Trustpilot H1 constant currency revenues surge

Consumer reviews website operator Trustpilot said on Tuesday that constant currency revenues had shot up, keeping the group on track to deliver breakeven adjusted underlying earnings in the 2024 trading year.

Trustpilot said total revenues had increased 25% on a constant currency basis to $73.41m, leading to a 43% reduction in underlying losses to $6.59m. The London-listed group also stated that losses per share had narrowed 42% to USD 2.2 cents.

Interim adjusted losses, on the other hand, widened 131% to $8.08m and adjusted losses per share expanded 120% to USD 2.0 cents.

Annual recurring revenues rose 11% to $149.34m, bookings grew 15% to 86.67m and the group's LTM net dollar retention rate increased 3% to 100,000.

Trustpilot reiterated its revenue outlook for the 2022 trading year, underpinned by prior-period bookings growth, with the group stating it had not seen "any significant changes" in overall customer demand in its end markets during the first half of the year but noting that it was continuing to monitor the "uncertain macroeconomic environment" closely and take "a more cautious approach" to its assumptions for new business growth and retention near-term.

However, Trustpilot said it continued to benefit from "a flexible operating model" and expects to see "significantly more operating leverage" in the second half of the year than previously anticipated.

Chief executive Peter Holten Mühlmann said: "We are pleased by our half-year results which demonstrate the continued strength of our business, both financially and strategically. The momentum we are seeing in consumer and business engagement in each of the regions in which we operate has been particularly encouraging.

"Our success is founded upon our focus on trust, and we continue to benefit from viral network effects as more and more consumers choose to share their experiences on Trustpilot."

As of 0920 BST, Trustpilot shares had surged 24.11% at 76.95p.

Reporting by Iain Gilbert at Sharecast.com