Trustpilot Group Reports Strong Financial Performance in FY23

LONDON: Trustpilot Group plc, a leading online review platform, announced impressive financial results for the year ending December 31, 2023. The company’s profitability accelerated, surpassing expectations, and key metrics demonstrated sustained positive momentum.

Financial Highlights

• Revenue Growth: Trustpilot’s revenue increased by 18% year on year (YoY), reaching $176 million (FY22: $149 million). At constant currency rates, this growth was 17%.
• Annual Recurring Revenue (ARR): ARR surged by 22% YoY to $197 million (FY22: $162 million), with an 18% increase at constant currency.
• Bookings: Trustpilot’s bookings rose by 18% YoY to $195 million (FY22: $165 million), with a 16% increase at constant currency. Notably, Europe & Rest of World (RoW) saw a remarkable 22% YoY growth, while the UK and North America reported 17% and 12% increases, respectively.
• Operating Leverage: The company’s focus on efficient growth resulted in strong operating leverage. Adjusted EBITDA reached $16 million (FY22: $4 million loss), and reported profit after tax stood at $7 million (FY22: $15 million loss).
• Net Dollar Retention Rate: Trustpilot maintained a resilient net dollar retention rate of 99% over the last twelve months (FY22: 100%).
• Cash Flow: The company generated $14 million in positive adjusted free cash flow (FY22: $13 million outflow), leading to a closing net cash position of $91 million (FY22: $73 million).
• Share Buyback Program: In January 2024, Trustpilot initiated a share buyback program, allocating approximately $25 million (£20 million) as part of its disciplined capital allocation strategy.

Strategic Highlights

• User Growth: Trustpilot’s monthly unique users on the platform surged by 30%, reaching over 57 million (FY22: 44 million).
• Review Volume: The platform now boasts a total of 267 million cumulative reviews (FY22: 213 million), with an impressive 54 million new reviews.
• Reviewed Domains: Trustpilot expanded its reach, with the number of reviewed domains increasing by 22% to 1.1 million (FY22: 0.9 million).
• Global Resilience: The company demonstrated resilient retention and strong growth across all regions.

Outlook

Trustpilot’s strong performance in 2023, including accelerated profitability and robust bookings growth, positions the company well for the future. The management remains confident in delivering mid-teens constant currency revenue growth and anticipates further operational enhancements.

Adrian Blair, CEO, commented: “In my first six months at Trustpilot, I have witnessed first-hand just how powerful our platform is for consumers and businesses worldwide. We made strong strategic progress in 2023, building on robust foundations to grow our network of consumers and businesses and deliver profitability and positive cash flow ahead of expectations. By driving consumer adoption and delivering ever greater value to businesses through innovation, we are confident of delivering sustainable growth and long term margin improvement.”