DotDigital Group – Interims next week could push the shares up a whole level from the current 57.80p, brokers average TP 128p

Mark Watson-Mitchell – 02.03.2026

In just eight days, on Tuesday, 10th March, DotDigital Group (LON:DOTD), the leading SaaS provider of an AI-powered customer experience and data platform for intelligent, personalised marketing engagement at scale, will present its Interim Results to the end-of December last year.

The company has already given the market guidance that the current year has shown some strength in its operations.

The last year, to end-June 2025, was declared as a “Year of organic growth, enhanced profitability and significant product advancement aligned to market demand.”

Market followers now anticipate that this year will follow on that momentum.

Just a month ago, the group issued a Trading Update which was positive in content, but the shares have yet to respond to the news.

Next week’s results could well change that sentiment.

The Business

The £177m-capitalised group, which was founded in 1999, is based in London with offices in Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw and Cape Town.

Dotdigital's solutions empower over 4,000 brands across 150 countries.

It is a leading provider of email marketing and omnichannel SaaS technology to empower digital marketing professionals.

Its marketing automation platform is used by over 70,000 marketers worldwide, empowering global marketers to achieve outstanding results with superior tools and services.

The group’s customer experience and data platform (CXDP) combines the power of automation and AI to help businesses deliver hyper-relevant customer experiences at scale.

With Dotdigital, marketing teams can unify and enrich their customer data, identify valuable customer segments, and deliver personalised cross-channel customer journeys that result in engagements, conversions, and loyalty.

Interim Trading Update

On Tuesday, 27th January, the group reported a strong first half of FY26, with core CXDP contracted ARR increasing by 13% to £75.0m and recurring revenue up 11% to £37.3m, representing 84% of total revenues.

Total group revenue grew 4% to £44.2m, and average revenue per customer (ARPC) rose 7% to £1,968 per month.

The company also noted positive integration of Social Snowball, with its ARPC increasing by 9% to $348 per month.

Despite FX headwinds and market pressures, Dotdigital stated that it remains confident in meeting full-year market expectations, supported by its recurring revenue model and product innovation.

The group’s cash reserves stood at £36.1m at the end of December 2025.

Management Comment

With the Trading Update, CEO Milan Patel stated that:

"We have made a solid start to FY26, despite the challenging macro environment and continue to see customers prioritising platforms that simplify their technology stack and make results easier to achieve and measure.

That plays to Dotdigital's strengths: a highly recurring revenue model, a broad all-in-one CXDP proposition and a clear focus on helping marketers use data and personalisation to drive outcomes.

We are progressing with a balance of ambition and discipline, investing where we see the best returns.

Alongside continued organic investment, we remain proactive in assessing complementary acquisition opportunities that enhance the platform and support long-term value creation.

Social Snowball is a product of this approach, and we are delighted with its contribution.

With a comprehensive product portfolio, strong revenue visibility, a strengthening pipeline and a healthy balance sheet, we are confident in the year ahead and the Group's continued success."

The Equity

There are some 307.5m shares in issue.

Larger holders include Liontrust Investment Partners (12.9%), Ian ‘Tink’ Taylor, Co-Founder & President (9.82%), Rathbones Investment Management (7.0%), Canaccord Genuity Wealth (6.05%), Slater Investments (4.68%), Chelverton Asset Management (3.98%), Investec Wealth & Investment (3.78%), Evelyn Partners Investment Management (2.18%), and Discover Capital (1.19%).

Broker Views

Some five firms follow the group, with the consensus average showing a 128p Target Price, with the Lowest call at 110p and the Highest at 150p.

Andrew Darley and Kimberley Carstens, at Cavendish Capital Markets, have a Buy with a 150p Target Price.

For 2026 to end-June, they see £91.9m (£83.9m) of revenues, £19.6m (£19.0m) in adjusted pre-tax profits, 5.0p (4.8p) earnings and paying a 1.3p (1.2p) dividend per share.

Their 2027 estimates are for £100.8m sales, £22.4m profits, 5.6p earnings and a making a 1.5p per share dividend payment.

At Singer Capital Markets, its analysts Harold Evans, James Musker and Roddy Davison rate the group’s shares as a Buy with a 122p per share Target Price.

Their estimates for 2026 are for £92.0m sales, £20.0m profits, 5.0p earnings and a 1.20p per share dividend.

For 2027 they look for £99.0m of revenues, £22.5m profits, 5.6p earnings and paying a maintained 1.20p per share dividend.

Upon the Trading Update, the analysts noted that:

“DOTD on 13x fwd. P/E, dropping to 12x in FY27 – this represents a very modest multiple for such a proven ‘ARR compounder’ which stands to gain share, even in a tricky market.”

The trio of analysts at Canaccord Genuity – Kai Korschelt, Hayley Palmer and Tom Like, rate the group’s shares as a Buy, with a Price Target of 150p a share.

For the current year, they estimate an increase in revenues to £93.1m, with profits of £19.9m, earnings of 5.1p and a dividend of 1.30p per share.

For 2027, they see £100.6m sales, £21.2m profits, 5.4p per share earnings, and a dividend of 1.40p.

The 2028 progression is for £107.6m revenues, with £22.4m profits, 5.7p earnings and 1.50p per share of dividend.

My View

Just over three years ago, this group’s shares were trading at 117p, since when they have gradually eased back to the current lowly 57.80p, at which it is capitalised at just £177m.

The forthcoming Interim Results, due next week, could well spell out further reasons why investors should be buying this group’s shares.

(Profile 09.12.25 @ 64p set a Target Price at 80p)