DSNY - Earnings call transcript Q3 2024 | Destiny Media Technologies Inc.

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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 also would 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. in discussed and company's assume the to information fully SEC with any are update SEDAR, and company contained risks in filings the the obligation Such call. this does not

financial should be financial we of webinar, and or a with read supplemental non-GAAP The in discuss During information isolation conjunction accordance with measures should of GAAP the SEDAR. presented not will are and substitute the prepared in in financial in superior certain company's with be measures. to non-GAAP considered statements financial disclosures the as the or and SEC the filed

the The measures the most financial GAAP financial type may from release. measures financial company's presentation comparable similar found be measures press differ of slightly measures earnings presented non-GAAP companies. in non-GAAP in may other the differ used to -- by can the reconciliation A

your over Vandenberg, [Operator Chief turn the Instructions]. call Officer. I'd to With host, Fred like to that, Executive

Frederick Vandenberg

began capitalized X slight cost this even net be development EBITDA, graph here I've costs. would for inflection but that's software more added our hadn't I'll any and in small X.X% first growth and our our X over that revenue quarters for strategy that capitalized revenue this X% talk the what Revenue prior the years to everyone. EBITDA show by we of a the the to that. There XX.X% for around you and show if to a on ago. afternoon, independent we slight questions. Good ending. the several about positive We development quarters year. X.X% period the we've would to go put I'll about global positive through just a that -- the is growth be point organic QX to growth our about shortly, very income, slide seen compared period Rebecca. QX a software to briefly X it turn was over through shows Thanks, grew it is positive and believe results quarters, that

This years. this graph, through of versus last X again, growth to We an think is a -- is X% little but see around as X% inflection the bit a a for in years a more a dramatically that. yearly you'll point, total portion is, the it prior year-to-date revenue, global strongly. a about more XXXX. our little this bit impact of revenue And should fiscal our larger becomes bit independent results This

and add strategy The can then organic to grow that really growth our services products Play addressable and is share market market. MPE's grow

we do main how our So do platform get trying an grow, ecosystem that? is our market have to The revenue platform for more drive us, drive done, more to invest marketing stay really organically organically. more the thrust longer, create users really where growth customers We're in in to platform.

So this our arm to growth in strategy. organic growth is really the just a shot

them over These and investments our online are effort in of moved this -- out we March year. to Many long will in year's for the we just them a move had you administration global recall beginning. build largest that just to over customer, platform of

We with also development. and that want to - in complement marketing business

just That nearing the probably the of quarter. MTR was you'd of the it until at the the updates that but end was didn't interested quarter, in product be most the the is quarter The one following launch. end for -- launch

the help lot the move restructure us to a of activity been a reinforces our that had that customer that a began there's There's that QX that There's block-and-tackle we leadership updates platform, that over we paying growth other really are QX. and to throughout are platform. Also here a are number but leadership. and restructure to organic other are things QX lot going new, marketing a going the work a work allow really that -- group continue within the business of of bit And the scale. continued marketing The on in things product these to in somebody development involved in sign-on activities. to of change to that's began they we exciting, late really to

We rebranded the website.

You'll the into added logos. here. logos see tracking we've added the that We platform MPE. the We created Play

a that's There's optimization. the MTR. of site So lot

but We it's us. all new didn't block-and-tackling until of launch exciting it's for much too marketing, the are basic flows, The really website beginning QX. lead tracking actually but probably quite the of detail,

Lastly, the MTR.

tracking name a that how you've radar. and on music release music, often, We day. listen that by. to is music then identify it we when that press MTR, that report of MTR different and see is M-T-R, what what functionality it but music is Its played goes You and call by seen things, whom about and -- the really it's time core

looking songs. first few to track a or Our type a label customer song small or artist an is a

be expressed What desire have or obtain customers we a this MPE. provide have MPE type to found Play have customers information. doesn't and/or of in real-time with coverage a the our Play can that expensive we is information found Our this to connection have to that

segment to amount first see information several a like many want that we from that. Spotify songs segment -- there, track sent segment There's a We like something XX,XXX that or songs, to like something those a day. There's of remarkable this this produced you'll DSPs those sorry, produced single, and up want songs. day track and market to music that so every

around songs year. In this number that, of -- But we fraction quite our market, first XXX,XXX so think that to we that month or closer X,XXX XX,XXX we small a about songs songs think about market per XX,XXX or attacking the here is U.S., which the about annually. is per monthly, be will about is

