- Shares up 88% over last year
- Announces £20 million share buy-back programme
- Shares hit a two-year high
Shares in Trustpilot (TRST) were up over 20% this morning to 170p as the online reviews and analytics platform said it was expecting to report full year adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) for the year ending 31 December ahead of expectations.
For full year 2023, Trustpilot expects to report group revenue of $176 million – a rise of circa 17% at constant currency.
The company said: ‘We expect to report full year 2023 annual recurring revenue of $197 million, compared to $162 million in the prior year, representing circa 18% constant currency growth year-on-year.’
Separately Trustpilot announced a circa £20 million share buy-back programme (approximately $25 million at the prevailing exchange rates) which was welcome news for shareholders.
Adrian Blair, CEO of Trustpilot was upbeat about the company’s performance so far saying it put in a ‘solid performance in the first half of the year' and ‘achieved further growth and margin improvement in the second half, with profitability and positive free cash flow ahead of expectations for the year.’
Strong growth and a new head of operations drive rerating at Trustpilot
Trustpilot shares are up 88% over the past year and one of the biggest gainers in the FTSE 250 following this news.
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Berenberg analysts are impressed by Trustpilot’s ‘five-star performance’ and have upgraded their full year 2023 revenue estimate by 2% and adjusted EBITDA estimate by 37%.
‘Our full year 2024 revenue estimate is upgraded by the same quantum, driven by the higher base entering full year 2024 estimate, and we upgrade our full year 2024 estimate adjusted EBITDA by 48%.’
Berenberg also highlights the ‘resilience of the business model and the value customers derive from Trustpilot.’
The Denmark-based business will release its full year results year ending 31 December 2023 on 19 March.
