Martello Technologies Group Inc V.MTLO

Investor newsletter

[PatiencePays123]

Did anyone else just receive a newsletter in their email?

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 [e-mail].
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.
 

 

 

 

 

Martello 101: Digital Experience Monitoring Explained
Digital experience monitoring, or DEM, is a term coined by Gartner to describe software tools that provide insight into the user experience for digital applications and services – from video conferencing, to voice calls, to enterprise CRMs.
Traditionally, IT teams have been responsible for keeping networks and servers running, and troubleshooting user problems. Many did this proactively by implementing a monitoring tool that would alert them when a system was down or underperforming. As these systems have moved into the cloud, IT teams no longer directly control them, or their performance. Traditional monitoring tools can no longer tell them how these digital services are performing. The only true measurement of how a cloud service like Microsoft 365 is performing is to measure the user’s experience.
How is Martello’s DEM solution different than other vendors? Most DEM vendors can alert IT teams when a user has had a bad experience. Only Martello’s can alert them BEFORE a problem can happen. In addition, we can give IT an end-to-end view of their infrastructure, to troubleshoot why the problem is happening. Martello’s software makes IT teams proactive, rather than reactive when it comes to managing performance and user experience, and keeping users productive.

 

 

Partner Profile: Rapid Circle Improves the Microsoft 365 User Experience with Martello Gizmo Based in Amsterdam, Rapid Circle delivers Microsoft 365 and Azure cloud solutions to large universities, hospitals and manufacturing firms, and was recently named Microsoft Global Partner of the Year for Microsoft Teams. Rapid Circle's clients are looking for better insight into how the Microsoft 365 service is performing for their users. Existing network performance monitoring (NPM) solutions do not bring enough visibility into the many factors that influence the quality of user experience. The Gizmo solution provides deep insight into the Microsoft 365 user experience resulting in an estimated performance improvement of more than 30%, according to Rapid Circle.  Read the Case Study.

 

 

Inside Martello: A Successful ‘Virtual’ Integration Through acquisitions, Martello has an increasingly global presence, and since March 2020, all of our employees have been working from home, in response to COVID-19. Typically, integrating a newly acquired team into Martello involves sitting down together to create plans and get to know one another. As a result of COVID-19, we’ve had to be more creative in our approach.  We’ve increased the frequency and types of communication, from newsletters to virtual town halls, we’ve made use of innovative tools such as breakout rooms, and we’ve created virtual social events to get to know one another – everything from a Friday afternoon ‘music motivation’ while you work, to competing for the scariest Halloween background. Thanks to these communication strategies, together with meticulous project management by a dedicated integration team lead, our integration has proceeded very smoothly, and is nearing completion.

 

 

Investor Relations Corner: Frequently Asked Questions
When will Q3 Results be Reported?
Q3 results will be issued to the market on Wednesday, February 17, 2021. These results will cover the quarter ending December 31, 2020.
Will Martello uplist to the TSX?
We are working to build a very solid and senior listing eligible company, so that we can uplist to the TSX. That includes revenue growth, and developing a solid base of institutional and retail investors. There are eligibility requirements to list on the TSX that we are tracking and working towards.
When will you acquire again?
We have an active pipeline of acquisition targets that is becoming more focused. We are looking at companies whose technology can help our customers achieve a more productive user experience for the software tools they’ve invested in.

 

[Fundmental]

nope...who did this come from, what email address?

[PatiencePays123]

you had to sign up for investor emails on their website. it was mentioned in their earnings press release at the bottom.

[UpNAddEm]

So are we all part of the sales team now? Smh I want commission for leads. Smh

[canyousayiii]

So, there you have it folks. We need to turn the page. To help ourselves, we have to be positive and we should provide sales leads. I was kind of hoping that Danforth and his guys would be more than busy with companies that employ thousands or have contacts with companies that collectively employ hundreds of thousands, but if companies that number in less than 4 digits that most of us have closer

[JackBNimble26]

I disagree. The "elevator ride" at this stage would be confidence and enthusiasm. You don't need to wait for the stats on growth in revenue and net income if you believe this management team can deliver.  Anyone know the compensation package of Danforth? Apart from hiring, has he produced and put up numbers? 

[canyousayiii]

Just paraphrasing the way I see the company pitch. ;-)

[Hertevald]

What`s interesting about Martello`s communications with investors is that there is a document on their website called Investor Overview. One of its pages basically has Frost & Sullivan saying Martello is a great company because it acquired Elfiq. “Its strategic merger with Elfiq Networks that is known for its pioneering SD-WAN technology and now operates as Martello’s subsidiary, combined

[canyousayiii]

Oooops. May want to update some of this communication. But, hey, if Proctor can grow the revenues to $90 million in three years to match the growth rate he is crediting himself for the first three years, I am all good...providing they do a little bit better on the acquisition front as far as dilution goes. Even at these lower-than-average valuations, that should see us north of 60 cents. Not your

[jermoguy]

Well, I think this does it for me.  For him to claim to enjoy correspodence with shareholders, yet a number of us have not received any response from him, is utter hogwash.  Couple that with asking shareholders to find leads?  Honestly?  What is Danforth and team for?  Waiting for pays for Christmas... I have just submitted my order to sell half my position.  They