Destiny Media Technologies Inc. (DSNY) Earnings Call Transcript & Summary

Okay. Hello, everyone. Thank you for joining us on the webinar today. Before we begin, I'd like to announce that we'll be referring to today's earnings release, which was sent to newswires earlier today. I'd also like to remind everyone that this webinar call could contain forward-looking statements about Destiny Media Technologies within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon current beliefs and expectations of management and are subject to risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. Such risks are fully discussed in the company's filings with the SEC and SEDAR, and the company does not assume any obligation to update information contained in this call. During the webinar call, we will discuss certain non-GAAP financial measures. The non-GAAP financial measures are presented in the supplemental disclosures and should not be considered in isolation of or as a substitute of or superior to the financial information prepared in accordance with GAAP and should be read in conjunction with the company's financial statements filed with the SEC and SEDAR. The non-GAAP financial measures used in the company's presentation may differ from similarly titled measures presented by other companies. A reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures can be found in the earnings press release. And with that, I would now like to turn the call over to your host, Fred Vandenberg, Chief Executive Officer.

Thanks, [ Sean ]. Welcome, everybody, to our first -- our inaugural webinar. We wanted to do a webinar today to be able to -- for you to see us talking. I think that gives a better flavor of what we're trying to say. But also, we'll be presenting some visuals to supplement what we're talking about. And I think that -- our hope is that, that will allow our investors to really digest what we're trying to say. With that, I will turn it over to Sam.

Thanks, Fred, and welcome, everybody. Our third quarter of fiscal '21 continued with high activity levels with our third quarter revenue reaching $1.084 million. Play MPE revenues increased by 15.2% for the third quarter compared to the same quarter last year. For the quarter, foreign currency fluctuations boosted our Play MPE revenues by 5.7%. U.S. independent revenue increased by 20.2% in the third quarter to $429,000 from $357,000. In the quarter, our global independent revenue increased by approximately $127,000 to $555,000 from $428,000 for the same period in Q3 fiscal 2020, an increase of 29.7%. Gross margin for the third quarter remained consistent at 91%. Operating expenditures increased by 14.3% or approximately $115,000 for the fiscal quarter ended May 31, 2021, and this increase was caused by the raise in the Canadian dollar relative to the U.S. dollar and some costs associated with restructuring and investments in our business development staffing. After adjustment for the impact of foreign exchange, our operating expenses for the quarter increased by approximately 3.2% for the same period in 2020. For the 9-month period ended May 31, 2021, we reported total revenue of $3.139 million compared to $2.729 million for the comparative period. Play MPE revenues increased by $359,000 or 12.9% to $3.131 million from $2.772 million for the period ended May 31, 2020. Foreign exchange contributed to the increase in Play MPE revenue by 4.7%. Global independent revenue for the 9-month period increased by approximately $389,000 or 33% from the same period, May 31, 2020. Major label revenue experienced a small decline as we moved one major label to decentralized agreements and updated pricing, with less pricing made available to other labels. Glenn will expand further on this in our call. Operating expenses for the 9-month period ended May 31, 2021, increased by $11,000 to $2.571 million compared to $2.56 million for the period ended May 31, 2020. After adjustment for nonrecurring staff restructuring expenses, operating expenses have increased by 8.5% due to investment in business development, marketing, product design and development staffing to accelerate development and revenue growth. After adjustment for these items and the impact of foreign exchange, our operating expenses for the 9-month period increased by approximately 4%. Adjusted EBITDA for the third quarter was positive and EBITDA grew to $404,000 for the 9-month period. As at May 31, 2021, we had cash reserves of $2.935 million and had working capital of $2.659 million. I'll pass you back now to Fred.

