Slide 1: Interim Results Presentation 2016/2017
Interim Results Presentation 2016/2017 Milan Patel George Kasparian February 2017
Slide 2: Board of Directors
Board of Directors EXECUTIVE DIRECTOR Experienced management Milan Patel, FCCA, ACSI George Kasparian, FCA team complemented by a Chief Executive Officer, Finance Director (non-board) non-executive board with Chief Finance Officer (Interim)* Company Secretary significant AIM Public Company experienc
Slide 3: Company background
Company background dotdigital Group Plc was established in 1999. Originally People & Places Significant Shareholders providing a wide range of digital 239 people Directors 18% marketing services, but since • Sales & Marketing 85 people 2013 totally focused on its email • IT & Development 75 people I
Slide 4: Financials
Financials
Slide 5: Financials: growth trends
FINANCIALS 9 year growth trends 20 Strong growth in revenue, EBITDA Key £18.9M 18 and cash over the past nine years Group revenue for the six month period. 16 EBITDA £14.8M £15.0M 14 Cash at Year End 689% £12.9M REVENUE IN £M 12 Core Product Revenue growth £10.0M 10 783% 8 £7.8M £9.5M EBITDA growth
Slide 6: Key trading highlights
FINANCIALS Key trading highlights 6 months to 31 December 2016 Top line revenue growth Magento Connector 17% increase in top line, from £12.9m to £15.0m Over 350 active clients. Average recurring spend increase from £1,200 to £1,400 per month Increase in incremental recurring revenues Growth in Inte
Slide 7: Trading performance
FINANCIALS Breakdown of revenue Trading performance Dynamics - 8% Salesforce - 7% Magento - 20% Core - 65% Dec 16 Dec 15 Growth £’M £’M % Global revenue breakdown (H1 2017) Revenue 15.0 12.9 17% UK - 78% North America - 13% Cost of Sales (2.0) (1.4) 44% ROW - 5% Asia Pac - 2% Middle East - 1% Gross
Slide 8: Statement of Financial position
FINANCIALS Statement of Financial position Balance sheet Healthy balance sheet Dec’16 Dec’15 £’M £’M Assets 5.6 5.4 No debt Breakdown of H1 2017 Other Current Assets 8.5 5.2 CAPEX spend: Strong distributable reserves Cash 18.9 14.8 Product Dev: £0.9M Hardware & software Total Assets 33.0 25.4 upgrad
Slide 9: Cash flow
FINANCIALS Cash flow Strong cash flows generated from Dec’16 Dec’15 £’M £’M operations Net cash generated from 2.7 3.3 Total Free cash flows of £1.6M operations Net cash used in investing 1.1 1.0 activities Healthy cash balance at the end of the Net cash used from financing - 0.6 period activities C
Slide 10: About dotmailer
About dotmailer
Slide 11: Email is alive and well
ABOUT DOTMAILER Email is alive and well The latest stats from the DMA underlines emails key importance to digital marketers’ of all levels in all sectors. • 63% of marketers say that email marketing is very important for their corporate strategy. Up from 29% two Platform + People = Winning combinati
Slide 12: Marketing automation with email and integrations at its core
ABOUT DOTMAILER Marketing automation with email and integrations at its core dotmailer allows marketers to manage all stages of their marketing automation activity quickly and easily, from sophisticated data selections to deployment and measurement of their client interactions. Key features: • Easy
Slide 13: Platform extensibility
ABOUT DOTMAILER Platform extensibility and others…. LOYALTY PERSONALIZATION MOBILE EVENTS SOCIAL PAYMENTS APPS * * * * * * and others…. * API and others…. CUSTOM TECHNICAL LEGACY SYSTEMS & SOLUTIONS SOLUTIONS 3RD PARTY DATA PLATFORMS DEVELOPERS & AGENCIES * Coming soon. and others…. 13 | Interim Res
Slide 14: Opportunities in the competitive landscape
ABOUT DOTMAILER Opportunities in the competitive landscape NOTABLE LOW-END ESPs A small number of customers outgrow dotmailer as they seek to centralise marketing/sales with their large Tech Stack High performing, email Enterprise customers choose marketers graduate from dotmailer to reduce costs SM
Slide 15: Growth strategy
Growth strategy
Slide 16: Key areas of focus
Key areas of focus 1 2 3 Product Partnerships & Geographic innovation acquisitions Solidify growth in the USA Continued enhancements in Maximise the opportunities and Australia with a view to marketing automation existing partnerships with expand out into the wider technology and platform Magento, S
Slide 17: 1. Geographic expansion
1. Geographic expansion 17 | Interim Results Presentation 2016/2017
Slide 18: Few barriers to international growth
GEOGRAPHIC Few barriers to international growth • Scalable hardware and architecture means the platform can deliver solutions A global infrastructure globally. • The interface works in English, French, German, Russian, Spanish, Portuguese, Italian languages. Location of dotmailer cloud • Email marke
Slide 19: United Kingdom
