Software and cross-channel automated marketing services provider dotDigital Group plc (LON: DOTD) boasted strong progress across its fundamentals during the full-year ended June 2019.
The Group’s revenues rose 19% to £51.3 million, alongside 15% organic revenue growth to £42.5 million, and average revenue per user up 14%, to £966 per month.
This sales progress led adjusted EBITDA growth of 24% and a 25% hike in adjusted operating profits, to £14.7 million and £11.8 million respectively.
Further, dotDigital saw its cash balance widen from £15.0 million to £19.3 million year-on-year, while adjusted EPS jumped 33% to 3.88p, which it said was ahead of market expectations.
The Company also noted strong progress across its core offerings; 19% of of customers using more than one channel demonstrated the ‘value’ of its Comapi technology, while its Magneto partnership recorded 27% revenue growth.
Going forwards, the Company remains confident in its performance in 2020, with contracted recurring revenues already factored into its core business. However, it is worth noting that AI and data-led offerings are currently in their ascendancy. As such, expansion in the short-term are inevitable.
As time goes on, public and academic pressure to more closely manage – or at the very least provide direction – for data technology and AI offerings, will likely push regulatory bodies towards the direction of more stringent legislation.
dotDigital Group comments
Milan Patel, CEO, stated,
“The Group is very excited about its financial performance and our growth opportunities, driven by investment in technology innovation, geographic expansion and strategic partnerships. With the additional investments in people across all regions it sets the foundations for scalable growth in AI infused marketing and data driven cross channel Marketing Automation. The Group is especially pleased with our international performance.”
“Although relatively early on, Q1 of the 2019/20 financial year has started well with trading in line with expectations. With 89% of our revenues recurring, a high proportion under contract and strong client relationships we continue to have good visibility into our earnings. We are confident in delivering continued organic growth across our core organic growth pillars.”
“We remain focussed on delivering against our strategy and are confident for the year ahead.”
Investor notes
After a slight dip, the Company’s shares are currently up 7.69% or 7.00p, to 98.00p per share 15/10/19 14:41 BST. Analysts from Peel Hunt reiterated their ‘Buy’ stance on dotDigital Group stock. The Group’s p/e ratio is 28.80, their dividend yield is modest at 0.65%.
Elsewhere in the tech sector, there were updates from; ProPhotonix Ltd (LON: PPIX), Universe Group plc (LON: UNG), Microsaic Systems PLC (LON: MSYS), Petards Group plc (LON: PEG), SCISYS Group PLC (LON: SSY), Pebble Beach Systems Group PLC (LON: PEB) and ULS Technology PLC (LON: ULS).