Thanks, Sam. As this is our first webinar, I wanted to take a little bit of time to talk about our history, about the full breadth of the Play MPE business, and give you a little bit of a flavor of what's transpired. And I hope that gives a sense of why we're doing what we're doing and where we hope to go. Just give me a second. I'll start the slides here. All right. So this is the history of Play MPE revenue on a trailing 12-month basis, starting all the way back to 2006. So in 2006, we had already been trialing the system, demoing the system, providing free access. And in 2006, we started charging in the United States. And as you move along this graph here, you'll see that in -- at 2, Q4 2008, we started charging in Northern Europe. We started with -- I think it was all 3 major labels in Sweden, and then we expanded from there. In Q2 of 2009, we signed commercial agreements in Australia. And at the very end of fiscal 2009, we signed Universal Group International in the U.K. So really, our trialing -- when we do trials, we typically start charging the majors. We start distributing for the majors first because that generally gives us a desirable content, which gives us activity, which allows us to sell to more labels, generates list, that sort of reinforcing platform usage. Now moving forward a little bit, what you see is in 5, which is really September of 2012, Universal acquired EMI. So the big 4 majors became the 3 major labels, Warner, Sony and Universal. And Glenn is going to talk a little bit more about what those are. In January 2013, Universal negotiated a consolidation of their agreements with us. So we had agreements in the United States, agreements with Universal International, which had already consolidated some of the more international territories like Australia and Sweden. And so that provided them with a little bit of efficiencies in charging. So you see a little downward decline. Sorry, I probably should mention that this line here is major label revenue. I think all territories of major label revenue. The bar charts here are independents, and we've tried to color-code them by territory. So you see really that the major label revenue starts first and the MDs come along after that. As we -- I think I alluded to this in the last call that we had is that at some point, I'd like to break this down into territories to really give you a flavor of sequentially what happens. But generally, it's major label revenue -- major label content, major label revenue, activity, list management services that we produce, then independent revenue. And that's by territory. So with the 3 majors, you tend to -- the -- Universal tends to be the foot in the door and then we grow from there. So moving along to #7 here. We -- throughout this period here, we had really been investing in other technologies. And 7, following a change in management, we decided to focus back on Play MPE. We really saw -- I've always seen tremendous possibilities for Play MPE, and we decided to focus back on that. With -- following that, we then moved the -- what we call the encoder, we now call Caster. It's really our distribution software. We moved that into a web-based version. There are certain modules of that, that are -- we're still moving over to a web-based version to -- we -- internally, we debate whether we call them modules or functionality. But essentially, it's different components, different capabilities within the platform that we're continuing to move over. But here in July of 2018 is when we released that web-based Caster. After -- during this period, we're making staffing changes. But really, 9 is -- it's not an event, but it's a lot of changes that we've made internally, starting primarily with our Director of Product Management. That's really led to a whole new team, added resources, new team, new marketing department. We never really had a marketing department before. So all of the processes, all of our marketing efforts are essentially being built from the ground up. And I think you'll -- that has contributed to our results that you see at the end there. Following new Director of Product Management, we had a new Director of Engineering. That's really led to a lot of changes in processes for engineering. And then we had the new Director of Business Development, Glenn, that's -- going to talk to you just after me. But that whole department is revamped. Okay. So the next slide is really the same look but just focusing on -- since 2017. I'm not going to spend a lot of time on this. You can -- if you want, you can refer back to it. Again, with this -- the next slide here, this is actual quarterly revenue. So it's not the trailing 12 months. The trailing 12 months is really designed to give you a sense of what's happening. I think that better reflects the trend. You see here that the Play MPE revenue is subject to quite a bit of seasonality. But really, it's the same trend. I talked previously about our cost breakdown. Now this is trailing 12-month results. The revenue here is almost $4.2 million. Cost of sales was direct costs, and our margin is -- margins -- gross margins are 91%. And our operating costs were just under $3.4 million with a net income of -- net margin of 11%. What I really wanted to spend time talking about here is a general overview of our cost breakdown. You see in the trailing 12 months, we had $93,000 of