LONDON (ShareCast) - (Sharecast News) - dotDigital on Tuesday reported a jump in annual profits from continuing operations as product development led to a sharp increase in recurring revenue.
Profit before tax from continuing operations came in at £11.0m for the year ended 30 June, a jump of 27% compared to the year before, though overall profit before tax was 4% lower at £8.9m after the company opted to discontinue its Dynmark and Donky business units.

The AIM traded company said this allowed it to focus on its core software as a service-based marketing platform, which resulted in enhanced product functionality and 39% recurring revenue growth to £12.4m.

Total revenue was 19% higher at £51.3m, while average revenue per user rose by 14% to £966 per month.

Geographic expansion continued at pace, with North American revenue climbing by 27% as the company used marketing and partnerships to increase its addressable market in the region.

Asia Pacific revenues jumped by 83% from a low base due to higher order values and customer numbers, while turnover from Europe, Middle East and Africa rose by 10% despite the impact of GDPR.

Chief executive Milan Patel said: "Although relatively early on, Q1 of the 2019/20 financial year has started well with trading in line with expectations. With 89% of our revenues recurring, a high proportion under contract and strong client relationships we continue to have good visibility into our earnings."

Analysts from Canaccord said: "From an investment perspective, we continue to see many Buy factors including a strong core competency, scalable technology platform, potent track record, positive momentum and a story with much more to go for. In particular, we like that this is a growth stock with a clearly defined growth strategy."

dotDigital shares were up 6.91% at 97.28p at 0958 BST.

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