Thank you for standing by. This is the conference operator. Welcome to the Martello Technologies Group Q4 and Full Year Fiscal 2022 Investor Conference Call. Today's call will provide information and commentary on financial results for the three months ended 31 March 2022. We will hear from John Proctor, President and CEO of Martello, and Jim Clark, Martello's Chief Financial Officer. Following these remarks, John and Jim will take questions from analysts. If you have questions following the call, you can reach Martello at investor@martellotech.com. First, here are a couple of housekeeping notices. All participants are in listen-only mode for the duration of the call. After the presentation, there'll be an opportunity for analysts to ask questions. To join the question queue, you may press star, then one on your telephone keypad.
Should you need assistance during the conference call, you may signal an operator by pressing star and zero. This call is being recorded, and we expect the recording will be available on Martello's website today. We remind you that today's remarks will include forward-looking statements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please see the reader advisory at the bottom of Martello's news release, which is on their website and on SEDAR. The company's actual performance could differ materially from these statements. We will begin with Martello's CEO, John Proctor. John?
Thank you. Good morning, everyone, and thank you for joining us. I hope you and your families are all keeping well. I'm joined this morning by Jim Clark in his first quarterly earnings call as Martello's CFO, and I'm very grateful for Jim joining us. Jim brings to Martello over 25 years of senior financial and operational roles at some of the leading names in the tech industry. Welcome, Jim. Before turning to my recap of Q4 and the end of 2022 fiscal year, I wanted to briefly reiterate the three core components of our growth strategy. First, we aim to strengthen Martello's competitive advantage with expansion of our Vantage DX modern workplace optimization solution suite, which was only launched last fall.
Second, we plan to expand the sales channel to Vantage DX, including Microsoft Operator Connect partners such as Orange Business, large global system integrators, and value-added resellers. Finally, we will continue to deliver Mitel Performance Analytics or MPA to Mitel. I'll speak a bit more about this in a few minutes and the recent extension of our contract with them as well. Since I spoke to you last in February, we've seen a number of important developments, and on this call, I want to follow up on a number of these, including the progress we are making with Microsoft and Orange partnerships. First, a brief but very relevant history. About 18 months ago, we made a strategic decision to focus the company and move aggressively into digital experience monitoring.
We made our largest acquisition to date of GSX, a company that specialized in enterprise-grade digital experience monitoring for Microsoft. We believe that by combining this technology with some of our existing products and capabilities, we can build a comprehensive single platform SaaS solution for CIOs to monitor and manage the digital experience for employees using cloud business solutions from anywhere. We started with the biggest, Microsoft. Vantage DX was the result. It is now one of the only solutions of its kind on the market and the only solution recommended by Microsoft to its customers, and I want to reinforce that. We are the only solution recommended by Microsoft to optimize the Microsoft modern workplace. The market responded positively to the launch, and our early indicators show that there is demand for this solution. This early Vantage DX momentum is now accelerating.
In March 2022, the number of users in our trial pipeline had doubled to 1 million, and more than 200,000 users were under paid subscription. This is a mix of new customers and upgrades, but over half of the users currently in trial represent brand-new customers to Martello. This gives us confidence that the solution has broad appeal. Our focus as we begin fiscal 2023 is on increasing the velocity of trials converting to paid subscriptions, and we've taken a key action with the hiring of Jim as our CFO. Jim brings a strong track record of operational strength and excellence that will help us mature our operations going forward. I will speak more about our outlook shortly after Jim provides a more detailed review of our financial performance in the Q4 and the 2022 fiscal year. Over to you, Jim.
Thanks, John. I'm delighted to be here with you this morning for my first earnings conference call as Martello's CFO. I will review the Q4 and full year fiscal 2022 financials in some depth in a moment, but first want to comment on my focus and perspective two months into the role. I am confident that Martello has brought to market a high-demand product that will drive optimization of the user experience in the 270 million user and growing Microsoft Teams addressable audience. Management is currently constructing plans to increase the velocity and growth trajectory of recurring revenue. Concurrently, we are optimizing our cost base to enhance focus on operational excellence and accelerating time to positive cash flow. We will accelerate the conversion to revenue through a deep analysis of all functions within our value chain.
