Dotdigital Group, the AIM-listed AI-powered marketing platform provider, said revenue, profit and cash all came in line with FY26 market expectations for the year ended 30 June.
Group revenue rose 8% to £90.9m from £83.9m, or 9% on a constant-currency basis, with gross margin improving to 80% from 79% as the mix shifted toward higher-margin core customer experience and data platform (CXDP) business.
Forward-looking contracted annual recurring revenue (ARR) for the core CXDP business increased 18% to £85.4m from £72.6m, or 8% organically, with the organic growth rate improving from 6% at the half-year stage.
Cash fell to £17.1m from £36.2m a year earlier after Dotdigital paid an initial $30m for the acquisition of Alia, which lifted its ARR to £10m from £6.9m in the four months since acquisition.
Social Snowball, bought the previous year, grew ARR 33% to £5.4m, triggering an expected first-year deferred consideration of approximately $1m payable in FY27.
Excluding acquisitions, Group revenue was flat, reflecting the exit of a low-margin messaging contract and the unwinding of a strong prior-year comparator, both now fully reflected in the FY26 numbers.
"We enter FY27 with greater revenue visibility, a broader market opportunity and a more focused organisation," said chief executive Milan Patel, adding that market conditions "remain mixed" but the board is confident in delivering FY27 expectations.