restructuring that's coming down as we complete our restructuring efforts. Next is maintenance costs. Now these are costs really that we estimate. These are all -- the next 3 numbers here are all estimates, but some thought went into this. But there's always -- this is always subject to a reasonable debate about -- but generally, these are costs that we estimate are necessary to maintain our revenue. There's staff costs, there -- public company costs, technical support operations and even they include reasonable product investments to maintain a competitive product. Essentially, what they exclude is new things, new functionality, truly new things that are meant to grow revenue. Now the next item here is something that I've tried to communicate previously but -- to the extent that we do not invest in our maintenance costs on an ongoing basis. And you've seen that in the past where we were really focusing on other technologies and maybe not keeping certain things like programming languages or technical architecture to the point that we really can maintain our revenue. We create what I typically call a technical debt. And we've been catching up on that. So we don't have financial statement debt, but I would have said we would have technical debt. So we're spending some money to finalize those modules, for example, to move them over to a web-based version so our -- we'll be completely web-based. But this is -- these are costs that once they're complete, we'll move them over to investments for growth. I'm sure that people are going to wonder when this is going to be done, but it's not so much when it's going to be done because I think it will be an ongoing thing for a little while, but the substantial -- the real substantive cost will -- should be done by the end of the summer. And the last item here is investments for growth. So these are things like Latin business development staff, upward time that the operations team is building out, new lists in Latin -- or recent history is Canada, certain marketing costs, product design costs. There are certain things that I'll touch on a little bit later that we're either adding products that will be a catalyst to growing our business or be truly new product addressable markets. The last is the depreciation number. Okay. So looking forward, our immediate -- our first goal is really to grow our market share. We have a well-established market in certain genres in the United States and Australia and Northern Europe. But we want to grow our market share, we want to expand into new markets. And this is pretty obvious for what we're -- what we've been talking about, but [indiscernible] Latin markets and in the U.S.A. in new genres and genres that we're not as strong in. The second thing that we are going to do is expand our addressable markets, truly new businesses. We think we can leverage our position in the market to -- and our technical skills to take advantage of certain things. And I'll talk about the market a little bit more shortly. But first, how do we do this? This is a slide -- and some of the people might have seen this already. It's -- I've stolen it from our investor deck in September. But it's really things that even -- since we've -- in September, we talked about expanding business development staff, and Glenn again will talk about what we've done there, established trial use. Well, we're growing and growing in both Canada and Latin and the U.S.A. on a trial basis. We want to leverage the Universal Music agreement. There's -- we are doing that. I think once we complete that modules that, for lack of a better word, we will get Universal to expand even more worldwide. And then that's the foot in the door that I've spoken about previously. Add salable distribution lists. We just added Mexico, and we're going to build out our list. And in the Latin market, they tend to be not necessarily isolated to one country. There, they tend to be groups of countries, but we're building all sort of things out. And the last item here is product catalyst. We've added some of those already. But as we -- as that technical debt gets repaid in full or substantially, these things are going to start coming online a little bit more quickly. The next slide is going to be an interesting one here. This is -- this slide is messy, but that's the whole point. One of the things -- if I don't communicate anything else with this slide, I want to communicate that the upper left-hand corner of it is that we're not in the digital age. We are evolving into the digital age. And I think there's danger in having these preconceived notions of how the industry is doing things. So over here, you have record labels and they try to get royalties from both marketing destinations like radio or satellite radio or digital streaming providers, but they also want to get royalties from them. So there's tracking services versus royalty like management services. They also get royalties from what's called synchronization revenue. That's like when you have a song in a movie, video games. They get advertising marketing when there's a write-up of a particular artist or song in a media magazine. There is -- you've probably heard stories of royalty questions at fitness resorts, so Peloton or Orangetheory, excuse me. And the whole point here is really that the music industry isn't -- in the digital age is not a static thing. It's