dotdigital Group (DOTD) Trading Update summary

Financial performance and growth

• Revenue grew 14.1% to £79.0m, with 94% recurring and repeat revenue, and adjusted EBITDA and profit before tax in line with expectations.

• Organic revenue (excluding Fresh Relevance) increased 9% in constant currency to £74.3m, and organic ARPC rose 15% to £1,861 per month.

• Cash balance at 30 June 2024 was £42.2m, ahead of expectations, supporting further investment and an increased final dividend.

Strategic and operational highlights

• Integration of Fresh Relevance completed, delivering enhanced personalisation and cost synergies ahead of plan.

• Expanded product offering, including website personalisation and AI-driven capabilities, accelerated traction with higher-value customers.

• Double-digit growth achieved across all geographic markets, with APAC revenue up 27% and EMEA up 14%.

• EMEA saw a 58% increase in average first-year contract values, though organic growth was tempered by higher churn among smaller customers.

• North America returned to double-digit organic growth, with a strong pipeline of opportunities.

Partnerships and outlook

• Partnership program expanded to over 600 active agency partners and 190 tech partners, broadening the addressable market.

• Continued investment in product enhancements is driving higher new logo values and pricing power.

• High levels of recurring revenue and a robust financial position underpin confidence in future growth.

• Positive outlook as marketing teams shift to all-in-one product capabilities with clear ROI.