Microsoft-recommended Vantage DX product achieves sustained double-digit quarter over quarter monthly recurring revenue growth in FY23 as the platform surpassed 1M Microsoft users in Q4. 

  • Having achieved strong Vantage DX growth in FY23, the Company expects a channel-based strategy led by the Microsoft partnership will accelerate Vantage DX growth in the future.
  • Mitel business line continues to provide a stable and profitable recurring revenue base of $7.15M. Mitel acquisitions have the potential to increase the client and revenue base.
  • Sunsetting Legacy product revenue declined more rapidly than expected in FY23 due to the offboarding of a large legacy partner. This caused Martello's total revenue to decline year over year.
  • Adjusted EBITDA loss improved by 23% in FY23 as a result of the cost optimization exercise undertaken in Q2 FY23.
  • Martello Chairman Terence Matthews continues to demonstrate confidence in the Company's market fit and performance. The final tranche of a $2.4M private placement was completed in June 2023 and the Wesley Clover International subordinate debt was extended to 2024.
  • Having won one of the world's largest food manufacturers as a customer in FY23 through its partnership with Orange Business Services, Martello has developed a pipeline of sales opportunities driven by channel partners including Orange Business Services and Microsoft.

OTTAWA, ON, June 27, 2023 /CNW/ - Martello Technologies Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a provider of software that optimizes the Microsoft Modern Workplace environment, today released financial results for the three and twelve months ended March 31, 2023. Martello software provides businesses with actionable insights on the performance and user experience of cloud services such as video conferencing and voice calls, with a focus on Microsoft 365, Microsoft Teams and Mitel unified communications.

Martello Logo (CNW Group/Martello Technologies Group Inc.)

"In my many conversations with large enterprise and government executives, it is evident their focus is on improving business productivity, customer experience and employee satisfaction," said Terence Matthews, Chairman of Martello. "These are all areas where the Martello Vantage DX software has a positive impact optimizing the environment that Microsoft Teams operates in. The timing is right for this product, and I remain confident that the Martello team can accelerate client and sales opportunities as well as identify productive partnerships."

"While Legacy product decline continues to be a headwind impacting top line revenue, I am very pleased with the double-digit Vantage DX monthly recurring growth quarter over quarter through fiscal 2023", said John Proctor, President and CEO of Martello. "This growth was the result of our partnerships with Microsoft and Orange Business Services, continued Vantage DX product innovation, the unwavering support of Martello's Chairman and the hard work of our people. Getting to over one million Vantage DX user licenses in the first year is a great sign of market demand." 

"Martello is exiting fiscal 2023 with a strong base of more than one million Vantage DX user licenses, a focused strategy for fiscal 2024 and an annual operating plan which will deliver sought after enhancements for our three stakeholder groups: Employees, Customers and Shareholders", said Jim Clark, Chief Financial Officer of Martello. "The improvements in financial performance in fiscal 2023 reflect management's deepening focus on delivering value to the front of our client's businesses."

Q4 and FY23 Financial Highlights

Financial Highlights

March 31,

March 31,

March 31,

March 31,

(in 000's)





(Three months ended)

(Twelve months ended)







Cost of Goods Sold





Gross Margin





Gross Margin


88.8 %

90.1 %

88.5 %

90.7 %

Operating Expenses





Loss from operations





Other income/(expense)





Loss before income tax





Income tax recovery (expense)





Net loss





Total Comprehensive income (loss)












Adjusted EBITDA (1)






(1) Non-IFRS measure. See "Non-IFRS Financial Measures".

