Trustpilot boosts outlook on strong first half, shares spark

(Sharecast News) - Trustpilot Group boosted its full-year outlook on Tuesday, after a strong first half saw earnings beat expectations. Revenues at the London-listed consumer reviews platform rose 23% - or by 21% on a constant currency basis - to $122.8m in the six months to 30 June, while bookings increased 19% to $140m.

Adjusted earnings before interest, tax, depreciation and amortisation surged 70% to $18m, which Trustpilot said was ahead of internal expectations. Pre-tax profits were 45% higher at $3.7m.

The Danish firm said it had benefited from new tools, such as AI review summaries, during the period, as well as enterprise customer wins, including Barclays, Boots, Lindt and Vimeo.

Looking to the full year, Trustpilot said second-half trading had so far been ahead of expectations.

As a result, it reiterated its outlook for high-teens constant currency revenue growth for the full-year, but said the adjusted EBITDA margin would be in line with the first half, ahead of expectations.

Adrian Blair, chief executive, said: "Our first half results demonstrate the momentum of our platform and the strength of our business model.

"Our expanded use of AI in operations helped drive significant efficiencies, contributing to a notable improvement in adjusted EBITDA margin and strong free cash flow generation.

"We remain confident in the long-term growth opportunities ahead."

The FTSE 250 group also said on Tuesday that it would commence a £30m share buyback.

At 0810 BST, the shares were up 10.4% at 221.54p.