Company: DSNY
Filing Date: 2025-04-14
Form Type: 10-Q
Source: 0001062993-25-007398
Chunk: 9

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-04-14
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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1,018,972 compared to the revenue of $986,338 for the three months ended February 29, 2024, an increase of 3.3% period over period.  Total revenue for the six months ended February 28, 2025 was $2,245,729 compared to the revenue of $2,141,140 for the six months ended February 29, 2024, an increase of 4.9% period over period.  Revenue from MTR™ continues to grow throughout the year and the quarter and management expects to continue to build on this service with features to accommodate larger use clients later in the fiscal year.

Gross Margin

Gross margin for the three months ended February 28, 2025 was 85.3% of revenue, compared to 86.3% for the three months ended February 29, 2024.  The Company's cost of revenue consists of data hosting and processing charges, third party transaction related costs, and engineering, technical and customer support costs.  These costs are driven by the size and volume of customer transactions processed, as well as the relative proportion of "full-service" versus "self-service" revenue. Our self-service sales are derived from customers who have been provided with a customer account to access our encoder to independently upload and publish releases. Our full-service revenue is derived from customers who are fully serviced by our internal staff, who prepare and publish releases on their behalf.  During the three months ended February 28, 2025, our gross margin decreased compared to the same period last year.  This decrease in gross margin is caused by infrastructure required to build out the MTR™ business.

Operating Expenses

Operating costs during the three months ended February 28, 2025 increased by 18.2% to $1,178,272 (February 29, 2024 - $996,465).  The increase in operating costs was primarily the result of the following:

A one-time, non-repeating cost associated with litigation increasing total costs by 23.4%.  This litigation is currently awaiting adjudication and the Company is confident in a positive outcome.A non-cash increase in amortization costs that grew overall costs by 9.7%.A reduction in salaries and wages reducing overall expenditures by 12.7%. This reduction is a mixture of temporary and on-going cost reductions as we adjust staffing in development and sales and marketing.

For ease of reference the following table has been prepared to present operating results