DotDigital reports strong first-half growth

(Sharecast News) - Customer experience and data platform (CXDP) provider dotDigital Group reported a 10% increase in revenue on a constant currency basis for the six months ended 31 December, reaching £42.4m. The AIM-traded company said in a trading update on Tuesday that its performance remained in line with market expectations for the full year, supported by 95% recurring and repeat revenue.

Average revenue per customer (ARPC) rose 12.1% to £1,916 per month, with contracted annual recurring revenue (ARR) growing 10%, accounting for 80% of total revenue.

Revenue through strategic partnerships increased 13% to £18.8m, with the firm ending the period with a cash balance of £45.7m.

DotDigital highlighted positive momentum from its enhanced product offering, including features added through the acquisition of Fresh Relevance.

Functionality-related recurring revenue grew 15.5% year-on-year to £17.2m as customers increased their platform engagement.

Geographically, North America achieved 20% local currency revenue growth, while Asia-Pacific grew 19%, driven by an increasing number of deals involving Fresh Relevance.

The EMEA region saw 7% growth, supported by higher-value deals and improved customer retention.

DotDigital said the Japanese market was also gaining traction with tailored campaign templates and in-app translation capabilities.

The company said it was focussed on expanding its CXDP and integrating Fresh Relevance, which was driving deeper customer engagement and higher-value wins.

Despite macroeconomic challenges, the group said it was confident in meeting its full-year expectations, supported by a strong cash position, excellent revenue visibility, and a significant pipeline of opportunities across all regions.

The company said it would announce its half-year results on 25 February.

"Our first-half performance demonstrates the growing global appeal of our CXDP offering and the value it brings organisations seeking comprehensive, data-driven digital marketing solutions," said chief executive officer Milan Patel.

"We set out at the start of the year to capture higher-value opportunities while strengthening retention and, at the halfway point in the year, we are in a strong position on both fronts."

Patel said the company was "confident" in its prospects and ability to deliver full-year results in line with market expectations.

"Thanks to the hard work and talent of our people, our offering stands as one of the most compelling in market.

"Supported by a growing pipeline of opportunities across our target territories, we are well-positioned to build on the momentum in the business, delivering further progress in the second half and beyond."

At 1244 GMT, shares in dotDigital Group were up 6.92% at 87.35p.

Reporting by Josh White for Sharecast.com.