Paradigm Capital analyst Daniel Rosenberg likes the new deal by Martello Technologies (Martello Technologies Stock Quote, Charts, News, Analysts, Financials TSXV:MTLO), who announced a partnership with global communications giant Orange Business Services. Rosenberg delivered an update to clients on Martello on Thursday, saying the partnership opens up a lot of doors for the company.
Ottawa-based Martello is a digital experience monitoring solutions company for enterprise customers, offering monitoring and analytics on a business’s full IT infrastructure. The company announced the partnership on Thursday, saying its Vantage DX software product for Microsoft 365 and Microsoft Teams will be integrated with the Orange Business Together with Microsoft portfolio.
This is new ground for Martello, as Orange Business Services is now the first Microsoft 365 Direct Routing and Operator Connect partner in the world to add Vantage DX to its client offering.
“We’re exceptionally pleased that Vantage DX has become a part of Orange Business Service’s Operator Connect and Direct Routing as a Service offering,” said John Proctor, President and CEO of Martello, in a press release. “As demand for Microsoft Teams Phone continues to grow, we are pleased to provide Operator Connect partners like Orange with the industry’s only Microsoft Teams monitoring solution which offers deep insight into every component of the Teams Phone call, ensuring these partners can deliver the exceptional call experiences that Microsoft Teams is known for.”
Orange Business Services is a branch of Orange SA, the French multinational telecom giant with revenue of $58 billion last year. On its own, Orange Business Services had revenue of $10.7 billion last year.
Commenting on the partnership, Rosenberg said it will allow Martello to leverage a growing ecosystem of channel partners and ramp up its offering across global clients and accelerate its user growth.
“Vantage DX is complementary to Orange’s solutions as it can pinpoint performance problems impacting Teams calls or meetings for the IT person to turn around with a quick resolution,” Rosenberg wrote.
With a market cap of $19.6 million, MTLO has drifted lower over the past year and is now down about 20 per cent year-to-date, but Rosenberg sees upside to the stock from here.
“Shares remain in value territory at current levels given Martello’s strong gross margin (90 per cent+) and recurring revenue (95 per cent+) profiles and differentiated technology. We believe the company’s investments in growth initiatives should lead to outperformance as we look toward 2023,” Rosenberg said.