Interim results for the six months ended 31 December 2023
Strong growth in line with expectations and expanded addressable market
Dotdigital Group plc (AIM: DOTD), the leading SaaS provider of an all-in-one customer experience and data platform (CXDP), announces its unaudited interim results for the six months ended 31 December 2023 (“H1 FY24”).
Financial Highlights
| · | Group revenue increased 15% to £38.7m (H1 FY23: £33.8m) | |
| o | Organic revenue (excluding Fresh Relevance) increased 11% in constant currency (9% on a reported basis) to £36.9m | |
| · | Recurring and repeating revenue as a percentage of total revenue was 94% (H1 FY23: 95%) and contracted recurring revenue represents 79% of total revenue (H1 FY23: 79%) | |
| · | ARPC1 increased 9% to £1,709 per month (H1 FY23: £1,573 per month), not materially affected by the Fresh Relevance acquisition | |
| · | Adjusted EBITDA2 of £12.4m up 13% from £11.1m | |
| · | Adjusted profit before tax3 of £8.9m, in line with management expectations and 16% above prior year (H1 FY23: £7.7m), driven by revenue growth and increased interest income | |
| · | Net cash balance of £37.1m on 31 December 2023 (H1 FY23: £49.6m) following acquisition of Fresh Relevance (of which £18.8m was in cash) | |
Operational Highlights
| · | Healthy demand with total bookings ahead of last year, and particularly strong contribution from new customers as the broader platform offering gains traction in higher value deals |
| · | Fresh Relevance integration on track with joint offering delivering new, larger enterprise customer wins |
| · | International footprint delivering growth in all markets, with organic international revenue growth of 11.5% (18% in constant currency) driving total international revenues to £12.9m (H1 FY23: £11.5m), representing 33% of total revenue (H1 FY23: 34%) |
| · | Ongoing product innovation with a focus on predictive analytics and real time automation functionality |
| · | Growing new business pipeline, including larger enterprise opportunities, with trading at the start of H2 tracking in line with Board and market expectations4 for the full year |
Milan Patel, CEO of Dotdigital, commented:
“We’re pleased to report on a period of continued financial growth alongside the acceleration of our product roadmap and a growing market opportunity. We have invested into broadening and enhancing our platform offering, and we are seeing good levels of uptake, particularly from new customers, and our strengthened foundations across territories are translating into growth.
The acquisition of Fresh Relevance during the period added highly complementary personalisation technology to our offering, delivering early new business and cross selling success and a growing pipeline of larger value deals. Our proposition is now even further aligned with the market-wide demand for an all-in-one digital marketing platform, complemented by our sophisticated AI and machine learning tools.
We enter the second half with continued momentum, in line with Board expectations. Whilst cognisant of wider macroeconomic conditions across our markets, our robust financial position, comprehensive product offering servicing a diverse customer base and an expanded pipeline of opportunities leave us confident in the Group’s continued success.”
Analyst Briefing and Investor Presentation
Management will be hosting a live online presentation for analysts today at 9am GMT. To register to attend the analyst presentation, please contact dotdigital@almastrategic.com.
Live presentation to investors: Management will host a live online presentation to investors via the Investor Meet Company platform on Thursday, 7 March 2024 at 4pm GMT. The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and add to meet Dotdigital via this link.
1: ARPC: Average revenue per customer (including new customers added in the period and existing customers) based on our December billing
2: Adjusted EBITDA Earnings before interest, tax, depreciation and amortisation, adjusted for exceptional items such as acquisition costs and share based payments
3: Adjusted Profit before tax: Profit before tax adjusted for exceptional items and share based payments
4: Market Expectations: market consensus for Revenue for the year to 30 June 2024 is £78.5m; and market consensus for adjusted PBT is £15.7m