Trustpilot Group (TRST) H1 2024 earnings summary

Executive summary

• Achieved strategic clarity and significant progress, with adjusted EBITDA ahead of expectations and a further £20 million share buyback announced.

• Bookings increased 19% in constant currency, with exceptional 23% growth in the US and strong performance in the UK, Germany, and Italy.

• Monthly active users rose 28% year-over-year to 67 million, and cumulative reviews surpassed 300 million.

• Product innovation, especially AI-driven features and new pricing plans, contributed to improved net dollar retention and customer engagement.

• Net profit reached $7.7 million, reversing a $2.5 million loss in H1 2023, with operating profit at $1.8 million.

Financial highlights

• Revenue for H1 2024 grew 18% year-over-year to $99.8 million, with gross profit at $81.2 million.

• Adjusted EBITDA more than doubled to $10.6 million, margin up 3.9ppt to 10.6%, exceeding expectations.

• Net profit for the period was $7.7 million, compared to a $2.5 million loss in H1 2023.

• Operating cash flow was $11.4 million, adjusted free cash flow $5.9 million, and cash at period end $75.6 million.

• Returned $25.6 million to shareholders in H1 2024, with a further £20 million buyback announced.

Outlook and guidance

• Full-year adjusted EBITDA expected at the top end of market expectations ($18–22 million consensus for FY24).

• Sustained mid-teens revenue growth anticipated for the foreseeable future, with incremental improvements in operating leverage.

• Long-term adjusted EBITDA margin potential seen at over 30%.