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    Gerry Wimmer

    Research Analyst at Private Investor

    Gerry Wimmer's questions to DSNYF leadership

    Gerry Wimmer's questions to DSNYF leadership • Q3 2024

    Question

    Gerry Wimmer inquired about several key strategic areas, including the status and terms of the Universal contract renewal, the rationale for pausing the share buyback program, and the company's capital allocation strategy. He also delved into the new Music Tracking Radar (MTR) product, questioning its revenue timeline, target market, competitive landscape, defensibility, and overall market potential. Finally, he asked about the company's stance on potential acquisitions.

    Answer

    CEO Frederick Vandenberg addressed the questions, confirming the Universal contract was extended to September while a new long-term deal is negotiated. He explained the share buyback was paused to evaluate investment opportunities in the new MTR product and other growth initiatives, emphasizing a flexible capital allocation strategy. Regarding MTR, Vandenberg detailed its launch in the U.S. after a Canadian pilot, its competitive advantages in price and real-time data, and its significant technical barriers to entry. He noted that while the initial addressable market for MTR could surpass current Play MPE revenue, he refrained from giving a specific timeline for its financial impact. Finally, he stated that while the company continues to evaluate acquisitions, current valuations have been high.

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    Gerry Wimmer's questions to DESTINY MEDIA TECHNOLOGIES (DSNY) leadership

    Gerry Wimmer's questions to DESTINY MEDIA TECHNOLOGIES (DSNY) leadership • Q3 2024

    Question

    Gerry Wimmer inquired about several key areas, including the status and terms of the Universal contract renewal, the rationale for pausing the share buyback program, and future capital allocation plans. He also asked for details on the new Music Tracking Radar (MTR) product, questioning its rollout, revenue potential, competitive landscape, defensibility, and its potential inclusion in the Universal deal. Finally, he asked about the company's stance on potential acquisitions.

    Answer

    CEO Frederick Vandenberg explained that the Universal deal was extended to September, with positive renewal talks ongoing for a new term starting October 1. He stated the share buyback was paused to evaluate capital needs for MTR's growth and marketing, emphasizing a desire to assess opportunities before committing capital. Vandenberg detailed that MTR is now generating revenue in the U.S. after a Canadian pilot, and its key advantages are its low price, real-time data, and broader station coverage compared to more expensive competitors. He noted MTR's defensibility lies in its complex proprietary technology and its synergies with the existing Play MPE customer base. While MTR's revenue timeline is uncertain, he believes its addressable market could exceed Play MPE's. Regarding acquisitions, Vandenberg confirmed the company continues to look but finds current valuations high.

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    Gerry Wimmer's questions to DESTINY MEDIA TECHNOLOGIES (DSNY) leadership • Q3 2023

    Question

    Gerry Wimmer inquired about several key operational and strategic areas, including the status of the Universal contract renewal, the rationale for pausing the stock buyback program, and the company's updated capital allocation strategy. He also sought detailed information on the new Music Tracking Radar (MTR) product, questioning its revenue model, target market (artist vs. enterprise), competitive landscape, defensibility, and the expected timeline for it to become a meaningful contributor to revenue.

    Answer

    CEO Frederick Vandenberg explained that the Universal contract was extended to September, with positive ongoing talks for a new deal effective October 1. He stated the stock buyback was paused to preserve capital for potential investments in MTR's growth and other organic or inorganic opportunities, clarifying that capital allocation plans are under review rather than definitively changed. Regarding MTR, Vandenberg detailed that it is priced at $20-$25 per month in the U.S. after a successful test in Canada. He highlighted MTR's competitive advantages as being significantly cheaper, real-time, and covering more stations than incumbent charting platforms. Its defensibility lies in proprietary technology and synergies with the existing Play MPE customer base. Vandenberg noted it's too early to predict when MTR's revenue will be 'meaningful' or what the split between single-track and enterprise customers will be.

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    Gerry Wimmer's questions to DESTINY MEDIA TECHNOLOGIES (DSNY) leadership • Q3 2023

    Question

    Gerry Wimmer inquired about the renewal status of the Universal contract, the rationale for pausing the share buyback program, and the expected impact of the new MTR product on operating expenses. He also asked about MTR's go-to-market strategy, competitive advantages, revenue potential, and potential inclusion in major client negotiations.

    Answer

    CEO Frederick Vandenberg confirmed the Universal contract was renewed short-term until the end of September, with positive negotiations ongoing for a new term. He explained the share buyback was paused to evaluate capital allocation for MTR's growth and other opportunities. Vandenberg detailed that MTR is initially targeting individual artists with competitive advantages in price, real-time data, and broader station coverage, which he believes are defensible. He stated it was too early to forecast MTR's revenue contribution or its inclusion in the Universal deal.

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