-- price base $XX months is about depending $XX, how many Our are to around on is now purchased.

per tracking. But month of that's

because have X.X enough renewals months around tracking, we that of So we is include doesn't X, that, average don't have yet. things person experienced track wanting just like experience that the but to or

do XX,XXX monthly is U.S., number songs, if you we're XX,XXX wish figure times they the the the to So you out the the track. songs. here, of to in times multiply attacking math what would months This price,

We X of think small older would there and the songs. single very have yet. fairly between this total said, include songs between produced. the I customers the portion is it does we it's don't functionality not a build out number that now a that And differences songs. are want and that conservative those of the split is to analysis what want the to like And track some We know

the market that single. labels So our the artists want track first a to record to attack or singles, is

price number then there's We have point markets grow far market number figure the a point our stations thing. cost a cover. with of costs a grows that of monthly have to go, we of investment of out high can of really As a a -- number we number fixed reasonably number The with stations we sort detections, how is because share, think that enough really small that and present new the as variable the we into stations. the quickly our is we to cost, that of songs, upfront that component and price with cover do

customer to to figure out doing an to that, grow were really So looks marketing, that I is really marketing, really that we're -- to from figure build -- out out addressable first already the we excited really is of internally out that's something improve will with the market. questions. a about. like. is reiterate, the but MTR our And this there. new, figure But with enterprise it's really and I that immediate mean, totally goal and what MTR growth And that, over part it organic new turn totally

Rebecca Collins

Great. [Operator Thank you, Fred. Instructions].

ahead unmute is you your microphone. can today go question first and Gerry. the So Gerry from

Gerry Wimmer

Can me? you hear

Rebecca Collins

Yes.

Frederick Vandenberg

Yes.

Gerry Wimmer

questions, I just of Fred. have a couple

for First of I another -- Has renewed all, that Universal were you been think you X -- years? the deal. the maybe have done

Frederick Vandenberg

until have September. of the renewed it We end

currently are with in We talks them.

they're going well. it's platform been I very well, think We over March, like said, in the going I positive. and to online moved them quite

Gerry Wimmer

to is go annual Or you from X to have point? signed So January? if if it September, does it -- that in going an for it is you'll be think that Or retroactive deal? them September years

Frederick Vandenberg

be term The is yet decided. to

-- suppose. October X it But will from probably well, on I a be depends onwards. on I it of number it things, depends think

Gerry Wimmer

you would expect increases? And

Frederick Vandenberg

That are really want purchasing. I I mean, features they that they think on on built find But administration speculate to now. increases global interested I the they in don't anybody how go, require. -- depends else it useful. that we as there's it out as don't and this far right very does that

Gerry Wimmer

One In Fair press Okay. release, a is the X enough. things. comment.

don't pick denote say media You it the should dollars. some because as U.S. dollars. is up U.S. dollars Canadian figures They outlets and denote it all

Frederick Vandenberg

Okay.

Gerry Wimmer

in it million they saying just They up media you in press headlines denoted who or there income in whatever to The on were because see $X.X -- earnings. $X.XX denoted that -- the were or had picked U.S. release. was up the dollars it Canadian. saying pick didn't And

a Just comment.

Frederick Vandenberg

do will that. I Okay.

Gerry Wimmer

Yes.

buyback Second, buyback rather XX you months renewed. But early the quarter. buyback. wasn't the last about talked over the until in even the May, active last Up and you're in the

just even So now I we I it continued. thought we are why and wasn't just wanted renewed. so to active understand

Frederick Vandenberg

for marketing of And come for really I it MTR. new I segments really Yes, to some think, where that things a with wanting MTR And couple are results a it. our the a -- to market depending think are little at of grow I we bit is function product there. It's with looking faster. it there our costs, of And goes said. our acquisition, on might decide see like we does interesting us. a

invest talk calls. inorganic we but really a And of about at we I'm we bit inorganic organically buyback just so organic much time. period that bit lot some strategy time we to how in our have on growth spend We'll for seeing growth, to but on grow a faster. I of lot sure, about pause point, talk But... these to I potentially a just wanted can a and grow too do the growth. revisit don't

