Dotdigital revenue rises in first half
Digital marketing software-as-a-service and managed services provider dotdigital Group announced its results for the six months to 31 December on Tuesday, with revenue from operations up 17% to £15.0m, from £12.9m.
The AIM-traded firm reported profit before tax as rising 30% to £4.3m, with monthly recurring revenue from dotmailer's software-as-a-service-based usage charges up 22% to £12.2m.
Recurring revenues increased to 81% of group revenues, from 78%, and recurring revenue charges from market automation functionality increased by 71%.
Earnings per share improved by 20% to 1.24p from 1.04 pence, and the board claimed to be in a strong net cash position of £18.9m as at 31 December.
It said more than 200 new clients were signed to the dotmailer platform in the period including Tombola, Pact, CNBC, Jack Wills, Icelolly, V&A, The Conran Shop and Carpetright, and average monthly recurring spend across all clients has grown by 24% from £525 to £650.
More than 350 active clients were now using dotmailer's Magento connector, with average recurring spend from those clients of £1,400 per month compared to £1,200 in the previous period.
Annualised revenues of more than £5.6m were now generated from clients using the connector.
Overseas, revenue from the US region grew by 11% to $2.3m, with 139% growth in revenue from Asia-Pacific to AUD 0.5m, with the board describing a “strong” pipeline.
There was also 50% growth in revenue from Europe, Middle East and Africa countries outside of the UK.
“Based on dotdigital's strong performance at the half year to 31 December 2016, the continued demand for marketing automation, the newly released product features and connectors and our investment strategy for further expansion into international markets, the board remains confident of continuing to deliver strong growth, underlying profitability and increasing shareholder value for the remainder of this financial year in line with market expectation,” said dotdigital CEO and CFO Milan Patel.