Dotdigital Share Discussion Threads

[zeus19] 24/12/2020 10:52

That would give it a market cap of just under £600m. Overvalued imo

[shammytime] 24/12/2020 10:10

This looking very good for a run up to 200p

[2vdm] 18/12/2020 07:27

Maybe the podcast made a few more people realise what a great company this is?

[boadicea] 17/12/2020 17:38

That was a bit of an unexpected surge to finish the day. Leaking news?

[tomps2] 24/11/2020 12:45

DOTD FY20 results presentation given to analysts 17.11.20 by Milan Patal, CEO & Paraag Amin, CFO. More colour on the results, the market, the strategy and how they see the opportunities ahead.

Video:

Podcast:

[lomax99] 18/11/2020 08:23

IC comment:

dotDigital raises guidance despite lockdown

otDigital (DOTD) has increased revenue guidance through FY2021, adding ballast to an earlier October update that revealed top-line growth was in advance of consensus expectations.

It is doubtful if any business could claim to be iron-clad in the face of the pandemic, but it appears as if the software-as-a-service (SaaS) specialist has a degree of immunity due to the accelerated shift towards e-commerce. Management pointed to the diversity of the group’s customer base, coupled with “strong contracted recurring nature of [the] business model”. Indeed, recurring revenue as a percentage of total revenue increased by 200 basis points to 91 per cent.

Clients purchase a pre-paid contract for a set period that gives them access to the platform, enabling integration of any existing e-commerce and/or customer relation technologies. The overall aim is to improve marketing efficiencies, customer retention and up-selling opportunities. The technology may well be finding favour, at least judging by a 12 per cent increase in average revenue per customer in the year to 30 June. The increase was partly down to improvements in both platform messaging and functionality, but the group’s services are also increasingly being accessed by larger clients.

All appears in good trim. Cash profits are up by a quarter, with improved cash generation at the operating level and receivables falling as a percentage of revenue. The shares are priced for growth at 40 times forward consensus, but the unfolding narrative suggests the rating is justified. Buy.

Last IC view: Buy, 95p, 15 Apr 2020

[energeticbacker] 17/11/2020 16:51

Fabulous results covered by Investor's Champion in the latest update - quality is worth the premium - appreciate the increase in dividend but shareholders would surely be better off keeping their money in the company where it can generate a much higher return!

[the analyst] 17/11/2020 13:01

Superb results. They get the balance just right between making profit (actual cash in bank) and putting money into R&D, to improve the offering. The dividend is reassuring, too.

I can only see them going from strength to strength in the US, based on the traction they are getting and comparing to the growth in UK over the last 10 years. Plenty of years of growth ahead, imo.

Agree that the price might well flatline fro a while - it is possible. But over the next 5 years, I'm optimistic and would rather be in than out.

[boadicea] 17/11/2020 11:39

Excellent results justify the high rating of DOTD. Coupled with a very strong balance sheet, predictability of revenue and encouraging forward guidance, it has managed to avoid a results day sell-off so often seen of late.

Given the good share price performance over the past year (up ~66%) it may flat-line for a while but there is plenty of scope for further developments emanating from its cash pile.

[johnwise] 17/11/2020 08:00

dotDigital Group plc Final Results

Strong cash balance at 30 June 2020 of GBP25.4m (2019: GBP19.3m)

[zeus19] 17/11/2020 07:48

Lovely results

[tomps2] 17/11/2020 07:26

DOTD FY20 results overview by CEO Milan Patel & CFO, Paraag Amin.

video:

Podcast:

[qvg] 06/11/2020 17:06

i bought at pe of 19.5 for 34p in 2015. so not cheap, but much less demanding than today's valuation

[pentangle] 06/11/2020 09:28

Yes, it’s a demanding rating. However, DOTD have always been on a demanding rating ever since they listed on AIM at about 8p nearly 10 years ago. I doubt they would ever have appealed to Value investors, but have never underdelivered and have produced astounding returns over that time.

[boadicea] 06/11/2020 09:04

tongosti - "Don’t like the price action..."

It's up about 70% over 12 months and stuffed with cash. I'll settle for that.
It may flatline for a while, that's what markets can do while waiting for news. It forms a firm base to advance from when events that have been happening in the bakground are revealed.

That said, I'll grant it's not cheap and that sets a high bar for future performance to justify the share price

Next scheduled news is a week on Tuesday (17th, preliminaries).

PS:
If you're looking for companies with similarly solid balance sheets (esp. good cash reserves) see ECK or D4T4. On an adjusted earnings basis ECK is also similarly expensive but D4T4 looks relatively cheap presumably because of its less dynamic past history. That gives it more elbow room for a rerating imho but DYOR.

PPS: For [elbow room] in the above para, read [headroom] - We don't want sideways movement.

[2vdm] 03/11/2020 07:43

This is a long term play. Have been in it for years and not selling now.Well run and with great products particularly Dotmailer.

[tongosti] 02/11/2020 12:33

Don't like the price action fellas. Bailed out at a minor 0.5% loss but happy not to give a suspicious tape the benefit of the doubt. Always happy to reinitiate once the tape starts behaving again. Good luck to all those who are in.

[tongosti] 30/10/2020 13:34

Good recovery on the day fellas. Let's hope we will touch 160 sooner rather than later.

[the analyst] 27/10/2020 15:50

Still holding, still my favourite of the listed companies that I'm invested in.

I love the honesty... the way they don't hype expectations. Even when the CEO changes, they maintain the same high standards.

Long may that continue.

[qvg] 21/10/2020 12:42

i am holding

[pentangle] 21/10/2020 11:20

Zeus19 - Its been very quiet on this board for quite a while. Meantime the share price has gone up about 50% in these Covid ridden times. I can only conclude that most people took the money and ran whilst the institutions have been accumulating.

[zeus19] 21/10/2020 09:24

So quiet in here today...

[tongosti] 20/10/2020 14:01

Almost +400% avg daily volumes with still a couple of hours to go. Bodes well and it stacks odds on the long side.

[energeticbacker] 20/10/2020 12:04

Covered in Investor's Champion's latets update. Worth emphasising that the latest update is only one quarter into the financial year with plenty of potential for further upgrades.