Together, these actions will generate the opportunity for our clients and end users to realize optimal Microsoft 365 and Teams value. Now on to the financials. Revenues in fiscal 2022 reached CAD 17.5 million, a 4% increase compared to CAD 16.8 million in fiscal 2021. Q4 fiscal 2022 revenues decreased by 5% to CAD 4.3 million from CAD 4.5 million in the comparative period. On a constant currency basis, fiscal 2022 revenue grew by 10% compared to fiscal 2021, while Q4 fiscal 2022 revenue decreased 1% over the comparative period. Q4 growth in Martello's Microsoft Digital Experience Monitoring revenue was offset by a decrease in Mitel Performance Analytics subscriptions, an expected decrease in revenue from two sunsetting legacy products, and unfavorable currency exchange translation. Revenue quality was consistently high throughout fiscal 2022.
Gross margin was 91% compared to 93% in fiscal 2021. The recurring portion of fiscal 2022 total revenue remains strong at 98% compared to 97% in fiscal 2021. In Q4 fiscal 2022, the average monthly recurring revenue or MRR was CAD 1.41 million compared to CAD 1.47 million. The minor decline is attributable to unfavorable foreign currency conversion and decreased maintenance and support revenue on legacy products. The exit rate for MRR on a constant currency basis was CAD 1.43 million, representing a 3% year-over-year increase. MRR, as a reminder, is a non-IFRS measure, and it represents an average monthly recurring revenue earned in a fiscal quarter.
Microsoft Digital Experience Monitoring is now Martello's dominant revenue stream, making up 47% of total revenues in fiscal 2022, up from 41% in fiscal 2021, driven in part by the launch of Vantage DX in the Q3 of 2022. The remaining portions of total revenue in fiscal 2022 are Mitel Performance Analytics, which represent 41%, and legacy products sitting at 12%. Operating expenses of CAD 5.36 million in Q4 fiscal 2022 declined 10% compared to CAD 5.96 million, reported in Q4 of fiscal 2021. In fiscal 2022, total operating expenses were CAD 21.72 million, an increase of CAD 1.3 million or 6% compared to fiscal 2021. The increase is related to the reversal of previously implemented wage cuts, headcount increases in R&D and sales, and spend on marketing events.
The Q4 fiscal 2022 net loss of CAD 2.16 million compared to a net loss of CAD 1.9 million in Q4 fiscal 2021 is due to a reduction in tax recoveries. Fiscal 2022 net loss of CAD 8.22 million compared to CAD 6.37 million in fiscal 2021. The increased net loss is due to higher operating expenses, hosting costs, and unfavorable foreign currency conversion. Adjusted EBITDA, a non-IFRS measure loss in Q4 2022 decreased to CAD 830,000 compared to a loss of CAD 985,000 in Q4 of fiscal 2021. This related to share-based compensation. The fiscal 2022 adjusted EBITDA loss was CAD 2.86 million compared to a loss of CAD 740,000 in fiscal 2021, per the items I've just identified.
The company's cash and short-term investments balance was CAD 5.02 million at 31 March 2022, compared to CAD 8.52 million at 31 March 2021. The reduction in cash is primarily attributable to cash consumed in operations and the buyout of the warrants on the Vistara loan. Net working capital was CAD 2.27 million, 31 March 2022, compared to CAD 4.5 million at 31 March 2021. The number of Microsoft users on Martello's Digital Experience Monitoring platform increased year-over-year to 2.76 million compared to 2.67 million in Q4 of fiscal 2021. More than 200,000 of these users are Vantage DX subscribers. The company is focusing on driving Microsoft user growth through sales of Vantage DX. This includes upgrading Microsoft 365 Monitoring customers and converting trials to paid subscriptions.
I'll now hand it back to John to close with his perspective on Martello's outlook. John?
Thanks, Jim. As I said a few minutes ago, we're just a few quarters since the launch of Vantage DX and seeing good momentum behind our Microsoft Modern Workplace Optimization SaaS, with growth in paid users and trials and strong go-to-market and sales support from Microsoft. I mentioned the three core components of our growth strategy earlier, and I want to provide my perspective on our progress and outlook for each. First, our partnership with Microsoft. Martello is a highly engaged and fast-moving partner within the Microsoft ecosystem. We are helping Microsoft drive Teams adoption with Vantage DX, which is an absolute strategic priority for them. Working with one of the world's largest companies can take time, even for us, the most enthusiastic partner, but we are beginning to see results from our focus and drive to maximize the partnership.
