Destiny Media Technologies Q2 2025 Earnings Report

Destiny Media Technologies EPS Results

• Actual EPS: -$0.03
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Destiny Media Technologies Revenue Results

• Actual Revenue: $1.02 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Destiny Media Technologies Announcement Details

• Quarter: Q2 2025
• Date: 4/14/2025
• Time: Before Market Opens
• Conference Call Date: Monday, April 14, 2025
• Conference Call Time: 5:00PM ET

Destiny Media Technologies (OTCMKTS:DSNY) develops technologies that enable the distribution of digital media files in a streaming or digital download format over the Internet. It offers Play MPE, an online platform that distributes promotional content, including broadcast quality audio, video, images, promotional information, and other digital content from record labels and artists to broadcasting professionals, music curators, and music reviewers to discover, download, broadcast, and review the content; Play MPE CASTER; Play MPE Quickshare provides a distribution tool for Play MPE customers to promote music; and Play MPE Player for music curators to review and download content through cloud-based player and mobile apps. The company also provides Music Tracking Radar, a digital tracking service that tracks and reports the number and times customers track is played; Clipstream, an online video platform for encoding, hosting, and reporting on video playback that can be embedded in third party websites or emails; and playback through its JavaScript codec engine. It markets and sells its products in the United States, Canada, Europe, Asia, South America, Africa, and Australia. The company was founded in 1991 and is based in Vancouver, Canada.

Destiny Media Technologies Q2 2025 Earnings Call Transcript

Presentation

[Rebecca Collins, Operations Manager at Destiny Media]

Good afternoon, everyone. Thank you for joining us on today's webinar. Before we 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 contain could cause actual results to differ materially from those forward looking statements.

[Rebecca Collins, Operations Manager at Destiny Media]

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 the SEC and SEDAR. The non GAAP financial measures used in the company's presentation may differ from 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.

[Rebecca Collins, Operations Manager at Destiny Media]

Also, I would like to mention that following the presentation, there will be a questions and answer session, during which you can submit questions by selecting the raise hand icon at the bottom of your screen. Your question will be called 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 you your call the call over to your host, Fred Vandenberg, chief executive officer.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Hi, everyone. Welcome to q two. Year to date revenue was up 4.9%. For the quarter, it was up 3.3%. This is a little bit less than the growth we've seen in the immediately preceding quarter or the growth over the last couple of years.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

But we've seen some very positive signs for growth in our customer acquisition strategies, and we think this will result in positive long term sustainable growth. Our independent customers represent about 50% of our revenue on average. In Q2, that's a little smaller of a percentage because of the seasonal demand. But in that group, total customers are up by 4.4%. New customers are up 8%.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

And then there's a modest increase in the number of releases. And there's a 2.6% increase in customer retention. We've also seen an improvement in sales conversion rates and the speed of conversion. What we have also seen is a 4% drop in the average spending per release. We think that the majority of that is caused by discounts that we've put in place.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

These discounts were part of our overall checkout feature that we're building. And we had to standardize those discounts across the platform. The demand in this context is pretty inelastic, relatively inelastic. So we're probably going to address this going forward and modify the adjustments and how they're calculated. Expenditures are up 18.2%.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

The majority of that increase is well, more than actually that increase is due to onetime nonrepeating legal expenses of $230,000 and some noncash amortization expense increases. That's offset by some reductions in salaries and wages that the majority of which are long term repeatable. There's going to be some increases associated with the as we add some more staff. We've created this schedule in the slide to show kind of another non GAAP measure where we've adjusted net income to remove all the sorry, deduct all the capitalized costs that we've incurred in the period, add back the amortization, add back the onetime cost of the litigations and some other noncash expenses. And just to show you what our real cash flow is, longer term cash flow, and it shows a net margin of about 9%.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

