DotDigital reports positive set of interim results

(Sharecast News) - Customer experience and data platform (CDXP) provider dotDigital Group reported a positive set of interim results on Tuesday, with a 15% increase in group revenue to £38.7m, and a solid 11% organic revenue increase excluding the acquisition of Fresh Relevance. The AIM-traded firm said it maintained a strong focus on recurring revenue, which comprised 94% of total revenue in the six months ended 31 December.

Additionally, the company saw average revenue per customer (ARPC) rise 9% to £1,709 per month.

Adjusted EBITDA increased 13% to £12.4m, and profit before tax reached £8.9m, making for a 16% increase year-on-year.

"We're pleased to report on a period of continued financial growth alongside the acceleration of our product roadmap and a growing market opportunity," said chief executive officer Milan Patel.

"We have invested into broadening and enhancing our platform offering, and we are seeing good levels of uptake, particularly from new customers, and our strengthened foundations across territories are translating into growth.

"The acquisition of Fresh Relevance during the period added highly complementary personalisation technology to our offering, delivering early new business and cross-selling success and a growing pipeline of larger value deals."

DotDigital's proposition was now further aligned with the market-wide demand for an all-in-one digital marketing platform, Patel added, complemented by its artificial intelligence (AI) and machine learning tools.

"We enter the second half with continued momentum, in line with Board expectations.

"Whilst cognisant of wider macroeconomic conditions across our markets, our robust financial position, comprehensive product offering servicing a diverse customer base, and an expanded pipeline of opportunities leave us confident in the group's continued success."

At 1230 GMT, shares in dotDigital Group were down 2.59% at 94.1p.

Reporting by Josh White for Sharecast.com.