Destiny Media Tech Inc (DSNY)

[Dow18K]

Destiny Media Is Like A Late-Stage Biotech Company, But One With Limited Downside

Apr.17.17 | About: Destiny Media (DSNY)

Summary


•Destiny Media has a stable core in the form of a profitable product that is growing again, limiting the downside to the stock price.

•They have another product in development which addresses a much bigger market, but this is not yet good enough and needs further work.

•Given the limited downside and considerable upside, what is important is reaching proof of concept, showing that the product is good enough to sell.

•We are getting more optimistic that the company will be able to pull that off, as they've done this already for one segment.

•Therefore, the way to see this company is as a fairly late stage biotech company with limited downside.


Destiny Media (OTCQB:DSNY) is a company that produces two proprietary solutions, PlayMPE and Clipstream. It is a microcap company with an $11M market capitalization.

Their PlayMPE is a proprietary solution for distributing music safely over the internet. It's used by all the main labels and enjoys a particularly tight relationship with Universal.

PlayMPE is the source of nearly all of their revenue, just shy of $4M a year. As we explained in a previous article, they have brought down costs in the order of 20% by doing away with their own servers and moving to Amazon (AMZN). This has also made the system more robust and scalable.

After a few years of stagnation, PlayMPE is also growing again, the second quarter 2017 was the fifth quarter in a row of yoy growth.

https://seekingalpha.com/article/4062742-destiny-media-like-late-stage-biotech-company-one-limited-downside