DotDigital sees FY revenues growing at greater rate than originally expected

20th Oct 2020 09:59

(Sharecast News) - Software-as-a-Service provider DotDigital expects to deliver a greater rate of revenue growth in the current trading year than initially expected.
DotDigital said its strong first-quarter performance had been driven by existing customer growth, new customer wins and a significant take-up of non-email channels and had now left the firm confident of achieving consensus earnings and cash for the year ending 30 June 2021.

The AIM-listed business also highlighted its solid contracted recurring revenues, giving the group visibility over future revenues and helping it end the quarter with a "strong" cash position of £27.7m.

Chief executive Milan Patel said: "Our investment over past periods is now resulting in stronger top-line growth, and the business continues to maintain profitability and cash generation in line with current expectations.

"Whilst a level of uncertainty is likely to persist for some time, our contracted, recurring revenue stream gives us a high level of confidence in delivering on our targets for the current financial year."

As of 0955 BST, DotDigital shares were up 6.01% at 153.18p.