Engagement and activity with Microsoft have increased significantly in Q1, with new Microsoft contacts engaging with Martello every month, more co-sell calls on average each week, joint marketing activity, and a strong pipeline of sales opportunities. There are even two Microsoft partner development managers dedicated to Martello to make this relationship work. Second, our partnership with Orange and focus on Microsoft Operator Connect partners. Through our long-standing partnership with Mitel, Martello has developed expertise in managing the performance of voice calls. This has created a competitive differentiator for us as the popularity of Teams phone calls grow and Microsoft Operator Connect partners are providing the service. We are developing partnerships with Operator Connect partners like Orange, one of the world's largest telecom companies, and building unique capabilities in Vantage DX, such as support for session border controllers to address this specific market.
Finally, as many of you noticed recently, we signed a three-year extension with Mitel. MPA is important for Mitel's solution because it delivers simplified monitoring and performance management of the real-time communications networks Mitel's customers rely on every day, and it forms a solid CAD 7 million annual recurring base upon which we can build further by driving more MPA adoption and finding opportunities for Vantage DX cross-selling. While we are seeing solid progress in all three pillars of our growth strategy, our Q4 performance was below our expectations. The sales cycle for a new software product that is sold into large enterprises is longer than other SaaS solutions. Though we have a healthy pipeline of companies trialing Vantage DX, the time to revenue is taking longer than we expected, something we are actively working to address, spearheaded with the hiring of Jim as CFO in May.
The 40% year-over-year revenue growth in Microsoft DEM revenue resulting from our investment in this segment and the launch of Vantage DX have been offset by the expected decline in our two legacy products. As a result, top-line growth from trial conversions may be delayed by a few quarters. On the positive side, the extension of our contract with Mitel suggests that these revenues could pick up some of that slack as Vantage DX momentum continues to grow. As Jim mentioned, management will be focused on optimizing our cost base and accelerating time to positive cash flow. We want to ensure investors and analysts that we are laser-focused on achieving the operational excellence efficiencies that will ensure we can exploit the demand for Vantage DX to scale our revenue.
We have an installed base of 2.77 million Microsoft users, and based on the demand that I explained earlier, we are on track to reach 3.5 million users over the next few quarters. This timeline will be impacted by progress on accelerating our trials. In closing, I want to leave you with four key reasons that underpin our confidence. First, our increasing alignment with Microsoft. Second, the competitive differentiator we have in Microsoft Teams Voice and the large global Operator Connect partners, such as Orange, already engaged with us. Third, a growing Vantage DX sales pipeline and an operational focus on accelerating conversion rates to paid subscription. Finally, our stable, continued relationship with Mitel, supporting this CAD 7 million recurring revenue base. All of our indicators tell us that the market needs Vantage DX, and we are well-positioned for this growth.
Jim and I are now here to answer your questions. Operator, would you please facilitate the Q&A part of this call?
Certainly. We will now begin the question-and-answer session. Investors and analysts who wish to ask a question may press star then one on their telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw from the question queue, please press star then two. Once again, anyone on the conference call who wishes to ask a question may press star and one at this time. Our first question comes from Kiran Sritharan of Eight Capital. Please go ahead.
Morning, John and Jim.
Morning, Kiran.
Morning.
I wanted to start off by asking about the decrease in the Microsoft users this quarter. Would you attribute that to churn or was there something else to call out here?
Yeah, I mean, we're seeing some of these legacy, you know, decreases. The growth really we're looking at is in the Vantage space, which is where, as I mentioned, those are the metrics that I'm really focused, laser-focused on tracking right now is that Vantage DX. Do we see some of our legacy pieces still declining? Sure. Not in the Vantage. I think the key here also is, you know, we've got some clients who are transitioning from the legacy to Vantage, which is great. That obviously holds the numbers. Others are, you know, declining the opportunity to renew, which is, you know, in a tough economic time is not unexpected. The nice thing also is we're seeing the Vantage pick up from not just Gizmo, which is what I expected.
I was fairly confident we'd get the Gizmo transitions, but we've got a couple coming from both the legacy Live Maps and even from Domino, which, you know, is almost a different part of the business. Again, it's kind of nice seeing those pieces come across. Yeah, we're seeing a little bit of a decline because of legacy. The number that really I think we will show the growth of Vantage will be the numbers we see picking up into the new Vantage model, which really is what Microsoft is pitching, right? They're not interested in any of our sort of legacy pieces. They're really pitching this Vantage piece, which is where we'll see the growth.
Yes, that's helpful. Thanks. On that actually, last quarter you mentioned how Microsoft introduced you to a few telcos, enterprises. Can you give us more color on how these conversations have been going, and if there's any further developments with that global managed partnership? Also, was the relationship with Orange as a result of this intro?
