31 January 2024
Dotdigital Group
plc
("Dotdigital", the "Company", or the "Group")
Trading Update & Notice
of Half Year Results
Dotdigital Group plc (AIM:
DOTD), the leading SaaS provider of an all-in-one customer
experience and data platform (CXDP), announces a trading update for
the six months ended 31 December 2023 ("H1 2024"). The trading
performance reported in this statement is based on unaudited
management accounts.
Highlights
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Revenue tracking in line with market
expectations for the full year, with H1 2024 up by 15% to £38.7m
(H1 2023: £33.8m)1
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Organic revenue increased by 11% in
constant currency (9% reported to £36.9m)
Adjusted profit before tax tracking
in line with market expectations for the full
year2
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Fresh Relevance integration on
track, with cost synergies slightly ahead of schedule and first new
joint customers won
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Functionality recurring revenue
(licence, data charges and additional functionality) up by 8% to
£13.2m (H1 2023: £12.2m)
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Organic average revenue per customer
(ARPC) (excluding Fresh Relevance) growth of 8% to £1,700 continues
in line with customer revenue growth
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Cash balance on 31 December 2023 of
£37.1m (31 December 2022: £49.6m), in line with expectations
post-acquisition of Fresh Relevance2 and reflecting
usual working capital cycles
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Overview
The Board is pleased to report that
trading and financial performance for the first half of the year
was in line with Board expectations, with prior year investment in
the Group's product portfolio and operations driving stronger
traction with higher value customers and increased
bookings.
The integration of Fresh Relevance,
acquired in September 2023 is progressing on track. Significant
strides have already been made to position the combined businesses
for scalable growth, including development of a unified onboarding
process, implementation of a single sign-on and the establishment
of a joint go-to market strategy.
A key rationale behind the
acquisition was to grow the Group's addressable market and increase
traction with higher value customers. Encouragingly, the addition
of Fresh Relevance has already led to new direct deals with new
customers in larger size brackets and the pipeline continues to
grow. In line with another important objective for the Group,
initial uptake of the personalisation platform by existing
Dotdigital customers has been good.
The Group is pleased to report
growth in all regions. The largest, EMEA, continues to grow in line
with expectations as customers move toward comprehensive,
all-in-one solutions. APAC maintains its trajectory of strong,
double-digit growth following previous investment. Commercial
progress in North America continues to accelerate from FY23 levels,
with percentage sales growth in the high single digits and a
growing pipeline of opportunities.
Revenue from strategic partnerships
continued to grow, albeit more modestly than in H1 2023, with
growth in CRM connectors offset by continued subdued activity
through the larger ecommerce connectors.
Outlook
As we enter the second half, trading
conditions remain positive. While cognisant of wider macroeconomic
pressures, the demand for impactful and efficient digital marketing
capabilities is growing as organisations across industries look to
attract, convert and retain customers. The investment we have made
in enhancing our product offering as we build out our comprehensive
CXDP platform, infusing AI, personalisation and omni-channel
functionality, strengthens our market position and leaves us well
placed for the future.
Notice of Half Year Results
The Group expects to announce its
results for the six months ended 31 December 2023 on 5 March
2024.
Milan Patel, CEO of Dotdigital, commented:
"We have successfully delivered strong growth, achieved a
higher ARPC, and increased bookings in the period. I am encouraged
by the momentum that is building in the US, whilst EMEA and APAC
continue to be in great shape, albeit at different stages of
development.
The Fresh Relevance acquisition is every bit the fit we hoped
it would be. Our teams have gelled well and the initial work on
combining the technology has been completed. It's testament to the
speed and quality of the integration that we are already making
meaningful headway together with our combined offering with higher
value organisations.
We
are feeling positive going into the second half. Of course,
macroeconomic uncertainties are likely to persist but, with
strength across all regions, an increasingly compelling product and
market trends that work in our favour, we enter it with
confidence."
1 Market consensus for revenue for the year to 30 June 2024 is
£78.5m.
2 Market consensus for adjusted profit before tax for the year
to 30 June 2024 is £15.7m. Adjustments include share based
payments, acquisition costs and other exceptional items.
For further information please
contact:
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Dotdigital Group Plc
Milan Patel, CEO
Alistair Gurney, CFO
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Tel: 020 3953 3072
investorrelations@dotdigital.com
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Alma
Strategic Communications
Hilary Buchanan
David Ison
Kieran Breheny
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Tel: 020 3405 0210
dotdigital@almastrategic.com
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Canaccord Genuity (Nominated Advisor and Joint
Broker)
Bobbie Hilliam, Corporate Finance
Jonathan Barr, Sales
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Tel: 020 7523 8000
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Cavendish Capital Markets Limited (Joint
Broker)
Jonny Franklin Adams, Corporate Finance
Sunila de Silva, Equity Capital
Markets
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Tel: 020 7220 0500
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Singer Capital Markets (Joint
Broker)
Shaun Dobson, Corporate Finance
Alex Bond, Corporate
Finance
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Tel: 020 7496 3000
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About Dotdigital
Dotdigital Group plc (AIM: DOTD) is
a leading provider of cross-channel marketing automation technology
to marketing professionals. Dotdigital's customer experience and
data platform (CXDP) combines the power of automation and AI to
help businesses deliver hyper-relevant customer experiences at
scale. With Dotdigital, marketing teams can unify and enrich their
customer data, identify valuable customer segments, and deliver
personalised cross-channel customer journeys that result in
engagements, conversions, and loyalty.
Founded in 1999, Dotdigital is
headquartered in London with offices in Croydon, Manchester, New
York, Melbourne, Sydney, Singapore, Tokyo, Amsterdam, Cape Town,
and Warsaw. Dotdigital's solutions empower over 4,000 brands across
150 countries.