Slide 1: Interim Results Presentation, February 2015
Annual Report 2013-2014 • Pete Simmonds Interim Results Presentation • 02.09.2014 Peter Simmonds, Simone Barratt & Milan Patel February 2015 1 | Interim Results Presentation, February 2015
Slide 2: Board restructure
Board restructure Executive Board Experienced executive Simone Barratt Peter Simmonds, FCCA management team CEO Deputy CEO complimented by a non- executive board with significant AIM Public Milan Patel, ACCA, ACSI Company experience and CFO & industry knowledge Company Secretary Non-Executive Board
Slide 3: Key trading highlights
Key trading highlights 6 months to 31/12/2014 . Top Line Revenue growth 32% increase in top line. From £7.6m to £10m. Solid financial performance Half year EBITDA £3.3m – In line with market expectations. Strong cash position £9.5m at 31 December 2014 after capital expenditure and product developmen
Slide 4: Continued focus on the mid-market sector
Continued focus on the mid-market sector Lifetime value of a mid market client is 10x that of the micro business. Whilst sends volume are highest in the Corporate / Enterprise segments this tends to be at the expense of rates per million Customers by Band Monthly Send Value per Band Volume per Band
Slide 5: Financials
Financials Slide 5 of 31
Slide 6: Key financials
Key financials Trading performance Statement of financials Continuing Operations Position (Balance Sheet) Cashflow Dec ‘14 Dec ‘13 Growth Dec ‘14 Dec ‘13 Dec ‘14 Dec ‘13 £’M £’M % £’M £’M £’M £’M Revenue 10.0 7.6 32% Assets 5.0 3.9 Net cash generated from 1.4 2.0 operations Cost of Sales (1.2) (0.5)
Slide 7: Strategic focus
Strategic focus Slide 7 of 31
Slide 8: Markets: existing and new markets
Retaining our core customers… NEW MARKETS Capitalising on new Extension Diversification New markets NO ACTIVITY opportunities for the existing product Sell new products in new markets Markets The areas of our strategic focus ensure the existing customers are Penetration retained, with future growth
Slide 9: Key areas of focus
Key areas of focus Our goals and strategy for 2014/2015 is a development of the three-year strategic Geographic Product Partnerships Added value plan launched in & Channel niches October 2013. It aims to expansion innovation deliver shareholder value by profitable growth and product innovation Move
Slide 10: Geographic expansion
Geographic expansion 10 | Interim Results Presentation, February 2015
Slide 11: US success and growth plans
Geographic expansion US success and growth plans PHASE 1 PHASE 2 2013 2014 2015-16 PHASE 1 RATIONALE • New York model focussed on US offices New York New York New York, Mid-West selling the Magento connector via West coast Magento System Integrator channel US employees 2 10 15-20 people • Magento ha
Slide 12: US client list
Geographic expansion US client list Here are a few of the recent client wins in the US “I want to congratulate you. You have a lot to be proud of.” Carly Rachman Partner Development Manager Magento Other US clients include: Verifone Freedman International Brand Union Econsultancy Wateraid Old Mutual
Slide 13: AsiaPac expansion
Geographic expansion AsiaPac expansion RATIONALE • Value of eCommerce market estimated to be over US $37 billion • Magento (eBay eCommerce platform) has 45 percent market share of eCommerce platforms in Australia The launch in Australia will • AsiaPac is strategic focus for Magento be headed by Roha
Slide 14: Scaling the platform for global robustness
Geographic expansion Scaling the platform for global robustness Move from 1 primary physical data centre in UK to a multi data centre environment using Hybrid Cloud Design. Cloud for storage. Local hardware for delivery Rationale: • Scaleability & Reduced Business Risk • Redundancy & Resilience • Gl
Slide 15: Product innovation
Product innovation 15 | Interim Results Presentation, February 2015
Slide 16: The platform is smart and getting smarter
Ecommerce Product innovation Platforms The platform is smart Extent of dotmailer platform features in 2014 And getting smarter Transactional Data The diagram shows how the data Insight dotmailer platform is constantly evolving and growing in the marketing automation space CRM Lifecycle Email Advance
Slide 17: Platform functionality 2014
Product innovation 2014 Our platform innovation is changing our Good functionality. Mid market position. market position Single low price entry point. 70 This table compares platform 70 £3,000 functionality and price with a PLATFROM FUNCTIONALITY SCORE INDICATIVE MONTHLY PRICING 60 Advanced Advanced
Slide 18: Platform functionality 2015
Product innovation 2015 Our platform innovation is changing Advanced platform. Top end of market. our market position Single low price dotmailer platform now entry point. 70 competes with the top end • Raab Associates estimate 70 £3,000 marketing automation revenues of PLATFROM FUNCTIONALITY SCORE I
Slide 19: Customers join us. Then grow with us.
