DotDigital warns of lower revenues amid Covid-19 lockdown

(Sharecast News) - Software-as-a-Service provider DotDigital cautioned on Tuesday that revenues would slip during the current trading year due to the impact of the prolonged Covid-19 lockdown on customers.
DotDigital said its "best estimates" showed a "slight softening" of revenues but said it still expects to deliver consensus earnings and cash for the full-year.

The AIM-listed group said it believes its "strong fundamentals" remained unchanged, with a proven contracted recurring revenue business model and strong financial position.

"We remain confident in our ability to continue to deliver against our strategic growth pillars," said DotDigital.

DotDigital added that messaging volumes and omnichannel usage from existing customers had continued to grow but noted there was some evidence of new business being affected both by lead flow volumes and decision deferral. Temporary closures by customers in some industries had also had an impact.

Chief executive Milan Patel said: "The rapidly evolving nature of the global pandemic means it is difficult to gauge what the impact will be on our customers as we look beyond the current financial year.

"However, with the high level of visibility, strong balance sheet and diverse customer base that we have worked hard to build, we believe we are well-placed to weather the situation."

As of 1250 BST, DotDigital shares were down 2.63% at 92.50p.