Multi-headed. Yeah, I mean, I'll put some color on that. For example, one of the big, sort of Canadian telcos had a very specific request for information around what we do, which we obviously replied to. At the speed of a telco, you know, we're now on the third group of people we need to talk to within the telco to move that through. It is a little bit frustrating, but, you know, these telcos do not move rapidly. That's good for us. Orange was our own, so Microsoft supported it. We'll also color there, which is Microsoft is now supporting those calls into telcos.
We're having access into the telcos, which we didn't have before, which I'm hoping will accelerate those conversations. There was a Microsoft gentleman who was on a recent webinar of ours, who's very pro. You know, he's a Microsoft employee, but he's working on with a number of the telcos on the Operator Connect side. He's a huge supporter of ours and is helping facilitate a number of these conversations. The Orange one, Orange was one we'd already had in the pipe, but certainly having Microsoft backing, you know, literally, you know, helped grease some of those conversations and got that going. We're quite pleased with that. The other piece here is the Orange machine isn't even turning yet, right?
We literally have, you know, we're just bolting that engine onto the airplane that is Martello. You know, we haven't done any marketing with them yet. We've got one deal in flight with them, which is great, but really, you know, the engine is only just getting bolted on. Much as we're sort of, you know, we've got the Microsoft engine spinning up, the Orange engine is bolted on, and we haven't even started it yet. There's more to do there. Again, you know, we are pushing as fast as we can, but these are big organizations, and as I kind of said in the call, you know, we're this really enthusiastic small company, we're going as fast as they will let us in many circumstances.
Thanks. Finally here, R&D and S&M was down sequentially. Would you call this more cost control efforts, or can we use Q4 as a run rate for the year?
Our R&D costs in terms of a run rate, I would say at this time, you know, we're probably at the right run rate. There were some integration activities late last year on R&D, and I think that's gotten us into a more efficient cost base.
Great. Thanks, guys. We'll leave it to you. Thank you.
Thanks, Kiran.
Once again, if you have a question, please press star then one. Our next question comes from Daniel Rosenberg of Paradigm Capital. Please go ahead.
Hi. Thanks for taking my questions. I just wanted to clarify on the 3.5 million user target. Is that a reiteration of previous statements around hitting the mark in the first half, or is that something that may extend into the second half of the year? What’s the exact clarity here?
Morning, Daniel. Yeah, no, it's a restatement of what we said before, right? This is what we expect to hit this year. You know, if we can accelerate some of these trials, we'll get there faster. I'm comfortable we're on track to get that this year. You know, if I look at sort of where we are this year, and it's funny, we were sort of reflecting back sort of, you know, a couple of financial years, where we are this year, you know, we've got, you know, the biggest funnel we've ever had in Martello's life. We've got more people in trial than we've ever had in our life. You know, relationships with Microsoft, this relationship with Microsoft, you know, now at a stage that's accelerating.
I mentioned Orange hasn't taken off yet. I'll focus on the Microsoft piece, which is accelerating. We've renewed Mitel. We're probably in a better position than we've been, you know, in the last couple of years. You know, revenue is up. Not hugely, I get, but it's up. Certainly from a perspective, you know, with the funnel, the pipe, you know, the pipeline in that respect, the relationships is good. That's why I'm comfortable coming down to say, you know, this is something we said we'll do before, and I'm very comfortable that we're gonna do it. I just wanna do it faster, and that's what we're gonna push on in heading into FY 2023.
I missed the beginning of the call, but just wanted to revisit the user growth as it stands today. Were there any one-time impacts or seasonal implications that kind of affected your user growth as it stands today kind of sequentially?
Yeah. I mean, interesting question. I mean, we don't see much seasonal. What is interesting, and again, it sort of comes back to is the number of companies coming to us, and I think you've seen the case study out, which was the Berry Bros. & Rudd case study we pushed out. Then there was Vitrolife, which is another case study. What happened there, and again, it's kind of if I look at seasonal, I'll use sort of the modern workplace as a sort of seasonal. As people are coming back to the office, I know that's seasonal, because I know in Toronto, people are heading out of the office again because it's the summer.
Certainly from a seasonal perspective, with people coming back to the office, companies are finding that Microsoft Office wasn't running as, you know, productively as they wanted it to do. This is where they're putting us in, and I would urge everyone on the call to sort of, if they get the chance, to look at those recent case studies or even go onto the website and look at our use cases. Those use cases are absolutely based on client experiences. You know, we didn't make those up. Those are based on that.
