Dotdigital Group Plc · LSE:DOTD
Dotdigital — FY2022 Earnings Presentation
34 slides from Dotdigital's earnings presentation, November 2022
Slide 1: Full Year Results Presentation for the Year Ended 30 June 2022
dotdigital FULL YEAR RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2022 Milan Patel, CEO Alistair Gurney, CFO November 2022
Slide 2: Who we are, What we do, Who we help
Who we are What we do Who we help • Formed in 1999 as dotmailer with a We provide a SaaS based omnichannel Over 4,000 brands & c.50,000 active marketing technology vision marketing platform that enables brands monthly users. • A global business with a UK headquarters to engage with their customers a
Slide 3: The Dotdigital difference and year highlights
• Growth in all regions (APAC, EMEA & North America) The Dotdigital difference • Strong SaaS growth excluding one-off transactional SMS Trusted providing enhanced revenue visibility Over 4,000 of the world’s leading organisations trust Dotdigital as their • Operational enhancements addressing prior
Slide 4: Revenue at top end of range; profitability and cash ahead
Revenue at top end of range; profitability and cash ahead Total revenue Adj. operating Adj. EBITDA Strong cash growth to £62.8m profit to £14.5m to £21.7m of £43.9m & no debt Recurring revenue International revenue ARPC growth to Final dividend of total revenue (FY21: 31%) £1,461m (FY21: 0.86p) (FY2
Slide 5: Converse gain greater footing in international markets with live chat
Converse gain greater footing in international markets with the power of live chat Established in Massachusetts, USA in 1908 Solution as an independent rubber shoe manufacturer, Converse has since grown The team at Converse set up a meeting to learn more into one of the most iconic footwear about Do
Slide 6: Kissed Earth uses Dotdigital for stronger customer engagement
Kissed Earth uses Dotdigital for stronger customer engagement and database management Kissed Earth is one of Australia’s fastest- Solution growing wellness brands committed to using only the finest quality ingredients. The partnership saw Kissed Earth use Dotdigital’s Developed in Australia by Austr
Slide 7: DHL improves productivity by 75% and delivers stellar results
DHL improves productivity by 75% and delivers stellar results with creative tweaks DHL eCommerce Solutions is the newest Solution division of DHL, the global shipping and logistics leader that offers everything from Some of DHL eCommerce Solutions’ accounts were sat express shipping to complex suppl
Slide 8: Market trends and customer experience management
Email Marketing delivers highest ROI for Marketers Source: Gen X and Z Market McKinsey expect a more continues to grow double personalised “Leaders across industries are putting a laser focus digital digit Experience on customer experience management. That’s where transformation meets growth. Delive
Slide 9: Why we win / Market landscape
Why we win Market landscape + Unrivalled suite of capabilities for growing, global businesses with multi-store, multi-currency, and multi- language support alongside SMS reach to 200+ countries. Enterprise (>$30k/month) + Truly two-pronged approach to product; a fast-evolving and easy-to-use platfor
Slide 10: Financial review
© dotdigital rancial view
Slide 11: Group revenue
Group revenue • Revenue from continuing operations grew 8% to £62.8m £62.8m (FY21: £58.1m) • Monthly ARPC increased 17% to £1,461 (FY21: £1,251) • Contracted recurring revenue grew 10% to £ 49.6m (FY21: £45.1m) and now represents 79% of total £43.9m revenues • Total recurring revenues increased to 9
Slide 12: Income statement and margins
• In addition to revenue growth of 8%, Gross margin has £’m FY22 FY21 Growth marginally improved to 82.2% due to revenue mix Revenue 62.8 58.1 8% improvement. We have also automated the scaling of cloud infrastructure to optimise margin in future periods. Cost of sales (11.5) (10.3) Gross profit 51.
