Dotdigital reports continued profitable growth

(Sharecast News) - Dotdigital reported continued profitable growth for the year ended 30 June on Monday, with revenue rising 6% to £83.9m, driven by strong international demand and increased customer spend.

Adjusted EBITDA and pre-tax profit are expected to show double-digit growth, in line with market expectations.

The software-as-a-service (SaaS) group, which provides customer experience and data platform (CXDP) solutions, saw average revenue per customer rise 8% to £1,923 per month on a constant currency and normalised basis.

Recurring and repeating revenue remained steady at 94% of total revenue, with contracted recurring revenue accounting for 80%.

International sales grew strongly and now represent 33% of group revenue, up from 32% a year ago, as the company secured larger clients and higher-value contracts within its core mid-market segment and gained traction with enterprise customers consolidating their tech stacks.

The group said it ended the year with a cash balance of £36.2m, down from £45.7m at the end of December, following a $20m cash outlay for the acquisition of Social Snowball in June.

It said the deal expanded its US footprint and added capabilities in influencer, affiliate and referral marketing, further enhancing its cross-channel automation offering.

The company said it intended to pay an increased final dividend in line with expectations.

"We are pleased to report on a year of further profitable growth whilst materially advancing our product proposition," said CEO Milan Patel.

"This has been accelerated further with the addition of Social Snowball in the year, unlocking a significant new market opportunity."

Dotdigital also highlighted continued progress on its organic roadmap, including platform upgrades, investments in AI, and the successful launch of WhatsApp as a supported communication channel.

More than 30 customers were now live across all regions.

Looking ahead, the board said it was focussed on targeted mergers and acquisitions and investment aligned to its long-term strategic goals.

"We enter the new year with a strong pipeline, robust financial position, a growing partner network and a significantly expanded market opportunity, leaving the board confident in the Group's continued success," Patel added.

At 1156 BST, shares in Dotdigital Group were up 2.22% at 73.6p.

Reporting by Josh White for Sharecast.com.

dotDigital Group