Happy Holidays to you and yours. I hope you will find our inaugural investor newsletter to be valuable. Our goal is to provide you with a more rounded picture of the broad array of exciting developments at Martello, from our products to our people, many of which go beyond the day-to-day stock discussions.
As the first newsletter I thought it would be worth providing a short retrospective on Martello. As I joined the company three years ago, at about this time of the year, the company employed 35 people, with annual revenue of $3.5M, and it was selling one product. Nine months later, we went public on the TSXV at $0.15, through a reverse takeover, with revenue of $5M. Now, at the end of 2020 our run rate revenue (based on most recent quarter) is $17.6M, and we are a team of 120 people with a diversified growing portfolio of products that generates $1.4M of MRR.
And, what a year 2020 has been. No matter where you are in the world, this year has been unique and challenging for everyone. My focus has been on ensuring a stable foundation for growth: for the Martello team, our customers and you, our shareholders. You can’t build a skyscraper on a shaky foundation. Our solid foundation of high margin recurring revenue and strong technology meant we could begin to build the skyscraper: in the midst of the COVID-19 pandemic, we completed our largest acquisition to date of GSX, a digital experience monitoring (DEM) software provider for Microsoft 365. As I mentioned at the start of the COVID-19 financial uncertainty, the companies that will emerge stronger are those that have a focused offensive and defensive approach. We have both, and we are already bigger and stronger than we were in early 2020, when the COVID-19 pandemic began to impact businesses around the world. While we've accomplished a lot this year, there is still work ahead, to achieve a strong foundation for scalable growth.
After increasing revenue by 63% in Q2 FY21 compared to the same quarter in the prior year, we remain focused on growing our high-quality recurring revenue into the future. This is enabled by the aligned execution of our team: we are building our service delivery and customer success teams, to deliver a top-notch customer experience that will drive strong retention rates. We’re developing products that will broaden our addressable market, including cloud-based multi-tenancy, which allows us to expand our Microsoft 365 market from large enterprises into small and medium sized businesses and managed service providers.
As shareholders, you have an ownership interest in Martello and I always appreciate those who take an active interest in the company. I enjoy conversations with shareholders and I am often asked – how can I help? Frequently, my answer is: take a positive long-term view of the company and our stock, based on our execution. This year, we dramatically increased the size of our revenue streams and we focused on a lucrative market opportunity while simultaneously diversifying and strengthening the quality of our revenue streams. Our pipeline suggests that we have made the right decision to focus on user experience management for Microsoft 365 deployments. So, if you want to help, I simply ask that if you work for a large enterprise that uses Microsoft 365, connect us with your IT group. Some of our shareholders have done this, and our sales team will jump at the chance to follow up and offer your IT people a demo. If you’ve got a lead for us, reach out to me directly at jproctor@martellotech.com.
While this year’s celebrations will not be quite the same, I hope you’ll enjoy a peaceful, healthy and safe holiday season. I look forward to connecting and communicating our progress in 2021.
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