martello investor overview
TRANSCRIPT
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.
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
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
As applications and services move into the cloud, CONTROLLINGthe performance of these services is challenging.
Martello helps businesses control and improve performance with DIGITAL EXPERIENCE OPTIMIZATION.
Financial & Banking
Hospitality
Education
Other
Who needs Martello? EVERYONE
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Accretive to digital experience optimization vision
• AI• Office 365/Azure• Cybersecurity
Impact of Acquisitions: Savision
Acquired November 2018Accretive:
• Contributed $283K of MRR in Q2 FY20• Expanded reach in European market –
198% growth in revenues YoY.• Expands digital experience
optimization solution: analytics• Foundational elements for
scalability completed: sales and business operations
• Fully integrated operations under Martello brand
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Recipe for Continued Market Success
Technology Stack Channels to Recurring Revenue
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ANALYZE
MONITOR
OPTIMIZE
CUSTOMER PAIN MARTELLO CLAIM
My users KNOW about problems before I do.
Know about the problems your user is having.
I don’t know WHERE the problem is, or why it’s happening.
Know where the problem is, and why it’s happening.
I can’t FIX the problem.Fix the problem and prevent problems from recurring.
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ANALYZE
MONITOR
OPTIMIZE
Our Products
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IT Analytics Software
UC Performance Management
Software
SD-WANSolutions
ANALYZE MONITOR OPTIMIZE
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.
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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SD-WAN
Control and optimize your network infrastructure with unique Layer 2 technology
• Reduce downtime• Reduce costs• Augment security
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The Future: Digital Experience Optimization
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IT Analytics Software
ANALYZE
UC Performance Management
Software
MONITOR
SD-WANSolutions
OPTIMIZE
DIGITAL EXPERIENCE OPTIMIZATION SOLUTIONANALYZEMONITOROPTIMIZE
“Our guests consider high speed internet access among the most
critical amenities we offer. We chose Martello’s enterprise network
solutions to ensure continuity of high-speed internet access in case of
planned or unplanned failures, and the solution has delivered on its
promise for more than 7 years".
Mandarin Oriental Kuala Lumpur
MANDARIN ORIENTALHOTEL GROUP
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.
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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DECEMBER 3, 2019Martello the first Canadian SD-WAN Vendor to Pursue 5G Certification on ENCQOR 5G.
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
