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Bullboard - Stock Discussion Forum 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... see more

TSXV:MTLO - Post Discussion

Martello Technologies Group Inc > Interview Highlights
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Post by iUnicorn on Apr 25, 2021 8:32pm

Interview Highlights

Good evening all.

Find below my rough notes from the Martello interview that Small Cap Discoveries posted Friday. My notes focus on what may be "new information" or what I did not already know before the interview from my independent research. As a newly mint shareholder of MTLO, please do not place undue reliance on my notes and always do your own research and consult your advisor to assess suitability.

In summary, a very strong and positive tone and perspective from management. I am certainly looking forward to the Fiscal year ahead. I look forward to all your comments to the video and my notes.

  • Mitel is still growing single figures
  • Looking to add depth in Microsoft or breadth in DEM from M&A (mentions SAP, Salesforce)
  • Microsoft will be a fabulous growth engine in Fiscal 2022
  • Pivoted to a pure digital channel very strongly in last year
  • Pushing much harder into channel development (MSPs, CSPs)
  • Strong sales pipeline, seeing upsell and cross sell in bookings
  • Expects over 90% gross margins to continue in the future
  • Expects legacy businesses to be fully out of the business by Fiscal 2024
  • The CFO used to be the CFO of the Ottawa Senators (fun fact)
  • Chairman Sir Terry Matthews is fully engaged and speaks with the CEO at least once a week
  • Next few months they will become a Microsoft Managed Partner (current in the Co-Sell Program)
  • Total addressable market of Microsoft is $800 million+. This number is much bigger when considering different platforms (SAP, Salesforce, etc.)
  • They think they can take a significant portion of the US $800 million Microsoft addressable market
  • It would be very expensive for Mitel to find someone else for analytics. No competition
  • 4 companies that do DEM for Office 365 (Martello, Cisco, and 2 others). Martello is much deeper in Microsoft than Cisco is. The other 3 do not do synthetic transactions. MTLO has a toe hold and competitive advantage in Microsoft Office 365
  • Big enterprise and/or government are typical customers today
  • A multi billion-dollar Canadian insurance firm renewed their licenses the morning of the interview
  • Speaking to big system integrators, big MSPs
  • Creating a whole partner program this quarter, a lot of work going into this
  • 2-3 years is an average client commitment on Microsoft side, minimum 1 year term
  • One client in mid Q4 bought 3 years in advance (government client)
  • An ebook is coming out shortly on experience level agreements
  • Normally 3-6 months for sales cycle to enterprise
  • Have a lot of proof of values out at the moment with a solid conversion rate of over 60%
  • No customer concentration, truly global
  • United nations is a client, government of Birmingham
  • Average deal size on Mitel is 11-20 cents and is a per month royalty, for Microsoft $50k to few hundred thousand, for IQ anywhere from $10k to $100k and based on number of integrations
  • Microsoft is really pushing Teams to crush Zoom, new features coming
  • Mitel will be integrating with Microsoft and MTLO will pull this together to make systems more efficient into one picture
  • Have hired a few data scientists (machine learning) to find out what they can see inside their Office 365 data already. Data play coming
  • Covid has exacerbated the system and urges the need for DEM
  • Proof of values and deal signings take a little longer because everyone is remote
  • The demand is out there, need to make sure they have horsepower to meet the demand
  • The last 2 financings were primarily institutional based
  • Have 10-15% of TAM at the moment. John wants to head higher and capture more and get to 20%. Key metrics to follow is Office 365 seats (user)
  • Revenue lags signing a deal and adding Microsoft seats
  • One partner has 800k users and MTLO onboarding 40k users/month and the partner wants to grow the 800k
  • They will consolidate shares within 12 months and will find the right opportunity when there is a transaction
  • They receive a per user fee from the partner who is onboarding 800k users
  • Are tracking to get the 3.2 million users by March 2022 and feel very confident
  • Really focused on driving revenue growth and then will start talking about an uplist
  • Very difficult and is very significant to become a Microsoft manager partner
  • Confident on user growth of 3.2 million. Signing a couple of indirect channel partners will significantly up this. Is being fairly conservative.
  • They are in quiet period right now but will make some noise in the near future with partnership pieces
  • Financial results coming out end of June
  • Please watch the O365 numbers, they will make a difference
  • The pressure is really building (steam engine analogy)
Comment by PatiencePays123 on Apr 26, 2021 8:39am
Thanks for this work iUnicorn! Appreciated and a nice summary page.
Comment by Kushntbush on Apr 26, 2021 10:35am
Very good summary! Thanks for doing that.
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