Shares in Trustpilot have jumped after the global review platform reported higher-than-expected earnings for the first half of 2024 and unveiled a new share buyback.
The FTSE 250 firm gained as much as 9.3 per cent in early trading on Wednesday. Its stock price has surged 157 per cent over the last 12 months.
Trustpilot said its adjusted earnings before tax (EBITDA) came in ahead of expectations at $10.6m (£8.1m), up 86 per cent from $5.7m (£4.4m) a year before.
It reported a pre-tax profit of $2.6m (£2m) for the six months, compared to a $4m (£3.1m) loss during the same period in 2023.
Revenue increased 18 per cent to $99.8m (£76.3m), while bookings jumped 20 per cent to $117.5m (£89.8m) on the back of 23 per cent growth in North America, 19 per cent in the UK and 16 per cent elsewhere.
Trustpilot announced a new share buyback of up to £20m to reward investors, which it said may commence as soon as Wednesday.
‘We have made good progress’ – Trustpilot boss
Its monthly unique users rose 28 per cent to surpass 67,000. Chief executive Adrian Blair, who joined Trustpilot last September, said new products for businesses providing insights into consumer behaviour and market dynamics had been well received.
“When I joined Trustpilot a year ago, I said that I aimed to bring greater strategic clarity, rigorous execution, and increasing profitability. We have made good progress across these areas,” he added.
“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.”
Trustpilot maintained its outlook for “mid-teens” constant currency revenue growth in 2024, adding that it now expected adjusted EBITDA to come in at the “top end” of company-compiled analyst estimates of between $18m (£13.8m) and $22m (£16.8m).
“In our view, the above-consensus first half results announced this morning further indicate that Trustpilot’s strategy under CEO Adrian Blair is generating significant earnings momentum,” analysts at JP Morgan said in a note.