Company: DSNY
Filing Date: 2025-07-14
Form Type: 10-Q
Source: 0001062993-25-012768
Chunk: 32

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-07-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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005,398  (33,307)Operating expenses 1,049,348  884,607  164,741 Income (loss) from operations (77,257) 120,791  (198,048)Other income 4,969  13,685  (8,716)Net income (loss)$(72,288)$134,476 $(206,764)

Revenue

Total revenue for the three months ended May 31, 2025 was $1,133,963 compared to the revenue of $1,155,442 for the three months ended May 31, 2024, a decrease of 1.9% period over period. Total revenue for the nine months ended May 31, 2025 was $3,379,692 compared to the revenue of $3,296,582 for the nine months ended May 31, 2024, an increase of 2.5% period over period.  The decline in total revenue for the three month period is the result of a small reduction in independent label revenue in Australia and the United States from a reduction in average purchase size. There was also a reduction in new customer acquisition when compared to the comparative period as a result of temporary staffing reductions in the current period.  These impacts are believed to be temporary cyclical changes and are temporary in nature.  While currently still immaterial, revenue from MTR™ continued 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 May 31, 2025 was 85.7% of revenue, compared to 87.0% for the three months ended May 31, 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 May 31, 2025, our gross margin decreased compared to the same