evolving. And that's really what we wanted to communicate here. It's a real danger, for example, like to assume that all countries manage royalty, tracking of royalties, tracking of airplay and then collection of and remitting of royalties. And that's simply not true. So we just wanted to communicate here that there's lots of opportunities for us. One of the well-established, more established tracking services are from Billboard or BDS or Mediabase in the United States. And they do it in either manual ways or physical-listening ways, tracking. And they -- typically, that involves a greater investment of either manpower or infrastructure. And as we move into the digital age, more radio stations are -- for example, are doing digital streaming. There's talk about cars not having radio in them anymore, but now they have digital radio. And if you're ever in a newer car, you'll see that. Anyway -- so this brings me to the last slide I have for you. And it's really, again, our primary goal. Our first priority right now is to expand our core business, our use around the globe. And I think that will help us provide -- that will just make it easier to sell new products as we build them. But I did want to talk about our investments here. It's not something we talk about a lot, but we explore different opportunities all the time. There's just a tremendous amount of opportunities that I think we can take advantage of. And we've been investing in tracking, so tracking of digital streams from radio stations around the globe. And I think that's one thing, one area where we can build out to a little bit more quickly. That is a -- I think our initial revenue source would be on that tracking spins that's typically used either by radio stations to see what other radio stations are playing or with record labels to see how they're doing, to see how they're doing in different locations, to see whether that artist tours, to see whether they expand on it, to see whether or not there's even traction at all for that artist. And that really helps them manage their market spending appropriately. There's also a real thought to use that data to ensure that there are royalty payments, the receipt of royalties is complete. And this is -- the digital tracking is a little bit more accurate and more efficient and more complete than what's been going on in the past. But the whole point there is to communicate that we are looking to expand that product site. With that, I will turn it over back to Glenn -- or to Glenn, sorry.

Or back over in -- thanks, Fred. I appreciate that. And if you're like me over the last year in particular, you've been living in video call. So I really thank you all for taking the time to join this first webinar. I think we all -- I certainly know that I do look forward to meeting in person more often or at all in some cases. I won't take too much of your time. But as Sam noted, another busy quarter. So we're happy about that. We continue to evaluate our business development team, to continue to improve our customer relationships. And early in Q3, we reduced 1 member of our team and then onboarded 2 new U.S.-based business development staff, which Fred sort of alluded to. Both have extensive backgrounds in music promotion. And a broader, keen, strategic insight into the needs of our various customers. And they both have a wealth of industry contacts. The first joined late March, which is New-York-based Allan Benedict. He was formerly National Director of Promotion at PIAS, which is a family of independent record labels. And he was a Manager of National Radio Promotion at The Syndicate, which is an independent entertainment marketing agency, both household names in the industry. While his focus is primarily on the East Coast, he manages the majority of our national accounts and formats such as AAA, Americana, alternative, rock, non-comm. And he's grabbed that and really run with it. Early in April, really a week later, Los-Angeles-based Glenn Aure joined our team. Glenn worked in a variety of director roles at a legendary San Francisco Bay urban contemporary radio station called KMEL. Through most of the '90s, he was there; Then on to several years as National Director of Crossover Promotions at Capital Records in Los Angeles. And then he went on to own his own independent promotions company for over a decade and often working with some of the major sub-labels. His experience is quickly helping us expand usage in underserved formats such as rhythmic and urban. We're pleased -- I'm certainly pleased, we're all pleased to see a consistent increase in content flowing through the platform in those particular formats. It takes time to build these relationships and Glenn has certainly been a great foot in the door with labels and recipients. We haven't always considered Play MPE in these rhythmic and urban formats particularly at major labels. And as Fred sort of alluded to, I'd like to expand on what we mean when we refer to major labels. We sort of assume everybody knows when we're talking about the majors, but I appreciate you're not all embedded in this business. So the so-called big 3 major labels are Universal Music Group, Sony Music Entertainment and Warner Music Group. All 3 of these companies own many other labels, and they form a label family. When we speak of music -- Universal Music Group, we're generally referring