REG - dotDigital Group plc - Trading Update and Notice of Results

dotDigitalAnnouncement

26/01/2023 07:00

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RNS Number : 8875N  dotDigital Group plc  26 January 2023

26 January 2023

 

Dotdigital Group plc

("Dotdigital" or the "Group")

 

Trading Update & Notice of Half Year Results

 

Trading in line following continued healthy demand

 

Dotdigital Group plc (AIM: DOTD), the leading 'SaaS' provider of an
omnichannel marketing automation and customer engagement platform, announces a
trading update for the six months ended 31 December 2022 ("H1 2023"). The
trading performance reported in this statement is based on unaudited
management accounts.

 

Highlights

 

 ·             Revenue tracking in line with market expectations for the full year, with H1
               revenue up by 9% to £33.8m (H1 2022: £30.9m)
 ·             Adjusted profit before tax in line with market expectations for the full year
 ·             Functionality recurring revenue (licence, data charges and additional
               functionality) up by 13% to £12.2m (H1 2022: £10.8m)
 ·             Average revenue per customer (ARPC) continued to increase in line with
               customer revenue growth
 ·             Cash balance on 31 December 2022 of £49.6m (30 June 2022: £43.9m)

 

Overview

 

The Board considers H1 2023 to have been a period of encouraging progress as
we began to benefit from the operational building blocks put in place in the
second half of the prior year.

 

In EMEA, our largest and most established market, notwithstanding the
uncertain macroeconomic backdrop, overall demand was positive. As Marketeers'
look to rationalise their marketing technology stack, a cost-effective and
efficient onboarding solution is a priority, and Dotdigital's platform, which
offers a demonstrable ROI across their customer journey, is proving a popular
solution. Our pipeline of higher value deals and bookings grew through Q2 and
has positioned us well heading into H2.

 

Following a series of key hires, the Group's in-region sales team in North
America is now embedded and beginning to convert a growing pipeline. The US
operation is now performing with evidence of increasing bookings from both new
and existing customers. Notwithstanding currency tailwinds in H1, the Board is
confident North America is back on a positive trajectory and will report
positive underlying growth come the full year.

 

Albeit from a lower base, APAC again delivered strong sales growth. The Group
continues to invest in its presence in the region, further expanding localised
go-to-market teams and, in Japan, appointing an experienced country lead that
will help build and execute on our market strategy.

 

From a product perspective, the Group remains focused on delivering best in
class performance and building out its Customer Data Experience Platform
(CDXP) capability. In H2 we will be releasing more integrations into our
strategic partners (Fresh Relevance, Yotpo, Trustpilot, Netsuite, Commerce
Tools, Cvent) with more focus and release of predictive analytics
functionality and real time automations for the customer journey.

 

Revenue through strategic partners continues to trend upwards. The Group
strengthened its go to market teams from Sales to Customer Success and its
Partner Management teams across all three regions in the period and is well
positioned moving into H2.

 

Outlook

 

Our platform remains at the forefront of the industry, providing Marketeers
with a complete set of powerful, data-driven, and easy-to-use tools. While
remaining cognisant of the challenging macroeconomic backdrop, with a growing
global reputation, talented and committed teams, and good visibility over the
second half, the Group looks forward with confidence.

 

Looking ahead, we remain focused on building and optimising our three regions,
investing in our platform and CDXP capability, and deepening our relationships
with our strategic partners. At the same time we will actively seek
opportunities to supplement organic growth through acquisitions.

 

Notice of Half Year Results

 

The Group expects to announce its results for the six months ended 31 December
2022 on 7 March 2023.

 

Milan Patel, CEO of Dotdigital, commented:

 

"We entered the financial year on a high and with a renewed sense of optimism
having successfully addressed the operational challenges of the previous
financial year and seeing evidence of increasing commercial momentum across
the Group. What followed was six months of continued progress on all fronts.

 

We are confident that the business is moving in the right direction
strategically and anticipating ongoing healthy demand for our platform across
our territories.

 

The market opportunity remains strong, underpinned by a robust business model
and a strong balance sheet which gives us confidence in investing in both our
organic growth strategy as well as building on strategic M&A opportunities
to accelerate our platform functionality."

 

For further information please contact:

 

 

 Dotdigital Group Plc                                    Tel: 020 3953 3072

Milan Patel, CEO

Alistair Gurney, CFO                                   investorrelations@dotdigital.com

 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

 

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