UK's Trustpilot shares slump as unchanged outlook disappoints investors
Trustpilot's logo is pictured on a smartphone in front of an electronic display showing the same logo in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration
Sept 15 : British online reviews platform Trustpilot's shares plummeted as much as 20 per cent on Tuesday after the company left its earnings outlook unchanged, disappointing investors, despite strong AI-led revenues.
Here are details from the company's earnings report:
• The company maintained its full-year forecast for high-teens constant-currency revenue growth and adjusted EBITDA margin improvement of two-to-three percentage points.
• Adjusted core profit rose 46 per cent to $26.3 million in the six months ended June 30, below a company-compiled estimate of $27 million.
• Trustpilot's shares had gained about 60 per cent through Monday's close, suggesting investors had been expecting a guidance upgrade as the company's AI initiatives and strong U.S. growth fueled optimism.
• "This shows you the market wants upgrades from Trustpilot, not confirmations," said Angeline Ong, analyst at trading platform IG.
• Trustpilot's revenue rose 23 per cent to $151.4 million in the first half, and bookings rose 22 per cent, both slightly ahead of expectations.
• The platform reported a statutory net loss of $1.1 million, driven by one-off charges including an Italian antitrust fine and a provision for historical U.S. sales taxes.
• J.P. Morgan analysts said the results were "noisier than usual", with a core profit miss, several one-off charges and the absence of a guidance upgrade.
• Trustpilot was down 14.2 per cent at 224.2p per share as of 9:30 AM GMT
