dotdigital Group plc (AIM: DOTD), a leading cross-channel marketing automation platform, announces final audited results for the year ended 30 June 2019 with strong growth in revenue and profit driven by the Group’s organic growth strategy and the addition of omni-channel functionality.
· Group revenues grew 19% to £51.3m (2018: £43.1m)
· Organic revenue from continuing operations grew by 15% to £42.5m (2018: £36.9m)
· Adjusted EBITDA1 from continuing operations grew 24% to £14.7m (2018: £11.8m)
· Adjusted operating profit from continuing operations2 grew 25% to £11.8m (2018: £9.4m)
· Adjusted EPS from continuing operations grew by 33% to 3.88p (2018: 2.91p); ahead of market expectations
· Strong cash balance at period end of £19.3m (2018: £15.0m)
· Comapi technology fully integrated and Dynmark and Donky business units being discontinued to increase focus in the core dotdigital SaaS-based marketing platform (as announced 22 May 2019)
· 19% of customers using more than one channel – demonstrating the value in the Comapi technology
· ARPU3 grew 14%, increasing from £845 per month to £966 per month
· Recurring revenue as a percentage of total revenue increased to 86% from 85%
· Recurring revenue increased 39% driven by enhanced product functionality
· Significant progress made in selling integrated cross-channel marketing
· Enhanced ecommerce offering with addition of RFM4 and automated segments
· Continued investment in AI and machined learning
· Magento partnership shows strong revenue growth with revenue increasing 27% to £11.8m (2018: £9.3m)
· Strengthening relationships with Shopify and BigCommerce who have named dotdigital as a global elite partner
· Further investment made to develop relationship with Microsoft Dynamics where revenue grew 10% to £3.9m
· EMEA revenue delivered double digit growth despite ongoing impact of GDPR.
· USA revenue grew 27% (excluding Comapi) to $9.0m (2018: $7.1m) following strong collaborations with strategic partners and system integrators.
· APAC revenue growth of 83% (excluding Comapi) to AUS$3.8m (2018: AUS$2.1m) exceeded management expectations both by order value of clients and by the number of customers won in the year
· Momentum has continued into the new financial year and with our high level of contracted recurring revenues in the core business; management remains confident in its expectations for 2020
Milan Patel, CEO of dotdigital, commented:
“The Group is very excited about its financial performance and our growth opportunities, driven by investment in technology innovation, geographic expansion and strategic partnerships. With the additional investments in people across all regions it sets the foundations for scalable growth in AI infused marketing and data driven cross channel Marketing Automation. The Group is especially pleased with our international performance.
Although relatively early on, Q1 of the 2019/20 financial year has started well with trading in line with expectations. With 89% of our revenues recurring, a high proportion under contract and strong client relationships we continue to have good visibility into our earnings. We are confident in delivering continued organic growth across our core organic growth pillars.
We remain focussed on delivering against our strategy and are confident for the year ahead.”