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Strategic improvements in FY24 designed to boost sales momentum in FY25.
- Vantage DX achieved 27% year-over-year revenue growth.
- Sales process and go-to-market strategy re-engineered in FY24 to accelerate Vantage DX growth in FY25.
- Strategic investments in product and channel leaders are driving capacity to focus on revenue growth.
- Mitel's acquisition of Unify coupled with partners including leading telcos engaged with Vantage DX provide growth opportunities.
- Legacy products are sunsetting as planned.
- Demonstrating continued confidence in
Martello , ChairmanTerence Matthews providedCAD$1.5M in an unbrokered private placement of common shares inMarch 2024 . Nicolae Lungu appointed Interim Chief Financial Officer subsequent to quarter-end.
"In FY24 we made a number of important improvements that I am confident will drive Vantage DX sales momentum in FY25", said
Having appointed
Q4 and FY24 Financial Highlights
Financial Highlights | ||||||||
(in 000's) | 2024 | 2023 | 2024 | 2023 | ||||
(Three months ended) | (Twelve months ended) | |||||||
Sales | $ | 3,808 | 4,027 | 15,773 | 16,099 | |||
Cost of Goods Sold | 482 | 452 | 1,943 | 1,854 | ||||
Gross Margin | 3,326 | 3,575 | 13,830 | 14,246 | ||||
Gross Margin | % | 87.3 % | 88.8 % | 87.7 % | 88.5 % | |||
Operating Expenses | 4,567 | 4,685 | 17,425 | 37,762 | ||||
Loss from operations | (1,242) | (1,110) | (3,595) | (23,517) | ||||
Other income/(expense) | (459) | (438) | (2,163) | (1,811) | ||||
Loss before income tax | (1,700) | (1,548) | (5,759) | (25,328) | ||||
Income tax recovery (expense) | 0 | 213 | 15 | 138 | ||||
Net loss | (1,700) | (1,335) | (5,744) | (25,190) | ||||
Total Comprehensive loss | $ | (1,770) | (1,236) | (5,680) | (24,454) | |||
EBITDA (1) | $ | (886) | (522) | (1,799) | (21,950) | |||
Adjusted EBITDA (1) | $ | (791) | (549) | (1,487) | (2,213) | |||
(1) Non-IFRS measure. See "Non-IFRS Financial Measures". |
- Revenue in FY24 was
$15.8M representing a 2% decrease compared to FY23. Q4 FY24 revenue of$3.8M represents a 5% decrease compared to$4.0M in Q4 FY23. Vantage DX revenue grew 27% year-over-year and Mitel revenue remained stable. Sunsetting legacy product revenue declined as expected. - Vantage DX monthly recurring revenue ("MRR") increased by 19% in Q4 FY24 compared to Q4 FY23, both from direct sales and activities with partners. Vantage DX is the experience management solution that is purpose-built for Microsoft Teams. Vantage DX contributed
$0.61M in revenue in Q4 FY24, a 27% increase compared to the same period in the prior year. - Sunsetting legacy product revenue represented 40% of total revenue in Q4 FY24 and declined by 13% or
$0.23M in Q4 FY24 compared to Q4 FY23. The ongoing decline of legacy product revenue is proceeding as expected. - The Mitel business remains a stable source of recurring revenue and cash, with a 7% decrease in revenue from this segment in Q4 FY24 compared to the same period in the prior year. This marginal decrease is attributable to a minor variance in the mix of revenue from various Mitel Performance Analytics offerings, partially offset by favourable foreign currency exchange rates (USD-CAD). The Mitel business represented 44% of total revenues in Q4 FY24 (45% in Q4 FY23).
- Revenue was 98% recurring in Q4 FY24 compared to 99% in Q4 FY23.
- Gross margin as a percentage of revenue was 88% in FY24, compared to 89% in FY23. A nominal decrease in Q4 FY24 is attributable to the higher cost of hosting software products on the cloud. Management continues to execute a strategy to reduce hosting costs.
- MRR decreased by 6% to
$1.25M in Q4 FY24 compared to$1.33M in the prior year. The decrease is primarily attributable to planned declines in legacy product revenue. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter. - Operating expenses decreased 2% to
$4.57M in Q4 FY24 compared to$4.68M in Q4 FY23. FY24 operating expenses normalized for intangible asset impairment decreased by 6% (FY24$17.42M compared to FY23 of$18.60M ). The OPEX reductions represent continued focus on value for spend in all functions of the value chain. - The Q4 FY24 loss from operations of
$1.24M represented a 12% increase compared to$1.11M in Q4 FY23, due to the items outlined above, partially offset by lower income tax recovery in FY24. - The Adjusted EBITDA (a non-IFRS measure) was a loss of
$0.79M in Q4 FY24 and$1.49M in FY24, a change of 44% and 33% respectively over the prior period, attributable to the items described above. - The Company's cash and short-term investments balance was
$7.72M as ofMarch 31, 2024 (compared to$2.22M atMarch 31 , 2023).
The financial statements, notes and Management Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR+ at www.sedarplus.ca, and on
This press release does not constitute an offer of the securities of the Company for sale in
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
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.
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 the aim to accelerate Vantage DX growth in FY25, growth opportunities presented by Mitel's acquisition of Unify and partner engagement and the plan to reduce hosting costs.
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 datedJanuary 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.
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