11th Sep 2024 09:34
(Alliance News) - Trustpilot PLC on Wednesday reported half-year profit, predicted full-year earnings at the top end of market expectations, and announced a GBP20 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 USD2.6 million, from a loss of USD4.0 million a year prior. Revenue was USD99.8 million, up 18% from USD84.6 million.
Total bookings increased 20% on-year to USD117.5 million from USD98.1 million.
Sales and marketing costs rose 14% to USD27.1 million from USD23.8 million; technology and content costs climbed 13% to USD28.5 million from USD25.3 million, and general and administrative costs were 2.8% higher at USD22.4 million from USD21.8 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 USD18 million to USD22 million, with a mean of USD20 million, which would represent growth of around 29% from USD15.5 million in 2023.
Adjusted Ebitda for the first-half was USD10.6 million, up 86% on-year from USD5.7 million.
Trustpilot also announced on Wednesday it would be launching a new share buyback programme of up to GBP20 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."
By Emily Parsons, Alliance News reporter
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