Destiny Media Technologies Inc. (PNK:DSNY) Q2 2024 Earnings Call Transcript

Destiny Media Technologies Inc. (PNK:DSNY) Q2 2024 Earnings Call Transcript April 15, 2024

Destiny Media Technologies Inc. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Rebecca Collins: Good afternoon, everyone. Thank you for joining us on today's webinar. Before we begin, I'd like to announce that we will be referring to today's earnings release which was sent to the newswires earlier this afternoon. I'd also like to remind you that this conference call could contain forward-looking statements about Destiny Media Technologies within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon current beliefs and expectations of management and are subject to risks and uncertainties which could cause actual results to differ materially from those forward-looking statements. Such risks are fully discussed in the company's filings with the SEC and SEDAR, and the company does not assume any obligation to update information contained in this call.

During the webinar, we will discuss certain non-GAAP financial measures. The non-GAAP financial measures are presented in the supplemental disclosures and should not be considered in isolation of, or as a substitute of, or superior to the financial information prepared in accordance with GAAP and should be read in conjunction with the company's financial statements filed with SEC and SEDAR. The non-GAAP financial measures used in the company's presentation may differ from the similarly titled measures presented by other companies. A reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures can be found in the earnings press release. Also, I would like to mention that following the presentation, there will be a questions-and-answers session, during which you can submit questions by selecting the Raise Hand icon at the bottom of your screen.

Your questions will be pulled in the order that they are received and at which point you'll be prompted to unmute your microphone before speaking. With that, I'd like to turn the call over to your host, Fred Vandenberg, Chief Executive Officer.

A large flat-screen TV streaming video from a video hosting platform.

Fred Vandenberg: Thanks, Rebecca. Just before we start, today is Rebecca's fifth anniversary with us. She's a key member of our management group. She maintains our list and in-charge of all the release coordination that we do, as well as a lot more for this company, including running these webinars. So, it's a good opportunity for me to just give her a shoutout and potentially embarrass her a little bit. But thanks Rebecca for all you do. To start, I will talk about -- you just have me today. We'll talk about our financial results. Q2 revenue is up 9%, year-to-date revenue is up 9.9%, so it's pretty consistent quarter-to-quarter and pretty consistent over the last year, last two quarters of last year and first two quarters of this year.

Independent label revenue grew by 19.5% in Q1 and 10.5% in Q2 for a total growth of 15.6%. It's roughly -- well, it's a little bit more than 50% of our revenue fairly consistently now. About half of that growth or half of that increase for independent label revenue is from the international list selection process and easier list selection processes. And I'll touch on that just a little bit later when we talk about product a little bit. Year-to-date expenditures are up 23.3%. I think what I would say is that's a little bit misleading. It includes a one-time increase, because we had a FX gain last year, foreign exchange gain last year. Depreciations forms about a third of that increase, and it's really kind of doubling up expenditures associated with capitalized software development.

See also

12 Highest Yielding Dividend Stocks You Can Buy Right Now and

30 Largest Stock Exchanges in the World.

To continue reading the Q&A session, please click here.