- DotDigital Group
- 10 March 2026 12:00:46
Source: Sharecast
The AIM-traded company said forward-looking contracted ARR from its core customer experience and data platform rose 13% to £75.4m in the six months ended 31 December, up from £67.0m a year earlier, or 6% on an organic basis.
Recurring revenue from the core CXDP increased 11% to £37.3m, representing 84% of total revenue compared with 80% a year earlier.
Total group revenue, including low-margin CPaaS revenue, rose 4% to £44.2m from £42.4m, or 9% on a normalised basis.
Average revenue per customer, excluding Social Snowball, increased 7% on a normalised basis to £1,968 per month, compared with £1,830 a year earlier on a normalised basis or £1,916 reported.
Adjusted EBITDA came in at £13.6m, representing a 31% margin, compared with £13.8m and a 33% margin a year earlier, while adjusted profit before tax fell to £8.9m with a 20% margin from £10.0m and a 24% margin in the prior year period.
Dotdigital said the decline reflected strong comparatives and investment in the go-to-market strategy for Social Snowball, which was expected to benefit the second half.
Cash as at 31 December stood at £36.1m, down from £45.7m a year earlier, after a $20m consideration payment related to the acquisition of Social Snowball.
The company added that foreign exchange movements weighed on reported results, with constant-currency growth rates around one percentage point higher than reported in the first half and a larger FX impact expected in the second half.
Operationally, Dotdigital said momentum in its core CXDP business continued, supported by demand for integrated marketing platforms focused on measurable return on investment.
Product development included further enhancements to WinstonAI and strong adoption of WhatsApp messaging, with message volumes rising 2.3 times compared with the second half of the previous financial year.
The company also said Social Snowball had performed well since its acquisition, with annualised ARR rising around 30% since completion and growth expected to accelerate as further go-to-market investment takes effect.
Integration-connected revenue increased 5% year on year, while Shopify-related revenue rose 44%, reflecting deeper partnerships within the company’s ecosystem.
Following the period end, Dotdigital completed the acquisition of Alia in March, an AI-powered pop-up and email and SMS list-growth tool designed to strengthen its zero-party data capture capabilities and expand its presence in the Shopify ecosystem.
The firm also said it would appoint a chief revenue officer to strengthen its go-to-market leadership and support scalable growth across regions.
“The group delivered a solid first half against a strong comparator, with continued double-digit growth in core ARR, improving revenue quality and resilient profitability,” said chief executive Milan Patel.
“We continue to broaden the CXDP through disciplined innovation and mergers and acquisitions, with the post-period acquisition of Alia further strengthening our ability to help customers capture, activate and monetise audiences across the lifecycle.
“While customers remain cost-conscious, demand for integrated platforms with clear ROI remains strong, and we remain well positioned to execute on our strategy for the second half and beyond.”
At 1142 GMT, shares in Dotdigital Group were down 0.36% at 55.8p.
Reporting by Josh White for Sharecast.com.