Trustpilot shares surge 20% as review platform's revenue jumps first half

Shares in Trustpilot (LSE: TRST) rose nearly 20% on Thursday after the online consumer reviews platform said it expects to report higher revenue and bookings in the first half of the year.

Trustpilot shares were up 19% at 80.89 pence in London on Thursday morning.

The FTSE All-Share listed firm said it expects to report that revenue in the six months that ended June 30 was up 15% to $85 million from $73 million a year before or 18% at constant currency.

For all of 2023, it repeated its guidance for mid-teens percentage revenue growth at constant currency.

Total bookings in the period are estimated to have increased by 13% to $98 million from $87 million the year before. The increase is 16% at constant currency.

Annual recurring revenue rose 21% in the first half to $180 million from $149 million, or by 17% at constant currency.

‘Regionally, bookings growth was 15% in the UK and 21% in Europe & RoW, a resilient performance against a challenging macroeconomic backdrop,’ the company said.

‘In North America, bookings increased 11%, with an acceleration in the second quarter aided by an encouraging improvement in our US net dollar retention rate, and continuing benefits from our refreshed go-to-market strategy in the region.’

As a result, Trustpilot said it now expects like-for-like adjusted earnings before interest, tax, depreciation and amortisation at the top end of the range of market expectations, which it put at $2.4 million to $4.0 million. Adjusted Ebitda was negative $4.4 million in 2022.

Net cash balance was up 13% to $83 million at the end of the first half, compared to $73.5 million on December 31.

Trustpilot will release its full interim result on September 19.