Dotdigital’s (DOTD) shares had fallen back in recent weeks, seemingly due to concerns about the impact of the EU’s new data privacy rules. Particularly given that the marketing automation group’s first-half revenue was dampened by customer-spending delays in Europe, the Middle East and Africa ahead of GDPR’s May deadline.
It was thus reassuring to learn that the region’s sales cycles have “normalised”, delivering double-digit growth for the full year to June. And GDPR’s launch has had no material impact on email volumes or recurring revenues from existing clients.
Dotdigital’s share price soared nearly a fifth in reply – no doubt simultaneously buoyed by good news about the future of its relationship with e-commerce partner Magento, which was recently acquired by Adobe. Magento has said it is “business as usual”.
Group revenue increased by around 35 per cent to £43.1m, helped by US growth of 43 per cent to $7.1m (£5.4m) and Asia Pacific growth of 85 per cent to AUS$2.2m (£1.3m). Adjusted cash profits and operating profits should meet market expectations, and a year-end cash balance of £15.1m looks strong.
