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

Vancouver, British Columbia--(Newsfile Corp. - July 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 third quarter ended May 31, 2020.

Highlights

Highlights for the quarter:

  • Glenn Mattern joins Play MPE® as Director of Business Development
  • Canadian Play MPE® trials expand to include Sony Music Canada and several Canadian major independent record labels
  • Play MPE® launches Mexican distribution lists
  • USA Latin Music and Mexican seeding distribution commences
  • Launch of the Play MPE® thought leadership panel series
  • Play MPE® product management launches its beta testing program

Fiscal 2020 Third Quarter Financial Results

In the quarter ending May 31, 2020, Play MPE® revenue declined by approximately 2.4%. Adjustments in pricing to a long-standing customer agreement and negative impacts of foreign exchange resulted in a small decline to revenue. This was offset by continued growth in usage by independent music labels. Adjustments to pricing in this agreement is designed to facilitate longer term growing usage of the Play MPE® platform in under used market segments.

"We saw very encouraging results from our Canadian and Latin Music initiatives in our third quarter as usage expanded to include Sony Music Canada and several major independent record labels. We also launched our Latin lists in the United States and Mexico and commenced seeding those networks with popular content," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "Play MPE® continues to raise its profile as a thought leader with the launch of our new panel and webinar series."

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

Fiscal 2020 Third Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 15, 2020, to further discuss its fiscal 2020 third 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 # 44093102. 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  
Three Months  
Nine Months  
Nine Months  
 
Ended  
Ended  
Ended  
Ended  
 
May 31,  
May 31,  
May 31,  
May 31,  
 
2020  
2019  
2020  
2019  
 
$  
$  
$  
$  
 
   
   
   
   
Service revenue
939,873  
970,435  
2,792,458  
2,833,818  
 
   
   
   
   
Cost of revenue
   
   
   
   
Hosting costs
30,905  
24,348  
73,361  
83,556  
Internal engineering support
5,915  
7,010  
19,278  
21,297  
Customer support
33,523  
30,179  
109,245  
86,456  
Third Party and transactions costs
16,641  
11,009  
39,502  
31,019  
 
86,984  
72,546  
241,386  
222,328  
Gross Margin
852,889  
897,889  
2,551,072  
2,611,490  
 
   
   
   
   
Operating expenses
   
   
   
   
General and administrative
273,070  
178,392  
708,667  
556,270  
Sales and marketing
140,690  
273,574  
786,846  
707,473  
Product development
355,625  
233,225  
963,351  
806,761  
Depreciation and amortization
33,194  
26,764  
100,744  
67,099  
 
802,579  
711,955  
2,559,608  
2,137,603  
 
   
   
   
   
Income (loss) from operations
50,310  
185,934  
(8,536 )
473,887  
 
   
   
   
   
Other income
   
   
   
   
Interest income
5,266  
8,233  
19,743  
21,154  
Other income
(677 )
1,545  
19  
1,580  
Net income (loss)
54,899  
195,712  
11,226  
496,621  
 
   
   
   
   
Other comprehensive income (loss)
   
   
   
   
Foreign currency translation adjustments
(66,657 )
(80,709 )
(80,213 )
(100,562 )
 
   
   
   
   
Total comprehensive income (loss)
(11,758 )
115,003  
(68,987 )
396,059  
 
   
   
   
   
Net income (loss) per common share,
   
   
   
   
   basic and diluted
0.01  
0.02  
0.00  
0.05  
 
   
   
   
   
Weighted average common shares outstanding:
   
   
   
   
 
   
   
   
   
Basic and diluted
10,450,646  
11,002,775  
10,623,432  
11,002,775  

 

 
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

(Expressed in United States Dollars)

Unaudited

As at,
   
   
 
May 31,  
August 31,  
 
2020  
2019  
 
$  
$  
 
   
   
ASSETS
   
   
Current
   
   
Cash and cash equivalents
913,349  
2,512,138  
Short-term investments
1,097,806  
380,056  
Accounts receivable, net of allowance for doubtful accounts of $23,111, [August 31, 2019 – $10,106]
748,440  
332,271  
Other receivables
19,135  
14,240  
Prepaid expenses
93,331  
77,067  
Total current assets
2,872,061  
3,315,772  
Deposits
32,536  
33,716  
Property and equipment, net
211,529  
260,907  
Intangible assets, net
19,032  
24,695  
Right of use asset
435,234  
 
Total assets
3,570,392  
3,635,090  
 
   
   
LIABILITIES AND STOCKHOLDERS’ EQUITY
   
   
Current
   
   
Accounts payable
165,819  
132,451  
Accrued liabilities
353,235  
303,470  
Deferred leasehold inducement
 
46,774  
Deferred revenue
1,999  
23,388  
Current portion of operating lease liability
219,864  
 
Total current liabilities
740,917  
506,083  
Operating lease liability, net of current portion
266,769  
 
Total liabilities
1,007,686  
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
9,353,584  
9,850,348  
Accumulated deficit
(6,329,257 )
(6,340,483 )
Accumulated other comprehensive loss
(472,072 )
(391,859 )
Total stockholders’ equity
2,562,706  
3,129,007  
Total liabilities and stockholders’ equity
3,570,392  
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/59805

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