dotdigital Group PLC (LON:DOTD) has reported strong growth in full-year revenues and says it expects its underlying earnings (EBITDA) to be in line with expectations.
In a pre-close season trading update ahead of full-year results, the email and marketing software-as-a-service (SaaS) group said its overall revenues have grown by 19% organically to approximately £32.0mln, up from £26.9mln a year earlier.
The firm said its monthly recurring revenues from dotmailer's SaaS-based usage was up by approximately 23% to £26.0mln, with recurring revenue now representing 81% of group revenues , of which 90% is contracted.
Dotdigital said its professional services revenues grew by 6% to £3.3mln, representing approximately 10% of group revenues, while average revenue per client continued its upward trend, growing by 24%,
The group pointed out that margins have been maintained, partially as a result of its technology architecture migration to the cloud, and noted that growth in revenue from outside of the UK was 48%.
Strong cash balances
The firm also highlighted its strong cash balances as at 30 June 2017 of £20.4mln, up from £17.2mln at the same stage in 2016.
Milan Patel, dotdigital’s CEO & CFO said: “The dotmailer platform continues to evolve and innovate, providing highly sophisticated yet 'easy-to-use' marketing automation tools that empower our clients and this we believe is part of the true essence of our continued success.”
He added: “Alongside our organic growth strategy, we will continue to look for acquisitions of an earnings enhancing or strategic nature that could add to dotmailer's platform capabilities.”