REG - dotDigital Group plc - Trading Update & Notice of Half-Year Results

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RNS Number : 4439Q  dotDigital Group plc  27 January 2026

27 January 2026

 

Dotdigital Group plc

("Dotdigital" or the "Group")

 

Trading Update & Notice of Half-Year Results

 

Double-digit growth in core CXDP ARR, confident in FY26 outlook in line with
market expectations

 

Dotdigital (AIM: DOTD), the leading provider of an AI-powered customer
experience and data platform for intelligent, personalised marketing
engagement at scale, announces a trading update for the six months ended 31
December 2025 ("H1 2026"). The trading performance reported in this statement
is based on unaudited management accounts.

 

The Board is pleased to report good progress from its strategic initiatives,
delivering high-quality growth and strong margin performance, supporting the
Group's ability to reinvest in its strategy. Demand from new and existing
customers remained solid, supported by the Group's focus on higher-value
customers and a highly recurring revenue base, with growth in all regions in
the core CXDP business which is reflected in an increase in forward-looking
contracted ARR.

 

H1 Financial Highlights

 

 ·         Trading in line with full-year market expectations(1)
 ·         Forward-looking contracted ARR from the core CXDP business up 13% (6% on an
           organic(2) basis) to £75.4m (H1 2025: £67.0m)
 ·         Recurring revenue from the core CXDP business recognised in H1 up 11% (4% on
           an organic(2) basis) to £37.3m, which now represents 84% of total revenues
           (H1 2025: 80%)
 ·         Total Group revenue including the low-margin CPAAS business up 4% to £44.2m
           (H1 2025: £42.4m), on a normalised(3) basis this is up 9% (3% on an
           organic(2) normalised(3) basis)
 ·         ARPC(4) (excluding Social Snowball) increased by 7% on a normalised(3) basis
           to £1,968 per month (H1 2025: £1,830 normalised or £1,916 reported)
 ·         Cash at 31 December 2025 totalled £36.1m (31 December 2024: £45.7m),
           following the $20m consideration payment for Social Snowball
 ·         FX headwinds incurred on all metrics above which are disclosed on an actual
           currency basis, constant-currency growth rates are all approximately 1% higher
           than those highlighted above

 

As highlighted over the previous year, H1 2025 represented an unusually strong
comparator period across both the core CXDP business and the low‑margin
CPAAS business as a result of final contributions from an exited CPAAS
contract and exceptional SMS volume tied to specific marketing campaigns in H1
2025. Underlying core CXDP revenue continues to grow well, driven by continued
growth in all regions and execution of the Group's targeted M&A strategy.

 

Following its acquisition in late June 2025, Social Snowball has performed
well, and integration is progressing to plan. ARR is up approximately 30% on
an annualised basis since acquisition, with an acceleration in growth rate
expected as Go-To-Market investments take effect. Social Snowball ARPC per
month has increased by 9% (18% annualised) from US$319 per month upon
acquisition to US$348 per month in December. It adds influencer, affiliate and
referral marketing capability and strengthens the Group's Shopify ecosystem
presence, supporting the opportunity to expand ARPC through cross- and up-sell
across the enlarged customer base.

 

Product innovation continues to reflect customer demand for sophisticated yet
easy‑to-use platforms that unify data and personalisation across channels to
deliver measurable ROI. In H1, the Group delivered enhancements across the
product suite, including continued strengthening of WinstonAI, further
momentum in WhatsApp adoption, and the launch of CreatorSearch within Social
Snowball. The Group's loyalty product is now being tested in production
environments by early adopters, with positive results being generated for
customers, with wider release expected later this fiscal year. Looking ahead
to H2 and beyond, the Group will focus its product innovation investment on
strengthening data, AI and partner integration capabilities, alongside
continued enhancements to ‑ internal infrastructure and processes.

 

The Board remains confident in the Group's prospects and expects to deliver
FY26 results in line with market expectations, supported by the Group's strong
cash position, high-visibility recurring revenues and strong, growing product
portfolio. Despite macro pressures including FX volatility, customer cost
sensitivity, and market consolidation, which presents both opportunities and
challenges, the Group remains well positioned to navigate these dynamics
through a differentiated, ROI-driven offering. The Board continues to
proactively appraise acquisition opportunities in line with its strict
criteria.

 

Notice of Half-Year Results

 

The Group expects to announce its results for the six months ended 31 December
2025 in early March.

 

Milan Patel, CEO of Dotdigital, commented:

 

"We have made a solid start to FY26, despite the challenging macro environment
and continue to see customers prioritising platforms that simplify their
technology stack and make results easier to achieve and measure. That plays to
Dotdigital's strengths: a highly recurring revenue model, a broad all-in-one
CXDP proposition and a clear focus on helping marketers use data and
personalisation to drive outcomes.

 

We are progressing with a balance of ambition and discipline, investing where
we see the best returns. Alongside continued organic investment, we remain
proactive in assessing complementary acquisition opportunities that enhance
the platform and support long-term value creation. Social Snowball is a
product of this approach, and we are delighted with its contribution. With a
comprehensive product portfolio, strong revenue visibility, a strengthening
pipeline and a healthy balance sheet, we are confident in the year ahead and
the Group's continued success."

 

(1) Consensus market expectations for the year to 30 June 2026 at the time of
publication:

 ·             Revenue: £91.9m
 ·             Adjusted EBITDA: £29.1m
 ·             Adjusted profit before tax: £20.0m

(2) Organic revenue excludes results attributable to Social Snowball, acquired
June 2025.

(3) Normalised for the non-renewal of the non-core low-margin CPAAS contract
as announced on 26 June 2025 (full annual contract value £4.4m)

(4) Average revenue per customer

 

 

Contacts

 

 Dotdigital Group plc                                    +44 (0)20 3953 3072
 Milan Patel, CEO                                        investorrelations@dotdigital.com (mailto:investorrelations@dotdigital.com)
 Tom Mullan, CFO

 Alma Strategic Communications                           +44 (0)20 3405 0210
 Hilary Buchanan                                         dotdigital@almastrategic.com (mailto:dotdigital@almastrategic.com)
 David Ison
 Will Merison

 Canaccord Genuity (Nominated Adviser and Joint Broker)  +44 (0)20 7523 8000
 Bobbie Hilliam
 Elizabeth Halley-Stott

 Cavendish Capital Markets Limited (Joint Broker)        +44 (0)20 7220 0500
 Jonny Franklin-Adams, Corporate Finance
 Sunila de Silva, Equity Capital Markets

 Singer Capital Markets (Joint Broker)                   +44 (0)20 7496 3000
 Shaun Dobson
 Jen Boorer

 

About Dotdigital

 

Dotdigital Group plc (AIM: DOTD) is a leading provider of cross-channel
marketing automation technology to marketing professionals. Dotdigital's
customer experience and data platform (CXDP) combines the power of automation
and AI to help businesses deliver hyper-relevant customer experiences at
scale. With Dotdigital, marketing teams can unify and enrich their customer
data, identify valuable customer segments, and deliver personalised
cross-channel customer journeys that result in engagements, conversions, and
loyalty.

 

Founded in 1999, Dotdigital is headquartered in London with offices in
Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw
and Cape Town. Dotdigital's solutions empower over 4,000 brands across 150
countries.

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