It comes back to your point of saying, as they're coming back to the office, they're finding the office environment network is not configured correctly for Office 365, and we can find that for them, very quickly and help them maintain and monitor that and optimize that. I think. You know, I like the word of your term seasonal. I think as we watch sort of how people return to office, will there be another COVID spike? I don't know. As we see the sort of this, people call it flexible workspace or hybrid workspace, there's an expectation that people want the same Office 365 experience, be it SharePoint, Teams, or whatever, and that's not necessarily happening, and that's where they're coming to us. We've got a number of folks like that that are doing trials at the moment.
To your, you know, seasonality point, you know, do we watch the summer? Yes, we will. We'll see what happens this summer because we've got sort of big things in flight in Europe, but most people know that parts of Europe shut down sometime, you know, at different stages over the summer, so we'll watch that. Overall, I think we will continue to see the growth and we'll continue to see that our overall user count grow.
Maybe could you speak to the on-prem users? Have you seen acceleration and kind of churn that's going on there?
Daniel, I do like talking to you because you ask some very interesting questions. If I look at both the Office 365 and even Mitel, I'll do the Mitel piece first and come back to Office 365. What is interesting is obviously Mitel having sold their cloud business and now focused on the on-prem business. What is interesting, we just won the Canadian part of an international retailer with Mitel. They deliberately chose Mitel because they were on-prem. Their reasoning was we want resiliency and redundancy. If there's any network issues, we can still operate as a retailer because the phones will work. You know, when we look at that saying, you know, when I look at the on-prem business, everyone, you know.
I can remember being on these calls at the start of the pandemic and everyone goes, "Oh, you're tied to Martello, you're tied to Mitel. Nobody will want on-prem phones. You know, the sky is falling." The answer is, you know, Mitel got that, they understood it, and they rationalized, sold off their cloud business, and now they're gonna dominate the on-prem business, which I think they can do extremely well, and we'll be along to support them doing that. The other side of the Office 365, and one thing we're looking at is, you know, we effectively have an on-prem version and a cloud version of Vantage. What we're looking at is, you know, the cloud version has a higher number of features.
Just by the way it's developed and what we can do with it in the cloud, the on-prem version doesn't have as many features, and it actually takes a bit more work. We actually are starting to price the on-prem version differently, and it comes with slightly less features. The idea also is to, you know, convince customers to look at the cloud version as their priority. Some won't, and they will accept slightly less features, and they will select a higher price because they want the sort of the, they're demanding the on-prem version. And that's fine. Just obviously there's a, you know, there's a development cost for us, which we need to make sure we are tracking between the two slightly different versions. Although not completely different, but there are always nuances in that.
Does that help, Daniel?
Somewhat, but effectively, what I'm driving at here is sequentially, if I'm not mistaken, it looks like user growth declined for the second quarter in a row. I'm just trying to understand what are the drivers behind that?
Yeah. Again, that's the legacy issues there is one thing. Again, as people sort of, as I said, there are some on-prem, you know, versions of our product with users that people didn't renew. You know, a lot of it is they didn't go for a competitor either, right? We're seeing these pieces where people are saying, "No, my IT budget is too tight." You know, "I've been told to rationalize what I'm spending, and I don't have some of the concerns that I, you know, I think I've been solving with your tool." The irony is some of them will come back to us as well and say, "Actually, now I can't see what I'm doing.
We'd like to have a Vantage trial." That is also what we're seeing as part of the economy, is some of the IT teams out there are starting to sort of tighten their budget, and that's a consequence. I know we're not the only, you know, software firm feeling that. You know, we are doing it to our own suppliers as well. I think that's part of this as well. You know, I do see as we move to cloud and I do see as Microsoft push this Operator Connect, you know, that will be where we will see the build. We've always, you know, again, and we, you know, you and I have talked about this before, we have always expected some of these legacy pieces will continue to decline.
The key for us is, and we will be sort of, you know, making sure we are reporting very clearly on what the Vantage DX numbers are. That's the piece that Microsoft is pulling into the market, and that's effectively where we will see the growth coming.
Okay. Yeah. That was messaged and understood. Lastly, when you think about the dynamics, you mentioned kind of a record pipeline. We saw, you know, you have a couple very strong channel partners here. The dynamic between legacy users and, you know, these potentials in the pipeline, when do you think the inflection point comes that will return to user growth? Is that kind of immediate in the next quarter or it might be lumpy as we look to the next four quarters?
