Trustpilot shares jump 15% as losses narrow

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  • 14% to 24,000 paying business customers in the first half
  • Total revenue increased 18% to £63.6m; Pre-tax loss £8m . restricted to
  • The company said it expected to break even in 2024.

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trustpilot share It jumped 15 percent on Tuesday after the customer review platform reported dwindling losses and double-digit growth in revenue.

The UK-listed company, headquartered in Copenhagen, said its number of paying business customers grew 14 percent in the first half to 24,000.

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While it’s free for users who want to review a business, Trustpilot makes money by charging companies that want to show reviews on their website or gain more insight into their customer base.

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Trustpilot says engagement with consumers and businesses has been ‘encouraging’

The strong dollar led to total revenue rising 18 percent to $73.4 million (£63.6 million) for the six months to the end of June. In constant currency, the increase was 25 percent.

One-time costs in the first half of last year narrowed the pre-tax deficit from $17.3 million to $9.2 million (£8 million), which did not happen again this year, and is expected to break even in 2024.

Trustpilot said the engagement with consumers and businesses alike has been ‘encouraging’.

It saw a 21 percent increase in the number of monthly review invites sent by businesses, which it says reflects a ‘viral network effect in action’.

Bookings, which indicate future revenue, increased 15 percent to $86.7 million (£75 million).

UK bookings grew 27 per cent – the same rate of growth achieved in Europe – which partly offset the lower growth in the US, where bookings grew a modest 9 per cent.

Trustpilot attributed the slowing US growth to a “challenging recruitment market” and “organizational change”.

More than 190,000 reviews were left on its site by customers around the world during this period, an increase of nearly 50,000 over the previous year.

The total number of active domains on Trustpilot, which includes both free users and paying business customers, rose 29 percent to 94,000.

trustpilot shareWhich floated in London in March 2021, rose 15 per cent to 71.3p in afternoon trading.

However, they are still down more than 80 percent from the previous year and 73 percent below the IPO price of 265p.

Founder and Chief Executive, Peter Holten Mühlmann, said: ‘The momentum we are seeing, with consumer and business engagement in each of the regions, is particularly encouraging.

‘Our success is based on 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.’

Credit: www.dailymail.co.uk /

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