Gerry Wimmer

your buyback? of changed of plans you're the So capital that of have allocation expiry as saying -- the your

Frederick Vandenberg

price question a is say really -- that's question supply. would and change. this. allocations answer pause they answer. think mean, -- see there a we've to I pretty we that's function see low, if the really still I The we will stock to capital put I I sides demand confusing that are of X wanted but of our on -- a wouldn't have changed. We say precisely. your I to it

well really We're a pretty micro-cap not small. and known, We're we're company.

So in price. our kind market the the stock of awareness dictates

our we we where out lot but put of low, to we potential see think So invest. want months capital to stock that really see just figuring And few spend we also I a a next.

Gerry Wimmer

in investment MTR jump expecting to Are Okay. significantly as a you marketing? about your you more OpEx little talked

Frederick Vandenberg

Right.

of marginally. progress currently slightly, are think choose generally we to to revenue and we for expand before a us and of with that decide we bit see opportunities I promising. run lot want cash if little positive if do We will we always flow But areas gives a positive, make are to -- to rate The have a spending more little we which think bit growth really I that. margins,

Gerry Wimmer

coming back the And to Okay. MTR.

standpoint, you Canada? functionality product a generating highlighted a So in and is the revenues the Or test in from market out standpoint? product Canada Canada in not

Frederick Vandenberg

price is revenue. We very in charge that group were -- select a Canada monitoring wouldn't it out -- did we not people the so -- generating just revenue. some we we is was if charge would That's, it we skin essentially, it's in Canada, out actually what It We when rolled to that were was a get it our stations. and pay Canada. a it. of see -- in for in game just impact to It low would --

still deal moved the Now we've is $XX which to a a -- price $XX, at up month. screaming

-- for is have that the We a to or our what target they a or smaller a we out enough artist our track first don't that be. provide. artists I but from things don't and -- us. They have this there's asked think of -- don't is a we want way is capture really know easily single that real highlighted want market, to the that highlighted customers One singles, potentially adoption company information something -- options to the this rate like will there, few

that monitor just bit States. see will But it. more. buying now pay we throughout little to Canada We tracking stations the have we're So It's now that. customers in a United they do

Gerry Wimmer

-- artist lack word, being the And do level you this envision product at a more better of or enterprise the level? at successful

Frederick Vandenberg

between I the I split I don't it showed singles know. -- don't know is I The reason this showed -- enterprise. and pyramid the

smaller not it's and we to -- of sense. of the be month there's an it's songs to We a that but amount additional will per interesting have With We functionality, you'll But split know. tracked enterprise, you'll really require in there, lot slate I like us. some more a get don't terms single tracking. Enterprise complete market a a price tracking. going get don't blank think but

it'll reason -- So The split. why be to I interesting see sorry. the showed

Gerry Wimmer

Was it artists? piloted and both Canada at in Or enterprises not?

Frederick Vandenberg

single there's in even show that compelling we enterprise lot things just but the that's why associated about added And I bit just The missing they're -- but until year usable. little want platform no, tracking I've I this want just ours further pyramid -- more talk Canada down single we we're No, say even are talked No, development. blue tracking. that with were to a -- adopt, a of is that during no. the MTR just we required, don't in the that with sky wouldn't markets they singles make a a interesting of the about, road a to those sort the of really the we product that and reason

Gerry Wimmer

is being MTR color to envision meaningful -- contribution Or period? can XX-, Destiny, XX-month, you you give XX-month contribution a a little this do when a And that? on revenue

Frederick Vandenberg

I on suppose by you meaningful. what it mean depends

Gerry Wimmer

of XX%, first meaningful. the More level I be than would guess,

Frederick Vandenberg

Yes. to wanting I our when predict I of faster. lot to I grows A customer don't revenue we slower look know, inflection a we don't -- of more curve, an a sort those and split what on enterprise-level expect at point acquisition rate then want a -- the we will between depend where that. those our singles -- look see and agreement. we wanting is Gerry. at adoption

to need. We months. say the few And I reasonably quickly. it. a think what we quickly, we than build on more can months It enterprise probably a it's out we depends build not when functionality It's reasonably few find

of is depends more United like I and big would do. what on sense have want just split the market give work initial what the really to market States the it a to share. So with how -- in I we look a much

