Trustpilot: Review site hikes profit outlook
Trustpilot has upgraded its full-year profit outlook after strong first-half growth in bookings and revenue, driven by robust enterprise demand.
The review platform expects to report first-half bookings of $140m (£104.15m), up 19 per cent year-on-year, or 17 per cent at constant currency) with revenue up 23 per cent to $123m.
Annual recurring revenue surged 29 per cent to $273m, as the business benefited from healthy retention rates and solid momentum across all regions.
UK bookings climbed 15 per cent at constant currency, while Europe and the rest of the world rose 19 per cent, and North America was up 18 per cent.
Trustpilot’s net dollar retention rate held steady at 103 per cent, underlining strong customer loyalty and expansion.
The company also reported healthy cash generation, ending the period with $67m in net cash even after executing $23m in share buybacks. Foreign exchange tailwinds also provided additional support.
Trustpilot upgrade
Off the back of this performance, Trustpilot has raised its full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin guidance from a previously undisclosed level to 14 per cent.
Adrian Blair, chief executive of Trustpilot, said: “The broad nature of our SaaS business model continues to prove its resilience, enabling us to deliver good growth and retention, particularly in the enterprise segment, combined with strong cash generation and operating leverage.”
“We are pleased with our first half performance and as we continue to annualise the package migration which benefited last year’s bookings, we now expect full year adjusted EBITDA margin to be 14 per cent. We remain confident in the significant growth opportunities ahead in our focus markets and beyond.”
Trustpilot also confirmed it is launching a competitive tender process to appoint a new external auditor.
Analysts remain bullish on the stock, with the latest rating on Trustpilot shares set at ‘buy’ with a 220p price target.