Dotdigital (DOTD) AI Stock Analysis

• Market Cap: £198.35M
• Dividend Yield: 1.68%
• Average Volume (3M): 518.56K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.78
• Revenue Growth: 6.27%
• EPS Growth: 0.83%
• Country: UK
• Employees: 451
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 306,093,930
• 10 Day Avg. Volume: 568,439
• 30 Day Avg. Volume: 518,558
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £130.00
• Price Target Upside: 94.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 75.00p ▲(11.94% Upside)

Dotdigital's overall stock score is driven by its strong financial performance, characterized by consistent revenue growth and robust profitability. The technical analysis suggests moderate bullish momentum, while the valuation is fair, providing a balanced investment case. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and resilience against economic downturns.

Profitability

High profitability margins reflect efficient operations and cost management, contributing to sustainable competitive advantages and shareholder value.

Negative Factors

Return on Equity Decline

A declining return on equity may indicate challenges in generating returns from equity investments, potentially impacting investor confidence and growth prospects.

Limited Revenue Growth

While positive, the modest revenue growth rate may suggest market saturation or increased competition, potentially limiting future expansion opportunities.

Equity Ratio

While a strong equity base is positive, it may also indicate under-leverage, potentially limiting growth through strategic debt financing.

Dotdigital Business Overview & Revenue Model

Company Description

Dotdigital (DOTD) is a leading provider of customer engagement and marketing automation solutions. The company operates primarily in the digital marketing sector, offering a cloud-based platform that enables businesses to execute, manage, and optimize their marketing campaigns across multiple channels such as email, SMS, and social media. Dotdigital's core products include its engagement platform, which combines email marketing, customer data management, and automation tools, designed to enhance customer interactions and drive measurable results.

How the Company Makes Money

Dotdigital generates revenue primarily through subscription-based models, where clients pay for access to its marketing automation platform and associated services. The company offers tiered pricing plans based on the features and level of service required, allowing businesses of various sizes to select a plan that meets their needs. Key revenue streams also include professional services, such as onboarding, training, and consulting, which help clients maximize the effectiveness of their marketing efforts. Additionally, Dotdigital has established partnerships with various e-commerce platforms and CRM providers, which not only enhance its service offerings but also contribute to revenue through joint marketing initiatives and integrations that attract new customers.

Dotdigital Financial Statement Overview

Summary

Dotdigital demonstrates a commendable financial performance with consistent revenue growth and robust gross profit margins. The balance sheet shows a solid capital structure with low leverage, but liquidity levels require attention due to decreasing cash reserves. Strong cash flow metrics further support the company's financial health.

Income Statement

Dotdigital exhibits a strong financial performance with a consistent revenue growth trend over the years, evidenced by a 14.1% growth from 2023 to 2024. The company's gross profit margin remains robust, supported by an improvement in net profit margin. However, EBIT margin saw a slight decline, indicating increased operational costs. EBITDA margin remains solid, showcasing effective cost management.

Balance Sheet

The balance sheet reflects stability with a healthy debt-to-equity ratio, indicating low leverage. The company maintains a strong equity ratio, highlighting a solid capital structure. However, there is a notable decrease in cash and equivalents, signaling potential liquidity management attention.

Cash Flow

Dotdigital demonstrates strong cash flow generation capabilities, with significant free cash flow growth. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion. Despite a decline in net income, free cash flow remains strong, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	83.92M	83.92M	78.97M	69.23M	62.83M	58.12M
Gross Profit	55.50M	55.50M	62.80M	47.26M	44.02M	41.68M
EBITDA	26.54M	26.54M	23.40M	22.05M	20.86M	18.97M
Net Income	11.21M	11.21M	11.07M	12.60M	11.83M	10.59M
Balance Sheet
Total Assets	141.97M	141.97M	123.57M	100.17M	87.79M	75.09M
Cash, Cash Equivalents and Short-Term Investments	36.21M	36.21M	42.16M	52.68M	43.92M	31.95M
Total Debt	1.78M	1.78M	3.08M	2.14M	2.58M	3.42M
Total Liabilities	38.86M	38.86M	28.37M	19.86M	17.98M	14.05M
Stockholders Equity	103.11M	103.11M	95.20M	80.31M	69.81M	61.03M
Cash Flow
Free Cash Flow	22.83M	23.68M	22.22M	12.64M	15.31M	9.97M
Operating Cash Flow	23.14M	23.99M	21.07M	21.70M	23.46M	17.01M
Investing Cash Flow	-24.25M	-25.11M	-27.48M	-9.07M	-8.15M	-7.04M
Financing Cash Flow	-4.15M	-4.15M	-4.07M	-3.84M	-3.67M	-3.50M

Dotdigital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOTD, the sentiment is Positive. The current price of 67 is above the 20-day moving average (MA) of 65.27, above the 50-day MA of 66.64, and below the 200-day MA of 71.71, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DOTD.