Gerry Wimmer

the What for enterprise the in service is use environment in to -- --what's what's or today? would Destiny competitive an the -- a today, single on competitive enterprise your

Frederick Vandenberg

not they're But providers at there's a When called really it to you're comes really United genre. platform. looking the enterprise a -- the type on charting in States, depends And what's different and things few much larger MTR provide are they smaller what companies radio or stations be that to is a not there of in what would as real-time number as monitored. It provide. tends in real-time

instead information, music. provide of the -- more songs that complete of buying repertoire information about person you're they providing And a the these

have So of number in contrast to greater songs. fewer they stations,

by So And you'll enterprise-level that you're information get about. not about desired our asking is this some customers. songs of

least more at we So much, some of to, at be it tends to -- much will able those sell first. won't expensive. to be But

Gerry Wimmer

this in And competitive your is key what's advantage today, segment? defensible? So it

Frederick Vandenberg

Then question. real-time, have excellent We're more a we substantially cheaper, price. and fraction of the like stations. we're an It's

much we a track. larger the United stations that see number you'll in So of States

Gerry Wimmer

being that other is Is competitive And mover? Your first defensible? there this proprietary a advantage? -- anything than

Frederick Vandenberg

that Well, it's fingerprint you build to lot -- have out that fingerprint, doing. we're fingerprinting, you went out not real-time. what to There's generate rather, to into to that -- the do easy a watermarking a have the building

You it in have real-time. to match

It's the have manage and positives You negatives. to do. to not false false thing easiest

You connections. have maintain to

So -- barriers are insignificant. it's technical entry to the defensible. not It's I think the to barriers -- entry are

team I'm -- built our proud have And so we're to really really of this.

selling defensive Play to this market of MPE own our that is the this think customers. I part is

us. already that's aware think There's of compelling. already So I And there's There's good us, with engaging trust. customer really of really and MTR. sorts for awareness, all advantages synergies they're they're for

Gerry Wimmer

part When of your Universal contract, renegotiate you will be MTR the that?

Frederick Vandenberg

don't not It's discussed know. not. something I Certainly yet. we've

-- would we I for be, So think information don't is one monitor could that? wouldn't that than they don't what points things why in is manage I price don't the especially they cheaply stations they think, how do in anything at believe MTR interested it, of know that, that could I It I stage, real-time. the And do worldwide exists could really Universal know they could are at to change get offer. do I don't now. it about this. do this I I that but... how what know know. But likely do they more we don't

Gerry Wimmer

could market much your that? Or you do of total And it think XX% here? of if your how opportunity MTR bigger generate? well, the all how -- Or business or generally, business things big going than is what forward? go is total

Frederick Vandenberg

just the right at organically. components that pyramid you MPE that if an tracking, can starting then has song first really exceed Play to at this you're we think what would we MPE look think I addressable grow But that market now. of think certainly the -- very look we Play

long say we to functionalities to guess, As first. the I part comes when don't what growing is -- we we're that in of you with new as exist opposite on can MTR. What reinvest of some smart core in And more probably if I of it a -- aspects grow that market, like MTR be to the really unique can there's way. build Play develop, the which that to platform. should activity have you But MPE, go it hard in

You stations, grow start you activity to radio put can have to labels. then record content at you then selling in, the the

There's thing such no with no There's MTR. resistance.

an or to tracking staying confines we Because customer, matter to go marketing discover new out out our is. expand that we either which market where changing to MPE first we easier it's then or our that a songs. our if we just within next existing much next, sell the So if Play market territories, building for of expansion MTR we're into of wanted non-Play involves figure It's Play Play MPE market. MPE customer the maybe MPE a than just

Gerry Wimmer

acquisitions? question, any you're at And looking final

Frederick Vandenberg

From they Always little bit expensive we've so but far, seen, be we what consider a are. we it. -- seem to

yes. at to continue We look them,

Rebecca Collins

Thanks, Gerry.

