martello investor overview · martello investor overview november 2019 tsxv: mtlo....
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Forward Looking Statements and Confidentiality
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No Offer to Purchase Securities
These documents are provided in the necessary course of business to prospective investors in respect of a potential private placement of the Company’s securities. These documents are not an offering memorandum, prospectus, public offering or any other offer of the Company’s securities, and any subsequent offer of the Company’s securities shall comply in all respects with all applicable securities laws and regulations. The information in this presentation is intended for use only by persons resident in jurisdictions where such use is lawful. Nothing in this presentation constitutes, and under no circumstances is to be construed as, an offer or solicitation to purchase securities of, or advertisement for, securities of the Company. The securities of the Company have not been registered under the United States Securities Act of 1933, as amended or any state securities laws.
Forward Looking Statements
Certain statements contained in this presentation (including information incorporated by reference) are "forward looking statements". Our forward-looking statements include, without limitation:
• Estimates of future costs and other expenses;• Estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof;• Statements regarding future transactions; and• Estimates regarding timing of future capital expenditures and production activities.
This list is not exhaustive of the factors that may affect our business, our value as a company, and our forward looking statements. Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company disclaims any intention or obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Use of Information
These documents are CONFIDENTIAL. They may not be reproduced and the information disclosed therein may not be made available to anyone who has not signed a confidentiality agreement with the Company without the prior written consent of the Company. Any information communicated to the Company through this presentation becomes the Company’s exclusive property. The Company shall be entitled to use any such information for any purpose without restriction or compensation to any person. Such information provided by the user shall be deemed to be non-confidential.
WHY MARTELLO?
Technology stack growing through acquisitions and focused on service optimization solutions.
Solid growth fundamentals• Gross margins above 90%• MRR of $957K (Q2 F20)• 92% recurring revenue (Q2 F20)
Strategic partnerships with Mitel, Microsoft driving revenue and addressable market.
M&A track record of targeting and integrating acquisitions bringing increasingly attractive opportunities.
As applications and services move into the cloud, businesses lose control over the performance of these services.
Martello helps businesses regain control with service optimization.
GrowthStrategy
Increase high quality, high margin recurring revenue with a systematic approach:
• Service Optimization Solutions Integrate elements of acquired products to capture the significant market opportunity for the optimization of business critical services (ie: Office365) on cloud networks.
• Strategic PartnershipsAccelerate new channels to market with strategic partnerships, including Microsoft, Mitel, Paessler.
• Channel DevelopmentNurture and grow channel network of MSPs, resellers and distributors, and facilitate cross-sell of acquired products.
About Martello• Founded in 2009.
• Headquartered in Ottawa with offices in Montreal, Amsterdam and Paris.
• Joined the TSXV (‘MTLO’) in September 2018.
• Acquired Savision (ITOps Analytics) in 2018, and Elfiq Networks (SD-WAN and Link Balancing) in 2017.
• Focused on technology solutions that make business applications perform better on cloud and enterprise networks:
• SD-WAN and Link Balancing
• Unified Communications (UC) Analytics
• ITOps Analytics
Key Metrics
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$12.9MTTM revenues
13%Organic Revenue
Growth
91%Gross Margins
92%Recurring revenue
$957kMRR
Q2 F20 v Q2 FY19
Q2F20
Q2 F20
Key Financial and Market Information
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(1) As at 19 November 2019
All $ figures in CAD, as of 30 September 2019 unless otherwise indicated
Capitalization
Shares outstanding (basic)(1)…208.0MShare price (1)…………………………………$0.365Market Cap (1)………………………………….$76MInsider Ownership(1)………...……………..24%
Balance SheetWorking Capital……………………..$6.3MDebt…………………………………………….$2.9MCash….…………………………………………$9.0M
What Do These Companies Have In Common?