Dotdigital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	75 Outperform	£123.85M	16.94	5.30%	―	-3.95%	16.87%
DOTD	73 Outperform	£198.35M	17.75	11.31%	1.68%	6.27%	0.83%
APTD	72 Outperform	£156.24M	35.89	7.71%	1.92%	-6.63%	-7.88%
AOM	68 Neutral	£160.67M	-803.57	-2.20%	―	31.86%	-115.22%
IDOX	66 Neutral	£306.42M	49.05	8.06%	1.04%	10.93%	12.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	£189.24M	45.31	9.59%	0.80%	22.80%	-32.13%

Dotdigital Corporate Events

Dotdigital Reports Revenue Growth and Strategic Expansion in FY25

Dotdigital Group plc announced a trading update for FY25, reporting a 6% increase in group revenue to £83.9m, with 94% of this being recurring revenue. The company achieved double-digit profit growth and expanded its US presence through the acquisition of Social Snowball, enhancing its cross-channel marketing automation capabilities. Despite challenging market conditions, Dotdigital saw strong demand for its data, personalization, and AI functionalities, securing larger contracts and growing its international revenue. The integration of Social Snowball marks a strategic milestone, opening opportunities in influencer marketing and supporting Dotdigital’s strategy of high-margin, recurring SaaS revenue growth. The company remains focused on strategic M&A and investments to support long-term growth ambitions.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Octopus Investments Increases Stake in Dotdigital Group

Dotdigital Group plc has announced a change in the voting rights held by Octopus Investments Limited, which now holds 15.06% of the voting rights in the company. This increase from a previous position of 14.97% signifies a slight shift in shareholder influence, potentially impacting future company decisions and signaling confidence from a major investor.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Dotdigital Announces Change in Shareholder Voting Rights

Dotdigital Group PLC has announced a change in its shareholder voting rights, with Octopus Investments Limited adjusting its stake to 14.97%. This slight reduction from a previous 15% holding indicates a minor shift in ownership dynamics, potentially impacting shareholder influence and strategic decision-making within the company.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Dotdigital Announces Change in Major Holdings

Dotdigital Group plc has announced a change in its major holdings, with Octopus Investments Limited increasing its voting rights to 15% as of July 11, 2025. This adjustment in ownership could influence the company’s strategic decisions and impact its market positioning, reflecting potential shifts in stakeholder influence.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Dotdigital Acquires Social Snowball to Boost Influencer Marketing Capabilities

Dotdigital Group plc has announced the acquisition of Social Snowball, a US-based influencer, affiliate, and referral marketing platform, to enhance its CXDP offering. This acquisition is expected to strengthen Dotdigital’s position in the fast-growing influencer marketing segment and expand its total addressable market. The integration with Social Snowball will provide Dotdigital with new cross-sell and up-sell opportunities, potentially increasing average revenue per customer. The acquisition is anticipated to be immediately earnings enhancing, aligning with Dotdigital’s strategy to focus on high-margin, recurring SaaS revenue. The company has also decided not to renew a low-margin SMS contract, reinforcing its commitment to scaling innovative, higher-margin solutions.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Dotdigital Announces Change in Major Holdings by Liontrust

Dotdigital Group PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP adjusting its voting rights in the company. As of June 18, 2025, Liontrust’s total voting rights in Dotdigital decreased to 15.2066% from a previous 15.9461%. This adjustment in holdings could impact Dotdigital’s shareholder dynamics and influence future strategic decisions.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Octopus Investments Increases Stake in Dotdigital Group

Dotdigital Group PLC has announced a change in its major holdings, with Octopus Investments Limited increasing its voting rights in the company from 13.24% to 14.98%. This acquisition of additional voting rights by Octopus Investments strengthens its influence within Dotdigital, potentially impacting the company’s strategic decisions and market positioning.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.

Dotdigital Announces Change in Major Shareholder Holdings

Dotdigital Group PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP acquiring or disposing of voting rights in the company. This adjustment results in Liontrust holding 15.9461% of the total voting rights, a slight decrease from the previous position. This change in holdings could impact Dotdigital’s shareholder dynamics and influence future corporate decisions.

The most recent analyst rating on (GB:DOTD) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Dotdigital stock, see the GB:DOTD Stock Forecast page.