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- Annualized operating expenses reduced by 20%
- Full impact of cost optimization measures starting in Q3 FY23
- Streamlining sales processes and anchoring operations on Vantage DX
- Management is focused on accelerating time to positive cash flow
OTTAWA, ON, Aug. 17, 2022 /CNW/ - Martello Technologies Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a provider of software that optimizes the Microsoft Modern Workplace, a segment of the broader market for digital experience monitoring (DEM), today announced cost optimization measures as part of a strategy to accelerate positive cashflow and profitable revenue growth driven by Vantage DX, the Company's flagship software as a service (SaaS) for the optimization of the Microsoft Teams and Microsoft 365 user experience.
Cost optimization is the first pillar in Martello's profitable growth strategy. The consolidation of Martello's products into a single offering with Vantage DX provided the Company with an opportunity to reduce costs while maximizing the market opportunity for this solution. The cost optimization measures involved the identification and elimination of approximately 20% or $4M of annualized run rate costs, which included headcount reductions across the organization as well as reduced vendor, lease and consulting spend. The full benefit of these cost reductions will be realized in Q3 FY23.
The second pillar in the Company's profitable growth strategy is increasing recurring revenue from sales of Vantage DX. Key initiatives include streamlining the sales and trial process, disciplined management of core KPIs across the organization, and operational focus on Microsoft and other key partnerships to increase enterprise sales of Vantage DX.
"Demand for the Vantage DX product, launched in late 2021 is strong within the Microsoft ecosystem. Management and Martello's Board of Directors are confident that Vantage DX has a significant market opportunity which will drive profitable growth", said John Proctor, President and CEO of Martello. "We have removed approximately 20% of our overall expenses while strengthening our focus on accelerating Vantage DX sales."
"After evaluating the strength of the Vantage DX opportunity, and the allocation of our resources across the organization, we were able to better align our operations to accelerate our path to profitable growth and maximize shareholder value. Management is creating accountability to the operational and expense discipline required to achieve profitable growth", commented Jim Clark, Chief Financial Officer of Martello.
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 Europe, North America and the Asia Pacific region. Learn more at http://www.martellotech.com
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 statements that thefull benefit of cost reductions will be realized in Q3 FY23 and statements with respect to accelerating the path to profitable growth and accelerating Vantage DX sales cycles .
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 www.sedar.com.
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.
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