Destiny Media Technologies Inc. Announces Third Quarter Fiscal Year 2021 Results

Vancouver, British Columbia--(Newsfile Corp. - July 14, 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 third quarter ended May 31, 2021.

Highlights for Q3 2021

(all figures are USD, and comparisons are to Q3 2020):

• Play MPE® revenue grew by 15.2% (9.7% currency adjusted);

• Independent label revenue increased 29.7% (26.8% currency adjusted);

• Sends activity up 26.5%;

"Continued independent record label growth has been a significant driver of our overall Play MPE® revenue growth in the current quarter and over the trailing twelve months," said Fred Vandenberg, President and CEO. "In the current quarter, we have added key industry professionals to our business development group in the United States and these additions have had an immediate impact adding key US Major Label distributions in the Play MPE® platform."

The stock repurchase program that commenced in January 2021, resulted in market purchases to May 31, 2021 of 155,685 shares for a total cost of USD $218,682.

Fiscal 2021 Third Quarter Earnings Webinar

Destiny Media Technologies will host a webinar at 5:00 p.m. ET (2:00pm PT) on Wednesday, July 14, 2021, to further discuss its 2021 third quarter results. Investors and interested parties may participate in the webinar by registering at the following:

https://investors.dsny.com/investors/financials/

or directly on the REGISTRATION FORM by clicking here.

Attendees are encouraged to register prior to the scheduled time.

Attendees viewing the webinar can voluntarily submit either verbal and written 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 verbal 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: +1 301 715 8592 or +1 647 374 4685

Webinar ID: 848 9340 6221

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/.

CONSOLIDATED BALANCE SHEETS

As at,

		May 31,			August 31,
		2021			2020
		$			$
ASSETS
Current
Cash and cash equivalents		2,934,575			1,841,340
Short-term investments		-			781,490
Accounts receivable, net of allowance for
doubtful accounts of $20,618, [August 31, 2020 - $23,412]		403,196			426,832
Other receivables		46,869			26,083
Prepaid expenses		69,444			78,562
Total current assets		3,454,084			3,154,307
Deposits		37,131			34,316
Property and equipment, net		166,913			194,277
Intangible assets, net		86,376			22,952
Right of use asset		258,286			403,961
Total assets		4,002,790			3,809,813
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable		140,989			119,399
Accrued liabilities		355,766			353,235
Deferred revenue		18,210			19,638
Current portion of operating lease liability		280,028			238,261
Total current liabilities		794,993			730,533
Operating lease liability, net of current portion		24,418			219,063
Total liabilities		819,411			949,596
Contingencies
Stockholders' equity
Common stock, par value $0.001
Authorized: 20,000,000 shares
Issued and outstanding: 10,294,961 shares
[August 31, 2020 - issued and outstanding 10,450,646 shares]		10,295			10,451
Additional paid-in capital		9,186,881			9,366,290
Accumulated deficit		(5,880,238	)		(6,171,068	)
Accumulated other comprehensive loss		(133,559	)		(345,456	)
Total stockholders' equity		3,183,379			2,860,217
Total liabilities and stockholders' equity		4,002,790			3,809,813

CONSOLIDATED STATEMENTS OF INCOME

		Three Months			Three Months			Nine months			Nine months
		Ended			Ended			Ended			Ended
		May 31,			May 31,			May 31,			May 31,
		2021			2020			2021			2020
		$			$			$			$
Service revenue		1,083,987			939,873			3,138,663			2,792,458
Cost of revenue
Hosting costs		32,582			30,905			92,291			73,361
Internal engineering support		7,375			5,915			20,998			19,278
Customer support		41,794			33,523			118,989			109,245
Third Party and transactions costs		16,053			16,641			47,738			39,502
		97,804			86,984			280,016			241,386
Gross Margin		986,183			852,889			2,858,647			2,551,072
Operating expenses
General and administrative		202,878			273,070			526,822			708,667
Sales and marketing		361,411			140,690			1,004,839			786,846
Product development		326,450			355,625			961,930			963,351
Depreciation and amortization		26,673			33,194			77,388			100,744
		917,412			802,579			2,570,979			2,559,608
Income (loss) from operations		68,771			50,310			287,668			(8,536	)
Other income
Interest income		823			5,266			3,162			19,743
Other income (loss)		-			(677	)		-			19
Net income		69,594			54,899			290,830			11,226
Net income (loss) per common share,
Basic		0.01			0.01			0.03			0.00
Diluted		0.01			0.01			0.03			0.00
Weighted average common shares outstanding:
Basic		10,426,961			10,450,646			10,428,809			10,623,432
Diluted		10,531,708			10,450,646			10,543,442			10,623,432

Q3 Fiscal Year 2021 Financial Summary

(millions of U.S. dollars)		Three Months Ended											Nine Months Ended
		May 31, 2021			May 31, 2020				% Change				May 31, 2021				May 31, 2020				% Change
REVENUE
Play MPE®		1.082			0.940				15.2%				3.131				2.772				13.0%
Other		0.002			0.000				0.1%				0.008				0.020				(60.0%)
Total Revenue		1.084			0.940				15.3%				3.139				2.792				12.4%
PROFITABILITY
Gross Margin $		0.986			0.853				15.6%				2.859				2.551				12.1%
Gross Margin %		91.0%			90.7%				0.3%				91.1%				91.4%				(0.3%)
Operating Expenses		0.917			0.803				14.3%				2.571				2.560				0.4%
Cash Operating Costs		0.878			0.760				15.5%				2.458				2.445				0.5%
Adjusted EBITDA		0.109			0.098				11.2%				0.404				0.126				220.6%
Net Income		0.070			0.055				27.3%				0.291				0.011				2545.5%
Earnings Per Share		0.01			0.01				0.0%				0.03				0.00				-
													Nine Months Ended
CASH													May 31, 2021				May 31, 2020
Cash Operating Income													0.421				0.156				169.9%
Working Capital Changes													0.016				(0.391		)		(104.1%)
Cash Provided By (Used In) Operating Activities													0.437				(0.235		)		(286.0%)
Cash Provided By (Used In) Investing Activities													0.702				(0.798		)		(188.0%)
Cash (Used In) Financing Activities													(0.219		)		(0.533		)		(58.9%)
													As at
CASH RESERVES													May 31, 2021				August 31, 2020
Cash and cash equivalents													2.935				1.841				59.4%
Short-term investments													-				0.781				(100.0%)
Total Cash Reserves													2.935				2.622				11.9%

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/90162