dotdigital Group (DOTD) Trading update summary

Financial performance and growth

• Achieved double-digit growth in core CXDP ARR, up 13% to £75.4m, with recurring revenue rising 11% to £37.3m, now 84% of total revenues.

• Total group revenue increased 4% to £44.2m, with normalised growth at 9%.

• ARPC (excluding Social Snowball) rose 7% to £1,968 per month.

• Cash at period end was £36.1m after a $20m payment for Social Snowball.

• Trading remains in line with full-year market expectations: revenue £91.9m, adjusted EBITDA £29.1m, adjusted PBT £20.0m.

Strategic initiatives and product innovation

• Continued focus on higher-value customers and recurring revenue, with growth in all regions.

• Social Snowball acquisition performing well, with ARR up 30% annualised and ARPC up 9% since acquisition.

• Product enhancements include WinstonAI improvements, WhatsApp adoption, and CreatorSearch launch.

• Loyalty product in production testing, with wider release expected later in the year.

• Ongoing investment in data, AI, and partner integration capabilities.

Outlook and management commentary

• Confident in delivering FY26 results in line with expectations, supported by strong cash, recurring revenues, and product portfolio.

• Macro pressures such as FX volatility and customer cost sensitivity are being managed.

• Proactive approach to acquisitions, with Social Snowball cited as a successful example.

• Management highlights a strong pipeline, healthy balance sheet, and continued focus on value creation.

• Half-year results to be announced in early March.