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The Markets
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The Markets
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Hardware & electrical equipment

dotdigital sees fourth quarter momentum continue into new financial year

Recurring revenue from enhanced product functionality and upgrades taken by both existing and new clients increased by 41% in the year to the end of June compared with the same period a year earlier

The dotdigital Group PLC (LON:DOTD) growth story continued in the financial year just ended with revenues up by more than a third year-on-year.

The marketing automation platform operator said group revenues grew by around 35% to £43.1mln in the year to the end of June from £32.0mln the year before.

The group said full-year adjusted underlying earnings (EBITDA) and operating profit are expected to be in line with market expectations.

READ: dotDigital on track to meet full-year expectations after "transformational" first half

The average revenue per user (ARPU) continued to rise, growing by 18% to roughly £845 per month from around £715 per month the year before, while the number of customers who signed up in the year rose 26% to 689 from 548 the previous year.

Happily, the strong momentum seen in the final quarter of the financial year just ended has continued into the new financial year, giving management confidence that current market expectations for the full-year will be met.

The company's expansion into the US continues to go well with revenues from the region up 43% year-on-year to US$7.1mln from US$5.0mln the previous year but this growth rate was put in the shade by the Asia-Pacific region, where revenues grew 85% to A$2.2mln from A$1.2mln in fiscal 2017.

Preparations for the introduction of new data protection regulations in the European Union did disrupt customer spending in the first half of the financial year but the region's sales cycles normalised in the second half of the year.

"This year reflects substantial progress against the company's strategic aims in accelerating our platform capabilities into the omnichannel space, continuing to innovate our product, growing geographically and deepening our relationships with our strategic partners,” said Milan Patel, the chief executive officer of dotdigital.

“Alongside our organic growth strategy, we will continue to look for acquisitions of an earnings enhancing or strategic nature that could add to the platform capabilities,” he added.

BIG ANNOUNCEMENT TIME ???????? ????The dotDigital Group has been named as one of 1000 companies to inspire Britain in 2018! We're thrilled with the news and you can found out more here https://t.co/q472yXJ9Ln@LSEplc #dotmailer #comapi

— dotmailer (@dotmailer) May 23, 2018

Shares in dotdigital opened 3.9p higher at 78.9p.

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