(Alliance News) - dotDigital Group PLC on Tuesday said it expects to deliver to deliver "a greater rate of revenue growth this financial year versus current consensus expectations" following a strong first quarter.
The marketing automation and customer engagement software provider stated its performance in its first quarter ended September 30 has been driven by existing customer growth, new customer wins and a significant take up of non-email channels.
It noted there has been a continued increase in volumes of messages and use of omnichannel predominantly SMS, highlighting that new business wins include messaging for the leading provider of cloud-based software to UK schools, a leading English Premier League football club and a major infrastructure provider.
dotDigital said the incremental margin in the first quarter will be reinvested in the business to drive future growth, with benefits of the reinvestment expected to be seen later in financial 2021.
"The strong first quarter demonstrates the continued value our customers receive from our platform, and confirms the strength of our business model, given the uncertain economic backdrop. Our investment over past periods is now resulting in stronger top line growth, and the business continues to maintain profitability and cash generation in line with current expectations. Whilst a level of uncertainty is likely to persist for some time, our contracted, recurring revenue stream gives us a high level of confidence in delivering on our targets for the current financial year," said Chief Executive Milan Patel.
Cash held as at September-end was GBP27.7 million.
DotDigital will publish full results for its financial year ended June 30 on November 17.
The stock was trading 8.7% higher at 157.00 pence each on Tuesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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dotDigital Group (DOTD)