I think again, if you look at where Microsoft is taking us, it's into very large enterprise. That always tends to, a company our size, makes it a bit lumpy. I think that's, you know, that's one of the issues at the moment is, you know, we've got to start, you know, there's a focus now with us, and we're already on it, of saying we've got to fill those sort of, those in between the lumps with a smaller enterprise. I think, you know, this is where we're having these conversations with Microsoft. As you can imagine, you know, when we start working with Microsoft, the first thing they wanna do is put us into, you know, get us into any of their flagship accounts that are having sort of productivity issues with Office 365, right?
Not surprising, but those are big accounts, you know, where, you know, again, we will see, you know, lumpy user count jumps, but they take time. As we start to get these relationships going and, you know, starting to have more in-person contact with Microsoft, it means we start to get in contact with the smaller accounts, which will fill the gaps. I think it'll smooth out throughout the quarter over the next this year. Certainly, I think you'll see, you know, a little bit of lumpiness with the large enterprises, which is where our focus is at the moment, thanks to Microsoft, but then we'll start to fill those in as the quarter and smooth that out. You know, that being, you know, go back to your sort of original question.
Yeah, I think, you know, you'll see that sort of inflection point towards the middle of this financial year, and then you'll see that growth advantage. As I said, we wanna accelerate that as much as possible, and we're watching that very closely.
Maybe lastly for me, is there any numbers you could put around that pipeline, like the average enterprise customer, what that could mean for you? Are these kinda, you know, 10,000 user accounts or, 50,000 ? Like, how would you categorize that pipeline?
Yeah. I mean, if I look at the user count, you probably know it's around sort of average. If I look at that sort of, you know, 30,0000-35,000 is kind of our average user count, you know, at the moment. We do have a base price, right? If you're a small company, I mean, we've got a couple of those, and some of the use cases are those smaller companies which we went with quick. We have a ceiling price we can't go below based on hosting costs and also things, and they will tolerate that, right? That's the market will bear that we have a ceiling price we can't go below. They will still pay it because it still gives them the value they want into their environment.
You know, that's the part where we think we can focus a bit more. The other thing with those smaller accounts is some of them don't want to go to trial. They're willing to, you know, go straight into they see a demonstration. They're willing to go straight into purchase. The time to revenue is much quicker for those guys. The bigger guys often want us to go through a trial period. They're much more complex. They've got a whole bunch of different applications running in there. You know, security aspects, et cetera, which just sort of we have to fight through that noise to close the deal.
I think, you know, as we move that forward, we will see sort of that user count probably stay there, mainly because, you know, Microsoft is gonna push on that. I think, you know, I wanna see a bigger funnel at the smaller size just because they will go quicker. Yeah, you're seeing, as I said, average around 30,000-35,000 is our sort of average user count. We do go below it, but then there's a ceiling price that we don't go below.
Okay, thanks for that. Maybe I'll sneak one last one here, for Jim, have a question for him. On the balance sheet, the cash position, I think you ended around CAD 5 million. In terms of managing burn rate and versus working capital needs, just what's your characterization of the balance sheet and, you know, ability to meet your operational needs with the balance sheet as it stands?
Yeah, Daniel, good question and definitely a high focus area for myself, John, and the business. In my communication, we have absolute focus on this. We're working obviously with our primary lender. We have like a facility in the wings, and we're gonna be diving into operational excellence and really driving what we call positive cash flow. We have absolute focus on getting to positive cash flow. As John mentioned, we need to accelerate this cycle through to bookings, and we need to look at our internal processes and make sure that we're very, very efficient. Great question.
Feeling confident that we have the resources required to meet the growth aspirations of the business, and it's certainly in progress.
Okay. Thanks for that. Thanks for taking my questions.
Thank you.
This concludes the question and answer session. I would like to turn the conference back over to John Proctor for closing remarks.
Thank you. I just want to reiterate, as we said in our press release, the end of 2022 fiscal year marks an inflection point for Martello towards an absolute focus on becoming a Microsoft modern workplace optimization leader. As I said earlier on this call, we have never been in a stronger position to do that. We have, you know, higher revenues, bigger funnel, bigger pipeline. We've got stronger relationships with both Microsoft and to a certain degree, Mitel than we've ever had. I'm very confident in what we are doing and confident in FY 2023. As mentioned earlier, you can register to receive our upcoming newsletter in the investor section of our website, and a recording of today's call will be available on our website later today. You can reach out to our investor relations anytime by emailing investor@martellotech.com.
Thank you for your time today and appreciate everyone attending the call. Thank you.
This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.