Destiny Media Technologies Inc. Announces First Quarter Fiscal Year 2021 Results and Updates NCIB

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