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“With strong organic growth in line with market expectations, building blocks are now in place for a strong performance over the next 12 months”

dotdigital Group plc today gives a trading update prior to the Company’s full results for the year ended 30 June 2017.

Summary of Key Highlights:

  • Overall revenues grew by 19% organically to approximately £32.0m (FY16: £26.9m)
  • EBITDA is expected to be in line with market expectations
  • Monthly recurring revenues from dotmailer’s SaaS-based usage up approximately 23% to £26.0m (FY16: £21.1m)
  • Strong cash balances at 30 June 2017 of £20.4m (FY16: £17.2m)
  • Growth of 48% in revenue outside of the UK

Milan Patel, CEO & CFO of dotdigital, commented:

“After my first full year as CEO I am delighted to announce strong organic revenue growth of 19% and a strong cash position. This illustrates that our profitable organic growth strategy continues to perform well on the three key aspects of product innovation, geographic expansion and now developing strong strategic partnerships.
Alongside our organic growth strategy, we will continue to look for acquisitions of an earnings enhancing or strategic nature that could add to dotmailer’s platform capabilities.
We look forward to providing a full update on the year’s trading and our continued growth strategy when we announce our full year results in mid-October.
I would like to take this opportunity to thank our staff for the tremendous enthusiasm and commitment they have shown in the past year, in embracing the changes we have made and in supporting me to drive the business forward, together with our shareholders for their continued support.”

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dotdigital Group Plc (AIM:DOTD), the leading provider of intuitive software as a service (“SaaS”) and managed services to digital marketing professionals, announces its results for the six months ended 31 December 2016.

Six month key highlights

  • Revenue from operations up 17% to £15.0m from £12.9m;
  • Profit before tax up 30% to £4.3m from £3.3m;
  • Monthly recurring revenue from dotmailer’s Software as a Service (“SaaS”) based usage charges up 22% to £12.2m;
  • Recurring revenues have increased from 78% to 81% of group revenues;
  • Recurring revenue charges from market automation functionality has increased by 71%;
  • Earnings per share has increased by 20% to 1.24 pence from 1.04 pence; and
  • Strong net cash position of £18.9m as at 31 December 2016.

dotmailer platform

  • Over 250 new clients signed in the period including Tombola, Pact, CNBC, Jack Wills, Icelolly, V&A, The Conran Shop and Carpetright; and
  • Average monthly recurring spend across all clients has grown by 24% from £525 to £650.

dotmailer’s Magento Connector

  • Chosen by Magento as the only Platinum Technology Partner for Marketing Automation globally;
  • Over 350 active clients now using dotmailer’s Magento connector;
  • Average recurring spend from clients of £1,400 per month compared to £1,200 in the previous period; and
  • Annualised revenues of more than £5.6m now generated from clients using the connector.

International initiatives

  • Revenue from the US region grew by 11% to US$2.3m after team restructuring, price changes, indirect channel offering and broadening the sales proposition;
  • 139% growth in revenue from APAC to AUS$0.5m, with strong pipeline; and
  • 50% growth in revenue from EMEA countries outside of UK.

 

Commenting on current trading and outlook, Milan Patel, CEO & CFO said:

“Based on dotdigital’s strong performance at the half year to 31 December 2016, the continued demand for marketing automation, the newly released product features and connectors and our investment strategy for further expansion into international markets, the Board remains confident of continuing to deliver strong growth, underlying profitability and increasing shareholder value for the remainder of this financial year in line with market expectation.”

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FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2016

“Strong organic growth and continued international expansion”

dotdigital Group Plc (AIM:DOTD), the leading provider of intuitive software as a service (“SaaS”) and managed services to digital marketing professionals is pleased to announce its Final Results for the year ended 30 June 2016.

