Shares in dotDigital rallied 6pct on the news this morning
Shares in dotDigital Group (LON:DOTD) rallied after the digital marketing specialist confirmed that it has secured a number of key client wins and extensions over the past few months.
Some of the significant deals included agreements with Environment Agency, Reiss, Cheeky Rascal, Logitech, Olympic Broadcasting Services, Blinkbox and Moneyfacts Group.
The company’s online survey tool, dotSurvey, won more than 200 paying customers and over a thousand of trial accounts last month, which it said showed that this will be a “successful addition” to its product offering.
Additionally, dotDigital has invested more than £250,000 in its ‘storage area network’ hardware based in its central London area data centre. This new hardware is currently being tested and is due to go live in the coming months.
DotDigital also provided an update on progress with its email marketing platform, which has been rebranded e-Dialog Express following an agreement with cross-channel marketing company e-Dialog signed in late April.
The deal has made e-Dialog Express available within eBay’s X.commerce, enabling eBay Powersellers, as well as Magento merchants to use the platform.
Last Wednesday, e-Dialog Express was unveiled at Magento’s Imagine eCommerce conference in Las Vegas.
The marketing teams of dotDigital, e-Dialog and Magento are now focused on finalising the promotional strategy for dotDigital’s white label product for e-Dialog Express. The company told investors it will provide a further update in July when its post-close trading statement is due to be released.
“I am delighted with the progress dotDigital has made over the last few months, particularly with traction in North America which continues to be the territory that will be a major focus of the company’s growth strategy over the next year,” said chief executive of dotDigital Peter Simmonds.
“Our recent collaboration with eBay’s e-Dialog reinforces this strategy. Similarly dotSurveys’ initial success is testament to dotDigital’s continued technological innovation.”
Charles Stanley released a note in response to the update, saying its 12 month view on the company continues to be positive, prompting it to reiterate its ‘buy’ recommendation on the stock as well as its bullish 14 pence per share price target.
Analyst Richard Nunn noted that dotSurvey is gaining momentum, adding that the product would be global and compete with the likes of Survey Monkey in the US market.
Investors welcomed the report , sending shares in the company up six percent to 11.25 pence in early deals, giving it a market cap of nearly £31 million.
