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Dotdigital flags up another year of growth

Dotdigital has been named as one of the fastest growing companies in Europe
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A presence on some the major online platforms, such as world number one Magento, has been behind bulk emailer dotdigital PLC’s (LON:DOTD) impressive performances.

Named earlier this year as one of the fastest growing companies in Europe, another bullish trading update in July, this time for the year to June, suggests the pace is not slackening.

Pace not slowing

Underlying profits would meet expectations said the email and marketing software-as-a-service (SaaS) group.

Overall revenues grew by 19% to approximately £32.0mln, up from £26.9mln a year earlier.

Monthly recurring revenue from SaaS, or pay-as –you-go-based, usage was up by approximately 23% to £26.0mln, with recurring revenue now representing 81% of group revenues.

Cash balances at 30 June were £20.4mln, up from £17.2mln a year earlier.

What dotmailer does

According to the brochure, dotmailer provides marketers a single solution to message customers through email, mobile and social media and other electronic forms. The dotmailer platform and tools share data seamlessly with clients’ CRM, eCommerce and third party applications, with a managed service if required.

Milan Patel, dotdigital’s chief executive, “The dotmailer platform continues to evolve and innovate, providing highly sophisticated yet 'easy-to-use' marketing automation tools that empower our clients and this we believe is part of the true essence of our continued success.”

“Alongside our organic growth strategy, we will continue to look for acquisitions of an earnings enhancing or strategic nature that could add to dotmailer's platform capabilities.”

Customers spending more

Average revenue per client continued its upward trend over the past year, growing by 24% from approximately £575 to £715 per month.

The number of emails also rose, by 38%, to a mind-numbing 11.9bn.

Magento presence growing

Much of this growth is coming from the Magento partnership. Total revenue earned from clients using the Magento connector rose 56% to £6.7mln with over 460 clients on the platform.

After a slow start following an upgrade to Magento, new customer sign-ups picked up in the second half, which is handy as Magento customers spend on average more than double at £1,420 per month. That was 6% more than the previous year.

Dotdigital also 440 clients of the Salesforce and Microsoft Dynamics platforms and these are now generating annualised recurring revenues of more than £4.2mln.

Premium rating

Like revenues, the share price has also been growing steadily, though it is not the most traded share on the market.

Over the past twelve months the shares have risen about 50% to 71p, valuing the group at £215mln.

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