Trustpilot shares rise sharply as review website beats earnings expectations after strong first half
Trustpilot shares rose sharply on Tuesday morning after the group said it had beaten earnings expectations following a bumper first half of the year.
The review website upgraded earnings guidance to beyond the top of the range of market expectations after a 16 per cent rise in bookings to $99.2million.
Revenue increased 16 per cent from $73.4million to $84.6million in the first half of the year, and ended June with annual recurring revenue of $180million, up 17 per cent at constant currency.
Profitability was ‘ahead of expectations’ with core earnings of $5.7million, up from a loss of $5.4million in the first half of 2022.
However, the group reported a loss for the first half of $2.5million, compared with a loss of $9.2million a year ago.
Founder Peter Holten Muhlmann – who stepped down as chief executive earlier this month – said: ‘Our business delivered a strong first-half performance enabling us to move to adjusted Ebitda profitability and positive free cash flow earlier than originally planned.’
At 30 June 2023, Trustpilot had net cash of $82.7million and no debt, reflecting positive free cash flow in the period.
‘Whilst we experienced the effects of the uncertain macro environment in the first quarter, which affected new business and retention bookings, we subsequently saw a more encouraging performance in Q2 which has continued into Q3,’ Holten Muhlmann said.
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