That gives a sense of where we're at given the loss. Our long term business strategy is really to achieve sustainable accelerated revenue growth through new market acquisition, gaining market share in new territories. And to put that into real specific strategies, we're really trying to leverage our customers and users to grow Playampi. If you look at Playampi, it's akin to a social media platform but in the music promotion space. And if we make the right investments in the platform, we can help get our users to drive growth.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Now what we did in the quarter is we released a feature called Invite a Connection. We plan to build on this and try different things to get recipients to drive that growth. If I was to draw a parallel here, it would be something like LinkedIn, where in the beginning of what in LinkedIn's existence, they were a platform to post your resume and that sort thing. It's involved. And now it's involved into a lot more.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

We have a vision of doing similar things and building on the invited connection. Our priority here really is to drive revenue growth so we can invest more into revenue growth. The more users we have on the platform, the faster we can grow. We also

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

added some new features into our list management process. Our list management group really is actively maintaining our recipient list, which is the products we sell. Our lists are really a significant driver of our overall value proposition. They are 200% more active than our best customer owned lists. So we do the job a lot better than our customers can.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

And how we maintain these lists is proprietary through proprietary processes that we've developed over quite a number of years. This is just a change to help make that group a little bit more efficient. And with this change, we are looking to leverage that group into adding more recipients and recipient types to essentially broaden our product line. As well, we made some SEO improvements. And with those list of management improvements, we're working on acquiring new recipient types.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

As far as our customer acquisition investments go, from a platform perspective, the main thing we're working on is the self-service checkout. So this will allow us to really scale. And earlier in this year, we released self sign on. During Q2, we released full service checkout. So really, what we split our independent customers into two types, full service and self-service.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

The full service customers require more staff involvement. Our staff prepared the release. And we've added the checkout feature there. If done well, we think that this will open many doors to grow independent use in new territories. And at the same time, currently we're investing into a lot of marketing improvements.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

We restructured the website last year and we continue to improve the site score. We get higher SEO rankings, so search terms that are relevant to us get higher and higher rankings. And we're going to continue to do that. The site speed is a lot higher And now we're working on preparing for a global expansion with the website. MTR is the new radio tracking software.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

That is growing quite well. February was our so the last month of the last quarter was our highest month in revenue and that we continue to see really good improvements in customer acquisition, customer retention, revenue growth. But it's still a small product because it's currently only tracking single songs. And where we'll see the real growth is when we can sell to larger customers that will track more songs. And we have to build out the ability for those customers to pay but also to add features that will allow them to manage multi songs.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

And that we're looking towards later on in this year, this fiscal year, to add those features. And with that, I will turn it over to questions.

[Rebecca Collins, Operations Manager at Destiny Media]

Great. Thank you, Fred. So if you do have a question, please use the raise hand option at the bottom of your screen, and your question will be pulled in the order that they are received. If you raise your hand, please ensure you have access to a microphone. And if you wish to retract that question, please just click that raise hand icon again to lower your hand.

[Rebecca Collins, Operations Manager at Destiny Media]

Your camera will remain off once prompted, but please do un your microphone before speaking. Looks like we do have one raised hand from LJ Goldstein. Do you want to unmute your microphone and go ahead?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Larry, I think you may need to unmute your mic.

[Rebecca Collins, Operations Manager at Destiny Media]

Okay. Maybe we can come back if you just check of sorting that out. Tom, do you want to, go ahead.

[Analyst]

Hello?

[Rebecca Collins, Operations Manager at Destiny Media]

Hi.

[Analyst]

Hey, Fred. Hi. My first question is regarding the contract with Universal. I I think it's been expired for a year now, and you guys have been, like, on a month to month. Has there been any progress with them?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I would say there's been progress in the sense that we continue to grow their use. The contract is sort of a revolving month to month. It's a thirty day notice period. Right now, I mean, there hasn't been much in the ways of talks there. And quite frankly, I don't think that it's a problem that they're they're seeing for that.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

So it's just rolling forward.

[Analyst]

Okay. So it's I I thought it was, like the point was to kind of, like, sign a longer term contract or something. So it's, like, the thirty day notice like, does that current contract include any kinds of prices hikes or not?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

It it does. An annual price hike. Yeah.

