Dotdigital Group Plc · LSE:DOTD
Dotdigital — FY2023 Earnings Presentation
40 slides from Dotdigital's earnings presentation, November 2023
Slide 1: Annual results presentation
Annual results presentation For the year ended 30th June 2023 Milan Patel, CEO Alistair Gurney, CFO November 2023
Slide 2: A global customer experience and data platform
A global customer experience and data platform Who we are What we do Why people choose us • Formed in 1999 as dotmailer with a Dotdigital’s Customer Experience & Data We offer a platform, people and partner marketing technology vision Platform breaks down data siloes and gives proposition that strik
Slide 3: Expertise across many sectors
Expertise across many sectors Over 4,000 brands & c.50,000 active monthly users use Dotdigital Automotive & Parts Education Construction & Materials Energy Transportation Insurance Media Retail Travel & Hospitality Financial Services Sports & Leisure Government/Public Charity/Not for Profit Real Est
Slide 4: Highlights of a strong FY
Highlights of a strong FY • Robust performance with double-digit growth and strong cash generation • Leadership and support teams now well-embedded across all regions and momentum building • Data, analytics and AI-based approach aligned with marketers’ growing focus on ROI • Leap forward in CXDP cap
Slide 5: Financial Review
dotdigital Financial Review
Slide 6: Trading Highlights
Trading Highlights Growth Cash generation • Revenue grew 10% to £69.2m (FY22: £62.8m). • Cash conversion remains close to 100%, driving a cash balance of Our 10 year CAGR remains at 19%. £52.7m at year end, prior to acquisition of Fresh relevance. • Monthly ARPC increased 11% to £1,622 (FY22: £1,461
Slide 7: Financial model
Financial model Drive high margin sticky recurring revenues and cash conversion Revenue Profile +10%* +10%* Recurring and repeating revenues have grown to 94.5% of total Group revenues (FY22: 93.6%). Contracted recurring c. 90% With contracted recurring revenue Non-recurring revenue revenue was 79%
Slide 8: Income Statement
Income Statement • Revenue growth was 10% as underlying SaaS growth was maintained £’m FY23 FY22 Growth despite a challenging macro environment. Gross margin of 79% declined Revenue 69.2 62.8 10.2 % from FY22 (82%) due to revenue mix as SMS volumes have increased. Cost of sales (14.4) (11.6) • Month
Slide 9: Statement of financial position
Statement of financial position • Healthy balance sheet due to good trading £’m FY23 FY22 and working capital management. Aged trade Debtor Non-current assets 32.2 30.7 balances remain low. Other current assets 15.3 13.2 • Strong cash position gave us strategic options and Cash 52.7 43.9 interest in
Slide 10: Statement of cashflows
Statement of cashflows • Reduced cash flow from operations was due to: £’m FY23 FY22 • phasing of profit vs prior year Net cash generated from operations 20.8 23.4 Net cash used in investing activities (8.2) (8.1) • reduced end of period working capital stretch Net cash used from financing activitie
Slide 11: Strategic Update
dotdigital Strategic Update 11
Slide 12: Long term market drivers
Long term market drivers • 76% of business leaders plan to invest more or the same money in Digital Marketing in 2024(1) Marketing Budgets • 63% of Marketeers plan to invest in generative AI in the next two years(2) Marketing Data Automation & management • 63% of Marketeers have started or plan to i
Slide 13: Growth Strategy
© dotdigital Captivating context Growth Strategy s : . a @
Slide 14: Continued delivery against our focused strategy
Continued delivery against our focused strategy 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 Geographic expansion Organic Grow our Deepening custome
Slide 15: Growth across the world (in local currency)
3% Growth across the world (in local currency) Geographic expansion Product innovation Strategic partnerships • Improved retention & strong existing client growth Strategy in action: • Increase in non-commerce customers land-and-expand • Pipeline and closure of higher value deals through global • St
Slide 16: Product innovation driving value
Product innovation driving value Geographic expansion Product innovation Strategic partnerships • The launch of our innovative, WinstonAI™ infused, Customer Functionality Experience & Data Platform (CXDP) to help us attract larger, data Recurring Revenue centric businesses. License, data and bolt •
Slide 17: Leading the market through innovation
Leading the market through innovation Geographic expansion Product innovation Strategic partnerships Dotdigital’s fastest adopted new launch ever, now being used over 25,000 times a month WinstonAI is our cutting-edge AI engine that empowers our customers to uncover profound insights & analytics, cu
Slide 18: Roadmap themes & investment areas
Roadmap themes & investment areas Marketer led themes to grow our value and expand our customer base Discover and Scale and grow Seamlessly Uncover valuable Create and craft Keep at the Easily be a unlock more integrate insights to exceptional cutting edge of customer capabilities, to achieve define
Slide 19: Building pipeline and market reach
