Dotdigital (DOTD) AI Stock Analysis

• Market Cap: £214.79M
• Dividend Yield: 1.57%
• Average Volume (3M): 654.77K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.99
• Revenue Growth: 11.38%
• EPS Growth: -8.44%
• Country: UK
• Employees: 451
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 306,848,360
• 10 Day Avg. Volume: 804,409
• 30 Day Avg. Volume: 654,768
• PEG Ratio: N/A
• 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: £114.50
• Price Target Upside: 63.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: 78.00p ▲(11.43% Upside)

Dotdigital's strong financial performance and positive corporate events are key strengths, indicating a solid foundation and strategic growth initiatives. However, the technical indicators and valuation raise concerns about current market sentiment and stock performance, making the overall stock score moderately positive.

Dotdigital Business Overview & Revenue Model

Company Description

dotdigital Group Plc provides intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide. The company offers Engagement Cloud, a SaaS-based omni-channel marketing automation platform that enables companies to create, test, and send data-driven automated campaigns and communications across channels, such as email, SMS, social, push, etc. dotdigital Group Plc was founded in 1999 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Dotdigital generates revenue primarily through a software-as-a-service (SaaS) model, where clients subscribe to its Engagement Cloud platform on a recurring basis. The company's revenue streams are largely driven by subscription fees, which can vary based on the level of service and features selected by the customer. Dotdigital also benefits from additional revenue through professional services, including onboarding, training, and consultancy, which help clients maximize the value of their marketing automation solutions. Strategic partnerships and integrations with other technology providers further enhance Dotdigital's offerings, contributing to its revenue growth by expanding its customer base and adding value to its services.

Dotdigital Financial Statement Overview

Summary

Dotdigital shows strong financial performance with consistent revenue growth and robust profit margins, although liquidity management needs attention due to decreasing cash reserves.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	78.97M	69.23M	62.83M	58.12M	47.40M
Gross Profit	62.80M	47.26M	44.02M	41.68M	38.38M
EBITDA	23.40M	22.05M	20.86M	18.97M	17.41M
Net Income	11.07M	12.60M	11.83M	10.59M	10.59M
Balance Sheet
Total Assets	123.57M	100.17M	87.79M	75.09M	67.37M
Cash, Cash Equivalents and Short-Term Investments	42.16M	52.68M	43.92M	31.95M	25.38M
Total Debt	3.08M	2.14M	2.58M	3.42M	4.47M
Total Liabilities	28.37M	19.86M	17.98M	14.05M	16.30M
Stockholders Equity	95.20M	80.31M	69.81M	61.03M	51.07M
Cash Flow
Free Cash Flow	22.22M	12.64M	15.31M	9.97M	9.04M
Operating Cash Flow	21.07M	21.70M	23.46M	17.01M	15.82M
Investing Cash Flow	-27.48M	-9.07M	-8.15M	-7.04M	-6.78M
Financing Cash Flow	-4.07M	-3.84M	-3.67M	-3.50M	-2.94M

Dotdigital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 70 is below the 20-day moving average (MA) of 72.89, below the 50-day MA of 75.19, and below the 200-day MA of 80.91, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 26.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DOTD.

Dotdigital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AOM	75 Outperform	£115.97M	104.84	11.82%	―	13.76%	31.36%
NET	73 Outperform	£199.29M	38.30	12.87%	0.74%	15.40%	-6.59%
IDOX	69 Neutral	£279.06M	44.67	8.06%	1.14%	10.93%	12.30%
ACSO	69 Neutral	£173.07M	25.37	4.56%	―	-0.90%	15.22%
APTD	69 Neutral	£154.71M	35.76	7.71%	1.93%	-6.21%	21.39%
Sector *	68 Neutral	¥233.81B	14.23	7.64%	2.58%	9.24%	4.42%
DOTD	67 Neutral	£214.79M	18.97	11.66%	1.57%	11.38%	-8.44%

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.