2016 Highlights

Key performance indicators

  • Turnover increased by 26% to £26.9m (2015: £21.4m)
  • EBITDA of £8.0m, up 17% (2015: £6.8m)
  • Strong cash position of £17.3m at year end (2015: £11.9m)
  • Net assets of £23.7m, up 29% (2015: £18.4m)
  • EPS up 12% to 1.83p (2015: 1.63p)
  • Recurring revenues of 78% (2015: 76%)
  • Volumes of emails sent 8.6bn (2015: 6.2bn)
  • International growth of 18% (2015: 14%)
  • Announced today: Final Dividend proposed of 0.84p per ordinary share (2015: 0.36p), comprised of an ordinary dividend of 0.43p (2015: 0.36p) and a special dividend of 0.41p (2015: nil) – see separate announcement

International growth

EMEA : Europe, Middle East & Africa

  • UK revenues grew 21% to £22.0m (2015: 18.3m)
    • Over £4m of revenues – up 106% – attributable to increased revenues generated by existing client upselling to new advanced feature adoption
    • Average monthly spend per client rose by approximately 29% to circa. £575
    • Professional services offering up from £2.8m to £3.1m with gross margins of 60%
  • Good progress in South Africa and Middle East with high value clients signed in period
  • Good initial traction has been achieved within the Nordics, Benelux and Netherlands through the Magento Partnership

US

  • Revenues from the US increased from US$3.0m to US$4.4m, an increase of 43%
  • New York office to be main hub across US
  • Slow start but recent new hires in sales and business development expected to drive future growth in region
  • Alongside the Magento Partnership, new CRM sales initiatives started with Salesforce & MS Dynamics

AsiaPac

  • Initial hub in Sydney, Australia with revenues of $0.6m AUS in first 12 months
  • Indirect sales model through Magento Connector and new Partnerships now being signed albeit slower than planned due primarily to these trusted new relationships taking longer to be established
  • Good progress now being made to span more broadly from Australia into AsiaPac region with opportunities to integrate the dotmailer platform via a direct sales team approach
  • Strong pipeline building

Magento connector

  • dotmailer named exclusive Global premier partner for its Magentor Connector
  • Average monthly recurring revenue spend has grown by 25% to approximately £1,300 per month
  • Magento Version 2.1 has now been released which has started to see a good client pipeline emerge in all regions across the world

New clients

  • Notable client wins across UK and international in the B2B and B2C sectors include: Vogue UK, Handelsbanken, Saville Group, Dune, Hawes and Curtis, Paul Smith, Eurostar International, Osprey Europe, Edcon, Mr Price and Sol Lingerie

H1 Outlook

  • Uncertain macro environment continually being assessed by the Board
  • Revenue growth in Q1 over 20%
  • Larger monthly spend commit from clients
  • Strong uptake of CRM connectors
  • Early signs promising for Benelux, Nordics and South Africa markets

Announced Today: Company Secretary Change

  • George Kasparian, dotdigital’s Non-Board Finance Director, takes over the Company Secretary role from Milan Patel, CEO, with immediate effect

Commenting on the final results and outlook, Milan Patel, Chief Executive Officer, said:

“2016 was a year of continued strong organic, profitable growth for dotdigital. For 2017, our approach will be further refinement of the partner programme and developing the strategic partnerships, global expansion into the EMEA, North America and Asia Pacific regions through self-service and direct sales teams and to continue building new integrations into more ecommerce and CRM platforms that focus on the mid-market and small enterprise space.

The Board believes that the dotmailer platform, with its ease-of-use proposition, deep integrations, professional services, growing list of global partners and its scalability, is well placed to continue to generate strong organic growth not only from the markets it currently operates in today but wider into the global markets it is looking to enter.”

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JULY TRADING UPDATE
FOR THE YEAR ENDED 30 JUNE 2016

“Strong organic growth in line with market expectations”

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dotdigital today gives a trading update prior to the Company’s full results for the year ended 30 June 2016. The trading performance in this statement is based on unaudited initial management estimates.

Highlights:
• Overall revenue up 26% to approximately £26.9m (FY15: £21.4m)
• EBITDA will be slightly ahead of market expectation
• Monthly recurring revenues from dotmailer’s SaaS based usage up approximately 31% to £21.1m (FY15: £16.1m)
• Creative and managed service email marketing revenues grew by approx. 11% to £1.8m (FY15: £1.7m)
• Average revenue per client has grown by 29% from c. £445 to c. £575 per month
• Monthly recurring revenue from Magento Clients continues to show strong growth of 25%
• The total number of emails sent by the dotmailer platform has grown by 39% to 8.6 billion (FY15: 6.2 billion)
• Strong cash balances at 30 June 2016 of £17.2m (FY15: £11.9m)
• Growth of 58% in revenue outside of the UK

Milan Patel, CEO & CFO of dotdigital, commented:

“This continued strong performance with revenue growth of 26% is again extremely encouraging and illustrates that our profitable organic growth strategy continues to deliver against strong contracted recurring revenues in the business.