to their underlying sub-labels such as Def Jam Recordings, Capital Records, Republic, Interscope, Universal Group Nashville, Hollywood Records and many more. Sony Music Entertainment includes sub-labels such as Arista, Columbia, Epic, RCA, Sony Music Nashville, Provident and again many others. And then I was talking about Warner Records, for example, we're referring to the sub-label of Warner Music Group. And Warner Music Group owns such other labels such as ADA, Elektra, Atlantic, Rhino, Warner Music Nashville, Warner Music Latina, and again many others. So you need to consider within these various sub-labels are different format heads. Example, the team managing rock releases is likely different from the team managing the rhythmic releases, and they may actually be in different cities. One of the reasons we've added staffing resources is to address the need to build on these relationships at various departments. We've taken the time to make sure we're adding people with skills. We think we'll be productive in building relationships, pleasant, connected and smart. And we've been really happy with the results to date. We've seen new usage in rhythm and urban formats, as I mentioned, with Warner sub-labels such as Atlantic or Warner Records; UMG sub-labels such as Interscope, Island and Republic; Sony labels such as Columbia, RCA, Epic and Arista as well as the major independent label, Empire. And we're also servicing top 40 releases from Columbia, Warner and Arista. You may recall that early in the calendar year of 2020, pricing for Warner Music Group was adjusted to contracts with their sub-labels as Warner's decision -- decided to make their billing less centralized. I'd like to note that we signed a 2-year agreement with Warner Records, which was effective May 1, '21. We also believe that a strong presence in the U.S. with U.S. major labels helps us be more and more successful with our continued expansion worldwide. We've touched on our advantages in previous investor calls. I think Fred said we don't do 1 thing better, we do 30 things better. There -- but there are certain aspects of the Play MPE platform that really cater to the use cases of major labels. For example, generally, the same assets and metadata are used in multiple territories. The Play MPE Caster release sharing module, which is a long name but that's what we call it, allows label teams to efficiently and securely share music assets and release information such as our work and metadata with global teams without the duplication of work. This reduces time-consuming and repetitive tasks. Time as many, less errors and content is controlled. We also have contact management, asset management, label management, reporting and release scheduling modules that really make global distribution or global marketing promotions very productive and efficient. At the moment, these modules are primarily used by global -- globally by Universal Music Group and, at the start of the fiscal '21, Warner in Northern Europe. While these aspects currently existed in the platform, we're bringing all these modules into a web platform, and that process should be completed this summer. The business development will be working to market and sell these aspects. To give you a little bit more of a concrete example, we know that major labels in Canada can increase their efficiency and leverage these aspects of the Play MPE platform to make some of their marketing distribution preparation faster with assets that are already updated with accurate information. But also, in many cases, the Canadian major label is sometimes left scrambling at the last minute as songs aren't even made available to local staff until the last possible minute. With the Play MPE's release sharing and embargo dates, this process is significantly easier and faster. And this is just sort of one example of the hassles that we see that we can help with. Currently in Canada, the local divisions of major labels tend to operate in the same way as other smaller labels and, up until recently, haven't been able to take advantage of Play MPE's platform. So really, to date, we've been competing based on boundaries for smaller labels. As Sam mentioned, Q3 '21 concluded with a 9.7% increase in revenue over the same period last year after -- pardon me. I lost my notes for a second. Activity in the quarter saw an increase of 2.29% in releases, which are unique pieces of musical content with a company metadata uploaded to the platform; 26.46% in sends, that's the number of destinations that a track has been released to; and a little over 20% in distributions, which is the number of tracks within each release over the same period last year. Our marketing efforts again show positive results with an increase in leads of over 42% in the quarter. And we're seeing a strong increase in traffic to our website over the course of the year, which is over double. We've had -- in Q3 of last year, we had 8,578 business. We've had 17,519 in this quarter, in Q3, pardon me. Let's talk a little bit -- a couple of our initiatives we've got on the go. Our Latin initiative continues to expand in the U.S. and Puerto Rico from UMG sub-labels such as Saban, Fonovisa and Disa. Early in Q3, trial usage started from Warner Latino U.S. and later Sony Central America and the Caribbean. We continue to add trial usage by strategic independent labels, such