Vancouver, British Columbia--(Newsfile Corp. - November 23, 2021) - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), 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 year ended August 31, 2021
Highlights
Fred Vandenberg, President and CEO said, "Fiscal 2021 grew by 9.1% to $4.172 million. We continue to experience strong growth in our independent label revenue for a total annual increase of 23.1% for the year.
"The Company continued to make investments into business development staffing and the Play MPE® platform that are designed to accelerate new market acquisition and revenue growth. The Company is also nearing the transition of all administration functions of Play MPE® to the web-based platform."
"We continued to see significant progress in new markets with expanded use in Canada and Central and South America. As well, Play MPE® completed a trial with Warner Music South Africa leading to a multi-year exclusive agreement that became effective after year-end," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies.
Q4 2021 Financial Results
Highlights for Q4 2021 include (all figures are USD, and comparisons are to Q4 2020):
- Successful trial with Warner Music South Africa completed;
- Web-based Contacts and Release Scheduling of Play MPE® released;
- Q4 revenue up 0.2% to $1.034M;
Fiscal 2021 Results
Highlights for fiscal 2021 include (all figures are USD, and comparisons are to fiscal 2020):
- Revenue growth of 9.1% to $4.172M.
- Independent label revenues up by 23.1%;
- Canadian distributions up more than 500%;
- Latin active recipients up 130%;
- USA Urban, Rhythmic and Top 40 releases up 28%.
During the year under a normal course issuer bid, the Company repurchased 185,285 shares for a total cost of $0.260M.
On November 2, 2021, the Company granted 40,000 stock options to each of its directors and 40,000 stock options to CEO and president Fred Vandenberg. All options are exercisable at $1.50.
Fiscal 2021 Earnings Webinar
Destiny Media Technologies will hold a live webinar on Tuesday, November 23 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss financial results for its fiscal year ended August 31, 2021. The Company plans to release financial results for the year before market open on November 23, 2021.
This webinar replaces the Company's traditional conference call format.
The live webinar will include comments from President, Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Glenn Mattern.
Date: Tuesday, November 23, 2021
Time: 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time)
Attendees are encouraged to register prior to the scheduled time at the following:
https://investors.dsny.com/investors/financials/
or directly on the REGISTRATION FORM by clicking here.
Attendees viewing the webinar can voluntarily submit verbal questions during the live presentation. Attendee cameras will remain off throughout the presentation. Attendees' microphones will remain off unless the attendee voluntarily selects to engage in questions similar to the format available on traditional conference call format.
The webinar format will provide the Company an opportunity to present visual information and provide attendees an opportunity for written questions.
For those without internet access, the webinar can be accessed via the following dial in details:
Direct dial in: +1 312 626 6799 or +1 253 215 8782
Webinar ID: 879 3173 3657
Attendees participating via dial in will not have access the webinar video stream, and will not have access to question and answer functions.
A recording of the webinar will be available after the event on https://investors.dsny.com/investors/financials/.
Destiny Media Technologies Inc.
CONSOLIDATED BALANCE SHEETS
| As at August 31, | (Expressed in United States dollars) | |||||
| 2021 | 2020 | |||||
| $ | $ | |||||
| ASSETS | ||||||
| Current | ||||||
| Cash and cash equivalents | 2,752,662 | 1,841,340 | ||||
| Short-term investments | - | 781,490 | ||||
| Accounts receivable, net of allowance for | ||||||
| doubtful accounts of $19,743 [2020 - $23,412] | 400,233 | 426,832 | ||||
| Other receivables | 53,172 | 26,083 | ||||
| Prepaid expenses | 103,463 | 78,562 | ||||
| Total current assets | 3,309,530 | 3,154,307 | ||||
| Deposits | 35,556 | 34,316 | ||||
| Property and equipment, net | 143,487 | 194,277 | ||||
| Intangible assets, net | 187,622 | 22,952 | ||||
| Right of use assets | 190,253 | 403,961 | ||||
| Total assets | 3,866,448 | 3,809,813 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current | ||||||
| Accounts payable | 202,722 | 119,399 | ||||
| Accrued liabilities | 309,839 | 353,235 | ||||
| Deferred revenue | 8,511 | 19,638 | ||||
| Operating lease liability | 226,978 | 238,261 | ||||
| Total current liabilities | 748,050 | 730,533 | ||||
| Operating lease liability, net of current portion | - | 219,063 | ||||
| Total liabilities | 748,050 | 949,596 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity | ||||||
| Common stock, par value $0.001 | ||||||
| Authorized: 20,000,000 shares | ||||||
| Issued and outstanding: 10,265,361 shares | ||||||
| [2020 - issued and outstanding 10,450,646 shares] | 10,266 | 10,451 | ||||
| Additional paid-in capital | 9,157,804 | 9,366,290 | ||||
| Accumulated deficit | (5,788,539 | ) | (6,171,068 | ) | ||
| Accumulated other comprehensive loss | (261,133 | ) | (345,456 | ) | ||
| Total stockholders' equity | 3,118,398 | 2,860,217 | ||||
| Total liabilities and stockholders' equity | 3,866,448 | 3,809,813 | ||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Years ended August 31, | (Expressed in United States dollars) | |||||||||||
| 2021 | 2020 | Q4 2021 | Q4 2020 | |||||||||
| $ | $ | $ | $ | |||||||||
| Service revenue | 4,172,473 | 3,824,565 | 1,033,810 | 1,032,107 | ||||||||
| Cost of revenue | ||||||||||||
| Hosting costs | 131,325 | 106,804 | 39,034 | 33,443 | ||||||||
| Internal engineering support | 29,723 | 24,303 | 8,725 | 5,025 | ||||||||
| Customer support | 168,428 | 137,720 | 49,439 | 28,475 | ||||||||
| Third party and transaction costs | 64,449 | 49,806 | 16,711 | 10,304 | ||||||||
| 393,925 | 318,633 | 113,909 | 77,247 | |||||||||
| Gross Margin | 3,778,548 | 3,505,932 | 919,901 | 954,860 | ||||||||
| 91% | 92% | 89% | 93% | |||||||||
| Operating expenses | ||||||||||||
| General and administrative | 666,485 | 798,120 | 139,663 | 89,453 | ||||||||
| Sales and marketing | 1,433,232 | 1,084,364 | 428,394 | 297,518 | ||||||||
| Product development | 1,194,976 | 1,343,084 | 233,046 | 379,734 | ||||||||
| Depreciation and amortization | 105,357 | 135,385 | 27,969 | 34,641 | ||||||||
| 3,400,050 | 3,360,953 | 829,072 | 801,346 | |||||||||
| Income from operations | 378,498 | 144,979 | 90,829 | 153,514 | ||||||||
| Other income | ||||||||||||
| Interest income | 4,031 | 24,415 | 869 | 4,672 | ||||||||
| Other income (expense) | - | 21 | - | 2 | ||||||||
| Income before provision for income taxes | 382,529 | 169,415 | 91,698 | 158,188 | ||||||||
| Income tax expense - deferred | - | - | - | - | ||||||||
| Net income | 382,529 | 169,415 | 91,698 | 158,188 | ||||||||
| Foreign currency translation adjustments | 84,323 | 46,403 | (127,573 | ) | 66,617 | |||||||
| Total comprehensive income | 466,852 | 215,818 | (35,875 | ) | 224,805 | |||||||
| Net income per common share, basic and diluted | 0.04 | 0.02 | 0.01 | 0.02 | ||||||||
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, 2021, 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/104733
