Dotdigital Group LON:DOTD, the AIM-listed provider of an AI-powered customer experience and data platform, has posted final audited results for the year ended 30 June 2025 that met revenue guidance and slightly exceeded profitability forecasts.
The company, which enables intelligent, personalised marketing at scale, reported a 6 per cent rise in group revenue to £83.9m, from £79m a year earlier, or 7 per cent on a constant-currency basis, driven entirely by organic expansion.
Recurring and repeating revenue accounted for 94 per cent of the total, unchanged from the prior year, while contracted recurring revenue edged up to 80 per cent from 79 per cent. Average revenue per customer climbed 8 per cent on a constant-currency, normalised basis to £1,923 per month, reflecting greater platform adoption among existing clients.
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Forward-looking annual recurring revenue (ARR) in the core customer experience and data platform (CXDP) business grew 14 per cent to £72.6m, or 9 per cent organically, underscoring sustained demand for integrated marketing solutions.
Adjusted EBITDA rose 10 per cent to £26.8m, with adjusted profit before tax up 13 per cent to £19m. Adjusted diluted earnings per share increased 2 per cent to 4.80p.
Acquisition of Social Snowball
The group ended the period with £36.2m in cash, down from £42.2m a year earlier, after a $20m initial payment for the June acquisition of Social Snowball, a Shopify-focused influencer, affiliate and referral marketing specialist.
The deal was immediately earnings-enhancing and has since delivered approximately 50 per cent annualised ARR growth. Dotdigital said it maintained strong cash generation and proposed a final dividend of 1.21p per share, up from 1.10p, in line with its progressive policy.
Global expansion continues
Operationally, Dotdigital expanded in every region, with international revenues rising to 33 per cent of the group total from 32 per cent. North America and Asia-Pacific posted local-currency growth of about 20 per cent. High-profile client wins included Science in Sport, the Quoted Companies Alliance, KFC, New York Botanical Garden, The Royal Ballet, FujiFilm, The Body Shop and BBC Children in Need.
Functionality recurring revenue, which captures revenue from new platform features, advanced 12 per cent on a constant-currency basis to £35.5m. The full launch of WhatsApp messaging in April attracted more than 30 customers. Integration of Fresh Relevance, acquired earlier, bolstered personalisation capabilities and supported higher-value contracts and cross-selling.
Continuing investment in AI
Product development remained a priority, with continued investment in AI, data management and system connectivity. The Winston AI suite was expanded, alongside enhancements to reporting and business-system integrations. Revenue from customers using named technology connectors grew 8 per cent to £37.m, led by Shopify, Netsuite and Salesforce ecosystems.
Milan Patel, the company’s chief executive, described the results as “another year of profitable growth alongside meaningful progress on our platform strategy”. He highlighted high retention, client consolidation around fewer systems and clear demand for measurable returns.
“With advances in AI, data and mobile messaging, the addition of Social Snowball and the integration of Fresh Relevance, our CXDP is broader and more valuable than ever,” Patel said.
Dotdigital’s positive forecast
Looking to FY26, Dotdigital said it was well positioned to meet full-year market expectations, citing tailwinds from demand for integrated platforms that leverage automation and AI to improve efficiency, reduce complexity and enhance consumer experience.
The group enters the new financial year with an expanded product suite, a stronger pipeline and expectations of continued sustainable growth and robust cash generation.
Investors should welcome the resilient performance amid a challenging macroeconomic backdrop for marketing technology spending, though we note the modest organic ARR growth rate reflects cautious enterprise budgets in the first half.
The Armchair Trader view
The results reinforce Dotdigital’s transition from a primarily email-focused provider to a comprehensive customer engagement platform, a pivot that has required sustained research and development expenditure (around 12 per cent of revenue in FY25) while preserving high margins.
With a net cash position and a partner network that now drives more than 40 per cent of revenue, the company appears equipped to capitalise on the accelerating shift toward AI-enabled, omnichannel marketing.
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