,980

748,050 
Total liabilities
451,980

748,050 
 
  
  
Contingencies
 

 
 
  
  
Stockholders' equity
 

 
Common stock, par value $0.001
 

 
Authorized: 20,000,000 shares
 

 
Issued and outstanding: 10,122,271 shares
 

 
[August 31, 2021 - issued and outstanding 10,265,371 shares]
10,122

10,266
Additional paid-in capital
9,064,465

9,157,804
Accumulated deficit
(5,825,548)
(5,788,539)
Accumulated other comprehensive loss
(297,940)
(261,133)
Total stockholders' equity
2,951,099

3,118,398 
Total liabilities and stockholders' equity
3,403,079

3,866,448 

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS)

(Expressed in United States dollars)
Unaudited

 
Three Months

Three Months

Six Months

Six Months
 
Ended

Ended

Ended

Ended
 
February 28,

February 28,

February 28,

February 28,
 
2022

2021

2022

2021
 
$

$

$

$ 
             
Service revenue
896,420

930,699

2,030,571

2,054,676 
             
Cost of revenue
 

 

 

 
Hosting costs
45,611

29,667

87,795

59,709
Internal engineering support
13,812

7,296

22,212

13,623
Customer support
78,266

41,343

125,869

77,195
Third Party and transactions costs
13,622

13,593

32,998

31,685 
 
151,311

91,899

268,874

182,212 
             
Gross Margin
745,109

838,800

1,761,697

1,872,464 
             
Operating expenses
 

 

 

 
General and administrative
314,941

164,395

465,566

323,943
Sales and marketing
251,875

340,954

667,685

643,428
Product development
367,311

337,392

625,734

635,480
Depreciation and amortization
26,574

26,400

53,746

50,715 
 
960,701

869,141

1,812,731

1,653,566 
             
Income (loss) from operations
(215,592)
(30,341)
(51,034)
218,898
             
Other income
 

 

 

 
Interest income
1,964

875

3,007

2,338
Gain on disposal of assets
11,018

-

11,018

- 
Net income (loss)
(202,610)
(29,466)
(37,009)
221,236 
             
Net income (loss) per common share,
 

 

 

 
basic and diluted
(0.02)
(0.00)
(0.00)
0.02 
 

 

 

 
Weighted average common shares outstanding:

 

 

 
Basic and diluted
10,208,956

10,629,438

10,259,374

10,665,834 

 

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 is 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/120265

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