Martello Technologies (TSX-V:MTLO) reached a sizable milestone in its subscription services segment as the Kanata-based company pursues opportunities in new sales channels.
Martello, which develops software to maintain the performance of cloud-hosted services, reported revenues of $3.4 million for the three-month period ended Dec. 31, an increase of nine per cent year-over-year.
Growth was even higher on the recurring revenue side, which was up 28 per cent to roughly $3 million in the quarter. At the end of 2019, Martello’s monthly recurring revenue hit the $1-million mark.
Martello posted a net loss of $1.3 million for the third quarter, deeper than the $1 million loss the company recorded a year earlier.
Martello, which built much of its business supporting communications networks for Mitel customers, is now expanding its technology applications to support other cloud-based services. That includes a new Microsoft sales channel to support customers’ Office365 suites; Martello was accepted into the tech giant’s co-sell program this past November.
The Kanata company said it intends to hire a senior vice-president of channel sales and has begun organizing its resources around this sales strategy.
Shares of Martello were down roughly five per cent to 26 cents in midday trading on the TSX Venture Exchange.