dotdigital Group (DOTD) Trading Update summary

Financial performance and growth

• Revenue reached £83.9m, up 6% year-on-year, with 94% recurring or repeating revenue and 80% contracted recurring revenue.

• Average revenue per customer rose 8% to £1,923 per month on a constant currency and normalised basis.

• Adjusted EBITDA and profit before tax are expected to show strong growth, aligning with market expectations.

• Cash balance stood at £36.2m after a $20m acquisition payment, reflecting continued strong cash generation.

• Intention to pay an increased final dividend in line with market expectations.

Strategic initiatives and acquisitions

• Acquisition of Social Snowball expanded US presence and enhanced cross-channel marketing automation and influencer marketing capabilities.

• Integration of Fresh Relevance and ongoing investment in AI and platform upgrades supported product roadmap progress.

• Whatsapp fully launched as a communication channel, with over 30 customers in production and growing demand.

• International revenue grew by double digits, now representing 33% of total revenue.

• Board continues to assess further strategic M&A and targeted investments to support long-term growth.

Market trends and outlook

• Healthy demand for data, personalisation, and AI functionality, with larger customers and higher-value contracts secured.

• Growing adoption among larger enterprises seeking to consolidate technology stacks.

• Strong pipeline, robust financial position, and expanded market opportunity underpin confidence in continued success.

• Product enhancements and acquisitions have accelerated new customer acquisition and uptake of additional functionality.

• Board remains focused on growth opportunities despite uncertain market conditions.