dotDigital Group PLC: H1 2025 Earnings Call Highlights Strong Recurring Revenue and ARPC Growth

dotDigital Group PLC (DOTDF), a leading SaaS provider of an all-in-one customer experience and data platform (CXDP), recently announced its unaudited interim results for the six months ended 31 December 2024. The earnings call highlighted strong recurring revenue and average revenue per customer (ARPC) growth, demonstrating the company's robust financial performance and growth prospects.

Recurring and repeating revenue as a percentage of total revenue increased to 95% in H1 2025, up from 94% in H1 2024. This growth can be attributed to the increasing demand for Dotdigital and Fresh Relevance capabilities, as well as the company's focus on enhancing its offering and executing against its product roadmap. The company also reported an 11% increase in adjusted EBITDA to £13.8m and a 12% increase in adjusted profit before tax to £10.0m.



The acquisition of Fresh Relevance in FY24 brought web personalization and advanced omnichannel capabilities to the Group, contributing to higher value deals and a c. 60% increase in average order value from new customer wins. This integration has enabled the company to offer more sophisticated campaigns and touchpoints with customers, driving higher ARPC. In H1 2025, ARPC increased 12.1% to £1,916 per month, up from £1,709 per month in H1 2024.



dotDigital Group PLC's ARPC growth is driven by organic growth, strategic acquisitions, product innovation, and geographic expansion. The company's ARPC growth compares favorably to industry peers and historical trends, demonstrating a consistent and healthy increase in revenue per customer. The acquisition of Fresh Relevance has also contributed to revenue growth, with functionality recurring revenues increasing 27% to £31.6m in FY24.



In conclusion, dotDigital Group PLC's H1 2025 earnings call highlights strong recurring revenue and ARPC growth, driven by organic growth, strategic acquisitions, product innovation, and geographic expansion. The company's robust financial performance and growth prospects make it an attractive investment opportunity in the SaaS sector.