dotdigital Group (DOTD) Trading Update summary

Trading and financial performance

• Revenue rose 10% in constant currency to £42.4m, with 95% recurring or repeat, and contracted ARR up 10%.

• Adjusted EBITDA and profit before tax are tracking in line with market expectations for the full year.

• Cash balance at 31 December 2024 was £45.7m, supporting continued investment and stability.

• Average revenue per customer increased 12.1% to £1,916 per month, reflecting higher value customer wins.

• Revenue from strategic partnerships grew 13% to £18.8m, highlighting successful collaborations.

Product and platform developments

• Enhanced CXDP offering with new AI-driven analytics and web personalisation via Fresh Relevance.

• Functionality recurring revenue grew 15.5% year-on-year to £17.2m, driven by deeper customer engagement.

• Launched TikTok and LinkedIn integrations; WhatsApp feature in trial phase for future launch.

• Improved commerce reporting and dozens of new integrations to support customer technology stacks.

• Migrated Fresh Relevance to the same cloud platform as core CXDP, strengthening synergies.

Regional performance and expansion

• All regions reported growth: EMEA up 7%, APAC up 19% in local currency, North America up 20%.

• EMEA saw improved retention in Q2, reversing prior quarters' challenges with smaller customers.

• APAC growth supported by Fresh Relevance deals; strong pipeline heading into H2.

• North America achieved high-value customer wins, with growth expected to normalize.

• Tailored campaign templates and enhanced in-app translation launched for the Japanese market.