  • Revenue in FY23 was $16.1M representing an 8% decrease compared to FY22. Q4 FY23 revenue of $4.03M represents a 6% decrease compared to $4.27M in Q4 FY22. As Vantage DX revenue grew year over year and Mitel revenue remained stable, sunsetting Legacy product revenue declined more rapidly than anticipated in FY23, causing the decline in total revenue.
  • Vantage DX is Martello's key growth business. In FY23 Vantage DX MRR grew by 612% to $0.16M and there were more than 1.1M Microsoft users monitored by the Microsoft-recommended platform. Total Vantage DX revenue in FY23 was $1.25M, compared to $0.08M in FY22.
  • Sunsetting legacy product revenue declined by 25% or $2.51M in FY23 and $0.07M in Q4 FY23 compared to Q4 FY22. The ongoing decline of Legacy product revenue is proceeding as planned, with the exception of the offboarding of a large legacy partner, which is now complete. The Company is executing on a strategy to convert certain Legacy customers to the Vantage DX platform.
  • The Mitel business line remained a stable and profitable source of recurring revenue, increasing in Q4 FY23 by 1% to $1.80M compared to $1.78M in Q4 FY22. The increase is attributable to favourable currency conversion. Mitel revenue in FY23 was $7.15M, a 1% decrease compared to $7.25M in FY22. The Mitel business line represented 44% of total revenues in FY23 (41% in FY22).
  • Revenue was 99% recurring in FY23 compared to 98% in FY22.
  • Gross margin as a percentage of revenue was 88.5% in FY23, compared to 90.7% in FY22. The small decrease is primarily attributable to the higher cost of hosting software products on the cloud and an increase in the cost of inventory related to third-party software resale. Hosting costs continue to improve as the Company executes a multi-year action plan.
  • In Q4 FY23, monthly recurring revenue (MRR) was $1.33M compared to $1.41M in the prior year, a 6% decrease attributable to declining maintenance and support and subscriptions on sunsetting Legacy products as described above. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter.
  • Operating expenses, normalized for an asset impairment loss of $19.16M in Q3 FY23 decreased to $18.60M in FY23 compared to $21.72M in FY22. The decrease is primarily attributable to the cost optimization exercise in Q2 FY23.
  • The Q4 FY23 net loss of $1.33M represents a $0.83M or 38% improvement compared to a net loss of $2.16M in Q4 FY22. In FY23, excluding impairment losses, the net loss decreased by $3.12M. The improvement in net loss is attributable to the items discussed above.
  • The Adjusted EBITDA (a non-IFRS measure) loss has decreased by 23% to $2.21M in FY23 compared to $2.86M in FY22. This is attributable to the cost optimization exercise undertaken by management in Q2 FY23 as noted above.
  • The Company's cash and short-term investments balance was $2.22M at March 31, 2023, compared to $5.02M at March 31, 2022. Working capital of minus $8.24M at March 31, 2022 compared to $2.27M at March 31, 2022 reflects the Vistara loan of $6.39M being reclassified to current liabilities plus the addition of the $2.23M Wesley Clover International (WCI) subordinate loan being added to current liabilities. On May 26, 2023, the Company announced an extension of the Vistara loan. Under the terms of the extension Martello will make a series of payments to Vistara which will pay off the debt in its entirety by September 28, 2023. The Company also announced the extension of the WCI subordinate loan to May 24, 2024.

Conference Call Details

Martello will host a conference call with John Proctor, President & CEO and Jim Clark, CFO at 8:00 AM Eastern Time on Wednesday, June 28, 2023 to discuss the Q4 and FY23 financial results.

Canada/USA Toll Free:


International Toll:


Callers should dial in 5 – 10 min prior to the scheduled start time and ask to join the Martello call. An audio recording of the call will be available on June 28, 2023 at https://martellotech.investorroom.com/quarterly-results.

The financial statements, notes and Management Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR at www.sedar.com, and on Martello's website at www.martellotech.com. The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars.

Two institutional investment firms provide research coverage of Martello. The Company does not endorse the research of third-party institutions.

This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the "1933 Act") as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Martello Technologies Group

Martello Technologies Group Inc. (TSXV: MTLO) is a technology company that provides digital experience monitoring (DEM) solutions to optimize the modern workplace. The company's products provide actionable insight on the performance and user experience of cloud business applications, while giving IT teams and service providers control and visibility of their entire IT infrastructure. Martello's software products include Vantage DX, which provides Microsoft 365 and Microsoft Teams end user experience monitoring and optimization. Martello is a public company headquartered in Ottawa, Canada with employees in Europe, North America and the Asia Pacific region. Learn more at http://www.martellotech.com

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods and " includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including management's intent to maximize the transition of certain users currently on legacy products to Vantage DX, the expectation of a decrease in the cost of hosting instances in the future, the aim to accelerate Vantage DX growth through a channel-based strategy, and the potential for Mitel acquisitions to increase the client and revenue base.

Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:

  • Continued volatility in the capital or credit markets and the uncertainty of additional financing.
  • Our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so.
  • Changes in customer demand.
  • Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment.
  • Delayed purchase timelines and disruptions to customer budgets, as well as Martello's ability to maintain business continuity as a result of COVID-19.
  • and other risks disclosed in the Company's filings with Canadian Securities Regulators, including the Company's annual information form for the year ended March 31, 2021 dated January 7, 2022, which is available on the Company's profile on SEDAR at www.sedar.com.

Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SOURCE Martello Technologies Group Inc.

Copyright 2023 Canada NewsWire

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