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dotDigital sees big pick-up in client spending

Revenues overall rose by 17% to £15mln in the six months to December
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Recurring revenue jumped by 22%

Bulk email specialist dotDigital Group PLC (LON:DOTD) saw strong growth in recurring revenues while the amount each customer spent also picked up in its latest half year.

Revenues overall rose by 17% to £15mln in the six months to December, but within that recurring income rose by 22% to £12.2mln and the spend per client by 24% to an average of £650 per month.

Most of the pick-up in recurring revenue came from product upgrades, with the number of emails sent up by its platform up 41% to 5.6bn.

Milan Patel, chief executive, said he was pleased with the first half and its growing partnership business.

“With the focus on adding value to our customers we have continued to see the recurring revenues from advanced functionality increase.

“Through the strengthening of our strategic partnership with Magento we continue to get brand awareness building internationally which supports the organic growth strategy of the business.”

Dotdigital has also recently partnered with PayPal and ORO CRM, while a direct sales stream is now in Australia to spearhead a sales drive in the Asia Pacific region.

Underlying earnings [EBITDA] are in line with market forecasts, the email group said.

Broker fiinccap noted that Magento v2.1 upgrade has enjoyed a build in the pipeline after a slow start and partnerships with Shopify, ORO and PayPal are developing positively. 

The broker has a target price of 70p.

 

-update for broker comment--

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