Dotdigital Group Plc · LSE:DOTD
Dotdigital — H1 2015/2016 Earnings Presentation
38 slides from Dotdigital's earnings presentation, February 2016
Slide 1: Interim Results Presentation 2015/2016
Interim Results Presentation 2015/2016 Milan Patel Peter Simmonds Frank Beechinor-Collins Richard Kellett-Clarke February 2016
Slide 2: Board of Directors
Board of Directors Experienced executive Milan Patel, FCCA, ACSI Simone Barratt management team Interim Chief Executive Officer Chief Executive Officer (Away until mid 2016*) complemented by a & Chief Finance Officer non-executive board with significant AIM Public Company experience and Simon Bird Ian ‘Ti
Slide 3: Company background
Company background dotdigital group was established in 1999. Originally providing a People & Places Significant Shareholders wide range of digital marketing 201 people Directors 22% services, but since 2013 totally • Sales & Marketing 73 people focused on its email and multi- • IT & Development 61 p
Slide 4: Financials
Financials Financials FairFX
Slide 5: Financials: eight-year growth trends
FINANCIALS 8 year growth trends Strong growth in revenue, 16 EBITDA and cash over the past KEY £14.8M 14 Eight years for the six month Group revenue* £12.9M period Product revenue 12 EBITDA 579% REVENUE IN £M 10 Cash at Year End £10.0M Revenue growth £9.5M £7.8M 8 600% £7.6M £6.8M £7.3M 6 EBITDA gro
Slide 6: Key trading highlights
FINANCIALS Key trading highlights 6 months to 31/12/2015 Top line revenue growth Magento connector 29% increase in top line, from £10.0m to £12.9m Over 250 active clients. Average recurring spend increase from £775 to £1,200 per month Increase in incremental recurring revenues Growth in US Region Re
Slide 7: Trading performance
FINANCIALS Trading performance Breakdown revenue 15% 16% Magento connector CRM connector 69% Core Coreplatform platform Dec 15 Dec 14 Growth Global revenue breakdown £’M £’M % 1.3% 3.8% 0.4% 10.8% UK North America Revenue 12.9 10.0 29% 83.7% Rest of the World Asia Pac Cost of Sales (1.4) (1.2) 16% L
Slide 8: Statement of financials
FINANCIALS Statement of financials Position (Balance sheet) Healthy balance sheet Dec ‘15 Dec’14 £’M £’M Assets 5.4 5.0 No debt Breakdown of Other Current Assets 5.2 4.6 CAPEX spend: Strong distributable Cash 14.8 9.5 Product Dev: £0.8m reserves Hardware: £0.3m Total Assets 25.4 19.1 Non Current Lia
Slide 9: Cash flow
FINANCIALS Cash flow Strong cash flows generated from Dec ‘15 Dec ‘14 £’M £’M operations Net cash generated from 3.3 1.4 Total Free cash flows of £2.3m operations Net cash used in investing 1.0 1.3 activities Healthy cash balance at the end of Net cash used from 0.6 0.1 the period financing activiti
Slide 10: dotmailer overview
dotmailer overview dotmailer overview Easy Editor
Slide 11: Marketing automation with email at its core
SUMMARY Marketing automation with email at its core dotmailer allows marketers to manage all stages of their marketing automation activity quickly and easily, from sophisticated data selections to deployment and measurement of their client interactions. Key features • Easy and fast to use. Yet power
Slide 12: How dotmailer works
DOTMAILER OVERVIEW How dotmailer works 12 | Interim Results Presentation 2015/2016
Slide 13: Increasing Revenue: customers grow with us
DOTMAILER OVERVIEW Customers grow with us “When I saw the EasyEditor in action I realised it is as easy as using Lego.” Chris Hipson, Customer Experience dotmailer provides clients around the world with marketing tools Econsultancy that are easy to use yet provide all the functionality that a mid si
Slide 14: Customers' growth is our competitive differentiation
DOTMAILER OVERVIEW Customers’ growth is our competitive differentiation Our advanced Campaign Monitor SMALL BUSINESS features mean your CLIENTS Constant Contact customers can stay with us as they start Mailchimp to use more advanced marketing Listrak tactics Infusionsoft MID MARKET CLIENTS dotmailer
Slide 15: Growing from strength to strength
Growing from strength to strength Going from strength to strength
Slide 16: Key areas of focus for organic growth
Key areas of focus for organic growth Strategic Product International Niches partnership innovation Solidify growth whilst Maximise the opportunities Continued enhancements in Penetrate new niches by getting ready for faster from our Global Magento marketing automation increasing our platform scalin
Slide 17: Geographic International expansion
Geographic International expansion 17 | Interim Results Presentation 2015/2016
Slide 18: US region
INTERNATIONAL US region 2012 2013-2015 2015 onwards Pilot Start up Getting set for growth Successes Successes Focus for 2016 • Established US office • US $2.1m revenue • New leadership team installed with • 2 employees • Built team size to 17 experience of setting teams and structures • Existing clien
