logo-loader
viewDotdigital Group PLC

Dotdigital’s new financial year has got off to a flier

Snapshot

It comes after a solid 12 months for the company, which has transformed itself into an omni-channel marketing automation platform with last year’s acquisition of Comapi

emails

Quick facts: Dotdigital Group PLC

Price: 89 GBX

AIM:DOTD
Market: AIM
Market Cap: £265.25 m
Follow

Marketing automation firm Dotdigital Group plc (LON:DOTD) has got off to a hot start in its current financial year as it continues to build on the progress made over the past 12 months.

The bulk emailer said the opening few months “have started very well”, with customer numbers ticking higher in all of its regions.

READ: dotdigital rated a 'buy' by Peel Hunt

It comes on the back of a solid year for dotdigital, with its omni-channel transformation continuing to bear fruit.

Revenues jumped by a third to £43.1mln in the year to 30 June 2018, up from £32.0mln the year before, while adjusted underlying earnings (EBITDA) and operating profit rose 21% to £12.5mln.

Average revenue per user (ARPU) continues to rise, growing by 18% to £845 per month from around £715 per month the year before, while the number of customers who signed up over the year soared to 689 from 548 in 2017.

Strength in all regions

Dotdigital’s expansion into the US continues to go well, with revenues from the region up 43% year-on-year to £5.4mln (US$7.1mln) from (2017: US$5.0mln).

That growth rate was put in the shade by the Asia-Pacific region, where revenues almost doubled to £1.2mln (A$2.2mln) from £0.7mln (A$1.2mln) in fiscal 2017.

Fears that the introduction of new general data protection regulation (GDPR) in Europe would hit sales in its biggest market proved unfounded, with revenues climbing 11% to £30.4mln (2017: £27.3mln).

Those figures exclude last November’s £11mln acquisition of Comapi, which is settling in nicely and contributed just over £6mln in its first seven-and-a-half months.

Three pillars

“We have continued to deliver on our three strategic pillars, expanding our geographic footprint and increasing our addressable market through integrations built into our strategic partnerships,” said chief executive Milan Patel.

“The addition of Comapi expands our functionality significantly through the addition of omni-channel, driving innovation in a dynamic business environment impacted in 2018 by a significant regulatory change.”

He added: “The transition towards becoming an AI-driven, omni-channel platform continues to gather pace, better placing dotdigital to capitalise on the opportunity of a global market for marketing automation technology and customer engagement.” 

Successful formula continues, says Finncap

Finncap said the company's "successful formula" of selling more functionality to more customers through more partners, in more territories, over more communications channels continued in 2018.

"Much more than an email marketing platform, the acquisition of Comapi during the year confirms dotmailer as a data-led marketing platform across clients’ channels of choice (e.g. email, WhatsApp, SMS, Facebook Messenger), leading to greater revenue per client from additional services, including analytics," it said.

Finncap added: "Forecasts continue to expect strong growth into FY19, and maiden FY20 forecasts show continuing trends in growth and margin."    

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Tesoro Resources prepares for reverse takeover of Plukka

Tesoro Resources Limited managing director Zeffron Reeves updates Proactive on the company as it prepares for a reverse takeover of Plukka Limited (ASX:PKA) along with an upcoming capital raising. The flagship asset of Tesoro, which is pending ASX-listing, is the El Zorro project in Chile,...

3 days, 21 hours ago

3 min read