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RNS Number : 3820M
dotDigital Group plc
21 January 2021
dotdigital Group plc
("dotdigital" or the "Company")
Trading Update and Notice of Half Year Results
Continued strong organic growth, underpinned by delivery against
three strategic pillars
dotdigital Group plc (AIM: DOTD), the leading 'SaaS' provider of
an omnichannel marketing automation and customer engagement
platform, announces a trading update ahead of the Company's half
year results for the six months ended 31 December 2020 ("H1
2021").
The trading performance reported in this statement is based on
unaudited management accounts. The Group is pleased to report a
strong first half performance driven by continued execution of the
organic growth strategy, namely ongoing product innovation,
geographic expansion and growth through strategic partnerships.
Financial highlights
-- Organic revenue from Continuing Operations up by c.22% to
GBP28.2m (H1 2020: GBP23.1m) driven by strong growth in sales
from new and existing customers and uptake of SMS
-- R&D continues to underpin dotdigital's growth strategy with
recurring revenues from enhanced product functionality growing
by 20% to GBP8.9m from GBP7.4m in the comparative period
-- Adjusted EBITDA(1) and adjusted profit before tax from Continuing
Operations expected to be in line with the recently upgraded
market expectations; we continue to monitor and respond to
the pandemic as it develops
-- ARPC(2) up by 20% to GBP1196 per month (H1 2020: GBP999 per
month) driven by an increase in new and existing client spend
alongside customers adopting a wider array of channels
-- Cash balance at 31 December 2020 of GBP27.6m (FY 2020: GBP25.4m)
Operational highlights
Product innovation
Product enhancements in the period include:
-- Improved AI and data visualisation for product recommendations,
customer persona modelling and product affinity capabilities
-- Intelligent contact data capture capabilities for chat, along
with alerting and multi-language support and a more personalised
customer experience
-- Support for the new Google AMP for Email standard for powerful,
dynamic, rich, app-like data driven content within emails
-- Marketing preference management for Dynamics 365 customers
-- New dotdigital connector for the Microsoft Power Automate
platform
Geographic expansion
-- International sales represented 33% of total sales (excluding
Discontinued Operations); (H1 2020: 32%). We have seen a
strong pick-up in UK SMS volumes during the period. Excluding
SMS, international sales represented 38% of revenue (H1 2020:
32%)
-- Organic international revenue increased by 27% to GBP9.3m
(H1 2020: GBP7.3m)
-- EMEA region showed strong revenue growth of c.21% in the
period to GBP21.5m (H1 2020: GBP17.7m)
-- US revenue grew organically by c.25% to $6.3m, (H1 2020:
$5.1m) driven by acquisition of higher value customers and
growth of existing customers
-- APAC sales, channel team expansion and increased Asia presence
drove revenue from the region, which grew organically c.41%
to AUS$3.5m, (H1 2020: AUS$2.5m)
Strategic partnerships
-- We continue to build pipeline and enhance our value proposition
for our connectors into both ecommerce platforms and Customer
Resource Management (CRM) software
-- Sales through connectors into our strategic partners increased
by 20% to GBP12.8m (H1 2020: GBP10.7m)
-- Our Shopify connector revenue grew by 115% and our MS Dynamics
connector revenue grew by 25% compared to the same period
in the previous year
-- Our relationships within both the ecommerce and CRM space
continue to go from strength to strength with an enhanced
go to market strategy
-- We have accelerated investment in building a more scalable
partnership program and hired an experienced leader to head
up global partnerships to increase management bandwidth and
focus
Notice of 2021 Half Year results
dotdigital Group plc will announce its Half Year results for the
period ended 31 December 2020 on 25 February 2021.
Milan Patel, CEO of dotdigital, commented: "H1 2021 delivered
another period of strong growth and significant strategic progress,
in a highly competitive environment, as customers continued to turn
to us to elevate and future-proof their digital marketing
strategies. At the same time, we began to see a step change in
returns from the investments we have made into key areas of the
business.
The fact that the majority of our growth in the period came from
SMS clearly demonstrates the value of our omnichannel offering,
which has grown and evolved since the acquisition of Comapi in 2017
to become a fundamental part of the Group's DNA. The headway we are
making in growing our non-UK markets is accelerating, particularly
in North America and APAC, and the resource we have put into
strengthening and deepening our strategic partner relationships is
having a substantial, positive impact on sales performance.
While Covid-related restrictions continue to cause disruption
and uncertainty for organisations around the world, they have
triggered a dramatic acceleration in digital transformation, from
which dotdigital stands well-placed to benefit. Momentum from the
first half has continued into the second, and we remain confident
of delivering another year of strong sales growth and material
progress against our strategic pillars."
(1) Consensus adjusted EBITDA for continuing operations as at 20
January 2021, for the year ending 30 June 2021, is approx. GBP18.6
million. EBITDA means earnings before interest, tax, depreciation,
amortisation, and before restructuring, other non-recurring costs
and certain non-cash items.
(2) ARPC means average revenue per customer
For further information please contact:
dotdigital Group Plc Tel: 020 3953 3072
Milan Patel, CEO InvestorRelations@dotdigital.com
Paraag Amin, CFO
Alma PR (Financial PR) Tel: 020 3405 0210
Josh Royston dotdigital@almapr.co.uk
David Ison
Kieran Breheny
Canaccord Genuity (Nominated Adviser Tel: 020 7523 8000
and Joint Broker)
Bobbie Hilliam
Georgina McCooke
Jonathan Barr, Sales
finnCap (Joint Broker) Tel: 020 7220 0500
Stuart Andrews, Corporate Finance
Alice Lane, ECM
Rhys Williams, Sales
N+1 Singer (Joint Broker) Tel: 020 7496 3000
Shaun Dobson, Head of Corporate
Finance
Alex Bond, Corporate Finance
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inside information for the purposes of Article 7 of Regulation (EU)
596/2014 (MAR) (Market Abuse Regulation).
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END
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