Trustpilot swings to profit as monthly users soar
Trustpilot has turned a profit of $7m (£6m) in its full financial year, swinging back from a loss of $15m (£12.8m) in 2022.
The global review platform said revenue climbed 18 per cent year on year to $176m (£150.5m) as monthly unique users of the platform soared more than 30 per cent to over 57m.
The FTSE 250 firm jumped nearly nine per cent at market open on Tuesday as investors welcomed the news.
Bookings on its site also rose 18 per cent on the previous year, which the Trustpilot said has made it confident it can continue to deliver mid-teens constant currency revenue growth.
Chief executive Adrian Blair said: “In my first six months at Trustpilot, I have witnessed first-hand just how powerful our platform is for consumers and businesses worldwide.
“We made strong strategic progress in 2023, building on robust foundations to grow our network of consumers and businesses and deliver profitability and positive cash flow ahead of expectations.
“By driving consumer adoption and delivering ever greater value to businesses through innovation, we are confident of delivering sustainable growth and long term margin improvement.”
Last year, Trustpilot drafted in former Just Eat exec Adrian Blair to replace founder Peter Holten Mühlmann.
In terms of outlook, Trustpilot said it expects to “achieve further operating leverage” in the current financial year.
In January, the firm launched a £20m share buyback programme to reflect its “disciplined capital allocation strategy to deliver profitable growth and cash flow generation”. This is expected to finish in the middle of 2024.
Trustpilot shares have skyrocketed over 120 per cent in the past year.