[Analyst]

Okay.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I mean, the best answer I would have for that is I think if it's not broke, don't fix it.

[Analyst]

Yeah.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I would prefer to have a longer term deal, but, that's just hyper risk aversion. I don't see that as a I mean, their use is growing. There's nothing that would I would see as a problem.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Our value con continues to grow with them. We continue to develop the Play MP platform, and I don't, yeah, I don't see anything there to be concerned about.

[Analyst]

Yeah. Okay. Cool. Yeah. I was thinking because of the last eight k regarding that last year meant, like was talking about signing a longer term contract, but now I understand that it's on a

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, we mean Yeah. We I mean, who's getting to? I I I would rather have a, you know, ten year guaranteed contract.

[Analyst]

But Yeah. Yeah. I know.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

But, you know, but everything's going well with them.

[Analyst]

Thank you. And do you anticipate you guys to, like, disclose the meter revenue at some point, or, like, just I I know you like, it's the first time you guys are disclosing some kind of growth measure in the press release. But

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

It's it's currently less than one percent of our our revenue. And I until we until we launch the enterprise capabilities where we can capture a lot of customers with a lot more users sorry, songs, I don't I mean, I think our revenue continues to grow and it's really nice to see. But the percentages look great, but the how it impacts our total revenue is not material until we can acquire larger customers.

[Analyst]

Ken, is it mostly customers that are currently using Play MPE? Or, like, what's the

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah. The majority of it is. Not all, though. And I think we're making inroads into figuring out how we sell to customers that are not originally Play MPE customers. What we found last year is that customers we were marketing digitally and customers were not really searching for what we provide providing because no one thought we had that even existed.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

So you're not going to look for something that you don't think exists. But now I think we're making improvements in customer acquisition for that, that doesn't have a Play MP basis or origin. And we're also seeing customers that we attract for meter that are now becoming Play MPE customers. And I you know, we see a a growth in our new customers, and I think that in part is from, you know, having that second product.

[Analyst]

K. Thank you. I've read, like, in the financials, you were talking about marketing costs increasing. Is it like hiring other people? What kind of position are you looking to hire if it's related to that?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

It's a bit of a combination of outside site expertise, consultants,

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

and

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

more staffing, whether that's new staff or or and more reallocated staff is a different question, but there's more staff. And I think going forward, we'll look at whether we get a return on that investment. But I think with checkout, our plan for checkout really is essentially where we can sell to certain markets that are poised for acquisition. So that means really where we have regular use by relevant industry professionals, but we have very little independent use or none. And so we want to get into those territories and sell.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

And sometimes selling to those territories is really more of a numbers game and where you sell where our full service staff don't prepare that release so they can self sign up, self checkout. And so the marketing costs associated with that are we expect to look at a positive ROI and we'll increase it where we see that.

[Analyst]

K. Thank you. And then is there any plan to kind of, like, do investor outreach? I know it's been touched a couple times in the past few calls. I guess you were waiting for higher revenue growth to kind of launch that again.

[Analyst]

It feels like it's been on and off or, like, talked about for a while, but it's not really happening. Is it, like, at some point, you'll do it anyway? Or

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I mean, I expect to see higher revenue growth soon, but I think regardless of whether we see that, we will I believe we will have the capacity to be a bit more smart about our investor outreach very shortly.

[Analyst]

K. Thank you. I don't wanna take all the time. I think I had one more question. Like like, how is the board involved in either the use of cash balance or any types of strategic decision in the past couple quarters?

[Analyst]

Are they the main, like, driver of, like, deciding to reshuffle, let's say, their marketing department or, like, the direction of it, or are they more laid back and just,

[Analyst]

like, the thing as

[Analyst]

you yeah.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I would say the board's heavily involved in in the overall strategy. You know, that's influenced by our management group, of course. You know, we we I mean, we just met with them for two days at the AGM in February. So there's a lot of strategy discussions with the board.

