LONDON (Alliance News) - Dotdigital Group PLC on Friday said it expects to report earnings for its recent financial year slightly ahead of market expectations, as revenue rose 26%.
In a pre-close statement, the email and marketing software-as-a-service company said its overall revenue rose to around GBP26.9 million in the year to end-June, from GBP21.4 million the year before.
This means that its earnings before interest, tax, depreciation, amortisation, finance income and some finance expenses will be slightly ahead of what the market expects, it said.
Within this revenue growth, Dotdigital highlighted a rise in monthly recurring revenue from its software dotmailer, up 31% to GBP21.1 million for the full year from GBP16.1 million the year before, and 29% growth in average revenue per client to GBP575 per month from GBP445.
In regards to the UK's decision to leave the European Union, Dotdigital said that it "continues to monitor the effects of the decision", but said its initial view is that it will "not have a material adverse impact on dotmailer's ongoing business".
Additionally, the company believes the long-term effects of Brexit will be limited as "clients and prospects will continue to invest more of their marketing budgets into digital marketing channels which generate high returns on investment."
"This continued strong performance with revenue growth of 26% is again extremely encouraging and illustrates that our profitable organic growth strategy continues to deliver against strong contracted recurring revenues in the business," said Chief Executive Officer and Chief Financial Officer Milan Patel in a statement.
Shares in Dotdigital were up 5.6% at 47.00 pence Friday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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dotDigital Group (DOTD)