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 .
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® (), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond. More information can be found at .
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 or .
Contact:
Fred Vandenberg
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236
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