Building pipeline and market reach Geographic expansion Product innovation Strategic partnerships • Sales from customers using connectors to our strategic partners’ solutions FY 23 increased by 8% to £31.2m (FY 22: £28.9m). 27% 46% • Our ecommerce connector revenue grew by 2% to £21.4m led by growth
Slide 20: Dotdigital team (as of 30th June 2023)
Dotdigital team (as of 30th June 2023) Rapidly growing global team of talented & diverse employees Re st o f Wo rld UK / EMEA Po lan d 4 2% 4% 64% 7% 38% 62% 30 % 1% Average tenure 12% Employees 4.2 years 10 % J ap an Co m p an y Em p lo ye e 7% 8% En g ag e m e n t At t rit io n USA Services 3% Sal
Slide 21: Growth by Acquisition
© dotdigital Growth by Acquisition
Slide 22: The customer experience and data platform for marketers
The customer experience and data platform for marketers Engage across the complete customer journey, from first website touchpoint to loyal return visitors Identified customers Anonymous visitors Cross-channel marketing automation On-site personalisation Unified customer data & SCV Mobile App person
Slide 23: The leading Customer eXperience & Data Platform
The leading Customer eXperience & Data Platform Democratising customer data to be actionable, empowering marketers & merchants to drive value in every single engagement to achieve your goals Connect and organise customer data Empower the customer experience CRM | ERP CDP | DMP Ecosystem partners (15
Slide 24: Looking ahead
Looking ahead 24
Slide 25: FY24 priorities
FY24 priorities Converting a Growing Ongoing Maximising R&D focus on larger pipeline awareness of appraisal of benefits of enhancing of higher value capabilities potential Fresh Relevance CXDP offering contracts globally acquisitions acquisition 25
Slide 26: Summary and outlook
Summary and outlook Positive trading momentum into new financial year Increasing average order value and momentum in new industry verticals Growing pipeline from enhanced product proposition, particularly for larger value deals Further progress expected against three strategic pillars supported by s
Slide 27: Disclaimer
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 Gr
Slide 28: Questions
dotdigital Questions
Slide 29: Appendix
© dotdigital
Slide 30: Delivering customer engagement and loyalty
Delivering customer engagement and loyalty Largest independent mid-market Dotdigital CXDP customer engagement platform Enterprise (>$30k pcm) $4bn Dotdigital TAM (Merged with CM group) Mid-size (Acquired by SAP) ($1k-$30k DOTD + FR (Acquired by pcm) Bloomreach) (Acquired by CM group) • Unify custome
Slide 31: Feel Good Contacts
Feel Good Contacts Challenge Feel Good Contacts wanted to increase their customer engagement rates and explore different options to boost engagement, increase their marketing ROI and increase the use of personalisation. The brand uses an app where customers are able to view and order products, such
Slide 32: Feel Good Contacts
Feel Good Contacts After sending the SMS to over 45,000 recipients, Feel Good Contacts saw an extra 120 app downloads via iTunes compared to a normal day and an additional 100 sales over the following three days. Over the next month, Feel Good contacts continued to see an uptake of app downloads, in
Slide 33: Ipsos MORI
Ipsos MORI Hi Jenny, The survey is closing Challenge soon. Give your views: https://dd0.io/t6isu9p. Ipsos MORI needed a communication channel to send a survey to students from Your responses will remain across the UK to gage their views on the quality of their education. anonymous to your uni/colleg
Slide 34: Ipsos MORI
Ipsos MORI Helo Jenny, Mae'r arolwg yn cau yn fuan. Rhowch eich barn: Using Dotdigital’s SMS Broadcast feature, Ipsos was able to upload all client https://dd0.io/9twl65b. Bydd eich data in one go. Unique links were added using Dotdigital’s personalisation ymatebion yn cael eu cadw'n anhysbys i'ch p
Slide 35: ScentAir
ScentAir Challenge ScentAir was looking to provide a better ecommerce customer experience for it’s customers based in the US. On top of this, they required a platform that would give them the support they needed as they planned their expansions into other global regions. Solution Dotdigital worked w
Slide 36: ScentAir
ScentAir Dotdigital’s reporting suite provided ScentAir an overview of their successes at account-level, region and regional storefront. This gave the global management team the ability to see how their marketing campaigns were performing across the entire business. After just six months, ScentAir s
Slide 37: Web & app content, recommendations, data capture, site search
Web & app content, recommendations, data capture, site search, PLP merchandising Real-time email content incl. geotargeting, coupons, countdowns, live price Behavioural emails & SMS incl. cart, browse & form abandon, post-purchase & custom Testing, targeting and optimization
Slide 38: Board of Directors
Board of Directors 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
Slide 39: Strong and supportive shareholders
Strong and supportive shareholders Shareholding as at 30th September 2023 Global reach • Liontrust Asset Management 17.3% • Directors & PDMR 10.3% • Octopus Investments 8.7% • Investec Wealth & Investment 6.4% Switzerland Germany France • Slater Investments 5.2% • Hargreaves Lansdown PLC 3.3% • Mart
Slide 40: Investment case
In ve stm e n t c ase 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 te