Trustpilot shares rise sharply as the online review website raises earnings expectations after a stellar first half
- Trustpilot shares rose nearly 20% earlier on Thursday
- Trustpilot returned to profit in the first half of the year and improved its full-year forecasts
Trustpilot shares rose sharply after the group released an optimistic set of results for the first half of the year.
The online company review website raised its profit forecast, driven by a strong performance in the first half of the year when the company returned to profit.
Trustpilot shares were up 14.76 percent, or 10.05 pence, to 78.15 pence today, after falling 16 percent over the past year. Shares rose about 20 percent from their Thursday peak.
On the rise: Trustpilot shares rose sharply today as the group raised its full-year outlook
The company said it now expects to report adjusted core revenues for the first half of $3 million (£2.3 million), compared to a loss of $5.4 million a year earlier and that annual revenue tops a company’s compound range of between $2.4 million and $4 million.
Group revenue for the six months ended June 30 is expected to be $85 million compared to $73 million last year.
Total annual recurring revenue was $180 million versus $149 million. Total bookings increased 16 percent to $98 million.
Regionally, booking growth was 15 percent in the UK and 21 percent in Europe and the rest of the world, which Trustpilot called “a resilient performance against a challenging macroeconomic backdrop.”
In North America, bookings grew 11 percent during the period, with an acceleration in the second quarter, driven by an improvement in the US net dollar retention rate, and continued benefits from the region’s go-to-market strategy .
“Resilient trade” and “improved operational efficiency” should lead to the better-than-expected annual results, the group said.
In its search for a new CEO, the group said, “We are pleased with the progress being made in the search for a new Chief Executive Officer and look forward to updating the market in due course.”
The Trustpilot founder announced his plan to step down as CEO in March.
Peter Holten Mühlmann will transition from CEO of the online review website to a non-executive director, where he will be “an evangelist and brand ambassador,” the group said.
The Danish entrepreneur started the e-commerce service 16 years ago from his parents’ garage and with funding from his father’s cousin, and grew into a major European technology success story.