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(Sharecast News) - Marketing software specialist DotDigital reported steady growth in its interim results on Tuesday, with a 9% increase in revenue to £33.8m year-on-year.
The AIM-traded company said recurring revenue as a percentage of total revenue increased to 95% for the six months ended 31 December, up from 94% in the first half of the 2022 financial year.
Contracted recurring revenue represented 79% of total revenue, while the firm's average revenue per customer rose 11% to reach £1,573 per month.
DotDigital said its continued investment in talent resulted in adjusted EBITDA of £11.1m for the first half, down from £12.2m year-on-year and in line with expectations, and an adjusted operating profit of £7.5m, falling from £8.9m.
The company reported a strengthened cash position, with a net cash balance of £49.6m at period end on, compared to £40m a year earlier.
"We are pleased to report another period of profitable growth and execution in line with our strategy, as we begin to realise the benefits of our strengthened operations functions following investment in the prior period," said chief executive officer Milan Patel.
"Organisations across industries are depending, more than ever, on driving higher engagement across their customer bases to support growth and loyalty.
"Our technology sits at the heart of this, with digital engagement tools underpinned by rich data that provide insights into the value and impact of marketing spend throughout the customer journey."
Patel said the company entered the second half with a stronger pipeline of opportunities, supported by a "profitable, cash generative business model" and increasing recurring revenues.
"Whilst we remain mindful of macroeconomic uncertainty, the strength of our value proposition, expertise across sectors and expanding addressable market give us confidence in meeting market expectations."
At 1052 GMT, shares in DotDigital Group were down 0.15% at 96.86p.
Reporting by Josh White for Sharecast.com.
