DotDigital says Brexit won't have impact on business as revenue rises 26%

Email marketer DotDigital said on Friday its revenues for the year increased and Brexit would not have an “adverse impact” on its business

Software & Computer Services

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The AIM listed company said in its full year trading update that its overall revenue grew 26% to £26.9m for the year ended 30 June. DotDigital said it had a strong cash balance of £17.2m.

Recurring revenue charges from enhanced product functionality increased about 106% to over £4m.

Monthly recurring revenue from its dotmailer software as a service facility was up by about 31% based on usage to £21.1m.

Creative and managed service email marketing revenues increased about 11% to £1.8m. Average revenue per client grew 29% to about £575 per month.

Monthly recurring revenue from its Magento Clients dotmailer platform grew 25%. The total number of emails sent increased by 39% to 8.6bn.

Revenue outside of the UK grew 58%. US revenues were up about 49% to $4.4m.

In Australia the company generated A$600,000. It said that it made good progress but slightly slower than planned due to new relationships taking longer to be established. Dotdigital said it had good initial traction in the Nordic, Benelux (Belgium, the Netherlands, Luxembourg) and Middle East regions.

Dot Digital said it will monitor the effects of the UK leaving the European Union. It said in the early stages Brexit will “not have a material adverse impact on dotmailer's ongoing business. This is primarily due to a diverse spread of clients across many sectors and geographies”.

In the long term it said the effect of Brexit on the company would be “limited as clients and prospects will continue to invest more of their marketing budgets into digital marketing channels which generate high returns on investment”.

Chief executive and chief financial officer Milan Patel said: "This continued strong performance with revenue growth of 26% is again extremely encouraging and illustrates that our profitable organic growth strategy continues to deliver against strong contracted recurring revenues in the business.

"The dotmailer platform continues to evolve and innovate, providing highly sophisticated yet easy-to-use marketing automation tools for our clients and this we believe is part of the true essence of our continued success."

Shares in DotDigital rose 4.49% to 46.50p at 1238 BST.