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

Vancouver, British Columbia--(Newsfile Corp. - April 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 second quarter ended February 29, 2020.

Highlights

Highlights for the quarter include:

  • Play MPE® launched in Canada starting with Universal Music Canada in late January;
  • Play MPE® platform improvements include sending side translations into Spanish, German, Japanese and French and recipient side improvements to song discovery and ease of use; and
  • Play MPE® business development group restructured including the hiring of a new director of business development.

Fiscal 2020 Second Quarter Results

In the Company's slowest seasonal quarter ending February 29, 2020, Play MPE® revenue fell by approximately $57,000, due to the timing of contract renewal negotiations. Global Play MPE® independent label revenue continues to increase.

"During the quarter we started to see the results of investments into product development with two significant releases for the Play MPE® platform." said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "Play MPE® continues to be the most advanced platform and these releases will assist in the expansion of Play MPE® into new markets. The Company saw a significant step during the quarter with the start of the expansion into Canada."

The Company commenced a stock repurchase program in September 2019, resulting in market purchases to April 12, 2020 of 550,140 shares (representing 5% of shares outstanding as of August 31, 2019) for a total cost of $533,223 USD.

Fiscal 2020 Second Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on April 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.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Expressed in United States dollars)

Unaudited



Three Months
Ended
February 29,
2020


Three Months
Ended
February 28,
2019


Three Months Ended
February 29,
2020


Three Months
Ended
February 28,
2019

 
 $ 
 $

$
 
 $ 

Service Revenue 

806,729

879,364

1,852,585

1,863,383





 




 
Cost of revenue



 




 
Hosting costs
15,839

29,251

42,456

59,208
Internal engineering support
6,516

6,916

13,363

14,287
Customer support
36,351

28,030

75,722

56,277
Third party and transactions costs
10,414

9,415

22,861

20,010
 
69,120

73,612

154,402

149,782
 
  
 

  
  
Gross Margin
737,609

805,752

1,698,183

1,713,601


 

 

 

 
Operating expenses 
 

 

 

 
General and administrative 
216,094

206,203

435,597

396,864
Sales and marketing
362,400

222,746

646,156

433,392
Product development
287,752

282,895

607,726

555,056
Depreciation and amortization
35,478

19,711

67,550

40,335
 
901,724

731,555

1,757,029

1,425,647
Income (loss) from operations
(164,115)
74,197

(58,846)
287,954
 
  
 

  
  
Other income
 

 

 

 
Interest income
8,110

6,522

14,477

12,921
Other income
674

-

696

34
Net income (loss)
(155,331)
80,719

(43,673)
300,909


 

 

 

 
Other comprehensive income (loss)
 

 

 

 
Foreign currency translation adjustments
(15,108)
29,232

(13,556)
(19,853)
 
  
 

  
  
Total comprehensive income (loss)

(170,439)
109,951

(57,229)
281,056


 

 

 

 
Net income (loss) per common share, 
 

 

 

 
  basic and diluted
(0.01)
0.01

(0.00)
0.03


 

 

 

 
Weighted average common shares outstanding:

 

 

 
  Basic and diluted
10,629,438

11,002,775

10,665,834

11,002,775

 

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

(Expressed in United States Dollars)

Unaudited

As at,
February 29,

August 31,


2020

2019
 
$

$





 
ASSETS



 
Current



 
Cash and cash equivalents
1,050,177

2,512,138
Short-term investments
1,129,382

380,056
Accounts receivable, net of allowance for
 

 
doubtful accounts of $9,853 [August 31, 2019 – $10,106] 
567,916

332,271
Other receivables
9,825

14,240
Prepaid expenses
69,965

77,067
Total current assets
2,827,265

3,315,772
Deposits
33,472

33,716
Property and equipment, net
238,934

260,907
Intangible assets, net
21,184

24,695
Right of use asset
501,483

-
Total assets
3,622,338

3,635,090


 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
Current
 

 
Accounts payable
246,156

132,451
Accrued liabilities
256,679

303,470
Deferred leasehold inducement
-

46,774
Deferred revenue
7,014

23,388
Current portion of operating lease liability
219,894

-
Total current liabilities
729,743

506,083
Operating lease liability, net of current portion
333,407

-
Total liabilities
1,063,150

506,083


 

 
Commitments and contingencies


  
  
Stockholders’ equity
 

 
Common stock, par value $0.001
 

 
Authorized: 20,000,000 shares
 

 
Issued and outstanding: 10,450,656 shares
 

 
  [August 31, 2019 – issued and outstanding 11,000,796 shares]
10,451

11,001
Additional paid-in capital
9,338,308

9,850,348
Accumulated deficit
(6,384,156)
(6,340,483)
Accumulated other comprehensive (loss)
(405,415)
(391,859)
Total stockholders’ equity 
2,559,188

3,129,007
Total liabilities and stockholders’ equity
3,622,338

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/54479

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