Product innovation Customers join us. Then grow with us. Email Marketing Platforms Email Automation Platforms Multichannel Marketing Low technology solution. Advanced technical solution. Automation Platforms Simple to use. Programmatical tools. State-of-the-art technology. CPM based pricing. Contact
Slide 20: Partnerships & Channel
Partnerships & Channel 20 | Interim Results Presentation, February 2015
Slide 21: Sustainable growth – internationally
Partnership & Channel Strategic relationships Sustainable growth – internationally We are committed to ensuring our integrations and connectors continue to deliver world-class performance to our customers Our partner network already provides service in every corner of the world. We are committed to
Slide 22: Built to play with other platforms
Partnership & Channel dotmailer for Microsoft Dynamics Built to play with other platforms Rationale for Focus: B2C • Magento - 45% market share of retailers, ecommerce platforms growing at 30% B2B • 16% Salesforce (growing at 30%) • 7% Microsoft Dynamics (growing at 23%) dotmailer for Magento dotmai
Slide 23: Investment in detail 2015/2016
Investment in detail 2015/2016 MULTICHANNEL MARKETING US ASIA PAC AUTOMATION Office £0.02m £0.03m - Staff £0.6m £0.4m £0.4m Product development £- £- £0.2m Marketing £0.2m £0.2m £0.4m Cloud infrastructure £0.3m £0.1m £- Other £0.08m £0.07m £- Total investment £1.2m £0.8m £1.0m 23 | Interim Results P
Slide 24: Outlook
Outlook Slide 24 of 31
Slide 25: Outlook
Outlook Focused on continued strong organic growth, H1 Progress through: • Revenues inline with the plan • Continued investment in international • Larger monthly spend commit markets through strategic channel and • Continued strong uptake of Magento connector • Growing confidence in the market integ
Slide 26: Disclaimer
Disclaimer This presentation contains certain forward-looking By their nature, forward-looking information and Company does not intend, and expressly disclaims information and statements. Such forward-looking statements involve known and unknown risks, any obligation or undertaking, to publicly upda
Slide 27: Appendix
Appendix Slide 27 of 31
Slide 28: Company background
Company background dotdigital group was 184 People Significant Shareholders established in 1999 Sales & Marketing - 72 people Management IT & Development - 55 people • Ian (Tink) Taylor 13.83% Client Services - 31 people • Simon Bird 11.01% Our ‘dotmailer’ platform Other - 26 people • Peter Simmonds
Slide 29: Timeline
AS OF 31/12/2104 SHARE PRICE 30.50p Timeline MARKET CAP £87m “Whilst our business has changed almost H1 2014. unrecognisably from our formation in 1999, some • Celebrated 15 years of business qualities remain: a commitment to excellence, • Opened a new dedicated people and a profitable business mode
Slide 30: Client list
Client list dotmailer is the trusted partner of huge success stories. Here are a few of the 4,000+ companies we work closely with. BBC worldwide Thorntons Econsultancy VAX Harveys Elemis Investec Ladbrokes Osprey London Vizio Inc BP International Addison Lee ITV Land Securities Odeon Cinemas Hertz R
Slide 31: The platform at a glance
The platform at a glance dotmailer is a fast and powerful email marketing automation platform. It allows marketers to manage all stages of their email campaign activity giving them time back to plan future marketing Key features • Easy and fast to use. Yet powerful and sophisticated • Our editing en
Slide 32: Key themes in the platform evolution
Key themes in the platform evolution The following themes have been - and Integrations Data continue to be – core • Deeper integration with key • Storage of structured and unstructured to the platform’s platforms such as Magento, data evolution and Salesforce and Dynamics • Interrogation to personal
Slide 33: Product Innovation for Growth
Roadmap Predictive “We’re continually releasing Solutions Product Innovation for Growth Improved Advanced Enterprise features that are Interface Analytics reshaping the Email Marketing & ROI Channel landscape Integration Triggers Telephony Simon Bird, Lifecycle President & Co-founder Campaign Builde
Slide 34: Marketing automation the dotmailer way
Marketing automation the dotmailer way dotmailer is a best-of-breed marketing automation platform Email is our heritage but now our platform is enriched with features that allow marketers to create automated multi-channel campaigns with just a few clicks How dotmailer works It’s built to integrate s