Shares dip for Trustpilot despite booking surge
Trustpilot’s shares fell over 13 per cent this afternoon, despite the Danish firm’s confident results this morning.
Bookings surged 27 per cent to $149.6m (£113.7m) for the global reviews platform, driven by a global boom across Europe and a substantial contribution from the UK.
Revenue also grew by 29 per cent to $131.4m, whilst annual recurring revenue rose by 26 per cent to $144.5m.
Customer numbers remain strong for the company. Total cumulative reviews rose by 39 per cent to 167 million, and the number of active domain increased 34 per cent to 84,000.
After a successful initial public offering in March 2021, Trustpilot reported that its balance sheet strengthened considerably as a result, closing the year with net cash of $93.2m.
The firm did report a greater loss for 2021 of $25.9m compared to $12.3m in 2020; yet, this may be attributed to the decline of sales and marketing expenses in the past two years, which the company is actively trying to remedy.
Brokers at Peel Hunt remained optimistic, deeming it as a “solid performance” for the company.
However, they did state: “While the investment is aimed to drive bookings growth further in FY23 and beyond, which we support, in these volatile markets –we expect weakness in the share price today”. This has been played out in the London markets this afternoon.
Founder and chief exec Peter Holten Mühlmann commented on this morning’s results: “These successful results for 2021 demonstrate that we are making great progress against our strategy.”
“Our platform continues to get better, we have made further operational improvements, and this is being rewarded by the significant increase in business and consumer activity on Trustpilot. We are fast becoming a universal symbol of trust for the internet economy, and providing a real benefit to society.”