Trustpilot swings to profit and launches £20 million share buyback
Trustpilot PLC on Wednesday reported half-year profit, predicted full-year earnings at the top end of market expectations, and announced a £20 million share buyback.
Shares in Trustpilot were up 12% at 216.50 pence each in London on Wednesday morning.
The Copenhagen-based consumer reviews platform said it swung to a pretax profit for the six months ended June 30 of $2.6 million, from a loss of $4.0 million a year prior. Revenue was $99.8 million, up 18% from $84.6 million.
Total bookings increased 20% on-year to $117.5 million from $98.1 million.
Sales and marketing costs rose 14% to $27.1 million from $23.8 million; technology and content costs climbed 13% to $28.5 million from $25.3 million, and general and administrative costs were 2.8% higher at $22.4 million from $21.8 million.
Trustpilot said it maintains its expectation for mid-teens constant currency revenue growth for its full-year results, but now expects its adjusted earnings before interest, taxation, depreciation and amortisation to be at the top end of market expectations.
The current analyst consensus range for 2024 adjusted Ebitda is $18 million to $22 million, with a mean of $20 million, which would represent growth of around 29% from $15.5 million in 2023.
Adjusted Ebitda for the first-half was $10.6 million, up 86% on-year from $5.7 million.
Trustpilot also announced on Wednesday it would be launching a new share buyback programme of up to £20 million, for the purpose of reducing share capital.
Chief Executive Officer Adrian Blair said: ‘Consumer adoption of the platform continues to grow, with unique monthly users up 28% over the same period last year. For businesses, we released a series of new product features to our software platform in April which provide unique insights into consumer behaviour and market dynamics, and we are pleased with the early feedback we have received.
‘As a result, we delivered strong bookings growth and adjusted Ebitda ahead of expectations in the first half, alongside a significant improvement in the net dollar retention rate. There is still plenty to do and we are excited by the significant growth opportunities available to us in our focus markets and beyond. We remain confident in delivering sustainable growth and improving operating leverage over the long term.’
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