29 July 2024
Dotdigital Group
plc
("Dotdigital", the "Company", or the "Group")
Trading
Update
A year of financial and
strategic progress
Dotdigital Group plc (AIM:
DOTD), the leading SaaS provider of an all-in-one customer
experience and data platform (CXDP), announces a trading update for
the year ended 30 June 2024 ("FY 2024"). The trading performance
reported in this statement is based on unaudited management
accounts.
Highlights
|
·
|
Revenue and Adjusted EBITDA and
profit before tax are expected to be in line with market
expectations for the full year1
|
|
·
|
Revenue growth of 14.1% to £79.0m
(FY23 £69.2m), of which 94% is recurring and repeat revenue (FY23:
94%)
|
|
·
|
Organic revenue (excluding Fresh
Relevance which was acquired during the year) increased by 9% in
constant currency (7% on a reported basis) to £74.3m
|
|
·
|
Organic average revenue per customer
(ARPC) (excluding Fresh Relevance) growth of 15% to £1,861 per
month continues in line with customer revenue growth
|
|
·
|
Cash balance on 30 June 2024 of
£42.2m (31 December 2023 of £37.1m) is ahead of market
expectations, following strong cash generation, providing the
flexibility to invest in the organic and acquisition growth
strategy
|
|
·
|
Intention to pay increased final
dividend in line with market expectations
|
|
·
|
Integration of the Fresh Relevance
teams, operations and product now complete and driving pipeline
growth
|
Overview
The Board is pleased to report a
strong performance for the year delivering both organic and
acquisitive growth.
A highlight of the year has been the
substantial advancements delivered to the Group's CXDP offering
through continued internal development as well as the integration
of Fresh Relevance, bringing enhanced personalisation functionality
to the platform. The integration of the Fresh Relevance team,
product and operations have been completed, along with associated
cost synergies realised ahead of plan.
The expanded product offering,
including website personalisation and enhanced AI and customer data
platform capabilities has resulted in accelerating traction with
higher value customers, including increased joint new customers
wins in H2, as well as strong uptake of the personalisation
platform by existing Dotdigital customers, driving a 15% increase
in ARPC.
The Group saw double-digit growth
across its geographic markets. Growth in EMEA of 14% was supported
by the acquisition of Fresh Relevance. Average first year
contract values in EMEA increased 58% year on year, although
organic growth was tempered by elevated churn levels due to
macro-economic pressures which particularly affected some of our
smaller customers. APAC continues to be a standout performer,
with 27% revenue growth driven by larger deals in Japan and ANZ.
North America continues its positive progress with a return to
double-digit organic growth (16% including acquired Fresh Relevance
revenues) and a strong pipeline of opportunities.
The Group's partnership program has
grown substantially with over 600 active agency partners and 190
tech partners increasing our serviceable addressable market and
providing a continuous flow of new engagements.
Outlook
The Group enters the new financial
year with continued positive momentum. Wider macro global
conditions remain challenging, but due to the diversity of our
revenue base and the low dependence we have on individual
customers, the impact of this has been limited. We are seeing
growing evidence that the investment we have made into our product
offering is yielding results, particularly in respect of average
new logo values and pricing power.
With strong new business prospects,
high levels of recurring revenue and a robust financial position,
the Board remains confident in the Group's growth
prospects.
Milan Patel, CEO of Dotdigital, commented:
"We are pleased to provide an
update on a year of significant strategic progress for the Group
alongside continued financial growth. Having laid out our CXDP
vision two years ago, we have transformed our platform through the
acquisition of Fresh Relevance and a number of important technology
enhancements to elevate our competitive differentiation and expand
our market reach. We continue to make further enhancements to
benefit our customer's needs and drive more organic
growth.
"Entering the new financial year, the outlook remains
positive as marketing teams continue
to transition to all-in-one product capabilities with demonstrable
ROI. At the same time, our strong net cash position provides the
resource to continue investment in organic and inorganic
opportunities where appropriate."
1 Market expectation for the year to 30 June 2024 is as
follows:
- Revenue
£78.7m
- Adjusted profit before
tax £16.4m
- Adjusted EBITDA
£24.0m
Adjustments include share based
payments, acquisition costs and other exceptional items.
For further information please
contact:
|
Dotdigital Group Plc
Milan Patel, CEO
Alistair Gurney, CFO
|
Tel: 020 3953 3072
investorrelations@dotdigital.com
|
|
|
|
|
Alma
Strategic Communications
Hilary Buchanan
David Ison
Kieran Breheny
|
Tel: 020 3405 0210
dotdigital@almastrategic.com
|
|
|
|
|
Canaccord Genuity (Nominated Advisor and Joint
Broker)
Bobbie Hilliam, Corporate Finance
Jonathan Barr, Sales
|
Tel: 020 7523 8000
|
|
|
|
|
Cavendish Capital Markets Limited (Joint
Broker)
Jonny Franklin Adams, Corporate Finance
Sunila de Silva, Equity Capital
Markets
|
Tel: 020 7220 0500
|
|
|
|
|
Singer Capital Markets (Joint
Broker)
Shaun Dobson, Corporate Finance
Alex Bond, Corporate
Finance
|
Tel: 020 7496 3000
|
About Dotdigital
Dotdigital Group plc (AIM: DOTD) is
a leading provider of cross-channel marketing automation technology
to marketing professionals. Dotdigital's customer experience and
data platform (CXDP) combines the power of automation and AI to
help businesses deliver hyper-relevant customer experiences at
scale. With Dotdigital, marketing teams can unify and enrich their
customer data, identify valuable customer segments, and deliver
personalised cross-channel customer journeys that result in
engagements, conversions, and loyalty.
Founded in 1999, Dotdigital is
headquartered in London with offices in Croydon, Manchester, New
York, Melbourne, Sydney, Singapore, Tokyo, Amsterdam, Cape Town,
and Warsaw. Dotdigital's solutions empower over 4,000 brands across
150 countries.