GEOGRAPHIC United Kingdom Pilot Start up Getting set Growth Established • Simplified the sales proposition and value by introducing product bundles for new customers. • Increased sales conversion rates by optimising the sales team structure and processes • Customer satisfaction scores rising steadil
Slide 20: US region
GEOGRAPHIC US region Pilot Start up Getting set Growth Established • Profitable business unit. • Revenues grew by 11% in constant currency. • 16 staff employed full time and based in our own office in Manhattan, New York. • New value proposition and go-to-market strategy is very competitive in the l
Slide 21: Australia and Asia Pacific
GEOGRAPHIC Australia and Asia Pacific Pilot Start up Getting set Growth Established • 139% revenue growth from £0.22M to £0.52M. • 6 staff employed full time consisting of direct sales, Support and Customer Success teams. • Strong pipeline building. • Deepened relationships with partners. • In regio
Slide 22: The Nordics and Benelux regions
GEOGRAPHIC The Nordics and Benelux regions Pilot Start up Getting set Growth Established • Building brand awareness through targeted marketing, partnerships and selected events. • Actively signing up in region partners and developing relationships with influencers. • Dedicated sales and channel team
Slide 23: South Africa
GEOGRAPHIC South Africa Pilot Start up Getting set Growth Established • Development office established. Can be expanded later for sales office. • Piloting a self-serve product with lower entry level price point. • Monitoring its progress in order to define future direction. CLIENTS SIGNED IN THE REG
Slide 24: 2. Partnerships
2. Partnerships 24 | Interim Results Presentation 2016/2017
Slide 25: Strategic partnerships & Integrations
PARTNERSHIPS & ACQUISITIONS Strategic partnerships & Integrations • dotmailer’s is a Global Magento Premier • Continued investment in dotmailer for • Continued investment in dotmailer for Technology Partner. Salesforce development team to deliver Dynamics development to deliver product • Annualised
Slide 26: Acquisition strategy
PARTNERSHIPS & ACQUISITIONS Acquisition strategy Expanding geographic coverage Extend multichannel capabilities Increase the size and scale of the Extend dotmailer’s appeal All targets in all areas under business in the UK and by offering messaging solutions in a consideration must: internationally
Slide 27: 3. Product innovation
3. Product innovation 27 | Interim Results Presentation 2016/2017
Slide 28: Product roadmap
PRODUCT INNOVATION Product roadmap New features and functionality are released quarterly in accordance to a roadmap that builds upon and cements our proposition to mid-market clients looking for a SaaS marketing automation platform. 17one - FEB 2017 17two – DUE MAY 2017 • Improved contact view • Pro
Slide 29: Security & Privacy
PRODUCT INNOVATION Security & Privacy People and Awards • Dedicated Security and Privacy personnel – James Koons • Member of Email Sender & Provider Coalition, Email Experience Council and FBI InfraGard • One of the first companies in the world to be certified for the EU/US Privacy Shield • Awarded
Slide 30: People
People
Slide 31: Leadership Team
People Leadership Team Dan Morris Rohan Lock David Aldrich EVP North America EVP Asia Pacific HR Director Steve Shaw Phil Draper Chief Technology Officer Chief Marketing Officer James Koons George Skip Fidura Chief Privacy Kasparian Consultancy Officer Director Finance Director 31 | Interim Results
Slide 32: Unique culture
People Unique culture Our people are the heartbeat of our business. We continue to invest in our people to improve their skills and maintain the culture that is unique to dotdigital. • Tripled the level of investment in training for our people. • LGBT network created and supported by the business. •
Slide 33: Outlook
Outlook
Slide 34: Outlook
Outlook Key strategy focused on continued strong organic growth: Growth rationale • Launch of new Strategic Partnerships with PayPal & OroCRM • Widespread industry acceptance of email’s key role. • Continued investment in international markets. 63% of marketers say email is very important to their c
Slide 35: Disclaimer
Disclaimer Certain statements included or incorporated looking statement resulting from new Statements in this presentation reflect the by reference within this presentation may information, future events or otherwise. knowledge and information available at the constitute “forward-looking statements
Slide 36: Appendix
Appendix
Slide 37: 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. Monthly Send Value per Band Customers per Band 01/01/2011 31/12/2016 V
Slide 38: Selected New client wins
Selected New client wins 38 | Interim Results Presentation 2016/2017
Slide 39: New Magento client wins
New Magento client wins 39 | Interim Results Presentation 2016/2017
Slide 40: Global client list
Global client list dotmailer is a the trusted email marketing partner of huge success stories around the world, including: 40 | Interim Results Presentation 2016/2017