Martello Reports Financial Results for the Second Quarter of Fiscal 2023 – QNT Press Release


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.

  • Vantage DX users more than doubled to close to half a million in the first two quarters of fiscal 2023 compared to Q4 FY22, representing a 252% increase in monthly recurring revenue (MRR) in the same period as trials converted to bookings and revenue. On a quarterly basis, Vantage DX MRR grew by 56%.

  • Total revenue was $3.8M in Q2 FY23, with 99% recurring. The Mitel business line continues to provide a large and stable recurring revenue base from which to grow Vantage DX. The Vantage DX growth was offset by an 18% or $0.4M decline in sunset legacy product revenue.

  • Operating expenses decreased by 9% year over year in Q2 FY23, driven by cost optimization measures implemented in Q2 FY23, which are expected to eliminate 20% of annualized run rate costs. The full benefit of these measures is expected to be realized in Q3 FY23 .

  • A private placement announced subsequent to quarter-end is expected to bring capital of USD $2.0M into the company in January 2023.

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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 ProctorPresident and CEO of Martello. “While the continued and expected sunset 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 ClarkChief 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

Full story available on Benzinga.com



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