more got raised a you, we've in So the right couple got no box but now, for Q&A hands Fred.

is first far? so up many how MTR users The signed for one

Frederick Vandenberg

number don't our I getting that going is up, -- It Oh, projections. we are -- have users boy. adoption. signed precisely I above it's the of know but

positive we to guess. nice that are again, saying very, to on up. Our projections put want -- I results. much, want were, signing conservative, it's financial don't a not because so don't our disclose really disclose with give -- I that's we'll But it seeing people very I number when we signs

Rebecca Collins

question allocation? is capital Next are if in is thinking to NCIB Mostly be we not what R&D? of terms renewed,

Frederick Vandenberg

Okay. where what on think our we -- Gerry's we capital -- -- off existing some of covered Well, depends next what I in with is while. we see I that The questions. spend little the

think to our can continue in invest MPE we ongoing core that We We operating platform. Play do revenue. the with

development really allocation, there's or expanding As far as market MTR capital distinction a expansion -- probably there's for activities. between software

on. what go an of -- with revenue, typically absorb market every States, while would is a we a probably seeing loss bit add like we're both -- operating would into and that of that we time market true be we grow United we and new a that So we period for

bit we would So yet these And where learn are we main spend I don't of know our until to more. what little money. do going we're the a X distinctions

Rebecca Collins

Great.

I've you do one of you to came Kelly. shares? this shares, noticed use exchanges back back the buy question, stock buy Another from which

Frederick Vandenberg

of the TSX purchases Venture. All are our done on

Rebecca Collins

who from MTR more like got the buy." And Harry. why I and today. results do then a on is "Congratulations your customer about to would know they question we've

Frederick Vandenberg

sorry, MTR artists MPE really customer Play and The the labels. customer is really -- is

should the really these marketing. buy function probably figure their some labels it's is out see smaller wanted getting to And of curiosity they song -- There's reasons where market mostly that initial there. be. -- a are really their where -- played. the or artists marketing is Our spend they're But to

is The themselves. customers for MTR radio other potential

be that they MTR, customers for in interested last see, -- before to one, repertoire MTR, that wants on stations they we get be would radio larger information need a there be it useful music radio playing, think I So what grouping promoters. see would from to many but depending essentially, them. And how would of the other might are last

-- have So to quite we that activities. tool And in -- And know of us. they're use promotion want customers many know want how their MPE are of a many -- how getting. Play they as number they promoters to they tracks a to spins

getting successful downloads downloads But own really I is They getting that spins. can the see And are and to that's market in data MPE. from help the where for coming they think how they're are set business. next terms of their where useful step Play through a in them

think answered question. that I've I

Rebecca Collins

from the and Play more got I between one Harry. synergies "What are MTR MPE?"

Frederick Vandenberg

of well, they're whether -- a actual the Play the in The quite users artist There's it's of generally. meter first same the for the customers radio number. The all, MPE, same are customers or promoter.

So a are you're lot that customers. -- already help analytics selling data of -- The cross there's people to that your marketing. can are

would be a overlap. costs that lot operating of -- that There's would

Play in to people. we distribute -- we MPE, to tend So

So have We Which on music you manage in supervisors that. other recipient and get and things. and people. side, radio all are press media that turn, users amongst stations, the

are distribute, terms list, radio. in our we But where primarily anyway, of

Play in the radio broader typically then -- understood. than radio, that the on station, MTR And definition And MPE we talk when so person about a which have the tend potentially the to radio. manages we manage is we manage includes we side, what

the that broadcast, gets data the a that those, in-store of overlap. certainly, terrestrial some but thing not get. it lot line also but we'll information between I include that think satellite us excited But there's a Internet, would that is quite we'll get, -- most the clean programming And is there's

a there's versa, vice now and MTR lot Play of customer MPE cross-selling potentially, a becomes where, potentially obviously. think a customer I

Rebecca Collins

all looks you. Thank questions It our today. for Great. like is of that Okay.

Frederick Vandenberg

who Rebecca, for everyone soon. joined Okay. you We'll thanks Thanks, Great. the and call. to speak

Destiny Media (DSNY) 15 Jul 242024 Q3 Earnings call transcript