DotDigital posts solid growth in full-year revenue

7th Nov 2023 14:29

(Sharecast News) - Customer experience software specialist DotDigital Group reported a 10% uplift in group revenue in its final results on Tuesday, reaching £69.2m.

The AIM-traded firm said recurring and repeating revenue remained strong, making up 94% of total revenue, consistent with the 2022 financial year.

Contracted recurring revenue played a substantial role, representing 79% of total revenue.

The company's average revenue per customer (ARPC) increased 11% to £1,622 per month, up from £1,461 a year ago.

Additionally, annual recurring revenue (ARR) grew 10% to £54.4m.

DotDigital reported adjusted EBITDA of £22m, a slight improvement from £21.7m in 2022, while its adjusted operating profit remained stable at £14.5m, identical to the prior year.

In terms of profitability, the company posted an adjusted profit before tax of £15.4m, up from £14.5m year-on-year.

Adjusted diluted earnings per share also increased 6% to 4.43p, from 4.18p a year earlier.

DotDigital said it maintained a healthy net cash balance, reporting £52.7m as of 30 June, up from £43.9m on the same date in 2022.

"We are pleased to have delivered a year of strong growth and cash generation, slightly ahead of initial expectations, whilst continuing to invest in our growth opportunity and maintaining high profit levels," said chief executive officer Milan Patel.

"The group's product offering has advanced materially in the year with the launch of our CXDP platform and enhanced AI functionality.

"We have also bolstered our global teams which is translating into positive momentum."

Patel said the post-period acquisition of Fresh Relevance's personalisation technology and talented team marked a leap forward in its strategy, accelerating its product roadmap and opening up new, high-value market opportunities.

"We start the new financial year with solid global foundations, a substantially enhanced product offering and a robust financial position.

"We have had an encouraging start to 2024 and look forward to our continued profitable growth."

At 1400 GMT, shares in DotDigital Group were up 5.63% at 86.09p.

Reporting by Josh White for Sharecast.com.