Trustpilot shares rise sharply as online review website boosts profit expectations after bumper first half
- Trustpilot shares increased by nearly 20% earlier on Thursday
- Trustpilot returned to profit in the first half and boosted annual forecasts
Trustpilot shares have jumped sharply after the group published an upbeat set of results for its first half.
The online business review website upped its earnings guidance, driven by a strong first half performance that saw it return to profit.
Trustpilot shares were up 14.76 per cent or 10.05p to 78.15p today, having fallen 16 per cent in the last year. The shares were up by around 20 per cent at their Thursday peak.
On the up: Trustpilot shares rose sharply today as the group upped its guidance for the year
The company said it now expected to report adjusted first-half core earnings of $3million (£2.3million), compared with a loss of $5.4million a year earlier and annual earnings would be at the top of a company-compiled range of between $2.4million and $4million.
Group revenue for the six months to 30 June was expected to be $85million, compared with $73million last year.
Total annual recurring revenue was $180million, up from $149million. Total bookings increased by 16 per cent to $98million.
Regionally, bookings growth was 15 per cent in the UK and 21 per cent in Europe & rest of world, which Trustpilot called ‘a resilient performance against a challenging macroeconomic backdrop’.
In North America, bookings rose by 11 per cent over the period, with an acceleration in the second quarter boosted by an improvement in the US net dollar retention rate, and continuing benefits from its go-to-market strategy in the region.
‘Resilient trading’ and ‘improved operational efficiency’ should prompt the better-than-expected full-year results, the group said.
On searching for a new chief executive, the group, said: ‘We are pleased with the progress being made in the search for a new Chief Executive Officer and look forward to updating the market in due course.’
Trustpilot’s founder announced his plan to step back from his chief executive role in March.
Peter Holten Mühlmann will transition from being CEO of the online review website to a non-executive director, where he will be ‘an evangelist and brand ambassador,’ the group said.
The Danish entrepreneur started the e-commerce service 16 years ago from his parents’ garage and with funding from his father’s cousin, growing it into a major European technology success story.
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