28 July 2025
Dotdigital Group plc
("Dotdigital" or the "Group")
FY25 Trading Update
Continued profitable growth and strategic progress against high-margin CXDP vision
Dotdigital Group plc (AIM: DOTD), the leading SaaS provider of an all-in-one customer experience and data platform (CXDP), announces a trading update for the year ended 30 June 2025 ("FY25"). The trading performance reported in this statement is based on draft unaudited management accounts and refers to expected results on an actual currency basis unless otherwise stated.
Highlights
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Group revenue of £83.9m1 (FY24: £79.0m), up 6% on an actual currency basis and 7% on a constant currency basis
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94% of Group revenue is recurring or repeating revenue, consistent with FY24; 80% is contracted recurring (FY24: 79%)
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Average revenue per customer ("ARPC") increased by 8% on a constant currency and normalised basis to £1,923 per month (FY24: £1,781 normalised1 or £1,857 previously reported)
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Adjusted EBITDA and adjusted PBT expected to register strong growth in line with market expectations2
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Cash balance of £36.2m as at 30 June 2025 (31 December 2024: £45.7m), following $20m cash payment for the acquisition of Social Snowball and reflecting continued strong cash generation
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Intention to pay an increased final dividend in line with market expectations
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Acquisition of Social Snowball, significantly growing the Group's US footprint, strengthening Group's cross-channel marketing automation capabilities and granting access to the rapidly growing influencer marketing segment |
The Board is pleased to confirm a robust revenue performance and double-digit profit growth for the year, including growth in all geographic regions.
Notwithstanding persistent challenging market conditions, the Group continued to see healthy demand in line with market trends for data, personalisation and AI functionality. It secured larger customers and higher-value contracts within its core mid-market segment alongside growing adoption among larger enterprises seeking to consolidate their technology stacks. Revenue from international regions grew by strong double-digit percentages and now represents 33% of total revenue (FY24: 32%).
The Group made good progress against its organic product roadmap, with continued investment in AI, platform upgrades and enhancements to support new customer and cross-selling success. In April 2025, Whatsapp was fully launched as a communication channel and revenue is now being generated from its use. More than 30 customers are in production across all regions, with demand growing and a clear competitive differentiator driving adoption and retention.
The acquisition of Social Snowball on 25 June 2025 marked a key strategic milestone, adding a highly complementary asset to the Group's offering and extending its reach into the fast-growing influencer, affiliate and referral marketing segments. This follows the integration of personalisation functionality with the acquisition of Fresh Relevance during FY24, further supporting the Board's strategy of driving high-margin, high-quality recurring SaaS revenue growth through the continued development of the Group's leading all-in-one CXDP platform.
Supported by a robust balance sheet, the Board continues to assess further strategic M&A and targeted investment aligned to its strategic priorities, including strengthening go-to-market leadership and reinforcing operational foundations to support the Group's long-term growth ambitions.
Milan Patel, Chief Executive Officer of Dotdigital, commented:
"We are pleased to report on a year of further profitable growth whilst materially advancing our product proposition to support our ambition of scaling innovative, high margin CDXP solutions within fast growing markets. The impact of our product enhancement efforts to date, both organically and inorganically, can be seen in a robust new customer acquisition performance as well as the continued uptake of additional functionality across our existing base. This has been accelerated further with the addition of Social Snowball in the year, unlocking a significant new market opportunity.
"Whilst market conditions remain uncertain, we remain laser focussed on the growth opportunities and roadmap to executing on our strategy. We enter the new year with a strong pipeline, robust financial position, a growing partner network and a significantly expanded market opportunity, leaving the Board confident in the Group's continued success."
1 Includes the negative £0.7m FY25 impact from termination of non-core, low-margin contract (full annual contract value of £4.4m)
2 FY25 market consensus at the time of publication is adjusted EBITDA of £25.8m and adjusted profit before tax of £18.3m
For further information please contact:
| Dotdigital Group Plc |
Tel: 020 3953 3072 |
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| Alma Strategic Communications Hilary Buchanan David Ison Sarah Peters |
Tel: 020 3405 0210 dotdigital@almastrategic.com
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| Canaccord Genuity (Nominated Advisor and Joint Broker) Elizabeth Halley-Stott |
Tel: 020 7523 8000 |
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| Cavendish Capital Markets Limited (Joint Broker) Sunila de Silva, Equity Capital Markets |
Tel: 020 7220 0500 |
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| Singer Capital Markets (Joint Broker) Jen Boorer, Corporate Finance |
Tel: 020 7496 3000 |
About Dotdigital
Dotdigital Group plc (AIM: DOTD) is a leading provider of cross-channel marketing automation technology to marketing professionals. Dotdigital's customer experience and data platform (CXDP) combines the power of automation and AI to help businesses deliver hyper-relevant customer experiences at scale. With Dotdigital, marketing teams can unify and enrich their customer data, identify valuable customer segments, and deliver personalised cross-channel customer journeys that result in engagements, conversions, and loyalty.
Founded in 1999, Dotdigital is headquartered in London with offices in Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo and Cape Town. Dotdigital's solutions empower over 4,000 brands across 150 countries.
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