Slide 1: Annual Results Presentation 2013/2014
Annual Report 2013-2014 • Pete Simmonds Annual Results Presentation •2013/2014 02.09.2014 Peter Simmonds & Milan Patel 13 October 2014 What is marketing automation? Slide 1
Slide 2: Introduction
Introduction Slide 2 of 31
Slide 3: Director profiles
Director profiles Executive Board Experienced executive Peter Simmonds, FCCA Simone Barratt management team CEO Deputy CEO complimented by a non- (Designate CEO) executive board with significant AIM Public Simon Bird ‘Tink’ Ian Taylor Company experience and President & Co-Founder President & Co-Foun
Slide 4: Company background
Company background dotdigital group was People & Places Significant Shareholders established in 1999. 179 staff Management Originally providing a wide • Sales & Marketing 71 people • Ian (Tink) Taylor 14.2% range of digital marketing • IT & Development 51 people • Simon Bird 11.4% • Client Services
Slide 5: Timeline
Timeline “Whilst our business has changed almost unrecognisably from our formation in 1999, some qualities remain: a commitment to excellence, dedicated people and a profitable business model.” Tink Taylor President & Co-Founder Slide 5 Annual results presentation 2013/2014
Slide 6: Financials
Financials Slide 6 of 31
Slide 7: 6 year growth trends
6 year growth trends Strong growth in revenue, EBITDA and cash over the past six years 243% Revenue growth 292% EBITDA Growth 26% EBITDA CAGR 23% Revenue CAGR Slide 7 Annual results presentation 2013/2014
Slide 8: Key trading highlights
Key trading highlights 12 months to 30/06/2014 Solid financial performance Full year EBITDA £4.7m - ahead of market expectations. Strong cash position £9.3m at 30th June after capital expenditure and product development of £2.0m. Top 100 clients account for Continued growth in new business Performan
Slide 9: Key financials
Key financials Trading performance Statement of financials Continuing Operations Position (Balance Sheet) Cashflow June ‘14 June ‘13 Growth June ‘14 June ‘13 June ‘14 June ‘13 £’M £’M % £’M £’M £’M £’M Revenue 16.2 12.2 33 Assets 4.4 3.5 Net cash generated from 5.2 3.6 operations Cost of Sales (1.5)
Slide 10: dotmailer overview
dotmailer overview Slide 10 of 31
Slide 11: 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
Slide 12: Marketing automation the dotmailer way
Marketing automation the dotmailer way dotmailer is a best-of-breed email marketing automation platform. It is enriched with features that allow marketers to create automated campaigns with just a few clicks How dotmailer works And it’s built to integrate seamlessly with other At the heart of all we
Slide 13: How we deliver what marketers want
How we deliver what marketers want Best-of-breed integrated marketing cloud dotmailer is a best-of-breed email marketing automation platform. It is built to play well with other best- of-breed systems. A best-of-breed marketing cloud allows marketers to overcome technical issues with maximum control
Slide 14: Product Innovation for Growth
Platform evolution Multiple data centres globally “We’re continually releasing Enterprise Advanced features that are reshaping the Email Product Innovation for Growth Analytics Marketing landscape. Powerful, but easy to Enterprise use, that get our clients great results.” Improved Social integration
Slide 15: Client maturity: sustainable differentiation strategy
Sustainable differentiation strategy Strategic partners People From experience we know the areas that give us & Strategy competitive advantage change over time as markets mature and clients get smarter. Marketing Automation Our product strategy is devised to allow us to Client maturity maintain our
Slide 16: Estimated market share
Estimated market share Estimated addressable market 10% 10% for UK ESP is c£150-£170m*. Total market size of £495m estimated by Econsultancy 7% 6% 6% 6% includes Agency creative and 5% in-house resources. 4% 4% 4% 4% 4% 3% 3% 3% 3% UK Marketshare 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% Highly fragmented marke
Slide 17: Core focus is the mid-market sector
Core focus is the mid-market sector Lifetime value of a mid market client is 10x that of the SME sector. 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 31/01/20
Slide 18: Client list
Client list dotmailer is the trusted email marketing partner of huge success stories. Here are a few of the 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 Cinema
Slide 19: Cabbages & Roses
DOTMAILER CASE STUDY Cabbages & Roses Cabbages & Roses does over two-thirds of its business online and considers effective customer communication to be one of its key differentiators. The company sought an email platform that could be fully integrated with its Magento ecommerce website solution, and
Slide 20: Future focus
Future focus Slide 20 of 31
Slide 21: Future goals and strategy
Future goals and strategy Our goals and strategy for 2014/2015 is a continuation of the three- year strategic plan Product Expanding Strategic Identify innovation geographically partnerships new niches launched in October 2013. It aims to deliver shareholder value by profitable growth and Keep dotma
Slide 22: Accelerated investment: People
Accelerated investment: People WHAT WE SAID WE WERE GOING TO DO WHAT WE’VE ACHIEVED SO FAR Invest £3m by adding more in headcount to We have made a number of strategically important hires into the senior scale and grow the business in the following management team in order to sustain our growth. are
Slide 23: Accelerated investment: Branding, platform and technology
Accelerated investment: Branding, platform and technology WHAT WE SAID WE WERE GOING TO DO WHAT WE’VE ACHIEVED SO FAR Continue to develop our email marketing Successfully rebranded and repositioned the company automation platform to maintain competitive • Increased appeal to mid market and corporate
Slide 24: Accelerated investment: Business improvements
Accelerated investment: Business improvements WHAT WE SAID WE WERE GOING TO DO WHAT WE’VE ACHIEVED SO FAR New clients signing up on contracts increased from • Increase % of clients on contracts • Increase average order values 74% to 81% • Increase total recurring revenue Total percentage of clients
Slide 25: US office
US office • Traction through partnerships & brand awareness. • 10 people in the office. • 111 new customers signed in the year. “I want to congratulate • Average spend of $3k setup and implementation fee & $719 average you. You have a lot to recurring spend per month. be proud of.” • Revenues from t
Slide 26: Outlook
Outlook Key strategy focused on continued strong Strong Growth Rationale • Large & growing market. organic growth, through: • Widespread industry acceptance of email’s ROI. • Continued investment in international • High levels of brand awareness. • Very strong product. markets through strategic chan
Slide 27: Outlook
Outlook Conclusion 2013/14 financial performance in line with the plan. dotmailer continues to be the platform of choice for the discerning marketer. Future outlook remains promising with continued strong global growth. Slide 27 Annual results presentation 2013/2014
Slide 28: Disclaimer
Disclaimer This presentation contains certain forward-looking By their nature, forward-looking information and does not intend, and expressly disclaims any information and statements. Such forward-looking statements involve known and unknown risks, obligation or undertaking, to publicly update, corr
Slide 29: Appendix
Appendix Slide 29 of 31
Slide 30: dotmailer for Magento: The solution at a glance
dotmailer for Magento The solution at a glance At a glance • Officially launched in Sept ’13 • The avg. monthly spend per customer is £700 • Full time development team • Over 100 customers Features include • Synchronise all customer data inc. customer orders and wish lists • Segment and automate ema
Slide 31: Reasons for confidence
dotmailer for Magento Reasons for confidence Opportunity size The quality of our integration • Magento is the most popular ecommerce platform in Widespread industry recognition from partners and the world. clients that ours is the market leading email marketing • Magento market share continues to gr