Nothing is certain except for death, taxes and growth by Dotdigital. As the company has today announced yet another half year of uninterrupted growth, which leaves the company tracking in line with full-year estimates. Specifically, DOTD expects to deliver +10% ccy. sales growth to £42.4m, which equates to broadly +7% ccy organic (1H24: +11% y/y) so a slight decline, but still, several data points highlight continued strategic progress. For example, all geographies continued to grow (including +19% in APAC and +20% in N.America), while ARPC also progressed nicely: +12% to £1,916/month, reflecting continued progress with higher value customers and also strong CXPD demand, which now includes Fresh Relevance’s web personalisation capabilities. This top-performance, is consistent with full year expectations (+7% organic) such that we leave FY25e revs and profit unchanged, such that we continue to forecast +12% EBITDA growth, driven by the aforementioned organic and also expected margin improvement by Fresh Relevance. DOTD trades on just 16x FY26 PE or a 5.6% FCF yield that’s pretty undemanding for one of the most resilient businesses in our sector.
