Technology Drives Expanding Recurring Revenue Base
Fort Lauderdale, FL, Feb. 01, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the worldwide leader in consumer karaoke products provided an update on the holiday results of operations for its rapidly expanding recurring subscription-based digital karaoke music services. Summary results were as follows:
- Subscriptions for the Company’s digital music library service increased 25% as compared to the same period in December 2020.
- Integrated subscriptions through the Company’s Premium WiFi Karaoke System realized a 371% increase in subscription revenue compared to the same period thru December 2020. This represents a significantly higher subscription adoption rate faster than unit sales growth. The Company delivered 20% unit sales growth for its Premium WiFi Karaoke System during an expanded pilot marketing program primarily offered through Costco and Sam’s Club during the holiday shopping season in 2021.
In Q3 2021, the Company announced the transformation of its majority shareholders through a $10 million capital markets transaction. As part of this transaction, Stingray Group, Inc. (“Stingray”), a leading B2B and B2C digital content provider, became one of the Company’s largest shareholder and a key strategic technology partner. Stingray is a critical partner for the delivery of the Company’s digital music library, which is central to the emerging subscription based recurring revenue model. This is projected as a scalable, high EBITDA-margin offering and is expected to significantly contribute to the Company’s overall EBITDA and profitability growth rates for the foreseeable future.
“We are encouraged by the strong initial results from our holiday subscriptions,” commented Gary Atkinson, CEO of Singing Machine. “We not only experienced strong growth in unit sales for one of our highest average price point products, we saw dramatically higher subscriber adoption rated for our proprietary digital music library by these customers.”
“The coming months will help clarify our churn rates, or subscriber attrition rates. Provided our forecasts are correct, we are optimistic that this rapidly expanding subscriber base could have an outsized positive impact on our overall profitability mix in the current fiscal year. As we move into 2022, we have some exciting opportunities to expand the assortment and lower the retail prices of our karaoke hardware devices that can effortlessly connect to our emerging subscription based content service,” concluded Atkinson.
About The Singing Machine
Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2021. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