• All have more than one location• All use multiple applications to connect their business• All need a consistent, resilient network and IT environment they can clearly
understand.• All need to troubleshoot issues quickly and effectively
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Growing Businesses Need Martello
ALL USE MARTELLO TECHNOLOGIES
SMALL MEDIUM LARGE GOVERNMENT
Diversified Customer Base Across Many Industries
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Financial & Banking
Hospitality
Education
Other
Acquisition Targets
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Network/IT Performance Management
Adjacent Technologies
(ie: IT security, QoS, AIOps)
IoT Enablement CapabilitiesMust be accretive to Martello:
TARGETS
• Proven Technology
• Cross-sell Channel
• Cultural Fit
• Stable Financial Position
• Talent
2017:2018:2019:
Elfiq Networks - SD-WAN solutionsSavision - IT Analytics with European sales forceLooking at adjacent technologies such as IT security, and IoT opportunities.
“Its strategic merger with Elfiq Networks that is known for its pioneering SD-WAN technology and now operates as
Martello’s subsidiary, combined with its constant product launches and new feature rollouts, have empowered Martello
to render unprecedented value to its customers.”
Martello Technologies Receives Frost & Sullivan’sNPM and APM Price/Performance Value Leadership Award
Frost & Sullivan Report Cites Martello as Leader
Leadership Team
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Management BoardJohn ProctorChief Executive Officer
ICT Executive previously VP Cyber Security for CGI.
Sir Terry Matthews, Co-Chairman
Founder and Chairman of Wesley Clover International. Has founded or funded 100+ companies since 1972, including Mitel and Newbridge.
Erin CroweChief Financial Officer
20+ years CFO experience with oversight of $130M+ revenues.
Bruce Linton, Co-Chairman Co-founder and Chairman of Canopy Growth Corporation. Responsible for the acquisition and/or disposition of 6 billion dollars in business assets.
Doug BellingerChief Technology Officer
20+ years telecom software product development.
John Proctor, Chief Executive Officer
ICT Executive previously VP Cyber Security for CGI.
Rob DoucetteVP Product Management
15+ years software product development.
Niall Gallagher, Co-Founder 30 years telecom industry experience.
Stefanie RichheimerChief Revenue Officer
Former CEO of Savision and IT business leader.
Mike Michalyshyn Seasoned technology lawyer with experience in embedded software with QNX Software Systems and BlackBerry.
Colley Clarke Experienced CFO with financial leadership of TSX, NASDAQ and AIM listed technology companies.
Don Smith General Partner at Wesley Clover International, CEO of Mitel 2001 to 2011.
Mike Galvin 32 yrs BT PLC, responsible for design, deployment and management of the largest broadband networks in the UK.
Jennifer Camelon Technology industry finance and business executive leading transformation initiatives for QNX
Latest Business Updates
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SEPTEMBER 5, 2019Martello’s Software Helps Mitel Network Operations Center Monitor More Than a Million Users
NOVEMBER 5, 2019Martello Joins Microsoft Co-Sell Program
NOVEMBER 13, 2019Martello Now Delivering Network Security and Performance with WatchGuard Partnership
Q2 Financial Highlights:
• $3.1M revenues, a 59% increase year over year
• 92% of revenues recurring
• Monthly Recurring Revenue (MRR) $957K (79% YoY increase)
• Gross margin 92%
• 34% organic growth
• Adjusted EBITDA ($985K)
SEPTEMBER 27, 2019Martello Completes $4.6M Overnight Marketed Public Offering.
November 20, 2019
Products – IT Operations Analytics
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All Services (O365, Exchange, etc.) and their Status
At-a-Glance Performance and Availability
As services like phones and video move into the cloud, it is increasingly difficult to manage their performance. Know when and where there’s a problem.
Products – UC Performance AnalyticsFind and troubleshoot problems that are impacting your voice communications.Performance and capacity management for unified communications (UC).• Voice quality• SIP trunk utilization• Advanced UC Network Testing• Pre-Deployment Testing
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Products – SD-WAN
Control and optimize your network infrastructure with unique Layer 2 technology
• Reduce downtime• Reduce costs• Augment security
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