Slide 1: Full Year Results
Full Year Results Milan Patel, CEO 16.10.2018 Paraag Amin, CFO
Slide 2: About dotdigital
About dotdigital
Slide 3: Employees, offices and significant shareholders
We employ 333 people Significant shareholders • Sales & Marketing (115 people) • Directors 11.6% • IT & Development (113) • European Institutions • Client Services (65) • Liontrust Investment Holdings 19.3% • Other (40) • Slater Investment Ltd 5.9% In 14 office locations around the world • Simon Bir
Slide 4: 2018 Full Year Results Presentation
4 2018 Full Year Results Presentation
Slide 5: A best-of-breed platform
A best-of-breed platform Messaging customers love Incredible speed-of-use Better looking emails so customers will Omni-channel marketing automation love hearing from businesses. made easy is via the intuitive UI Delivering relevant marketing so every Continuous platform innovation touch point feels
Slide 6: Annual results 2017/18
Annual results 2017/18
Slide 7: Highlights: strategy delivering
• Our strategy is delivering – product innovation, partnership development and geographic expansion. • We’ve advanced our platform – Comapi acquisition facilitated a shift to an omni-channel offering. • Our partnerships have expanded and deepened – Evidenced by the high-quality, data-led insights we
Slide 8: Financial review, Paraag Amin
Financial review, Paraag Amin Strong, profitable organic growth
Slide 9: Revenue and EBITDA growth
44 Growth trends continue for both 42 £43.1 revenue and profit. 40 KEY 38 Group Revenue 36 34 EBITDA 800% 32 Cash at Period 30 COMAPI acquisition Core Product Revenue growth REVENUE (£m) 28 End and funding £10.7m 26 24 1100% 22 EBITDA growth 20 18 16 £15.0 29% 14 12 £12.7 Core Product Revenue CAGR 1
Slide 10: Top line revenue growth, recurring revenue, net cash
Top line revenue growth Increased recurring revenue Group revenues grew 35% to £43.1m in 2018 Recurring revenues increased to 85% of total, of (2017: £32.0m). ARPU increased 18% in 2018, which 90% is contracted. Recurring revenue from from £715 to £845. product functionality increased by 41% to £8.9
Slide 11: Income statement summary
Jun 18 Jun 17 Core £’M £’M Growth % Group revenue Revenue 43.1 32.0 35% • Grew 35% to £43.1m (FY 2017: £32.0m) Cost of sales 9.1 4.5 102% • Monthly ARPU up 18% to £845 (FY 2017: £715) Gross profit 34.0 27.5 24% Core international revenue Admin expenses (25.0)* (19.4) 24% • Now 26% of total (FY 2017:
Slide 12: Revenue by geography and functional recurring revenue
Revenue by geography Functional Recurring Revenue 86% 83% 2017 2018 2017 2018 £8.9m, 24% £6.3m, 20% 12% 14% 2% 3% EMEA US APAC 2017 2018 Revenue 2017 Revenue 2018 Magento Magento 21% 25% Dynamics Direct Dynamics 7% 58% 7% Direct 65% Salesforce Salesforce 7% Other partners 9% 1% 12 2018 Full Year Res
Slide 13: Balance sheet
• Healthy balance sheet Balance sheet • No debt Jun’18 Jun’17 • Bandwidth for strategic investments £’M £’M • Strong distributable reserves Assets 20.5 6.2 Other Current Assets 13.0 7.8 Cash 15.0 20.4 Goodwill on the COMAPI acquisition Total Assets 48.5 34.4 • Goodwill of £9.1m was recognised on the
Slide 14: Cash flow statement
• Strong cashflows generated from operations Cash flow statement Jun’18 Jun’17 • Adjusted free cash flow of £7.7m £’M £’M Net cash generated from 12.6 8.1 operations • Comapi acquisition for a consideration of £10.7m Net cash used in investing 16.9 2.7 activities Net cash used from 1.1 2.3 • Healthy
Slide 15: Operational review, Milan Patel
Operational review, Milan Patel The platform for the serious marketer
Slide 16: Company history and milestones
Initiated International Integrated Omnichannel Ellipsis becomes dotmailer Listed Expansion commences with first Growing reputation brings large COMAPI acquisition begins as a PLC. Focus on email US office opening in New York. technology partners on board dotmailer’s omni-channel platform marketing.
