Strong revenue growth sees dotDigital on course to meet expectations

Omnichannel marketing automation platform dotDigital on Thursday said it expected to reach annual earnings and operating profit expectations and had made “substantial” progress towards strategic aims.

The AIM-traded company, which helps clients grow their online businesses, reported revenue growth of roughly 35% to £43.1m and average revenue per user growth of 18% to £845 per month from around £715, in the half to 30 June.

Milan Patel, chief executive of dotdigital, said: "This year reflects substantial progress against the company's strategic aims in accelerating our platform capabilities into the omnichannel space, continuing to innovate our product, growing geographically and deepening our relationships with our strategic partners."

dotDigital has continued its expansion into the Asia-Pacific region and the US, with revenues up 85% to A$2.2m and 43% to $7.1m respectively, while revenues in Europe are expected to recover after a slight dip amid the introduction of new data protection laws.

Meanwhile, the company continues its partnership with Magento after the firm’s acquisition by Adobe, and has continued to grow strategic relationships with Shopify, BigCommerce and Shopware.

"Alongside our organic growth strategy, we will continue to look for acquisitions of an earnings enhancing or strategic nature that could add to the platform capabilities. We look forward to providing a full update on this year's trading and our continued growth strategy when we announce our full results in mid-October," said Patel.

dotDigital’s shares were up 16.44% at 85.00p at 0930 BST.