Destiny Media Technologies Inc. (PNK:DSNY) Q1 2024 Earnings Call Transcript

Then in the first quarter of this year, we introduced our international holiday list. As many of you may know holiday and Christmas releases are always a popular genre for both our label and independent clientele. And this is the first year we were able to offer a worldwide holiday distribution option. The usage and revenue of these lists has grown steadily quarter-over-quarter since their launch, but we’re updating our analytics to improve our assessment of that growth and adjust our marketing processes accordingly. Speaking of growth, on previous calls, we’ve spoken about the changing competitive landscape across some new genres for us in the United States. At the start of the quarter, a competitor primarily operating in the Rock and Pop space closed their doors.

And we had anticipated absorbing a portion of that business. Like Fred mentioned, a portion of this quarter’s revenue growth is driven by an increase in sends a month’s existing or returning customers. And those customers sending to these new genres definitely contributed to that growth. If we look at distribution lists with an increase in generated revenue quarter-over-quarter, five of these seven lists showing the largest percentage increase come from US lists in that Rock and Pop space. The same growth can be seen when looking at releases delivered to those lists as well. We’re working to continue this growth with improvements to our marketing strategy and the changes made to our business development team that we mentioned during our last call.

Looking at two other target markets as well, in Canada, we continue to grow among independent customers and competitive advantage, that Fred had mentioned, the Play MPE’s unique ability to give global reach to a release is a large contributing factor there. We see this factoring in when looking at the average size of a release coming from a Canadian client, which has grown period-over-period, meaning that more distribution options or larger distribution lists are being selected when they’re looking to get their releases out. In the Latin market, we continue to see growth period over period when looking at the usage of our distribution lists in both Central and South America as well as our US Latin list that covers Latin stations within the United States and Puerto Rico.

On a previous call we detailed how we go about growing into a territory. One step there being pilot agreements with strategic clients in the market in order to help facilitate growth. And towards the end of Q1, we were able to sign another new pilot agreement for the region, and we’re excited to leverage that growth or leverage that agreement for future growth. In the Latin market specifically, our progress has been slower than expected. And we’re currently making assessments on how to change that moving forward and grow in the future. With that, I believe we’ll move into our question-and-answer period. So, I’ll hand it over to Rebecca to get started with that.

A – Rebecca Collins: Thanks, Allan, and thank you, Fred. Yes. So let’s begin our question-and-answer session. If you do have a question, please use the raise hand option at the bottom of your screen, and your answer – your question, sorry, will be pulled in the order that we’ve received them. If you do raise your hand, please ensure that you’ve accessed your microphone, and if you wish to retract your question, you can just click that raise hand option again to take your hand down and your camera will remain off, but once prompted, please unmute your microphone before asking your question. I’m not seeing any raised hands, but I do see one message in the Q&A section. So it reads any updates on the progress of Meters since Q4?

Fred Vandenberg: Yeah. I guess I haven’t talked too much about that. I wanted to simplify what we’re talking about to really communicate what our growth strategy is with Play MPE. Meter, we continue to work on technical aspects to add features that are probably necessary to grow that business. It’s still in beta in Canada and everything’s working very well. We just need to build out a strategy to market and grow that business and make an assessment of where we grow and how fast we grow. So that’s — it’s kind of — and that’s a very, very specific answer, I guess, but it’s still going well, and we are optimistic about its impact in the future.

Rebecca Collins: Thank you, Fred. It doesn’t look like we have any other questions right now.

Fred Vandenberg: Do you want to just give it a couple of seconds?

Rebecca Collins: Yeah. If anybody does have any last-minute questions, you can raise your hand.

Fred Vandenberg: I did have a — I did have an email discussion this morning and that was, where do we see our revenue growth coming into the future? I hesitated to get too much into that, because I really wanted to make it that simple on what we’re communicating. If I answer the where do I see our revenue growth coming into the future, that really, you have to, I think if I communicate that it’s — you have to split the where, the when, and the why of where our revenue growth is going to come from. So the why or what we’re going to do to grow revenue is really about product investments. I think this we talked about one today, but we’re working on lots of them. For example, we launched a feature called commenting in the quarter we’re just talking about and that is really designed to solicit recipient generated content requests and that’s one of our best lead generation things.