LONDON (ShareCast) - (Sharecast News) - Review website Trustpilot surged on Thursday as it said full-year earnings were set to be ahead of consensus expectations.
The group expects to report FY24 booking of $239m, up 23% on the year and 21% at constant currency, reflecting a "strong" performance across its focus markets, particularly in North America.

Consensus expectations are for constant currency revenue growth of 16%. The company also said that adjusted earnings before interest, tax, depreciation and amortisation were set to come in ahead of consensus expectations of $22.2m.

UK bookings jumped 22% at constant currency, while Europe and Rest of World saw an 18% increase. In North America, bookings were up 26%.

Chief executive Adrian Blair said: "The Trustpilot platform continues to expand, driving a growth flywheel as more consumers read and write reviews, and more businesses use our products to build trust, grow and improve. In 2024 we focused on B2B product innovation, launching new features combined with new pricing and product packages. As a result, we delivered strong new business growth, combined with a significant improvement in the net dollar retention rate.

"New customer acquisition was strong throughout the year across all focus markets, particularly North America, and we are very pleased with the resulting overall growth in bookings of 21% cc, with adjusted EBITDA expected to be ahead of consensus. We made considerable strategic and operational progress in 2024 and remain confident in the significant growth opportunities ahead."

At 1335 GMT, the shares were up 15.6% at 317.26p.

Russ Mould, investment director at AJ Bell, said: "Navigating the internet and deciding if you can trust the website through which you are ordering products and services is a key part of everyday life for millions of us. This is no surprise given the alternative is being ripped off or ending up with a substandard experience.

"In this context you can see why the reviews served by Trustpilot might be in heavy demand and, sure enough, its latest update reveals strong levels of growth and an earnings upgrade. It's the kind of news which would earn a five-star rating with most shareholders.

"The more people use its site and post reviews, the more it derives network benefits. As more consumers use the platform and share their own opinions, the richer the insights the company can offer clients.

"Done well, this creates a virtuous circle where consumers feel drawn to Trustpilot because it is where meaningful services are listed and reviewed. The more consumers who use Trustpilot, the more businesses will feel they must engage with the company's services."

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