Dotdigital Says Annual Revenue Up 19%, Earnings To Beat Market View
(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Software-as-a-Service company Dotdigital Group PLC Tuesday said group revenue rose 19% in the financial year ended June 30 compared with the previous year, following a strong performance from its core products division.
In a year-end trading update, the company said group revenue rose to GBP16.4 million in the recent year from GBP13.8 million a year earlier. Dotdigital said the revenue performance was driven by strong growth of 32% across its core high-margin email marketing Software-as-a-Service (SaaS) side of the business, ahead of plan.
Dotdigital said it now anticipates that full-year earnings before interest, tax, depreciation and amortisation to be slightly ahead of the current market forecast of GBP4.3 million.
The company said this strong growth was underpinned by a combination of new clients wins, particularity in the corporate and mid-market sectors, growth in recurring revenues from existing clients, and improved client retention through having a large proportion of clients under contracts of 12-36 months.
Notable client wins during the year included Land Securities Group PLC and Thorntons PLC.
Dotdigital said revenues from the US increased to USD1.4 million from USD456,000 a year earlier. The company said its New York sales office continues to focus on sector niches and higher value corporate clients.
AIM-listed Dotdigital said penetration into Latin America has progressed after it formed a partnership with Panama's COPA Airlines. The airline will use the dotMailer platform which provides email marketing services.
In addition, Dotdigial said it launched its Magento connector earlier this year. The solution allows e-commerce customers using the Magento platform to synchronise their data between the dotMailer and Magento platforms.
Dotdigital said the client take-up of the new Magento connector has been strong with the average monthly recurring revenue spend for customers currently over GBP700 a month.
Financially, the company said it had GBP9.3 million in cash at the period-end compared with GBP6.1 million a year earlier.
Dotdigital shares were quoted up 1.3% at 33.93 pence Tuesday morning.
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