Shares in global review platform Trustpilot have seen a significant increase following the announcement of higher-than-expected earnings for the first half of 2024 and the unveiling of a new share buyback.
The FTSE 250 company saw an impressive rise of up to 9.3 per cent in early trading on Wednesday, with its stock price having surged by 157 per cent over the past year, as reported by .
Trustpilot reported that its adjusted earnings before tax (EBITDA) exceeded expectations at $10.6m (£8.1m), marking an 86 per cent increase from $5.7m (£4.4m) the previous year.
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The firm also reported a pre-tax profit of $2.6m (£2m) for the six-month period, compared to a loss of $4m (£3.1m) during the same period in 2023.
Revenue saw an 18 per cent increase to $99.8m (£76.3m), while bookings rose by 20 per cent to $117.5m (£89.8m), driven by growth of 23 per cent in North America, 19 per cent in the 海角视频, and 16 per cent in other regions.
Trustpilot also announced a new share buyback of up to £20m to reward investors, which it said could commence as early as Wednesday.
Its monthly unique users increased by 28 per cent to surpass 67,000. CEO Adrian Blair, who joined Trustpilot last September, stated that new products providing insights into consumer behaviour and market dynamics had been well received.
"When I joined Trustpilot a year ago, I said that I aimed to bring greater strategic clarity, rigorous execution, and increasing profitability. We have made good progress across these areas," he added.
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"There is still plenty to do, and we are excited by the significant growth opportunities available to us in our focus markets and beyond."
"We remain confident in delivering sustainable growth and improving operating leverage over the long term."
Trustpilot has reiterated its forecast for "mid-teens" constant currency revenue growth in 2024, with expectations now set for adjusted EBITDA to hit the "top end" of company-compiled analyst predictions ranging from $18m (£13.8m) to $22m (£16.8m).
"In our view, the above-consensus first half results announced this morning further indicate that Trustpilot's strategy under CEO Adrian Blair is generating significant earnings momentum," JP Morgan analysts commented in a briefing note.