Trustpilot’s shares have surged following better-than-expected half-year profits, marking a significant financial turnaround.
- The company reported a profit of £7.3 million for the first half of 2024, starkly contrasting with last year’s £117,000.
- Adrian Blair, Trustpilot’s CEO, attributes this success to the implementation of AI-driven insights.
- Trustpilot plans a £20 million share buyback programme, the second initiative of its kind this financial year.
- Shares have increased by 10% since the close of trading on Tuesday, highlighting market confidence.
Copenhagen-based Trustpilot has seen a dramatic increase in its share prices, correlating with the announcement of substantial half-year profits. For the first time this year, the online review service has exceeded market expectations, bringing in a profit of £7.3 million compared to just £117,000 in the first half of the previous year. This performance has been reflected in a sharp share price surge, approximately 10% over the recent trading session.
According to Adrian Blair, the CEO appointed in 2023 and formerly the COO of Just Eat, this financial upswing can be largely attributed to the strategic integration of artificial intelligence within the company’s operations. “Our strategy is clear. We are an open, trusted review platform for consumers to help each other make the right choices, and provide insights for businesses to build trust, grow and improve,” Blair articulated. The AI features launched by Trustpilot are designed to deliver premium users with comprehensive insights into customer behaviour and market dynamics, providing a competitive edge.
In addition to the reported profits, Trustpilot has announced a £20 million share buyback programme, its second in 2024. This strategy aims to bolster the company’s capital structure and returning value to its shareholders. Earlier, in March, Trustpilot had announced an annual profit of £5.6 million, underscoring a consistent growth trajectory.
The company’s shares have risen approximately 10% post-announcement, indicating robust market confidence in Trustpilot’s growth and operational strategies. This rise is seen as a reflection of investor optimism about the company’s ability to maintain sustainable growth while improving operational leverage over an extended period.
Trustpilot’s half-year financial performance underscores its strategic growth initiatives and enhanced market positioning.
