DotDigital's revenues spurred upward by US expansion

DotDigital Group climbed on Tuesday after reporting a jump in interim revenues and profits as new customer wins and its North American expansion fuel the company's progress.

The omnichannel marketing automation and customer engagement platform provider said that for the six-month period ended 31 December its revenue came in at £24.9m, up by 33% compared with the same period the year before, while profits before tax increased by 13% to £4.9m.

The increase came as revenue from the US grew organically by 30% to $4.3m, driven by its business with e-commerce companies Magento and Shopify, the AIM traded company said in a statement.

Sales through such strategic partners increased by 43% to £10.3m, while revenue from new connectors, such as Shopify, Big Commerce and Shopware, grew by 372% to £1.0m in the 6-month period, with DotDigital reporting a "strong" pipeline building from these connectors.

DotDigital explained that: "Historically, the business built strong foundations in email and has now, via the technology integration of omni-channel, (through the Comapi acquisition), and the rebrand from Dotmailer to the DotDigital Engagement Cloud, given us strong foundations to position our business as a leading omni-channel customer engagement platform."

The company had cash and cash equivalents of £16.7m at the period end, up from £10.5m at the same point the year before, and added that it remains confident in its full-year expectations based on the "strong performance" seen in the first half of the year.

Canaccord analysts appeared impressed with the company's performance, lauding its "impressive" client roster, "best-of-breed" data integrity & security protocols, "strong" service culture, "dynamic" executive team, management/founder shareholdings and "unusually strong" financial profile.

"From an investment perspective, we see many buy factors including a strong core competency, scalable technology platform, potent track record, positive momentum and a story with much more to go for. In particular, we like that this is a growth stock with a clearly defined growth strategy."

Dotdigital Group's shares were up 5.23% at 90.50p at 1241 GMT.