Trustpilot shares surge after firm upgrades profit guidance launches share buyback
Shares in global review platform Trustpilot surged by as much as 26 per cent in early deals this morning after the company upgraded its profit guidance for the year.
The group said it expects to report revenue of $176m (£137m) for the full year, a 17 per cent jump year on year.
Total bookings are also predicted to jump 18 per cent to $195m (£152m). Trustpilot said adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) are now expected to come in “above the top end of the range of market expectations” for the year.
Alongside the results, the company also launched a £20m share buyback programme.
In an update to markets, the firm said it entered into an agreement with Berenberg Bank to purchase Trustpilot’s ordinary shares of £0.01 each.
The deal which could start as soon as today is expected to be completed in the middle of this year.
Trustpilot said that the move reflects its “disciplined capital allocation strategy to deliver profitable growth and cash flow generation.”
It ended the year with a net cash balance of $91m (£71m).
Earlier this year, Trustpilot drafted in former Just Eat big wig Adrian Blair to replace founder Peter Holten Mühlmann.
Speaking today, Blair said: “Building on a solid performance in the first half of the year, we achieved further growth and margin improvement in the second half, with profitability and positive free cash flow ahead of expectations for the year.
“In addition to our focus on delivering sustainable operating leverage, we achieved robust growth in new business and a resilient retention rate across all regions.”