Vantage DX users more than doubled in the first half of fiscal 2023 compared to Q4 FY22 as the Company continues to see market adoption of the Microsoft-recommended offering.
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OTTAWA, ON, Nov. 22, 2022 /CNW/ - Martello Technologies Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a provider of software that optimizes the Microsoft Modern Workplace environment, a segment of the broader market for digital experience monitoring (DEM) today released financial results for the quarter ended September 30, 2022. 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 Teams and Microsoft 365.
"Vantage DX continues to drive our growth strategy, with new deals closing in Q2 FY23 and subsequent to quarter-end, and the unification of our technology into a single platform creating efficiencies", said John Proctor, President and CEO of Martello. "While the continued and expected sunsetting of certain legacy product revenue has offset the growth in revenue from Microsoft Teams monitoring and optimization, I am confident that our integration with Microsoft and accelerating sales programs with Orange Business Services, Datacom and other partners will continue to drive Vantage DX growth alongside our direct business. I'm pleased that a number of Mitel partners are also engaged with us to bring Vantage DX to their customers, to manage Mitel and Microsoft Teams performance and user experience."
"I'm pleased with the indicators I am seeing that Vantage DX momentum is strengthening" said Jim Clark, Chief Financial Officer of Martello. "We are managing the Vantage DX investment program to build a profitable business over the coming quarters, and as a result my focus is on close monitoring of operational KPIs and ensuring we have adequate capital for growth. The injection of an additional USD $2.0M in working capital will allow us to manage growth as we prioritize reaching positive cash flow."
Q2 FY23 Financial Highlights
Financial Highlights | September 30, | September 30, | September 30, | September 30, | ||||||
(in 000's) | 2022 | 2021 | 2022 | 2021 | ||||||
(Three months ended) | (Six months ended) | |||||||||
Sales | $ | 3,840 | 4,413 | 8,018 | 8,814 | |||||
Cost of Goods Sold | 491 | 348 | 954 | 776 | ||||||
Gross Margin | 3,349 | 4,065 | 7,064 | 8,038 | ||||||
Gross Margin | % | 87.2 % | 92.1 % | 88.1 % | 91.2 % | |||||
Operating Expenses | 4,689 | 5,135 | 9,713 | 10,831 | ||||||
Loss from operations | (1,340) | (1,070) | (2,649) | (2,793) | ||||||
Other income/(expense) | (1,168) | (626) | (1,006) | (1,135) | ||||||
Loss from continuing operations before income tax | (2,508) | (1,695) | (3,655) | (3,928) | ||||||
Income tax recovery | 87 | (23) | 8 | 42 | ||||||
Net loss | (2,421) | (1,719) | (3,647) | (3,886) | ||||||
Total Comprehensive loss | $ | (2,661) | (1,780) | (4,604) | (3,940) | |||||
EBITDA (1) | $ | (1,431) | (601) | (2,590) | (1,727) | |||||
Adjusted EBITDA (1) | $ | (850) | (297) | (1,495) | (1,253) |
(1) Non-IFRS measure. See "Non-IFRS Financial Measures". |
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, November 23, 2022 to discuss the Q2 FY23 financial results.
Canada/USA Toll Free: 1-800-319-4610
International Toll: +1-604-638-5340
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 November 23, 2022 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 Microsoft-focused products to Vantage DX, the expectation of a 52% decrease in the cost of hosting instances in the future, the aim to build a profitable business over the coming quarters, and the expectation that the full benefit of the cost optimization measures implemented in Q2 FY23 will be realized in Q3 FY23.
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:
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.
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