TIDMDOTD
RNS Number : 3293H
dotDigital Group plc
27 July 2023
Dotdigital Group plc
( "Dotdigital" or the "Group")
FY23 Trading Update
Double-digit growth and strong cash generation
Dotdigital Group plc (AIM: DOTD), the leading 'SaaS' provider of
an omnichannel marketing automation and customer engagement
platform, is pleased to provide the following trading update for
the year ended 30 June 2023 (FY23). The trading performance in this
statement is based on unaudited management accounts.
Highlights
-- Robust trading across all regions expected to deliver 10% growth in revenue to GBP69.1m (2022:
GBP62.8m), slightly ahead of consensus market expectations(1)
-- Continued progress against strategic pillars:
o Recurring and repeating revenue as a percentage of total revenue maintained at 94% (2022:
94%)
o Return to growth in the US region following stabilisation and investment
o ARPC(2) continued its upward trend, growing by 11% to approximately GBP1,622 per month (FY22:
GBP1,461 per month);
o Functionality recurring revenue (from license fees, data and enhanced bolt-on functionality)
grew 11% to GBP24.9m (2022: GBP22.3m);
o Revenues from customers using a data connector from strategic partners up 8% to GBP31.2m
(2022: GBP28.9m)
-- Adjusted EBITDA, operating profit, and profit before tax(3) are all expected to be in line
with market expectations(1) ;
-- Strong cash generation through the period with cash balance of GBP52.7m on 30 June 2023, providing
the flexibility to invest in the organic and acquisition growth strategy;
-- Intention to pay an increased final dividend in line with market expectations(4) ;
Overview
The Board is pleased to report double-digit revenue growth in
FY23, driven by healthy demand across the Group's diverse customer
base and growth in all regions.
As projected at our interim results in March 2023, investments
made in the US team has delivered a growing pipeline and
acceleration of sales, resulting in a return to growth in the
region.
Alongside this, EMEA and APAC have performed well. We are
particularly pleased to see our investments in Japanese markets
bear fruit, with a solid partner network established and key
appointments leading to numerous customer wins in Q4.
Building out Dotdigital's Customer Experience and Data Platform
(CXDP) has been the key focus of our product and development team
in the year. As reported on 25 May 2023, we initiated a series of
enhancements to our platform, enabling the Group to harness
artificial intelligence and machine learning capabilities to
improve campaign content and deliver actionable insights to our
customers. These enhancements have been well-received.
Outlook
The Group has closed FY23 strongly with positive trading
momentum across all regions. We are continuing to invest in our
technology stack to further increase the capabilities and scale of
our CXDP platform. Alongside this, we also continue to appraise
prospective acquisition targets to complement our organic
growth.
While cautious of the uncertainty from the wider economic
environment, our business model has been built to perform in
different market conditions, giving us confidence in our ability to
drive steady growth, in line with market expectations.
Milan Patel, CEO of Dotdigital, commented:
"Performance in FY23 was robust, with trading momentum building
through the first half and accelerating in the second. The progress
we are making can be attributed to the strength and resilience of
our business model, the strategic investments we continue to make
in the platform and the strengthening of our teams across all
regions.
"Wider market uncertainty has prompted a shift to retention
marketing among our customers. In this environment, Dotdigital's
platform insights and omnichannel engagement represent a key tool
for organisations placing a greater focus on customer engagement.
The Group continues to develop CXDP capabilities, with a view to
capturing the growing demand for a greater depth of analytics and
personalised user experiences delivered by rich datasets,
artificial intelligence and machine learning.
"The outlook is positive, and we retain our confidence in
scaling our platform and delivering continued growth through FY24
and beyond."
Notes
1.Market Consensus for revenue for the year ended 30 June 2023
is GBP67.57m. Market Consensus for adjusted EBITDA and adjusted
profit before tax for the year ended 30 June 2023 are GBP22.47m and
GBP14.65m respectively.
2. ARPC means Average Revenue Per Customer (including new
customers added in period and existing customers) and is calculated
based on average invoice values in our period end bill run.
3. Adjusted EBITDA, operating profit and profit before tax are
all adjusted for acquisition costs and share-based payments.
4. Market consensus FY23 final dividend per share is
GBP0.01.
For further information please contact:
Dotdigital Group Plc Tel: 020 3953 3072
Milan Patel, CEO investorrelations@dotdigital.com
Alistair Gurney, CFO
Alma PR (Financial PR) Tel: 020 3405 0210
Hilary Buchanan dotdigital@almapr.co.uk
David Ison
Kieran Breheny
Canaccord Genuity (Nominated Advisor and Joint Broker) Tel: 020 7523 8000
Bobbie Hilliam, Corporate Finance
Jonathan Barr, Sales
finnCap (Joint Broker) Tel: 020 7220 0500
Jonny Franklin Adams, Corporate Finance
Alice Lane, ECM
Singer Capital Markets (Joint Broker) Tel: 020 7496 3000
Shaun Dobson, Corporate Finance
Alex Bond, Corporate Finance
About Dotdigital
Dotdigital Group plc (AIM: DOTD) is a leading provider of
omnichannel marketing automation technology to digital marketing
professionals. Our Customer Experience and Data Platform (CXDP)
uses data-driven insights, AI and machine learning-driven
capabilities and a hyper-personalised customer experience to help
marketers elevate their campaigns across multiple channels.
Founded in 1999, Dotdigital is headquartered in London with
offices in Amsterdam, Croydon, Manchester, Cheltenham, New York,
Melbourne, Sydney, Singapore, Cape Town, and Warsaw. Dotdigital's
technology is currently used by 4000+ customers in 150+
countries.
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