as J&N Music Group, Azteca Records, Morena Music and Criteria Entertainment as well as key promoters. We're working with -- we're also working with La Oreja Media Group -- I apologize if my Spanish is terrible -- pronunciation is terrible, in the Dominican Republic. We expect to start converting these trials to paying customers soon. This just takes some time. Our outreach to Latin radio stations in the U.S. and Mexico also continues, but I just want to note that based on the pandemic, it's a little harder to connect with people as they're not in offices. I'm really proud of our team. They're doing a great job engaging with clients. But I know that as soon as we start traveling again and the ability to visit conferences and the various other means of in-person meetings, we'll engage with these people even better. Moving over to our Canadian initiative. It continues to grow. Indie revenue in Canada has grown by over 270% over the same period last year. This comes in part from indies distributing outside of Canada. Our platform's global presence, embedded lists are yet another advantage to what our local competitor can offer. In terms of Canadian activity metrics, based on the same quarter of last year, releases are up over 16%, sends over 27.5%. Distributions are up 22.9%. Downloads, downloaded tracks or over -- people download over 4x some other tracks over the same period last year. And activity from unique recipients is up over 70% over the last quarter in 2020. As well, I want to mention that earlier in the quarter, we started an extensive trial usage by one of, if not, the largest independent distributor of French music content in Canada. These folks have been terrific partners, and we've learned a lot about the French Canadian market. And we've just recently converted their trial to revenue on a pilot agreement. I should also mention that Warner Canada's first trials began -- just began in June of this year as well. So I want to mention as well, in South Africa, Warner -- or Universal South Africa continues to use us extensively. Warner South Africa continues to trial. And I just want to give a little nod to South Africa. It's going through a tough time right now. They've had some -- faced some real significant hardships through the pandemic. And now today, that -- some more issues over there. So our thoughts are with our friends there. Our reseller partner, Stamp Communications, continue to promote our platform, help expand our distribution lists and consistently manage releases in the region, and they're working on some really interesting partnerships for us there as well, which we'll note in later calls. And we continue to look at new territories as well. Nigeria, Ghana, Kenya, Tanzania, these are all on our targets. So I've talked enough. With that, I'll pass it over to [ Sean ], who will talk about how we'll manage the Q&A. Thank you.

Okay. Yes. Thanks, guys. So with that, we'll start the Q&A, question-and-answer session. [Operator Instructions]

Okay. So [ Sean ], I'll start to answer the verbal question here -- the written questions rather. The first question I have is what is the amount of cost to the company being public? And what are we spending on public relations efforts? I don't have a hard number for you because, for example, we spend -- I don't even know how much, on our audit fees. But query whether we would need that with a diverse investor group if we're not public. But I wouldn't say our investment in being public is a large expense. We have listing fees, some legal fees but -- and of course, the audit fees, but these aren't costs that necessarily would go away. The listing fees, of course, would. But it's -- our savings from not being public, or if that's how you want to look at it, would be under $100,000. As far as public relations go -- relations fees, right now, it's mostly time, mostly investor time that we spend or I spend talking to investors and that sort of thing. We don't have an IR firm working for us at the moment. We presented at an IR conference in September, but again, these aren't significant investments. Query how much that's going to be going forward. I think at some point, our stock price -- our stock needs to be marketed as well. We have started -- this is another investment of staff time, but we started tracking visits to our corporate site to understand what people are spending time on, what people -- how much time -- how many visits we get. And maybe we start doing some corporate advertisements. Right now, we see a little bit of our -- from our Google Analytics that our visits to our website is probably people that are looking for the Department of Sanitation of New York, unfortunately. It's probably a little bit funny, but our website or corporate website is DSNY. So that throws things off a little bit. But we're talking about doing a rebranding to -- a corporate rebranding. I think we'll time that with maybe bigger announcements, but that would be an investment of time as well. Second question is what's the financial impact to Destiny signing Warner? Does that mean every label under Warner will you use Play MPE worldwide? The short answer to the question is no. We have signed Warner Nashville and Warner Records to 2-year agreements. We hope to expand that within the sub-labels to agreements. But right now, they're generally paying as they go with trials for