Dotdigital Group Intrinsic Value Calculation – DOTDIGITAL GROUP Reports GBP 6.5 Million Revenue for Q2 FY2023, 4.4% Decrease Year-Over-Year.
March 19, 2023
Earnings Overview
On December 31 2022, the DOTDIGITAL GROUP ($LSE:DOTD) announced its earnings results for the second quarter of FY2023, showing total revenue of GBP 6.5 million, a 4.4% decrease on the same quarter in 2023. Net income for the quarter stood at GBP 33.8 million, a 9.4% increase compared to the same period one year prior.
Price History
On Tuesday, DotDigital Group, a British technology and software company, reported its Q2 financial results for FY2023. The results showed a 4.4 percent decrease in revenue year-over-year to GBP 6.5 million. The announcement of the financial results caused DotDigital’s stock to open at £1.0 and close at £0.9, a 6.4 percent drop from the prior closing price of £1.0. This marks the lowest price the stock has been in the past six months, indicating investors’ lukewarm reaction to the news.
Despite the decrease in revenue, DotDigital Group is optimistic about its future performance and has plans to continue expanding its services into new markets and developing new products. The company plans to focus on increasing customer loyalty as well as optimizing its cost structure in order to improve operating margins. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dotdigital Group. More…
| Total Revenues | Net Income | Net Margin |
| 65.74 | 11.53 | 19.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dotdigital Group. More…
| Operations | Investing | Financing |
| 21.32 | -8.46 | -3.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dotdigital Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 93.76 | 17.17 | 0.23 |
Key Ratios Snapshot
Some of the financial key ratios for Dotdigital Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.1% | -2.2% | 19.0% |
| FCF Margin | ROE | ROA |
| 19.2% | 10.6% | 8.3% |
Analysis – Dotdigital Group Intrinsic Value Calculation
We at GoodWhale have conducted an extensive analysis of DOTDIGITAL GROUP‘s wellbeing. Based on our proprietary Valuation Line, we have concluded that the fair value of DOTDIGITAL GROUP’s share is around £1.6. However, currently DOTDIGITAL GROUP stock is being traded at £0.9, undervalued by 43.5%. This presents a strong opportunity for investors to purchase the stock at a discounted price, thus generating a potential return. More…
Peers
The competition between dotDigital Group PLC and its competitors, Marin Software Inc, Cerillion PLC, and Amplitude Inc, is fierce. All four companies are striving to remain ahead of the curve through innovative new ideas and initiatives, while also leveraging their existing strengths and successes. With a wide array of products and services, they are all aiming to provide customers with the best possible experience and increase their market share.
– Marin Software Inc ($NASDAQ:MRIN)
Marin Software Inc is a publically traded company that provides a cloud-based digital marketing platform. The company’s platform helps its clients organize, measure, and optimize their digital advertising campaigns across search, display, social, and mobile devices. As of 2023, Marin Software Inc has a market cap of 17.24 million dollars. This is the total value of the company’s outstanding shares. Additionally, the company has a Return on Equity (ROE) of -40.29%. This means that for every dollar invested into the company, the company loses 40.29 cents.
– Cerillion PLC ($LSE:CER)
Cerillion PLC is a digital transformation company, providing cloud-based billing, CRM and e-commerce solutions to its clients. As of 2023, Cerillion PLC has a market cap of 312.84M and a Return on Equity of 27.75%. This market cap is indicative of Cerillion’s success in providing innovative and reliable solutions to its clients. The impressive Return on Equity indicates the company’s ability to generate profits and maintain a solid financial position.
– Amplitude Inc ($NASDAQ:AMPL)
Amplitude Inc is a San Francisco-based data analytics company that provides software to help businesses better understand their users and how they use their product. It has a market capitalization of 1.34 billion as of 2023, reflecting a significant increase from its 2018 market cap of $260 million. The company’s Return on Equity (ROE) of -20.46% shows that the company is struggling to make profits. This is concerning for those interested in investing in the company, as it suggests that the business may not be able to generate returns for its shareholders.
Summary
DOTDIGITAL GROUP reported its earnings results for the second quarter of FY2023 with total revenue of GBP 6.5 million, a 4.4% decrease from the same period one year prior. However, net income for the quarter increased by 9.4% to GBP 33.8 million. Despite the decrease in total revenue, stocks in the company moved down on the day of the announcement, indicating that investors are not optimistic about the company’s future prospects. Investors should consider the potential risks before investing in DOTDIGITAL GROUP due to the decrease in total revenue and its uncertain future outlook.
