Renewed discipline on business priorities and operational excellence focused on driving revenue growth, positive cash flows and earnings. Disciplined management of operating expenses and working capital have created a stable foundation for investment in growth.  

  • Technology leader Paul Butcher joins Martello's Board of Directors, bringing a track record of driving innovation and catalyzing transformative business changes.
  • Interim CEO Jim Clark to prioritize disciplined execution of Martello's strategic plan within revamped business management constructs.
  • FY23 actions to reduce costs and Q2 FY24 re-engineering of long-term debt have improved Martello's adjusted EBITDA by 88% in Q2 FY24 and increased working capital.
  • As partners leverage Vantage DX to expand their service offerings and revenue streams, Orange Business Services, a Microsoft partner, added Vantage DX to its managed service offering. The solution helps Orange Business Services proactively measure and manage their customer's experience of Microsoft Teams.
  • The Mitel business line continues to provide a stable and profitable recurring revenue base with a 2% increase in Q2 FY24 to $1.76M. Martello is also demonstrating Vantage DX to interested Mitel partners in the United States and UK for the large number of Mitel users who also use Microsoft Teams. The recent acquisition of Unify by Mitel brings long-term upside potential.
  • Chairman Terence Matthews demonstrated his continued confidence in Martello by providing USD$3M in additional debt financing through Wesley Clover International Corporation to repay the remaining Vistara debt in full, extending the maturity date to 2026.

OTTAWA, ON, Nov. 21, 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 months ended September 30, 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.)

"I am pleased to report that the business opportunities for Martello with existing and potential clients are highly motivating for the Martello team, who are all working hard to create success for our shareholders." said Terence Matthews, Chairman of Martello. "Martello is strategically positioned amidst several promising growth avenues in a dynamic global market of over 400 million users. Recognizing Microsoft Teams has a pivotal role in employee satisfaction, business continuity, and overall enterprise customer experience, Vantage DX is a catalyst for seamless Teams collaboration and communication. Vantage DX continues to emerge as the key solution for Microsoft Operator Connect partners seeking to deliver top-tier Teams services and enhanced quality to enterprise clients. The recent acquisition of Unify by Mitel, doubling Mitel's installed base, creates another avenue for future growth for both Mitel Performance Analytics and Vantage DX. Together with the Martello Board of Directors, I am confident that Interim CEO Jim Clark and his team possess the capabilities to execute the Company's strategic vision."

"In my expanded role as Interim CEO, my foremost objective is to drive increased sales and profitability through a revitalized focus on operational excellence," said Jim Clark, Interim Chief Executive Officer and Chief Financial Officer of Martello. "Today, Vantage DX is trusted by major enterprise clients and key partners, and we've made significant improvements to our sales and demand generation processes to drive our sales pipeline. Our enhanced assessment of the voice of the customer is a primary driver to many of the compelling improvements across the value chain. By optimizing working capital and repurposing capacity, we have strengthened our growth strategy and operational performance. In hand with the entire Martello team, alignment and focus is aimed at driving customer satisfaction and sustainable profitable growth for our shareholders."

Q2 FY24 Financial Highlights

Financial Highlights

September 30,

September 30,

September 30,

September 30,

(in 000's)





(Three months ended)

(Six months ended)







Cost of Goods Sold





Gross Margin





Gross Margin


87.3 %

87.2 %

87.6 %

88.1 %

Operating Expenses





Loss from operations





Other income/(expense)





Loss before income tax





Income tax recovery 





Net loss





Total Comprehensive loss












Adjusted EBITDA (1)






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

  • Revenue of $3.98M represented a 4% increase compared to Q2 FY23. Vantage DX revenue grew year-over-year and Mitel revenue remained stable. Sunsetting legacy product revenue declined at a slower pace as increased budget scrutiny delayed software vendor changes for many of these businesses.
  • Vantage DX is Martello's key Microsoft modern workplace optimization business. In Q2 FY24 Vantage DX monthly recurring revenue ("MRR") grew by 142% compared to Q2 FY23, both from net new clients and conversion of clients from legacy products to Vantage DX. Total Vantage DX revenue in Q2 FY24 was $0.61M, compared to $0.24M in Q2 FY23. Martello won large enterprise clients for Vantage DX in the twelve months ending September 30, 2023, including a government department with more than 100,000 users and a former legacy product client in the professional services sector with more than 400,000 users.
  • Sunsetting legacy product revenue declined by 13% or $0.25M in Q2 FY24 compared to Q2 FY23. The ongoing decline of legacy product revenue is proceeding as planned. The Company is executing a strategy to convert certain legacy customers to the Vantage DX platform.
  • The Mitel business remains a stable and profitable source of recurring revenue and cash, with a 2% increase in revenue from this segment in Q2 FY24. The Mitel business represented 44% of total revenues in Q2 FY24 (45% in Q2 FY23).
  • Revenue was 98% recurring in Q2 FY24 compared to 99% in Q2 FY23.
  • Gross margin as a percentage of revenue was 87% in Q2 FY24, consistent with the comparative period in FY23. Gross margin included lower software hosting costs year-over-year, offset by an increase in the cost of third-party software resale. Management continues to execute a strategy to reduce hosting costs.
  • MRR increased by 3% to $1.31M in Q2 FY24 compared to $1.27M in the prior year. The increase is primarily attributable to favourable foreign exchange. Normalized for foreign exchange, MRR in Q2 FY24 declined by 2% year over year. MRR is impacted by the decline in maintenance and support subscriptions for legacy products. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter.
  • Operating expenses decreased 11% to $4.16M in Q2 FY24, also decreasing 3% sequentially since Q1 FY24. The decrease is attributable to the cost optimization exercise launched in Q2 FY23, which included headcount reductions combined with lower vendor spend.
  • The Q2 FY24 loss from operations of $0.68M represented a 49% improvement compared to $1.34M in Q2 FY23. The improvement is primarily attributable to the cost optimization exercise initiated in Q2 FY23 as described above.
  • The Adjusted EBITDA (a non-IFRS measure) loss improved by 88% to $0.10M in Q2 FY24 compared to $0.85M in Q2 FY23. This is primarily attributable to the cost optimization exercise described above.
  • The Company's cash and short-term investments balance was $4.17M as of September 30, 2023 (compared to $2.23M at March 31, 2023). Working capital improved as a result of the discharge and refinancing of the Vistara loan, with the extension of the Wesley Clover International Corporation loan to August 28, 2026.

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.

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 the execution of a strategy to reduce hosting costs, the long-term upside potential and avenue for future growth  from the recent acquisition of Unify by Mitel, the aim to drive customer satisfaction and sustainable profitable growth for shareholders, the aim to drive increased sales and profitability through a revitalized focus on operational excellence, the expectation that significant improvements to our sales and demand generation processes will drive sales pipeline, and the execution of a strategy to convert certain legacy customers to the Vantage DX platform.

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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