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Vancouver, British Columbia–(Newsfile Corp. – January 13, 2021) – Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY) (the “Company”) or (“Destiny”), 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 2021 first quarter ended November 30, 2020.

Highlights for Q1 2021

(all figures are USD, and comparisons are to Q1 2020):

  • Play MPE® revenue grew by 8.8% (5.4% currency adjusted);
  • Independent label revenue up 38.5% (37.7% currency adjusted);
  • Cash reserves as at November 30, 2020 of $3.077M ($0.29/share);
  • Sends activity up 25.5%;
  • Upgraded release creator for the Play MPE® platform.

Fred Vandenberg, President and CEO said, “We closed our first quarter with high activity levels, leading revenue up to $1.124 million. We continue to experience strong growth in our independent label revenue, with revenue up 38.5% representing the second straight quarter with 35%+ revenue growth. Independent record labels now represent more than 53% of Play MPE® revenue.”

“Investments into the platform and business development are starting to show improvements in our revenue growth. The first quarter of fiscal 2021 is the beginning of many exciting changes for Play MPE® and for the Company,” said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies.

Fiscal 2021 First Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Wednesday, January 13, 2021, to further discuss its 2021 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 # 95457453. A written transcript and archived stream will subsequently be made available on Destiny’s corporate site at http://www.dsny.com.

CONSOLIDATED BALANCE SHEETS

As at, (Expressed in United States dollars)
             
  November 30, 2020   August 31, 2020  
  $   $  
         
ASSETS        
Current        
Cash and cash equivalents 3,076,862   1,841,340  
Short-term investments   781,490  
Accounts receivable, net of allowance for        
doubtful accounts of $23,562 [August 31, 2020 – $23,412] 329,573   426,832  
Other receivables 31,066   26,083  
Prepaid expenses 62,290   78,562  
Total current assets 3,499,791   3,154,307  
Deposits 34,538   34,316  
Property and equipment, net 179,850   194,277  
Intangible assets, net 19,369   22,952  
Right of use asset 351,130   403,961  
Total assets 4,084,678   3,809,813  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current        
Accounts payable 186,426   119,399  
Accrued liabilities 325,182   353,235  
Deferred revenue 18,841   19,638  
Obligation under capital lease 239,800   238,261  
Total current liabilities 770,249   730,533  
Operating lease liability, net of current portion 162,619   219,063  
Total liabilities 932,868   949,596  
             
Commitments and contingencies        
             
Stockholders’ equity        
Common stock, par value $0.001        
Authorized: 20,000,000 shares        
Issued and outstanding: 10,450,646 shares        
[2020 – issued and outstanding 10,450,646 shares] 10,451   10,451  
Additional paid-in capital 9,379,139   9,366,290  
Accumulated deficit (5,920,366 ) (6,171,068 )
Accumulated other comprehensive (loss) (317,414 ) (345,456 )
Total stockholders’ equity 3,151,810   2,860,217  
Total liabilities and stockholders’ equity 4,084,678   3,809,813  

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended November 30,    
     
  2020 2019
  $ $
Service revenue [note 9] 1,123,977 1,045,856
     
Cost of revenue    
Hosting costs 30,042 26,617
Internal engineering support 6,327 6,847
Customer support 35,852 39,371
Third party and transaction costs 18,092 12,447
  90,313 85,282
Gross Margin 1,033,664 960,574
     
Operating expenses    
General and administrative 159,549 219,503
Sales and marketing 302,474 283,756
Product development 298,088 319,974
Depreciation and amortization 24,315 32,072
  784,426 855,305
Income from operations 249,238 105,269
Other income    
Interest income 1,464 6,389
Net income 250,702 111,658
     
   
Foreign currency translation adjustments 28,042 1,552
Total comprehensive income 278,744 113,210
     
Net income per common share,    
  basic and diluted 0.02 0.01
     
Weighted average common shares outstanding:    
  Basic and diluted 10,450,656 10,954,603

 

Q1 Fiscal Year 2021 Financial Summary

(millions of U.S. dollars) Three Months Ended November 30,
2020 2019 Change
$ $ %
REVENUE      
Play MPE® 1.121 1.030 8.8%
Other 0.003 0.016 (81.3%)
Total Revenue 1.124 1.046 7.5%
     
PROFITABILITY      
Gross Margin $ 1.034 0.961 7.6%
Gross Margin % 92% 92% 0%
Operating Expenses 0.784 0.855 (8.3%)
Cash Operating Costs 0.749 0.813 (7.9%)
Adjusted EBITDA 0.286 0.154 85.7%
Net Income 0.251 0.112 124.1%
Earnings Per Share 0.02 0.01 100%
     
CASH      
Cash Operating Income 0.299 0.16 86.9%
Working Capital Changes 0.142 (0.073 ) (294.5%)
Cash Provided By (Used In) Operating Activities 0.441 0.087 406.9%
Cash Provided By (Used In) Investing Activities 0.759 (0.767 ) (199%)
Cash (Used In) Financing Activities (0.292 ) (100%)
     
CASH RESERVES November 30, 2020 August 31, 2020 Change
%
Cash and cash equivalents 3.077 1.841 67.1%
Short-term investments 0.781 (100%)
Total Cash Reserves 3.077 2.622 17.4%

 

NCIB Update

Further to the Company’s release dated January 4, 2021, the Company wishes to clarify that the term of the Company’s 2021 Normal Course Issuer Bid (NCIB) will be from January 15, 2021 to approximately January 15, 2022. All other disclosed terms of the NCIB remain unchanged.

About Destiny Media Technologies Inc.

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, 2020, 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/71903

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