Destiny Media Technologies Inc. Announces First Quarter Fiscal Year 2020 Results

Vancouver, British Columbia--(Newsfile Corp. - January 15, 2020) - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based music distribution, collaboration and content discovery platform, today announced financial results for its fiscal 2020 first quarter ended November 30, 2019.

Highlights

Highlights for the quarter include:

  • Play MPE® currency adjusted revenue increased by 8.5%;
  • Increase in global independent label revenue of 10.9% on a currency adjusted basis;
  • Increased spending on product and business development to drive new market acquisition.

Fiscal 2020 First Quarter Results

Play MPE® currency adjusted revenue for the quarter ended November 30, 2019 grew by 8.5% over the first quarter of fiscal 2019. Increases in revenue were driven by expanded use by independent labels in Canada and the United States. Foreign currency fluctuations reduced the overall positive impact to our Play MPE ® revenues resulting in a net 6.3% increase in reported Play MPE ® revenue. Overall expenditure growth of 22% is the result of increased investments in product development and business development to increase the cadence of product enhancement and to establish new markets for Play MPE®.

"During the quarter we continued to increase our investment in product development and business development resources by reinvesting our sustained revenue growth," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "These new investments are expected to increase product enhancements and new market acquisition in the short term."

The company commenced a stock repurchase program in September 2019, resulting in market purchases to January 8, 2020 of 512,555 shares (representing 4.7% of shares outstanding as of August 31, 2019) for a total cost of $490,500 USD.

Fiscal 2020 First Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on January 15, 2020, to further discuss its fiscal 2020 first quarter results. Investors and interested parties may participate in the call by dialing 1-416-764-8688 or 1-888-390-0546 and referring to conference ID # 15660597. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at https://investors.dsny.com.

Destiny Media Technologies Inc.







CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Expressed in United States dollars)









Three months ended November 30,


2019

2018

 
$ 
 $ 
Revenue
1,045,856

984,019 


 

 
Cost of revenue
 

 
Hosting costs
26,617

29,957
Internal engineering support
6,847

7,371
Customer support
39,371

28,247
Third party and transaction costs
12,447

10,595 

 
85,282 
 
76,170 
Gross Margin
960,574

907,849


 

 
Operating expenses

 
General and administrative
219,503

171,675
Sales and marketing
283,756

211,153
Research and development
319,974

290,641
Depreciation and amortization 32,072  20,624 

 
855,305

694,093 
Income from operations
105,269

213,756
Other income
 

 
Interest income 6,389 
 
6,434 
Net income  
111,658

220,190 


 

 
Other comprehensive income (loss)
Foreign currency translation adjustments
1,552

(49,085)
Total comprehensive income
 
113,210 
 
171,105 


 

 
Net income per common share,
basic and diluted
0.01 
 
0.02 

  

 
Weighted average common shares outstanding:
Basic and diluted 
10,954,603 
 
11,002,786 

 








Destiny Media Technologies Inc.












CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(Expressed in United States dollars)


As at,
November 30,

August 31,


2019

2019

 
$ 
 
$ 







ASSETS





Current





Cash and cash equivalents
1,545,080

2,512,138
Short-term investments
1,138,375

380,056
Accounts receivable, net of allowance for
 

 
doubtful accounts of $10,113 [August 31, 2019 - $10,106]
416,870

332,271
Other receivables
11,411

14,240
Prepaid expenses 
69,882 
 
77,067 
Total current assets
3,181,618

3,315,772
Deposits
33,739

33,716
Property and equipment, net
270,424

260,907
Intangible assets, net
20,579

24,695
Right of use asset 559,635  - 
Total assets 4,065,995  3,635,090 


 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
Current
 

 
Accounts payable
203,335

132,451
Accrued liabilities
269,373

303,470
Deferred leasehold inducement
-

46,774
Deferred revenue
15,274

23,388
Current portion of operating lease liability 
216,645 
 
- 
Total current liabilities 
704,627 
 
506,083 
Operating lease liability, net of current portion 
393,104 
 
- 
Total liabilities 
1,097,731 
 
506,083 


 

 
Stockholders' equity
 

 
Common stock, par value $0.001
 

 
Authorized: 20,000,000 shares
 

 
Issued and outstanding: 10,702,041 shares
 

 
[August 31, 2019 - issued and outstanding 11,000,786 shares]
10,702

11,001
Additional paid-in capital
9,576,694

9,850,348
Accumulated deficit
(6,228,825)
(6,340,483)
Accumulated other comprehensive (loss) 
(390,307)
 
(391,859)
Total stockholders' equity  
2,968,264 
 
3,129,007 
Total liabilities and stockholders' equity 
4,065,995 
 
3,635,090 

 

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, 2019, 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/51485

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