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Martello Technologies Group Inc V.MTLO

Alternate Symbol(s):  DRKOF

Martello Technologies Group Inc. is a technology company, which provides digital experience monitoring (DEM) solutions to optimize the modern workplace. The Company's segments include Modern Workplace Optimization and Mitel. The Modern Workplace Optimization segment includes Vantage DX and Legacy Software Products. Mitel includes the Mitel Performance Analytics (MPA) product, software which is developed by it and sold by Mitel to its channel partners and enterprise customers to monitor and manage the performance of Mitel unified communications solutions. e Vantage DX provides Microsoft 365 and Microsoft Teams end user experience monitoring and optimization. It develops software that monitors and optimizes the user’s experience of enterprise cloud communications and collaboration systems to help IT teams. Its Legacy Software Products, which include Gizmo, iQ, LiveMaps and Domino. It operates in Canada, the United States and Europe, the Middle East and Africa (EMEA).


TSXV:MTLO - Post by User

Post by Duedilligence10on Nov 17, 2020 9:56pm
920 Views
Post# 31919911

My take

My take
Revenue is up 33% Q/Q.  
Monthly Recurring Revenue remains high at 96%.
Bookings are mostly for three years.  This will mean a lower churn rate than most other businesses.  Which should make this a more attractive investment.
Gross margin also good at 95%.
Strong cash position at $4 mill.
More diversified revenue.  Mitel's portion of overall revenue represents about 25% less of the pie, not because they are spending less but because of the new revenue streams.  
Interesting product development, especially cloud-based multitenancy.  I think we will hear about thisin 2021, this allows for monitoring of multiple instances on different servers of the same app instance.  Hopefully, they will talk more about this.  I believe that there are not many DEM's offering this.
GSX integration is still a few quarters away and will cost.  The will hurt the EBITDA each Q until this is done.
I do not see any easy access to capital in the Q.  Any future acquisition will have to be paid for through dilution, debt or some combo.
The great thing is that so much of the revenue is baked into the future.  This ensures revenue growth each Q even with the smallest wins.
I expect an TSX uplisting. I have seen companies with less going for them graduate to the big board.   MTLO needs the analyst coverage and access to capital.  
I MTLO as low risk-high reward.  The tech obviously works.  Gizmo has been successfully integrated.  The workplace landscape has changed forever.
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