Destiny Media Technologies Inc.

Announces Third Quarter Fiscal Year 2020 Results

Vancouver, BC - July 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 third quarter ended May 31, 2020.

Highlights

Highlights for the quarter:

  • Glenn Mattern joins Play MPE® as Director of Business Development

  • Canadian Play MPE® trials expand to include Sony Music Canada and several Canadian major independent record labels

  • Play MPE® launches Mexican distribution lists

  • USA Latin Music and Mexican seeding distribution commences

  • Launch of the Play MPE® thought leadership panel series

  • Play MPE® product management launches its beta testing program

Fiscal 2020 Third Quarter Financial Results

In the quarter ending May 31, 2020, Play MPE® revenue declined by approximately 2.4%. Adjustments in pricing to a long-standing customer agreement and negative impacts of foreign exchange resulted in a small decline to revenue.  This was offset by continued growth in usage by independent music labels.  Adjustments to pricing in this agreement is designed to facilitate longer term growing usage of the Play MPE® platform in under used market segments.               

"We saw very encouraging results from our Canadian and Latin Music initiatives in our third quarter as usage expanded to include Sony Music Canada and several major independent record labels.  We also launched our Latin lists in the United States and Mexico and commenced seeding those networks with popular content,"  said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies.  "Play MPE® continues to raise its profile as a thought leader with the launch of our new panel and webinar series."

The Company commenced a stock repurchase program in September 2019, resulting in market purchases of 550,140 shares (representing 5% of shares outstanding as of August 31, 2019) for a total cost of $533,223 USD.


Fiscal 2020 Third Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 15, 2020, to further discuss its fiscal 2020 third 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 # 44093102. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at https://investors.dsny.com.


CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Expressed in United States dollars)

Unaudited

    Three Months     Three Months     Nine Months     Nine Months  
    Ended     Ended     Ended     Ended  
    May 31,     May 31,     May 31,     May 31,  
    2020     2019     2020     2019  
    $     $     $     $  
                         
Service revenue   939,873     970,435     2,792,458     2,833,818  
                         
Cost of revenue                        
Hosting costs   30,905     24,348     73,361     83,556  
Internal engineering support   5,915     7,010     19,278     21,297  
Customer support   33,523     30,179     109,245     86,456  
Third Party and transactions costs   16,641     11,009     39,502     31,019  
    86,984     72,546     241,386     222,328  
Gross Margin   852,889     897,889     2,551,072     2,611,490  
                         
Operating expenses                        
General and administrative   273,070     178,392     708,667     556,270  
Sales and marketing   140,690     273,574     786,846     707,473  
Product development   355,625     233,225     963,351     806,761  
Depreciation and amortization   33,194     26,764     100,744     67,099  
    802,579     711,955     2,559,608     2,137,603  
                         
Income (loss) from operations   50,310     185,934     (8,536 )   473,887  
                         
Other income                        
Interest income   5,266     8,233     19,743     21,154  
Other income   (677 )   1,545     19     1,580  
Net income (loss)   54,899     195,712     11,226     496,621  
                         
Other comprehensive income (loss)                        
Foreign currency translation adjustments   (66,657 )   (80,709 )   (80,213 )   (100,562 )
                         
Total comprehensive income (loss)   (11,758 )   115,003     (68,987 )   396,059  
                         
Net income (loss) per common share,                        
   basic and diluted   0.01     0.02     0.00     0.05  
                         
Weighted average common shares outstanding:                        
                         
Basic and diluted   10,450,646     11,002,775     10,623,432     11,002,775  


CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

(Expressed in United States Dollars)

Unaudited

As at,            
    May 31,     August 31,  
    2020     2019  
    $     $  
             
ASSETS            
Current            
Cash and cash equivalents   913,349     2,512,138  
Short-term investments   1,097,806     380,056  
Accounts receivable, net of allowance for doubtful accounts of $23,111, [August 31, 2019 – $10,106]   748,440     332,271  
Other receivables   19,135     14,240  
Prepaid expenses   93,331     77,067  
Total current assets   2,872,061     3,315,772  
Deposits   32,536     33,716  
Property and equipment, net   211,529     260,907  
Intangible assets, net   19,032     24,695  
Right of use asset   435,234      
Total assets   3,570,392     3,635,090  
             
LIABILITIES AND STOCKHOLDERS’ EQUITY            
Current            
Accounts payable   165,819     132,451  
Accrued liabilities   353,235     303,470  
Deferred leasehold inducement       46,774  
Deferred revenue   1,999     23,388  
Current portion of operating lease liability   219,864      
Total current liabilities   740,917     506,083  
Operating lease liability, net of current portion   266,769      
Total liabilities   1,007,686     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   9,353,584     9,850,348  
Accumulated deficit   (6,329,257 )   (6,340,483 )
Accumulated other comprehensive loss   (472,072 )   (391,859 )
Total stockholders’ equity   2,562,706     3,129,007  
Total liabilities and stockholders’ equity   3,570,392     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® (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, 2019, which is available on www.sedar.com or www.sec.gov

Contact:

Fred Vandenberg
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236



The following information was filed by Destiny Media Technologies Inc (DSNY) on Wednesday, July 15, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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