Dotdigital reports increased revenue, profitability
By Josh White
Date: Tuesday 04 Nov 2025
(Sharecast News) - Dotdigital Group reported increased revenue and profitability for the year ended 30 June on Tuesday, driven by organic growth, higher customer spend, and continued investment in its AI-powered customer experience platform.
The AIM-traded software company said group revenue rose 6% to £83.9m from £79m a year earlier, or 7% on a constant-currency basis.
Adjusted EBITDA grew 10% to £26.8m, ahead of market expectations, while adjusted profit before tax increased 13% to £19.0m.
The firm said adjusted diluted earnings per share rose 2% to 4.8p.
Dotdigital said its recurring and repeating revenue remained stable at 94% of the total, with contracted recurring revenue accounting for 80%.
Average revenue per customer rose 8% on a normalised, constant-currency basis to £1,923 per month.
Forward-looking annual recurring revenue in the core customer experience and data platform (CXDP) business climbed 14% to £72.6m, with 9% organic growth.
The company said growth was achieved across all regions, with international markets now contributing 33% of total revenue. North America and Asia-Pacific both delivered about 20% growth in local currency.
Functionality recurring revenue increased 12% to £35.5m, supported by new customer wins and deeper usage of the platform's expanding capabilities.
"We are pleased to report another year of profitable growth alongside meaningful progress on our platform strategy," said chief executive Milan Patel.
"New customer wins were complemented by consistently high retention and expansion within our existing base, underscoring the strategic value clients place on our platform as the foundation of their digital marketing strategy."
Patel added that customers were consolidating around "fewer, more capable systems" and demanding clear returns, with Dotdigital meeting that need.
"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."
During the year, Dotdigital acquired Social Snowball, a Shopify-focused influencer and affiliate marketing platform, for an initial $20m cash payment.
The acquisition was immediately earnings-enhancing, with annualised recurring revenue up about 50% since completion.
It also completed the integration of Fresh Relevance, enhancing personalisation and helping to secure higher-value contracts.
The company reported a cash balance of £36.2m at year-end, down from £42.2m, reflecting the Social Snowball acquisition, and proposed a final dividend of 1.21p per share, up from 1.10p.
Dotdigital said it entered the new financial year with a broader product suite, a healthy pipeline, and expectations of continued sustainable growth supported by strong demand for integrated, AI-enabled marketing platforms.
At 1531 GMT, shares in Dotdigital were up 4.71% at 71.2p.
Reporting by Josh White for Sharecast.com.
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