Trustpilot Group PLC’s shares plunged on Tuesday after reporting a widened loss for 2021 and guiding for expenses to remain at similar percentages in proportion to revenue in 2022.

Shares in the Copenhagen-based online review platform were 19% lower at 130.38 pence on Tuesday in London, the worst performer in the FTSE 250 index. The group’s share price has fallen 53% over the last 12 months. The stock debuted at 265p in its initial public offering back in March last year.

For 2021, Trustpilot’s pretax loss came to $25.9 million, widened from $12.3 million the year before, as a result of administrative expenses nearly doubling to $51.6 million, including non-recurring IPO costs and share-based compensations.

General & administrative expenses and technology & content costs both increased in proportion to revenue, which G&A taking up 39% of revenue, and T&C making up 26%, as a result of investment in the business.

Looking ahead, also due to cost inflation, Trustpilot expects these expenses to remain at largely similar percentages in 2022, with ‘overhead leverage to come thereafter’.

More positively, revenue grew 29% at $131.4 million in 2021 from $102.0 million in 2020, and also rose 24% on a constant currency basis. Bookings increased 32% in 2021 to $149.6 million, and annual recurring revenue grew 22% to $144.5 million.

For 2022, Trustpilot expects to deliver constant currency revenue growth in line with management expectations, following the robust revenue growth seen in 2021.

‘These successful results for 2021 demonstrate that we are making great progress against our strategy. Our platform continues to get better, we have made further operational improvements, and this is being rewarded by the significant increase in business and consumer activity on Trustpilot. We are fast becoming a universal symbol of trust for the internet economy, and providing a real benefit to society,’ said Chief Executive Officer Peter Holten Muhlmann.

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