Slide 13: Healthy balance sheet and strong cash position
• Healthy balance sheet due to good trading £’m FY22 FY21 and working capital management Non-current assets 30.7 29.8 Other current assets 13.2 13.4 • Strong cash position gives Cash 43.9 32.0 us strategic options Total assets 87.8 75.1 Non-current liabilities 4.5 3.7 Current liabilities 13.5 10.4 •
Slide 14: Cash flow from operations
• Cash flow from operations has grown £’m FY22 FY21 Net cash generated from operations 23.4 17.0 38% to £23.4m. This represents 108% Net cash used in investing activities (8.1) (7.0) conversion of adjusted EBITDA Net cash used from financing activities (3.7) (3.5) Cash and equivalents BoP 32.0 25.4
Slide 15: Growth strategy
dotdigital rowth rategy 15
Slide 16: Our core growth strategies
Expand our product suite: providing organic growth Globalising Focus on cross- selling deeper our talent: customer organisational relationships strength and capabilities Our core growth strategies Grow our Deepening customer base: increasing our Organic our strategic partnerships: global market buil
Slide 17: Functionality recurring revenue and product innovation
Functionality Recurring Revenue • Functional Recurring Revenue grew by 18% to £22.3m Product innovation (FY21: £18.9m). It now makes up 45% of recurring revenue (Engagement Cloud – (Exc. Transactional SMS). License and functionality • Enhanced our reporting and analytics with advanced revenue Strate
Slide 18: Attributes of a CDXP
Attributes of a CDXP Acquire new Increase brand customers awareness Understand what Deliver better customers want customer experiences Packaged software Remove data Persistent, unified Orchestration and Inspire customer siloes activation layer engagement customer database and loyalty Accessible to o
Slide 19: Seamlessly integrate to your stack
Seamlessly integrate to Single Customer View More data, More insights, Channels your stack and contact unification more insights more action • Deep strategic partner • Unified Contact API • Data ingestion, • AI journey builder • Website integrations transformation personalisation • Single Customer V
Slide 20: Strategic partnerships
• Sales from customers using connectors to our strategic partners’ solutions increased 14% to £28.9m (FY21: £25.4m). FY22 Product innovation 29% • Revenue from Magento (Adobe Commerce) increased 10% to 46% £15.8m (FY21: £14.3m) Strategic partnerships • Revenue from Shopify increased 56% to £3.3m (FY
Slide 21: Geographic expansion: international revenue
Revenue in the Americas grew 3% Product innovation to $12.9m, (FY 2021: $12.5m) despite having to rebuild the team in region. International Strategic partnerships revenue Geographic expansion EMEA revenue grew 8% to £48.2m (FY 2021: £44.6m), driven by the retention of our customers and post APAC rev
Slide 22: © dotdigital
© dotdigital 22
Slide 23: Rapidly growing global team
Rapidly growing global team of talented & diverse employees 5% 65% 6% 35% 65% 1% Employees Average tenure 4 years 9% 6% and CS Services Sales Marketing Technology Professional Central Function 3% 7% 23
Slide 24: To) x BS {e) ne} {o)
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Slide 25: Priorities: grow pipeline, partnerships, attract and retain staff
Build Grow pipeline partnerships to Attract and across regions enhance brand retain staff awareness Educate ‘One culture’ market on for office & product remote offering 25
Slide 26: Dotwellbeing, dotDEI, Dotcommunity, Dotgreen
Dotwellbeing dotDEI Dotcommunity Dotgreen Wellbeing initiatives Gender pay gap report Fundraising events 100% renewable energy as of July 2022 Open discussion Employee surveys Charity partnerships Net zero by 2030 Support & education Inclusive hiring Employee volunteering ISO 14001 certification Dot
Slide 27: Positive trading momentum into new financial year
Positive trading momentum into new financial year Improved operational foundations to return to double digit growth in the medium term Highly visible SaaS business model & robust balance sheet giving flexibility to invest in growth pillars Clear strategic vision for future Favourable market growth d
Slide 28: Questions
6) dotdigital / suMMER | SHINDIG © dotdigital 2022 2 iestions
Slide 29: Appendix
© dotdigital »pendix
Slide 30: Board and management biographies
Milan Patel Alistair Gurney John Conoley Boris Huard Liz Richards ACA Chief Executive Officer Chief Financial Officer Non-Executive Chairman Non-Executive Director Non-Executive Director Milan was responsible for the Alistair joined the Board in John was appointed as Non- Boris is the EMEA Managing
Slide 31: Global reach and shareholders
Global reach • Liontrust Asset Management 18.18% • Directors 10.7% • Octopus Investments 9.4% Switzerland Germany France • Baillie Gifford 5.4% • Slater Investments 5.3% • Investec Wealth & Investment 4.8% • Hargreaves Lansdown PLC 3.4% • Highclere International Investors 3% USA USA Australia • Fran
Slide 32: Strategy, scalable growth, leadership and outlook
Strategy Scalable Growth Independence Leadership Outlook Clear and compelling Highly scalable platform Attractive industry growth The successful Experienced management Strong growth prospects strategy focussed on for all sizes of customers with a change in Dotdigital culture team organic growth with
Slide 33: Action for Children uses cross-channel communications
Action for Children uses cross-channel communications to help those in need For over 150 years, Action for Children has Solution worked to change the lives of vulnerable children in the UK. The charity ensures the Using Dotdigital’s landing pages and forms tool, Action voices of the most vulnerable
Slide 34: Forward-looking statements disclaimer
Certain statements included or incorporated by reference within this This presentation does not constitute or form part of any offer or presentation may constitute ‘forward-looking statements’ in respect invitation to sell, or any solicitation of any offer to purchase any shares of the Group’s opera