Dotdigital Group Plc · LSE:DOTD
Dotdigital — H1 FY2024 Earnings Presentation
30 slides from Dotdigital's earnings presentation, March 2024
Slide 1: Interim Results for the six months ended 31 December 2023
For the six months ended 31 December 2023
Slide 2: Who we are, What we do, Who we help
Who we are What we do Who we help • A global business with UK headquarters Dotdigital’s Customer Experience & Data • Focussed on mid-market & enterprise • 475+ global employees Platform gives customer insight with which • 8 International locations marketers can create personalised, automated custome
Slide 3: H1 FY24 highlights
• All regions contributed positively to 15% revenue growth, underpinned by double digit organic performance (11% constant currency) • Leap forward in CXDP capabilities with September 2023 acquisition of Fresh Relevance and development such as MMS functionality and further development of AI capabilit
Slide 4: Customer experience and data platform
Democratising customer data to be actionable, empowering marketers & merchants to drive value in every single engagement to achieve your goals Connect and organise customer data Empower the customer experience CRM | ERP CDP | DMP Ecosystem partners (150+) Audience analytics & insights Zero & first p
Slide 5: Generative AI for effortless campaign creation
Generative AI for effortless campaign creation Predictive analytics and recommendations Smart segmentation with RFM & eRFM modelling Cross-channel acceleration and send time optimization One-click product data enrichment 5
Slide 6: Why we win: largest independent mid-market platform
Largest independent mid-market Why we win customer engagement platform User experience Enterprise Easy-to-use and intuitive (>$30k pcm) Dotdigital TAM Product differentiation Breadth of capabilities integrated on one platform, underpinned by rich data (Merged with CM group) Mid-size (Acquired by SAP
Slide 7: Financial Review
dotdigital Financial Review
Slide 8: Revenue and EBITDA growth
Growth • Revenue grew 15% to £38.7m (H1FY23: £33.8m) including the contribution from Fresh Relevance. £45.0 3.00 Organic growth was 11% on a constant currency £40.0 (H1FY23: 7%) basis and 9% reported (H1FY23: 9%) 2.50 £35.0 EPS 14.2% CAGR • Recurring or repeating revenues represented 94% Revenue and
Slide 9: Recurring revenues and cash conversion
Drive high margin sticky recurring revenues and cash conversion Revenue Profile +9.4%* +14.6%* Recurring and repeating revenues were 94% of total Group revenues whilst contracted recurring revenue remains at c. 90% With contracted recurring revenue Non-recurring revenue 79% of total (H1FY23: 79%) gr
Slide 10: Income statement
• Organic revenue growth in H1 was 9% (11% in constant currency), driven £’m HY24 HY23 Growth by bookings in H2 FY23. Gross margin of 79% remains in line with the Revenue 38.7 33.8 15% prior year, unchanged following the acquisition of Fresh Relevance. Cost of sales (8.0) (7.1) • ARPC increased 9% t
Slide 11: Balance sheet
• Healthy balance sheet due to good trading and working £’m HY24 HY23 capital management. Cash balance is sufficient that we Non-current assets 61.7 31.2 continue to consider further M&A opportunities. Other current assets 17.1 13.0 • The acquisition of Fresh Relevance used £19m of cash Cash 37.1 49
Slide 12: Cash flow
• Reduced cash flow from operations was due to £’m HY24 HY23 exceptional expenses relating to the acquisition, Cash and equivalents BoP 52.7 43.9 normalisation of working capital balances post-acquisition Net cash generated from operations 7.8 10.1 and reduced end of period working capital stretch.