Warner Latin, Warner South Africa, Warner Canada. But I think it's important to touch on these modules that we talk about. We -- when I say we don't do 1 thing better, we do 30 things better, that's true. We have -- I talk about modules. Our product team talks about use cases, which is what they're supposed to do. But what you -- what we want to do is leverage these agreements. And our recent hires of new biz dev staff in the U.S. is -- I'm really happy with so far. It's showing that new usage at new departments within sub-labels of major labels. You're just starting to really add content to the system. Now the farther we get down that track and especially when we move all the modules over to the web-based -- [ web risk-based ] version, these labels, whether -- the U.S. labels are very influential. We hope to leverage both the existence of those tools and the content from the U.S. majors to get content deliveries in new jurisdictions. We see that with Universal. Universal is using these modules as it is. That's why we get a lot of content from Universal. But for example, recently, we started doing Warner Canada releases. And I think that's in part because there's certain advantages of Play MPE where you can do those distributions in a new territory very quickly. You see that -- we've seen it where major labels are in a territory, in Canada, are left scrambling to get content because that content isn't being shared until it's allowed to be shared. Like there's embargo dates or dates when they don't want to send that out. Well, we can set that up automatically so that the content actually becomes available at a particular time. And that's not something that's available in other systems. That's again 1 of those 30 things. I'm actually probably underselling it when I say 30 things. We do a lot of things better. The third question is the $3 million of cash we have on the balance sheet, how are we going to use that to benefit shareholders. There's different options to do that. I haven't seen any acquisitions that makes sense as of yet. But I also think I alluded to new products, new services. As we move further down the track of building out a business case, a business plan, we may start to use some of that cash, dip into it to move more quickly, which I think potentially -- and I'm not suggesting we know though what's going to happen. But if we see an opportunity to build out a new product more quickly by spending the marketing or business development staff or even technological resources to get a longer-term revenue growth, we will do that. And we're working on that. We're investing for new products. So $3 million isn't doing us a lot right now. I think probably the biggest thing it provides us is a little bit of security should something like COVID happens. Clearly, that didn't hurt us. But we do tend to want to use it. I don't want to have it sit there. Right now, we're using it a little bit to do a share buyback because I still think our share price is undervalued. But I like it there to -- because I think there is some possibilities to invest and grow more rapidly. Well, there's lots of questions. Will there be an acceleration of the buybacks for the rest of the year? I can't predict that. That's dependent on the stock price, how it's doing. Do you expect double-digit revenue growth to continue? I don't like to predict those things. The -- I'm going to share my screen again. This -- I think you can see this, right? This is the one I probably spent the most time talking about. But this major label revenue here is -- this line is -- we are building out Play MPE content. We're building out Play MPE usage on a trial basis in new territories. We are doing that currently in a few. We think that at -- we hope to grow that major label revenue in sort of steps as we achieve a certain number of certain usage and certain activity rates. There's a little bit of nuance there to figure out how happy the client is, but we tend to want to grow that major label revenue in steps as we add territories. And the indies will follow. We -- to get indie revenue, generally, you need a recipient list. That's our operations department. They'll build out some recipient list as one of the catalysts of growing our market share from a technology standpoint is a self-checkout. Now we have self-serve software, but really, it's a matter -- right now, the way it stands is we have to communicate, "Here's our price list," and we'll bill them at the end of the month. One of the things we're going to work on in reasonably short order is a self-checkout where we acquire customers and they check out. And as we build out that major label revenue in different new territories, we expect that, that piece of the software will allow us to scale quite rapidly. Is Play MPE just 5% to 10% of the global industry? Or what percentage have you secured? I wouldn't change my estimate on that. In fact, I think it's probably conservative. I think there's tremendous opportunity. We don't update those estimates, market size, but the market is huge relative to where we are. And as we add on these new products, you're going to get new addressable markets. And I mean we want to invest to grow as quickly as we can. We see tremendous opportunities, and we're going to attack it as quickly as we can because we think there's tremendous amounts of growth. Let's see what else, quite