dotDigital Group PLC (CHIX:DOTDl)
£ 0.76 (0%) Market Cap: 226.45 Mil Enterprise Value: 182.68 Mil PE Ratio: 21.39 PB Ratio: 2.38 GF Score: 73/100

Half Year 2025 dotDigital Group PLC Earnings Call Transcript

Feb 25, 2025 / 09:00AM GMT

Key Points

Positve
  • dotDigital Group PLC (DOTDF) reported solid business performance over the last six months, with progress across all three growth pillars: geographic expansion, product development, and strategic partnerships.
  • The company has seen an increase in average order value, attracting higher-value enterprise clients and expanding its customer base.
  • dotDigital Group PLC (DOTDF) has a very predictable and diversified revenue base, with about 95% of revenue being recurring, providing good visibility for future periods.
  • The company has maintained strong cash conversion, with 100% of EBITDA converting to operating cash, allowing for potential M&A activity.
  • The company is actively exploring strategic partnerships and acquisitions to broaden its platform, focusing on areas like loyalty platforms and influencer management.
Negative
  • dotDigital Group PLC (DOTDF) has experienced increased churn in the EMEA and UK markets, driven by insolvency events, which affected growth in these regions.
  • The company faces challenges in maintaining earnings growth in line with revenue growth due to adverse changes in tax environments.
  • There is a concern about the sustainability of the high growth rate in North America, which was partly driven by the timing of large deals.
  • The company has a flat customer base, with growth primarily driven by higher average revenue per customer rather than an increase in customer numbers.
  • dotDigital Group PLC (DOTDF) is facing competitive pressures, particularly in pricing, as some competitors have been more aggressive, potentially impacting customer retention.
Operator

Good morning, and welcome to the dotdigital Group plc investor presentation. (Operator Instructions) The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Milan Patel, CEO.

Good morning, sir.

Milan Patel
dotDigital Group PLC - Chief Executive Officer, Executive Director

Good morning. Thank you for handing over, and good morning to everybody that's attending today's interim results presentation. I'll take you through some of the detail as we go through the presentation, but we'll start with a quick disclaimer. I'm sure you can all read it, and I don't need to read that out. But just going on to the business, I've seen quite a lot of people have joined today.

Thank you very much for that. And there's quite a lot of existing investors as well as new investors. So I'll take you through some of

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