Destiny Media Technologies Inc. Announces Fiscal 2023 Second Quarter Results

Vancouver, British Columbia--(Newsfile Corp. - April 17, 2023) - 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 2023 second quarter ended February 28, 2023.

"Revenue continued to improve throughout the quarter," said Fred Vandenberg, President and CEO. "Growing independent label and artist distribution, increased global list offerings, and price adjustments all contributed to a foreign exchange-adjusted revenue increase of 7%. These results were partially offset by a decline in the value of the Euro where the Company generates 50% of its revenue."

"Our focus for the quarter was increasing our investments in product development designed to expand the addressable market and accelerate revenue growth," continued Vandenberg.

Highlights

Highlights for Q2 2023 include (all figures are USD, and comparisons are to Q2 2022):

• Foreign exchange-adjusted revenue increased 7% for the quarter (including increases in Major Label revenue (+9%), independent record label revenue (+5%));

• Adjusted EBITDA (non-GAAP) was $63,984 for the quarter compared to an EBITDA loss of ($109,211) in the prior period. As described below, the Company commenced capitalizing certain software developments in the prior year. Assuming no software development costs were capitalized in either period, EBITDA for the quarter would be ($137,494) compared to ($191,472) for Q2 fiscal 2022;

• During the quarter the Company capitalized $201,478 in software development costs (prior year's quarter $82,261) as the Company invested in new product development intended to expand the Company's addressable market.

Fiscal 2023 Second Quarter Earnings Webinar

Destiny Media Technologies will hold a live webinar on Monday, April 17 at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss its 2023 second quarter results.

The live webinar will include comments from President, Chief Executive Officer, Fred Vandenberg, and Director of Business Development, Allan Benedict.

Date: Monday, April 17, 2022
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 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: 850 1233 0609

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 
(Expressed in United States dollars) 
As at February 28, 2023

				2023			2022
			$			$
	ASSETS
	Current
	Cash and cash equivalents			1,974,019			2,095,928
	Accounts receivable, net of allowance for doubtful accounts of $41,148 (August 31, 2022- $39,518)			531,982			483,774
	Other receivables			48,320			29,600
	Prepaid expenses			50,097			83,242
	Deposits			32,069			33,305
	Total current assets			2,636,487			2,725,849
	Property and equipment, net			237,497			311,792
	Intangible assets, net			953,792			529,717
	Total assets			3,827,776			3,567,358
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Current
	Accounts payable			103,072			116,290
	Accrued liabilities			367,521			319,738
	Deferred revenue			26,070			21,043
	Total current liabilities			496,663			457,071
	Total liabilities			496,663			457,071
	Commitments and contingencies			-			-
	Stockholders' equity
	Common stock, par value $0.001, authorized 20,000,000 shares. Issued and outstanding - 10,122,261 shares (August 31, 2022 - issued and outstanding 10,122,261 shares)			10,122			10,122
	Additional paid-in capital			9,190,090			9,115,848
	Accumulated deficit			(5,382,475	)		(5,639,465	)
	Accumulated other comprehensive loss			(487,624	)		(376,218	)
	Total stockholders' equity			3,331,113			3,110,287
	Total liabilities and stockholders' equity			3,827,776			3,567,358

 

Destiny Media Technologies Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
(Expressed in United States dollars) 
Period ended February 28, 2023

			2023			2022
		$			$
	Service revenue		899,042			896,420
	Cost of revenue
	Hosting costs		25,526			45,611
	Internal engineering support		12,883			13,812
	Customer support		73,008			78,266
	Third-party and transactions costs		15,177			13,622
			126,594			151,311
	Gross margin		772,448			745,109
			86%			83%
	Operating expenses
	General and administrative		175,345			314,941
	Sales and marketing		258,300			251,875
	Product development		312,904			367,311
	Depreciation and amortization		35,952			26,574
			782,501			960,701
	Income from operations		(10,053	)		(215,592	)
	Other income
	Interest and other income		8,777			1,964
	Gain on disposal of assets		-			11,018
	Income before provision for income taxes		(1,276	)		(202,610	)
	Current income tax expense		-			-
	Net income		(1,276	)		(202,610	)
	Foreign currency translation adjustments		(18,922	)		1,961
	Total comprehensive income		(20,198	)		(200,649	)
	Net income per common share, basic and diluted		0.00			(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, 2022, 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/162601