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Martello Reports Financial Results for the Fourth Quarter and 2024 Fiscal Year

Martello Reports Financial Results for the Fourth Quarter and 2024 Fiscal Year
June 20, 2024


Strategic improvements in FY24 designed to boost sales momentum in FY25.

  • Vantage DX achieved 27% year-over-year revenue growth.
  • Sales process and go-to-market strategy re-engineered in FY24 to accelerate Vantage DX growth in FY25.
  • Strategic investments in product and channel leaders are driving capacity to focus on revenue growth.
  • Mitel’s acquisition of Unify coupled with partners including leading telcos engaged with Vantage DX provide growth opportunities.
  • Legacy products are sunsetting as planned.
  • Demonstrating continued confidence in Martello, Chairman Terence Matthews provided CAD$1.5M in an unbrokered private placement of common shares in March 2024.
  • Nicolae Lungu appointed Interim Chief Financial Officer subsequent to quarter-end.

OTTAWA, ONJune 20, 2024 /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, 2024. 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.

Terence Matthews, Chairman of Martello Technologies is pleased to see a growing engagement with Mitel and its global partners: “At recent international Mitel Next events, the engagement of Mitel and Unify with Martello for both MPA and Vantage DX is increasing everywhere,” said Mr. Matthews. “Activity with other Martello partners is also increasing. As an example, one of the world’s largest telcos recently launched a Vantage DX trial.  I’m very encouraged by this groundswell of activity and continue to work closely with the Martello team to maximize the growth with key partners.”

“In FY24 we made a number of important improvements that I am confident will drive Vantage DX sales momentum in FY25”, said Jim Clark, Chief Executive Officer of Martello. “We recruited exceptional talent in product, marketing and channel leadership in the last half of FY24, which has already resulted in the development of Martello’s AI strategy and a channel activation plan which brought our first deal with US partner Yorktel. By re-engineering our sales processes and go-to-market strategy, we have laid the foundation for growth. I’m pleased that we executed on an aggressive slate of improvements across the business while decreasing operating expenses, and will maintain my focus on Vantage DX revenue growth in FY25 as we monitor the impact of these improvements”.

Having appointed Jim Clark as Chief Executive Officer in April 2024, Martello is pleased to announce the appointment of Nicolae (Nick) Lungu as Interim Chief Financial Officer, effective June 21, 2024. Mr. Lungu has led Martello’s accounting team since 2018 as Director of Corporate Accounting, helping drive key acquisition, disposition, financing transactions, implementing corporate finance processes, structural changes and policies to enhance accounting, external reporting and financial efficiency. Mr. Lungu is a Chartered Professional Accountant in Canada and the US (CPA, CA and CPA Vermont).

Q4 and FY24 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


87.3 %

88.8 %

87.7 %

88.5 %

Operating Expenses





Loss from operations





Other income/(expense)





Loss before income tax





Income tax recovery (expense)





Net loss





Total Comprehensive loss












 Adjusted EBITDA (1)






(1) Non-IFRS measure.  See “Non-IFRS Financial Measures”.

  • Revenue in FY24 was $15.8M representing a 2% decrease compared to FY23. Q4 FY24 revenue of $3.8M represents a 5% decrease compared to $4.0M in Q4 FY23. Vantage DX revenue grew 27% year-over-year and Mitel revenue remained stable. Sunsetting legacy product revenue declined as expected.
  • Vantage DX monthly recurring revenue (“MRR”) increased by 19% in Q4 FY24 compared to Q4 FY23, both from direct sales and activities with partners. Vantage DX is the experience management solution that is purpose-built for Microsoft Teams. Vantage DX contributed $0.61M in revenue in Q4 FY24, a 27% increase compared to the same period in the prior year.
  • Sunsetting legacy product revenue represented 40% of total revenue in Q4 FY24 and declined by 13% or $0.23M in Q4 FY24 compared to Q4 FY23. The ongoing decline of legacy product revenue is proceeding as expected.
  • The Mitel business remains a stable source of recurring revenue and cash, with a 7% decrease in revenue from this segment in Q4 FY24 compared to the same period in the prior year. This marginal decrease is attributable to a minor variance in the mix of revenue from various Mitel Performance Analytics offerings, partially offset by favourable foreign currency exchange rates (USD-CAD). The Mitel business represented 44% of total revenues in Q4 FY24 (45% in Q4 FY23).
  • Revenue was 98% recurring in Q4 FY24 compared to 99% in Q4 FY23.
  • Gross margin as a percentage of revenue was 88% in FY24, compared to 89% in FY23. A nominal decrease in Q4 FY24 is attributable to the higher cost of hosting software products on the cloud. Management continues to execute a strategy to reduce hosting costs.
  • MRR decreased by 6% to $1.25M in Q4 FY24 compared to $1.33M in the prior year. The decrease is primarily attributable to planned declines in legacy product revenue. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter.
  • Operating expenses decreased 2% to $4.57M in Q4 FY24 compared to $4.68M in Q4 FY23. FY24 operating expenses normalized for intangible asset impairment decreased by 6% (FY24 $17.42M compared to FY23 of $18.60M). The OPEX reductions represent continued focus on value for spend in all functions of the value chain.
  • The Q4 FY24 loss from operations of $1.24M represented a 12% increase compared to $1.11M in Q4 FY23, due to the items outlined above, partially offset by lower income tax recovery in FY24.
  • The Adjusted EBITDA (a non-IFRS measure) was a loss of $0.79M in Q4 FY24 and $1.49M in FY24, a change of 44% and 33% respectively over the prior period, attributable to the items described above.
  • The Company’s cash and short-term investments balance was $7.72M as of March 31, 2024 (compared to $2.22M at March 31, 2023).

The financial statements, notes and Management Discussion and Analysis (“MD&A”) are available under the Company’s profile on SEDAR+ at, and on Martello’s website at 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 EuropeNorth America and the Asia Pacific region. Learn more at

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 aim to accelerate Vantage DX growth in FY25, growth opportunities presented by Mitel’s acquisition of Unify and partner engagement and the plan to reduce hosting costs.

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

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.

CONTACTS: Tracy King, Vice President, Communications and Regulatory,, 613.410.7636; Jim Clark, CEO,, 613.271.5989

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