[Analyst]

This buyback yeah. So sorry. Is, like, is the buyback considered in any fashion or not considering the stock price and how much accretive it could be? I know there's not tons of volume on the Canadian side, but there's been quite a lot of volume on the American side. Like, maybe not last couple of weeks, but I don't know.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

The volume on the Canadian side is hidden.

[Analyst]

Mhmm.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

What you see on, you know, Yahoo Finance or wherever you look for your your volume numbers, that they only disclose what's traded on the TSX, which is incomplete. In fact, it's traded on other exchanges in Canada.

[Analyst]

Yeah. Yeah.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

So you you it's very, very difficult to get a whole picture of the volume. But as far as the buyback goes, we do look at it I'm not thrilled about the stock price where it's at, of course. But there's a I think until we do maybe a bit more investor outreach or show faster growth, you know, you're gonna I mean, think the stock price will reflect our growth as soon as we show it. I mean, I think we're undervalued as it is, but, you know, I can say that until I'm blue in the face. It doesn't, you know, do any good until you attract more investors.

[Analyst]

Yeah. Alright. Thanks for your time, Fred.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah. No problem.

[Rebecca Collins, Operations Manager at Destiny Media]

You, Tom. Larry, if you want to try and go ahead and unmute your microphone, we can take your question.

[Analyst]

Do you ever listen to past calls?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

The I do. Yeah.

[Analyst]

I do too. And what is the current are the same adjectives and really the same words. There's always something. And it's now, what is it, two years since your one of your big competitors went out of business?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Okay. You're talking about All Access?

[Analyst]

I don't recall the name, but it was one of your bigger ones, I think, in Canada.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I think you're thinking of All Access, and All Access was acquired by ended ended up being acquired. They were gonna shut down and they ended up being acquired by another company. So they're still effectively in business.

[Analyst]

So what do you think is the size of your markets, plural?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

So for Play MPE, I think it's very difficult to calculate that. But I would say it's at least the addressable market's at least 40,000,000 in radio only promotion. But promotion itself is something where we can expand user types. So music supervisors, influencers, media

[Analyst]

You don't have to go into detail. Just what do you think of the size of your markets?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, again, the addressable market for Play MPE is a lot bigger than 40,000,000. It's just calculating that and where we're at right now is a little bit challenging. MTR, the Challenging

[Analyst]

in what way? How's it challenging?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, depends on where we go. And I mean, to figure out the volume of what releases are going out and how much they'll pay for it is you know, you can do that in two different ways, but, you know, top down or bottom up. And I it's hard to figure out a number, pin me down to a number.

[Analyst]

Let me shorten this and ask the question a different way. When we first met, or my colleague did, I think you suggested that the market you were addressing were maybe 50,000,000. Does that sound right?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I said 40,000,000, at least 40,000,000 right now. But again, I'm probably being hyper well, I know I'm being hyper conservative on what that really is. I would say, you know, Play MPE in in its ecosystem, if you're really looking at Play MPE, what it does now is it's

[Analyst]

really a Excuse me. I'm not asking I'm not looking at anything. I don't know what you're looking at. I'm asking what are the size of your markets? You don't need to explain this or that.

[Analyst]

What what are the size of your markets? Maybe you don't know. Is that the answer?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I think the answer is really depends on what market you're looking at and and what we're what we're doing right now. Larry. Larry. Larry.

[Analyst]

What you look at?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Larry? Let me finish, I will answer your question, The markets we're looking at right now is really solely a distribution market. And you're looking at $40,000,000 to $50,000,000 for radio promotions itself. You're probably doubling that for music supervisors and doubling that again for influencers. So you're looking at 120,000,000 roughly, say, for just the simple delivery of music.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

And METER itself, you're probably looking at twice that as over. But we have to get there. We have to build out the platform to be able to do those kinds of things. We're not there right now.

[Analyst]

Where is the market that you are there right now?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

For for meter, it's about a about say, 200,000,000 for for plan p itself. It's 40 to 60.

[Analyst]

So you're looking at two sizable market compared to the current volume. Right?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah.