Slide 13: Capital allocation policy
Our policy is to allocate capital to maximise shareholder value, support sustainable growth, and maintain a strong financial position. Our process includes rigorous planning, budgeting, board approval and ongoing monitoring, considering commercial strategy, risk management, liquidity and shareholder
Slide 14: Strategic Update
dotdigital Strategic Update 14
Slide 15: Organic growth and growth by acquisition
Our core growth pillars Expand our product suite: providing organic growth Globalising Focus on cross- selling deeper our talent: customer organisational relationships strength and capabilities Grow our Deepening customer base: increasing our Organic our strategic partnerships: global market buildin
Slide 16: Geographic expansion
Geographic Product innovation Strategic partnerships • Performance in line with expectations with good level of new bookings • Uptick in new higher value customers • Recovery in professional services to normalised levels • Revenue growth of 16% including Fresh Relevance • Momentum accelerating from
Slide 17: Product innovation
Geographic Product innovation Strategic partnerships Functionality • WinstonAI our marketing intelligence engine now includes Recurring Revenue enhancements to its generative AI by providing campaign content grammar checking, the ability to rewrite for tone, change the length Licence, data and bolt
Slide 18: Strategic partnerships
Geographic Product innovation Strategic partnerships • Sales from customers using connectors to our strategic partners’ solutions increased by 8% to £16.7m (H1 FY23: £15.5m) • Our ecommerce connector revenue grew by 7% to £11.4m • Our CRM connectors grew by 11% to £5.3m (H1 FY23: £4.8m) • We will co
Slide 19: Fresh Relevance
dotdigital Fresh Relevance
Slide 20: Fresh Relevance: customer experience and data platform
THE CUSTOMER EXPERIENCE AND DATA PLATFORM FOR MARKETERS Cross-channel marketing automation On-site personalisation Unified customer data Social proof Email, SMS, mobile push, Chat Real-time dynamic content WhatsApp AI-powered site search Social ads retargeting Product recommendations Marketing attri
Slide 21: Fresh Relevance integration progress
• Deeper team integration with ‘cross- • Initial phase of product integration • Joint Sales and Marketing teams heritage’ teams collaborating and completed formed knowledge sharing • H2 focus on streamlined onboarding • Marketing commenced to existing • Product and engineering agile teams and cross-
Slide 22: Outlook
dotdigital
Slide 23: Summary and outlook
Strong first half performance characterised by a return to double digit organic sales growth Fresh Relevance integration on track and already benefitting conversion of larger, higher value customer wins Demand for sophisticated digital marketing tools that leverage data and AI to drive ROI improveme
Slide 24: Forward-looking statements disclaimer
Certain statements included or incorporated by reference within this This presentation does not constitute or form part of any offer or presentation may constitute ‘forward-looking statements’ in respect invitation to sell, or any solicitation of any offer to purchase any shares of the Group’s opera
Slide 25: Questions
dotdigital Questions
Slide 26: © dotdigital
© dotdigital
Slide 27: Fresh Relevance capabilities
Web & app content, recommendations, data capture, site search, PLP merchandising Real-time email content incl. geotargeting, coupons, countdowns, live price Behavioural emails & SMS incl. cart, browse & form abandon, post-purchase & custom Testing, targeting and optimization
Slide 28: Board and management
Milan Patel Alistair Gurney John Conoley Boris Huard Liz Richards ACA Chief Executive Officer Chief Financial Officer Non-Executive Chairman Non-Executive Director Non-Executive Director Milan was responsible for the Alistair joined the Board in John was appointed as Non- Boris is the EMEA Managing
Slide 29: Shareholding and global reach
Shareholding as at 31st December 2023 Global reach • Liontrust Asset Management 17.3% • Directors & PDMR 10.3% • Octopus Investments 8.8% • Investec Wealth & Investment 7.4% Switzerland Germany France • Slater Investments 4.7% • Hargreaves Lansdown PLC 3.2% • Martin Currie Investment Management 2.8%
Slide 30: Strategy, scalable growth, leadership, outlook
Strategy Scalable Growth Independence Leadership Outlook Clear and compelling Highly scalable platform Attractive industry growth The successful Experienced management Strong growth prospects strategy focussed on for all sizes of customers with a change in Dotdigital culture team organic growth with