Slide 19: Australia region
INTERNATIONAL Australia region 2015 Pilot Some of the companies signed up in Australia region so far: Successes • Established Australian office • 2 employees • 8 partners signed • Revenue generated of AUS $0.3m • Strong pipeline building • Capitalise on positive reception in region Learnings • Need to
Slide 20: Scaling the platform for robustness – Project Cirrus
NTERNATIONAL Scaling the platform for robustness –Project Cirrus Move physical data centre in the UK to a multi data centre environment using Hybrid Cloud Design. Cloud for storage. Local hardware for delivery. Rationale: • Scalability and reduced business risk • Redundancy and resilience • Global d
Slide 21: Strategic partnership
Strategic partnership 21 | Interim Results Presentation 2015/2016
Slide 22: Magento
Magento Community Edition (CE) and Magento Enterprise STRATEGIC PARTNERSHIP Edition (EE) combined ensure Magento is still the most popular ecommerce platform there is with 31% combined Magento dotmailer’s is delighted to have been awarded a Global Magento Platinum Technology Partner. Magento recogni
Slide 23: Partnerships
We continue to focus on STRATEGIC PARTNERSHIP B2B integrations such as Salesforce and Microsoft Partnerships Dynamics CRM that dominate the mid market CRM landscape We are committed to ensuring our integrations and CRM connectors continue to deliver world- class performance to our B2B customers. Int
Slide 24: Product innovation
Product innovation 24 | Interim Results Presentation 2015/2016
Slide 25: Profitable Evolution vs Diversification
PRODUCT INNOVATION Profitable Evolution vs Diversification The Group is focussed on monetising its HY2015 innovative technology and the dotmailer £2.1m multi-channel automation platform has increased markedly in sophistication over the last 18 months. HY2015 KEY TO GRAPH £1.8m • Core is revenue gene
Slide 26: Product roadmap
PRODUCT INNOVATION “We continue to listen to Product roadmap our customers to deliver easy to use marketing automation solutions.” New features and functionality are released quarterly Steve Shaw, Chief to a roadmap designed to build and cement our Technology Officer attractiveness to mid market clien
Slide 27: Security & Privacy
PRODUCT INNOVATION Security & Privacy PEOPLE AND AWARDS • Appointed dedicated Security and Privacy personnel – James Koons • Member of the Messaging, Malware and Mobile Anti-Abuse Working Group (M3AAWG) • Awarded the UK government backed Cyber Essentials Plus certification PROCESS • Regular comprehe
Slide 28: Niches
Niches 28 | Interim Results Presentation 2015/2016
Slide 29: App Directory
NICHES App Directory APP DIRECTORY • A library of every single integration • In house integrations included to increase feature adoption • 3rd party integrations showcased, reviewed and links to buy. • Over 100 included at launch • Lives on its domain name - apps.dotmailer.com • Fully searchable • A
Slide 30: People: new online Training Hub
People Actual screenshots of the new online Training Hub
Slide 31: Strengthened Leadership Team
Strengthened Leadership Team People James Koons Phil Draper Rohan Lock David Aldrich Chief Privacy Marketing Director EVP Asia Pacific HR Director Officer Steve Shaw Sharon Head Chief Technology Chief Operating Officer Officer Dan Morris George Anup Khera Skip Fidura EVP North America SVP Sales Consultanc
Slide 32: Outlook
Outlook
Slide 33: Outlook
Outlook Key strategy focused on continued strong organic Strong Growth Rationale growth, through: • Growing market • Widespread industry acceptance of email’s ROI • Continued investment in international markets • High levels of brand awareness in the UK and through strategic channel and integration
Slide 34: Disclaimer
Disclaimer This presentation contains certain forward- By their nature, forward-looking information and publicly update, correct or revise any of the looking information and statements. Such statements involve known and unknown risks, information included in this presentation, forward-looking inform
Slide 35: Appendix
Appendix
Slide 36: Core focus is the mid-market sector
Core focus is the mid-market sector Lifetime value of a mid market client is 10x that of the SME sector. Whilst sends volume are highest in the Corporate / Enterprise segments this tends to be at the expense of rates per million. Customers by Band Monthly Send Value per Band Volume per Band 31/07/14
Slide 37: New client wins
New client wins 37 | Interim Results Presentation 2015/2016
Slide 38: Global client list
Global client list dotmailer is a the trusted email marketing partner of huge success stories around the world, including: 38 | Interim Results Presentation 2015/2016
Dotdigital Group — H1 2015/2016 Earnings Presentation on 6ix