[Analyst]

And those markets have grown in the last four or five years or not?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

No. They've they've grown. They've evolved. They've they've shifted in terms of their priorities, but they they've grown. They continue to grow.

[Analyst]

So when are we gonna grow? And when are we gonna grow profitably? I'm I'm thinking that it's going on five years that we became since we first became a shareholder. And it's my fault, slap my wrist, but I thought that in five years, you'd be a much larger company, top and a significant bottom line. But the case is different.

[Analyst]

Right?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah. I mean yeah. I I mean, I would have hoped that we would grow faster as well. The we continue to make improvements in marketing and the platform, and we showed some growth. We've shown roughly 9% growth over the last year and a half, two years.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

It's just a little bit slower this quarter.

[Analyst]

With no translation to the bottom line. Incidentally, what what was the 200 plus thousand legal expense? What was that for?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

That was for the former CEO. He'd sued us for long full dismissal, and that was went to court in December.

[Analyst]

And that all went to lawyers?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yep. Yep.

[Analyst]

Oh, so you won the battle and lost the war.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I don't know how you could have avoided the war, Larry. The the the last offer, you couldn't settle. I we we all wanted to settle, and and the settlement would have cost us five times as much or 10 times as much.

[Analyst]

They didn't have a leg to stand on. Why would you settle?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Why would he he settle?

[Analyst]

Why would you settle if if he didn't have a leg to stand on? May maybe I misunderstood. I thought he didn't have a leg to stand on, and and that's why you were confident about maintaining, having initiating and continuing the lawsuit. Am I wrong there?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I think you're misunderstanding what's happened, what's transpired. The the case went to court. We're waiting for judgment right now. That that those fees were for litigation. It's it's we expect to recover some of those when we get a positive judgment.

[Analyst]

You got money enable you to recover?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah.

[Analyst]

Recover some of what it just cost you.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

That's right.

[Analyst]

Which is the total of all the years?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Pardon me?

[Analyst]

Was the was were you paying the bill for all these years or just the bill for this year?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

What was expensed, right, in the quarter was just in the quarter. So, I mean, there's more more legal fees than that for sure.

[Analyst]

Well, I don't know if you're if you're jogging or running or racing, but we'll get nowhere. And

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

We're our increasing our cost as we grow our revenue so we can grow faster. I mean, that's the whole point of what we're doing. If we wanted to be a value stock and and not invest for growth, we could do that as well.

[Analyst]

You're not a stock. You're a company. You're running a business. You're not running the stock market. And and what what do you call about faster?

[Analyst]

What's what what is faster? What's your definition of faster?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I I mean, I I expect to grow by, you know, more than 25%, annually if we do things properly. But that's what I'm targeting. That's

[Analyst]

And why aren't you doing things properly?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I'm talking about longer term. I do believe we're doing things properly. We're investing as we can to grow faster. We're a small company. We have limited resources.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

We just built out the platform for Universal so they can grow globally. And now we're investing in things that we think will grow our platform organically.

[Analyst]

How much have you spent on buying in stock in the last five years?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Eight hundred k, say. I'm guessing guessing a little bit.

[Analyst]

I think you're probably about right. 800 k would have been a lot of money to invest in the business rather than the stock, seems to me. It sounds like a mistake was made. Do you agree or not?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I mean, it's it's I'm not sure that it's a mistake, no. If you look at expenses, you would be spending on things that are repetitive. So, you know, buying back stock is, I think, something that will pay off longer term. You know, you're buying at a at a price now that is lower than what you think it will be in the future.

[Analyst]

But the business has grown a lot slower than you had hoped for it to be in the future. No? Yes? I think

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I I would think I I would be wish things had moved faster. We wish we had

[Analyst]

Wait a minute. Wishes. Wishes.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, you asked me what I thought, Larry.

[Analyst]

Yeah.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

So I'm answering what I thought. I I I I thought that things would move faster. I thought we would have moved our development faster, But that didn't happen.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

And I think we're building out the platform to grow organically, and we're trying our best. And I think if we do that well, we will we will grow faster.