a lot of questions here. What do you think the company has done differently to warrant the stock price increase over the last year? Well, I think it's really, a, our revenue growth rate is increasing. I hate to use the word accelerate even though that's precisely what we're doing. Because I think real -- we are targeting higher growth rates. It's just a matter of building out these modules and these catalysts and new products to grow. Over the last year, when you compare it to last year, we were bizarrely undervalued. And I think that was a function of a big seller, a former CEO selling. And that just took the stock price when -- at one point, we had half of our market cap in cash and growing, and we're growing and we have positive income. So I still think we're undervalued. And then another question is, do we -- are we planning to do more investor relations? And I think the short answer is yes. It's just a matter of figuring out our priorities. We're really -- we're focusing primarily on growing the business, and we see tremendous opportunities to grow. And that's our first protocol. I do think -- we don't want to neglect marketing our stock, of course. But at some point, these things are going to get out if we're making a lot more money, our revenues growing. Whatever the fact pattern is, I think it's going to become really obvious that we're undervalued to a lot more people. But again, we're not going to hope and pray that, that happens. We're going to make sure it happens. Yes. There's -- I mean there's questions about competitors. There's a lot of competitors in different locations. We see competitors in Germany and in the U.K. and Canada and Australia. But it's really -- it depends on where you're talking about. They're very niche. They tend to be very niche, like the competitor in Canada is generally only in Canada. In fact, I think they've really struggled to get outside of Canada. The -- there's competitors in Australia, but they tend to be in sync and they want to compete with us. Sync is revenue associated with marketing music to music supervisors. So you -- what sync means is you synchronize the song with video. And so you -- it's movies and things like that where royalties come back. But that's not a market we're strong in right now. And I think that's one of the things we can add, but you'll get competitors everywhere. And we -- I think we have real strong competitive advantages, and we're investing a lot of money to maintain those competitive advantages. I think our relationship is -- it's great. So we were -- we expect to continue to expand on that usage. There's a question on reconciling growth percentages of our usage with growth in revenue. And how do you reconcile those? That's primarily, I would say, due to trials. So when you have to -- when you build out the market -- and you've seen this. Like if you look at that graph originally that I sent up, we started marketing territories. We started distributing territories in 2003. We didn't start charging until 2006. And that's similar to what you see, although the time frame back then was, I think, quite a bit longer than it needed to be. But for example, in Latin, you're going to see a lot more -- a lot of distribution, a lot of sends that we're not charging for. So we haven't carved -- when Glenn talks about activity numbers, there's a portion of that, that is on a trial basis. We haven't carved that out yet. It's something that maybe we should do in presenting these numbers. But that's essentially what I've been trying to communicate. It's that we grow usage, and these growth numbers will translate into revenue eventually. At least, that's the whole purpose of why we're doing these trials. Yes, yes. It's -- that's not really a question. It's more of a question on our growth opportunities and how we're going to invest in it. And I've hinted at streaming, tracking and whether or not that's a business that we -- like how we attack that market. We'll be digging into that over the next little while. And as we build up the technology, we need to build out the business case, how -- who do we charge, how do we charge, what do we present, all these kinds of questions. But it's whether or not we use that $3 million of cash. It isn't a great deal of money. It's a great deal of money in terms of us being a small company, again, but it's not a -- I completely agree. It's not a whole lot of money. Anyway, I think that's -- there are some long-winded questions, and I think these are probably better served with a dialogue. But I think I'll leave it there for now, and I'll maybe dig into some of these other questions at a later time. So I hope that -- okay. One last question here says, how is it Central and South Africa were not on your really -- on your graphed color chart? Sorry. Central America and South America, I think that's, sorry, the question. They're not on the graph because there's no revenue associated with that use yet. That's this whole trial. And then eventually, we translate into revenue. So that first graph was revenue. And we'd have to distinguish that from actual use. Anyway, I think that's -- that leaves us at an hour. So I think we'll cut that short. And we'll see you next time. I hope this is a productive endeavor for you guys. Thanks again.

Okay. That concludes the -- today's webinar. Thanks again, everyone, for joining us today.