dotdigital Group plc (AIM: DOTD), the leading ‘SaaS’ provider of an omnichannel marketing automation and customer engagement platform, is pleased to announce the following trading update ahead of the publication of its full year results for the year ended 30 June 2019 in October. The trading performance in this statement is based on unaudited initial management estimates.
- Group revenues grew by c. 19% to £51.3m (2018: £43.1m)1
- Organic revenue from continuing operations grew by c.15% to £42.5m (2018: £36.9m)
- Adjusted EBITDA2 and operating profit3 from continued operations are expected to be slightly ahead of market expectations;
- Strong cash balance at 30 June 2019 of £19.3m which is ahead of consensus due to effective cash conversion;
- ARPU4 continued its upward trend, growing by 14% from approximately £845 per month to £966 per month;
- Recurring revenue as a percentage of total revenue increased to 86% from 85%;
- Comapi fully integrated and Dynmark and Donky business units being discontinued to increase focus in the core dotdigital SaaS-based marketing platform (as announced 22nd May 2019);
- 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.
1. Includes both continued and discontinued revenues
2. EBITDA is earnings before interest, tax, depreciation and amortisation and adjusted for acquisition costs and share-based payments
3. Operating profit is adjusted for acquisition costs and share-based payments
4. ARPU means Average Revenue Per User
Milan Patel, CEO of dotdigital, commented:
“I am delighted to announce that the ‘3 pillars of growth’ strategy we have in place has delivered a further year of record profitability and strong cash generation whilst expanding the reach and capabilities of the Group. Our customers see the platform as a mission critical part of competing in today’s digital environment. The proven value of our platform, combined with high levels of recurring revenue means I enter the new year with high degree of confidence.”