Slide 17: 2018 Full Year Results Presentation
17 2018 Full Year Results Presentation
Slide 18: Platform development and growth focus
• Focus on developing our platform driving organic growth • High quality product improves reputation and drives meaningful long-term relationships with partners • Key partner relationships help drive international expansion in growing markets • Inorganic activity is selective and supplemental 18 201
Slide 19: Comapi acquisition and omni-channel evolution
• Comapi acquired in November 2017. Now part of the dotdigital group. • Broadens channels, adds two-way conversation, enhances quality of data. • Diversifies revenue stream and ability to drive results for customers. Originally we were We evolved to be We’ve now entered SINGLE CHANNEL MULTI-CHANNEL
Slide 20: Omni-channel product capabilities
Email marketing Facebook Messenger • Dotmailer has Email automation Twitter DM (roadmap) enterprise-grade tools Transactional email that allow users to connect data to channels via an Triggered SMS Landing pages intelligent features. Broadcast SMS Website chat • Solutions for B2B and App notificatio
Slide 21: Product roadmap
Internal roadmap documentation from the product team • Further eCommerce and CRM integrations • A.I. powered Product Recommendations • A.I. powered digital advisors • Enhanced analytics and reporting • Omnichannel and automation enhancements 21 2018 Full Year Results Presentation
Slide 22: Ecommerce and CRM integrations
Ecommerce CRM 22 2018 Full Year Results Presentation
Slide 23: International growth: US, EMEA, APAC
US revenue growth EMEA focus on the Nordics and Benelux region has driven by system resulted in stronger integrators and partnerships and growing channel partners revenue stream in the region 43% 11% Core international APAC growth a result of revenues 85% strong conversion of represent prospects to
Slide 24: Trusted email marketing partner
dotmailer is the trusted email marketing partner of huge success stories around the world, including: 24 2018 Full Year Results Presentation
Slide 25: Market
Market Content The platform for the serious:marketer
Slide 26: Email is a key channel for marketers
Email is of key channel to marketers’ of all levels in all sectors. Average ROI on • 92% of all email marketers expect their budgets to increase or email marketing# stay the same next year. • 86% say email marketing is “important” or “very important” for their strategy. • 11% of marketing budgets wi
Slide 27: Customers moving between ESPs
NOTABLE LOW-END ESPs NOTABLE ENTERPRISE CLOUDS High performing, email Enterprise customers choose marketers graduate from dotmailer to reduce costs SMB ESPs to dotmailer. whilst maintaining features. The pain points and wish lists of mid market customers remain the same, except they want better prop
Slide 28: Market growing, landscape evolving, regulation
The landscape is evolving Regulation is playing a role The market is growing Data is increasing in value, but consumers are becoming GDPR has changed the way both more aware of how their data is used consumers and marketers approach data sharing 28 2018 Full Year Results Presentation
Slide 29: Outlook
eet, orm hes tgcene es fy “Outlook Strong rain for continued growth
Slide 30: Clear and compelling strategy
Clear and Highly Attractive Successful Opportunities Experienced compelling scalable industry dotmailer for superior management strategy platform growth culture growth team 30 2018 Full Year Results Presentation
Slide 31: Confidence for the new fiscal year
Confidence for the new fiscal year Growth rationale • FY18 showed strong progress against all • Widespread industry acceptance of email’s key role strategic ambitions • Email remains highest ROI of all digital marketing • Acquisition sets tone for omni-channel product channels at a return of $40 for
Slide 32: Forward-looking statements
Certain statements included or incorporated by revise any forward-looking statement resulting from reference within this presentation may constitute new information, future events or otherwise. Statements in this presentation reflect the “forward-looking statements” in respect of the Nothing in this