[Analyst]

How much longer do you think you will need to grow faster?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, like I said, we're we're building up the checkout feature, which we'll release this year. And we think that that'll have a a palpable impact on the revenue growth.

[Analyst]

What what does palpable mean?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

You'll you'll be able to see the difference in the revenue growth. You'll be able to see an inflection point. That's what I mean by palpable.

[Analyst]

When do you envision doing this 25% growth that you cited a moment ago?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Well, I I I would hope that between 2025 and 2026, we will we'll achieve that. That's what that's what we're targeting. We will have the the checkout feature launched, and I think we can acquire new markets.

[Analyst]

Okay. Like they say in church, let us pray. Yeah. I'm I'm thinking back to a comment that's been firming our brains after three years and a promise you made, which has turned out not to be a promise. Do you recall that?

[Analyst]

You don't have to state what it was, but do you recall?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I don't know what you're referring to, Larry.

[Analyst]

Well, I was reticent to talk publicly, but at this point, I don't know that it makes any difference. You said if in three years you didn't make serious money, you would sell the business. Or I I think you said you'd sell the business, but, look, it's so obvious that you've got this wonderful gross profit. And if you stop developing new products and whatever else you're doing, you make a lot of money. And since you mentioned the stock so frequently, the stock could be a whole lot higher.

[Analyst]

And but they did say in three years. And in the fourth year and we're going on the fifth year, seems like it's the same as the first year.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I think you I think you might be getting confused, Larry. The the the I believe that we can grow. And if not, if we don't have success in that growth, we can ramp down expenses and become a cash generator and and do that. And and maybe that's what we'll do. But I I I wouldn't have committed to to a time frame on that.

[Analyst]

Oh, you did, whether you remember or not. I do. Okay. I I got it. It just seems like every year, if you go back and listen to the calls, every one of them is following the same script.

[Analyst]

You say the same thing. And, you know, depends. But the bottom line is the way you've shown us the revenues, you haven't even grown at the inflation rate. And Our

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

growth has has exceeded inflation, but that's that's splitting hairs.

[Analyst]

Yeah. Okay. Well, I'm disappointed. I hope you are.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah.

[Analyst]

Well, we're patient. We're patient. That is I I we're probably even more patient than your board, but there's no it doesn't seem obvious that the board is patient either. Okay. Thank you for your responses.

[Analyst]

Appreciate it.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Okay.

[Analyst]

But, you know, I will say one more thing. You just talked about huge numbers relative to the size of your market. If you include this market or that market, there you are up above a hundred million, and you're doing what? What are you gonna do this year? 2,000,000 a quarter or something?

[Analyst]

Oh, excuse me. A million a quarter?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah. We're we're a small company. Small market share. Yeah.

[Analyst]

So what it but it it so looking at what the whole market is, it seems like nothing's happening. Doesn't it seem that way to you? Or does it?

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

I mean, I think it

[Analyst]

we're going nowhere fast in terms of share market.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Yeah. Well, we're we're

[Analyst]

Particularly particularly when was it last year that that firm went out of business? It's back in business, you say. So we didn't see any pickup from that.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Like I said, Larry, they didn't go out of business. They were announcing that they were going out of business, and then they were acquired. So

[Analyst]

Well, they had a period in there where they weren't attending to the business with the same point of view that they presumably had been with the same zeal or the same noise. No hay was made. That happened.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Okay.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Okay. Thanks, Larry. I I will we're we're gonna grow as fast as we can.

[Rebecca Collins, Operations Manager at Destiny Media]

I thank you for all your questions. It doesn't look like we have any more today. So, yeah, looks like we can wrap it up.

[Fred Vandenberg, Chief Executive Officer at Destiny Media]

Okay. Thanks, everyone. We'll look forward to the next call. Bye.

Participants

Analysts

• Rebecca Collins, Operations Manager at Destiny Media
• Fred Vandenberg, Chief Executive Officer at Destiny Media
• Analyst