REG - dotDigital Group plc - FY25 Trading Update

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RNS Number : 7487S  dotDigital Group plc  28 July 2025

28 July 2025

 

Dotdigital Group plc

("Dotdigital" or the "Group")

 

FY25 Trading Update

 

Continued profitable growth and strategic progress against high-margin CXDP
vision

 

Dotdigital Group plc (AIM: DOTD), the leading SaaS provider of an all-in-one
customer experience and data platform (CXDP), announces a trading update for
the year ended 30 June 2025 ("FY25"). The trading performance reported in this
statement is based on draft unaudited management accounts and refers to
expected results on an actual currency basis unless otherwise stated.

 

Highlights

 

 ·         Group revenue of £83.9m(1) (FY24: £79.0m), up 6% on an actual currency basis
           and 7% on a constant currency basis

 ·         94% of Group revenue is recurring or repeating revenue, consistent with FY24;
           80% is contracted recurring (FY24: 79%)

 ·         Average revenue per customer ("ARPC") increased by 8% on a constant currency
           and normalised basis to £1,923 per month (FY24: £1,781 normalised(1) or
           £1,857 previously reported)

 ·         Adjusted EBITDA and adjusted PBT expected to register strong growth in line
           with market expectations(2)

 ·         Cash balance of £36.2m as at 30 June 2025  (31 December 2024: £45.7m),
           following $20m cash payment for the acquisition of Social Snowball and
           reflecting continued strong cash generation

 ·         Intention to pay an increased final dividend in line with market expectations

 ·         Acquisition of Social Snowball, significantly growing the Group's US
           footprint, strengthening Group's cross-channel marketing automation
           capabilities and granting access to the rapidly growing influencer marketing
           segment

 

The Board is pleased to confirm a robust revenue performance and double-digit
profit growth for the year, including growth in all geographic regions.

 

Notwithstanding persistent challenging market conditions, the Group continued
to see healthy demand in line with market trends for data, personalisation and
AI functionality. It secured larger customers and higher-value contracts
within its core mid-market segment alongside growing adoption among larger
enterprises seeking to consolidate their technology stacks. Revenue from
international regions grew by strong double-digit percentages and now
represents 33% of total revenue (FY24: 32%).

 

The Group made good progress against its organic product roadmap, with
continued investment in AI, platform upgrades and enhancements to support new
customer and cross-selling success. In April 2025, Whatsapp was fully launched
as a communication channel and revenue is now being generated from its use.
More than 30 customers are in production across all regions, with demand
growing and a clear competitive differentiator driving adoption and retention.

 

The acquisition of Social Snowball on 25 June 2025 marked a key strategic
milestone, adding a highly complementary asset to the Group's offering and
extending its reach into the fast-growing influencer, affiliate and referral
marketing segments. This follows the integration of personalisation
functionality with the acquisition of Fresh Relevance during FY24, further
supporting the Board's strategy of driving high-margin, high-quality recurring
SaaS revenue growth through the continued development of the Group's leading
all-in-one CXDP platform.

 

Supported by a robust balance sheet, the Board continues to assess further
strategic M&A and targeted investment aligned to its strategic priorities,
including strengthening go-to-market leadership and reinforcing operational
foundations to support the Group's long-term growth ambitions.

 

Milan Patel, Chief Executive Officer of Dotdigital, commented:

 

"We are pleased to report on a year of further profitable growth whilst
materially advancing our product proposition to support our ambition of
scaling innovative, high margin CDXP solutions within fast growing markets.
The impact of our product enhancement efforts to date, both organically and
inorganically, can be seen in a robust new customer acquisition performance as
well as the continued uptake of additional functionality across our existing
base. This has been accelerated further with the addition of Social Snowball
in the year, unlocking a significant new market opportunity.

 

"Whilst market conditions remain uncertain, we remain laser focussed on the
growth opportunities and roadmap to executing on our strategy. We enter the
new year with a strong pipeline, robust financial position, a growing partner
network and a significantly expanded market opportunity, leaving the Board
confident in the Group's continued success."

 

(1) Includes the negative £0.7m FY25 impact from termination of non-core,
low-margin contract (full annual contract value of £4.4m)

(2) FY25 market consensus at the time of publication is adjusted EBITDA of
£25.8m and adjusted profit before tax of £18.3m

 

For further information please contact:

 Dotdigital Group Plc                                    Tel: 020 3953 3072

Milan Patel, CEO

Tom Mullan, CFO                                        investorrelations@dotdigital.com (mailto:investorrelations@dotdigital.com)

 Alma Strategic Communications                           Tel: 020 3405 0210

 Hilary Buchanan                                         dotdigital@almastrategic.com

 David Ison

 Sarah Peters

 Canaccord Genuity (Nominated Advisor and Joint Broker)  Tel: 020 7523 8000

Bobbie Hilliam

 Elizabeth Halley-Stott

 Cavendish Capital Markets Limited (Joint Broker)        Tel: 020 7220 0500

Jonny Franklin Adams, Corporate Finance

 Sunila de Silva, Equity Capital Markets

 Singer Capital Markets (Joint Broker)                   Tel: 020 7496 3000

Shaun Dobson, Corporate Finance

 Jen Boorer, Corporate Finance

 

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 and
Cape Town. Dotdigital's solutions empower over 4,000 brands across 150
countries.

 

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