Skip to main content

Martello Reports Financial Results for the Third Quarter of the 2024 Fiscal Year

Martello Reports Financial Results for the Third Quarter of the 2024 Fiscal Year
February 15, 2024

Improvements to the sales and demand generation process reflect disciplined focus on operational excellence.   

  • Significant improvements to sales and demand generation processes implemented to increase sales pipeline and revenue growth in FY25.
  • Standardized Vantage DX Trial launched in FY24 results in new Vantage DX professional services revenue in Q3 FY24.
  • The Mitel business line continues to provide a stable recurring revenue base as the acquisition of Unify expands Martello’s addressable market. Interest in the Vantage DX solution has grown, with Mitel and its partners in the United States and United Kingdom working closely with Martello to bring the solution to their customers.
  • Chairman Terence Matthews demonstrated his continued confidence in Martello by providing CAD$1.75M in an unbrokered private placement of Martello common shares in December 2023.


OTTAWA, ONFeb. 14, 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 nine months ended December 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.

Terence Matthews, Chairman of Martello Technologies expressed confidence in the upside potential for the Company: “In a global era where enterprises, managed service providers and channel partners face escalating challenges in delivering seamless and reliable user experiences for real-time communications and collaborations systems, Martello stands as a beacon of expertise”, said Mr. Matthews. “This unique expertise has strategically positioned the Company within the rapidly growing Microsoft Teams market and the Mitel global ecosystem, which has notably expanded with the recent acquisition of Unify. Vantage DX continues to capture significant client activity and the Martello technology allows for a substantial reduction in tech support personnel. I remain a strong supporter of Martello and confident in the capabilities of the Martello team as they prioritize customer satisfaction, revenue growth, and shareholder value.”

“As we pursue operational excellence with alignment and focus on core objectives across the Martello team, I am optimistic about the significant improvements we’ve made to our sales and demand generation processes,” said Jim Clark, Interim Chief Executive Officer and Chief Financial Officer of Martello. “We expect these improvements to drive growth in our sales pipeline for Vantage DX, bringing sustainable shareholder value in the future. There is growing recognition that Microsoft Teams performance problems have a significant impact on organizational productivity and bottom line. Vantage DX provides these organizations with the tools needed to deliver a seamless and reliable user experience.”

Q3 FY24 Financial Highlights

Financial Highlights

December 31,

December 31,

December 31,

December 31,

(in 000’s)





(Three months ended)

(Nine months ended)







Cost of Goods Sold





Gross Margin





Gross Margin


88.1 %

89.0 %

87.8 %

88.4 %

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 of $3.98M represented a 2% decrease compared to Q3 FY23.  Vantage DX revenue grew year-over-year and Mitel revenue remained stable. Sunsetting legacy product revenue declined as expected.
  • Vantage DX is the experience management solution that is purpose-built for Microsoft Teams. In Q3 FY24 Vantage DX monthly recurring revenue (“MRR”) grew by 69% compared to Q3 FY23, both from direct sales and activities with partners. Total Vantage DX revenue in Q3 FY24 was $0.67M, compared to $0.38M in Q3 FY23.
  • Sunsetting legacy product revenue declined by 15% or $0.27M in Q3 FY24 compared to Q3 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 5% decrease in revenue from this segment in Q3 FY24. This marginal decrease is attributable to a decrease in the number of subscribers to Mitel’s software assurance program. The Mitel business represented 44% of total revenues in Q3 FY24 (46% in Q3 FY23).
  • Revenue was 98% recurring in Q3 FY24 compared to 99% in Q3 FY23.
  • Gross margin as a percentage of revenue was 88% in Q3 FY24, compared to 89% in Q3 FY23. The slight decrease was primarily driven by higher hosting, installation and delivery costs partially offset by a decrease in the costs of third-party software subscription resale. Management continues to execute a strategy to reduce hosting costs.
  • MRR decreased by 3% to $1.30M in Q3 FY24 compared to $1.34M in the prior year. The decrease is primarily attributable to a decrease in the number of subscribers to Mitel’s software assurance program and 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 81% to $4.41M in Q3 FY24 compared to $23.36M in Q3 FY23. The significant decrease is primarily due to the impairment of goodwill and intangible assets in the comparative period, partially offset by severance costs. On a normalized basis excluding impairment losses, operating expenses increased by 5%.
  • The Q3 FY24 loss from operations of $0.91M represented a 95% improvement compared to $19.76M in Q3 FY23. Normalized to exclude Q3 FY23 impairment losses, loss from operations improved by 14% in Q3 FY24 compared to the prior year.
  • The Adjusted EBITDA (a non-IFRS measure) loss increased by $0.23M in Q3 FY24, primarily attributable to interest expenses.
  • The Company’s cash and short-term investments balance was $5.63M as of December 31, 2023 (compared to $2.23M 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 execution of a strategy to reduce hosting costs, the aim to increase sales pipeline and revenue growth in FY25 with improvements to sales and demand generation processes, and the expectation that improvements to the sales and demand generation processes will drive growth in the Company’s sales pipeline for Vantage DX, bringing sustainable shareholder value in the future. .

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.

For further information: CONTACTS: Tracy King, Vice President of Marketing,, 613.410.7636; Jim Clark, Interim CEO,, 613.271.5989

Return to top