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Martello Technologies Group Inc. has released financial results for the second quarter of its 2019 fiscal year, including the three and six months ended September 30, 2018. This is the first time Martello has released earnings since going public on the TSX in September 2018.
Q2 Highlights
- Reported three and six month revenues of $2.0 million and $3.9 million, representing a year-over-year increase of 92% and 86% respectively. This included organic growth of 21%, from increased network performance management software revenues.
- Gross margin was stable at 93.6% for the three months ended September 30, 2018, compared to 93.4% for the corresponding quarter in the 2018 fiscal year.
- Martello’s revenue base continued to diversify in this reporting period, with 67.9% of revenues from network performance management software, a decrease of 32% from the corresponding quarter in the 2018 fiscal year.
- Adjusted EBITDA, which assesses operating performance before the impact of costs associated with acquisition activity and other non-cash costs, amounted to a loss of $343,298 for the three months ended September 30, 2018 compared to income of $17,114 for the corresponding quarter in the 2018 fiscal year.
The Company is well positioned for future growth. Access to public capital markets following the completion of Martello’s reverse takeover (RTO) transaction in this reporting period will fuel new growth opportunities with future merger and acquisition activity. The announced acquisition of Dutch-based software company, Savision on November 1, 2018 is intended to accelerate recurring revenues and provide opportunities to grow Martello’s European sales.