Trustpilot Group, the London-listed review website for businesses, has announced that it expects its full-year adjusted earnings to surpass market expectations. The company also reported a narrowing of its first-half pretax loss, accompanied by an increase in revenue. As a result, Trustpilot Group shares have risen by 17% to 97.0 pence.
In the first half of the year, Trustpilot Group’s pretax loss decreased from $9.2 million to $4.0 million. Meanwhile, revenue grew from $73.4 million to $84.6 million. The company attributed its success to a 16% increase in bookings, which reached $99.2 million on a constant-currency basis. Trustpilot Group believes that this growth demonstrates its resilience against a challenging macroeconomic environment.
Trustpilot Group maintains its outlook for mid-teens constant-currency revenue growth for the full year. Additionally, the company anticipates further improvement in the second half, leading to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) that exceed current market expectations. While Trustpilot did not disclose a specific figure, analysts expect 2023 adjusted EBITDA to be approximately $6.35 million.
“The board remains confident in the business delivering sustainable growth and operating leverage over the long term and in the significant and growing long-term market opportunity,” Trustpilot Group stated.
Overall, Trustpilot Group’s positive performance in the first half of the year, including the narrowing of its loss and revenue growth, has boosted investor confidence in the company’s ability to achieve sustainable growth in the long run.
– Trustpilot Group
– FactSet analysts via WSJ