Trading Update and Notice of Results

RNS Number : 5332C

dotDigital Group plc

20 October 2020

 

20 October 2020

dotdigital Group plc

( "dotdigital" or the "Group")

1Q 2020/21 Trading Update

Notice of Results

dotdigital Group plc (AIM: DOTD), the leading 'SaaS' provider of an omnichannel marketing automation and customer engagement platform, is pleased to provide the following trading update for the three-month period ended 30 September 2020 ("1Q").

Outlook

Following a strong 1Q, the Board now expects to deliver a greater rate of revenue growth this financial year versus current consensus expectations. The strong 1Q performance has been driven by existing customer growth, new customer wins and a significant take up of non-email channels. The incremental margin will be reinvested in the business to drive future growth, in line with the previously stated strategy, and the Board is confident on achieving consensus earnings and cash for the full year to 30 June 2021.

As highlighted in its full year trading update of 23 July 2020, further investment will continue to be made in the business during this financial year in order to secure new business and drive revenue growth over future years. The Board expect to see the benefits of this investment later this financial year. This strong performance of the Group, as highlighted above, underpins the Directors' belief that the strong fundamentals of the business remain unchanged, with a proven contracted recurring revenue business model and strong financial position, underpinned by investment, allowing continued delivery on dotdigital's three strategic growth pillars.

1Q Operational review

Through both new and existing customers, there has been a continued increase in volumes of messages and use of omnichannel (predominantly SMS). Notable new business wins include messaging for the leading provider of cloud-based software to UK schools, a leading English Premier League football club and a major infrastructure provider.

Robust financial position

The business has strong contracted recurring revenues, giving visibility over future revenues, and achieves a high operating margin with flexibility in operating costs. As at the end of 1Q the Group had a strong cash position of £27.7m.

The Company intends to publish its financial results for the full year ended 30 June 2020 on 17 November.

Milan Patel, CEO of dotdigital, commented: "The strong first quarter demonstrates the continued value our customers receive from our platform, and confirms the strength of our business model, given the uncertain economic backdrop. Our investment over past periods is now resulting in stronger top line growth, and the business continues to maintain profitability and cash generation in line with current expectations.

Whilst a level of uncertainty is likely to persist for some time, our contracted, recurring revenue stream gives us a high level of confidence in delivering on our targets for the current financial year."

For further information please contact:

dotdigital Group Plc Milan Patel, CEO Paraag Amin, CFO	Tel: [phone] [e-mail]
Alma PR (Financial PR) Hilary Buchanan Josh Royston David Ison	Tel: [phone] [e-mail]
Canaccord Genuity (Nominated Advisor and Joint Broker) Bobbie Hilliam Georgina McCooke Jonathan Barr, Sales	Tel: [phone]
finnCap (Joint Broker) Stuart Andrews, Corporate Finance Rhys Williams, Sales	Tel: [phone]
N+1 Singer (Joint Broker) Shaun Dobson, Head of Corporate Finance Alex Bond, Corporate Finance	Tel: [phone]

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

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