The dotmailer platform continues to evolve and innovate, providing highly sophisticated yet ‘easy-to-use’ marketing automation tools for our clients and this we believe is part of the true essence of our continued success.

We look forward to providing a full update on the year’s trading and continued growth strategy when we announce our full year results in mid-October.

I would like to take the opportunity to thank our staff for their tremendous enthusiasm, commitment and performance over the past year and our shareholders for their continued support.”

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dotdigital Group Plc (AIM:DOTD), the leading provider of intuitive software as a service (“SaaS”) and managed services to digital marketing professionals, announces its results for the six months ended 31 December 2015.

Six Month Key Highlights

  • Revenue from operations up 29% to £12.9m from £10.0m in the previous interim period
  • Recurring monthly revenue from dotmailer’s SaaS based usage charges up 35% to £10.0m
  • Email related creative and managed service up 36% to £1.5m
  • Recurring revenue charges from market automation functionality has increased by 156% compared to the previous interim period
  • Profit before tax up 30% to £3.3m
  • Earnings per share has increased by 35% to 1.04 from 0.77 in the previous interim period
  • Healthy growth in net cash generated from operating activities of 139% to £3.3m
  • Strong net cash position of £14.8m as at 31 December 2015

Commenting on current trading and outlook, Milan Patel, CEO & CFO said:

“The strategy of focusing on fast growing medium/light-enterprise businesses and Magento clients has driven average monthly spend up by 31%. This combined with a focus on longer term contracts and client retention is leading to notably higher client lifetime values.

H1 2016 will see a keen focus on developing a robust channel and reseller pipeline especially in support of our geographic ambitions in USA and APAC.

Based on the strong performance at the half year to 31 December 2015, the growing demand for marketing automation, the newly released product features and investment strategy, the Board remains confident of delivering strong growth, underlying profitability and increasing shareholder value for this year. The investments were slower than expected in 15/16 and therefore will lead to an increased EBITDA in the current year but will see a marginally slower revenue growth in 16/17. The long term outlook for dotdigital remains positive and we look forward to providing further progress at the time of our year end trading update in July 2016.”

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dotdigital Group plc (AIM: DOTD),  the leading provider of intuitive email and marketing automation software as a service (“SaaS”) and managed services to digital marketing professionals, today gives a trading update prior to the Company’s Interim Results for the six months ended 31 December 2015. The trading performance in this statement is based on unaudited initial management estimates.

First half highlights:

  • Overall revenue up 29% to approximately £12.9m (H1 2015: £10.0m);
  • Monthly recurring revenues from dotmailer’s SaaS based usage up approximately 35% to £10.0m (H1 2015: £7.4m);
  • Creative and managed service email marketing revenues grew by 36% to £1.5m (H1 2015: £1.1m);
  • Average revenue per client has grown by 31% from £400 to £525 per month;
  • The total number of emails sent by the dotmailer platform has grown by 50% to 3.9 billion from 2.6 billion;
  • Strong cash balances at 31 December 2015 of £14.8m (H1 2015: £9.5m); and
  • Following approval at the AGM on 15 December 2015, a final dividend of 0.36 pence per ordinary share for the year ended 30 June 2015 will be paid on 29 January 2016 to those shareholders on the register on 8 January 2016.

Simone Barratt, CEO of dotdigital, commented:

“I am delighted to report that our organic growth strategy, which focusses on mid-market and light enterprise clients, has continued to deliver strong revenue growth of 29%.

The dotmailer platform continues to evolve and innovate, providing highly sophisticated yet ‘easy-to-use’ marketing automation tools for our clients.

Recognition and selection by Magento as being the exclusive Platinum provider of email and marketing automation functionality to their global customer base is a ringing endorsement not only of the capability of the dotmailer platform, but also of our ability to successfully support a growing international customer base.

dotdigital will report its Interim Results for the six months ended 31 December 2015 on 23 February 2016.”

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