(Alliance News) - Trustpilot Group PLC shares climbed on Tuesday as it said it expects 2025 earnings ahead of market expectations after it posted a swing to profit for 2024.
The Copenhagen-based consumer reviews platform said pretax profit in 2024 was USD5.2 million, swung from a loss of USD1.9 million in 2023.
Trustpilot shares were up 11% to 306.45 pence in London on Tuesday morning.
Revenue improved 19% to USD210.7 million from USD176.4 million.
Bookings grew 23% to USD239.0 million from USD194.6 million, supported by "simplified packages and pricing," the company said.
Trustpilot said it is extending its share buyback programme by up to a further GBP20 million. During 2024 and up to March 10, the firm bought back around GBP40 million of shares.
Chief Executive Officer Adrian Blair said: "Our strategy is clear: we operate an open, trusted platform for consumers to help each other make the right choices, and for businesses to build trust, grow, and improve. We maximise the platform's inherent network effects by concentrating on depth in focus markets and verticals; and we drive a software as a service model with positive net dollar retention, underpinned by product innovation.
"We executed well against this in 2024, delivering record bookings, profitability and cash generation, returning USD42.9 million of capital to shareholders through two share buybacks. We refreshed our go-to-market approach by simplifying our packages and updating our pricing."
It reported 2024 adjusted earnings before interest, tax, depreciation, and amortisation of USD24.1 million in 2024, a 55% surge from USD15.5 million.
For 2025, it expects adjusted Ebitda "slightly ahead of market expectations". It puts consensus at USD30 million, which would represent on-year growth of 24%.
Looking ahead, it said it expects "high teens" revenue growth on a constant currency basis, due to strong bookings in 2024. In 2024, revenue climbed 18% in constant currencies.
CEO Blair said: "Looking forward, we will continue to deliver product innovation to embed trust across commerce, as trust becomes even more important in the age of AI."
By Michael Hennessey, Alliance News reporter
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