Trustpilot reported a significant profit increase, surpassing market expectations for the first half of 2024.
- The Copenhagen-based company posted £7.3 million in profit, a substantial rise from the previous year.
- The integration of AI has played a role in Trustpilot’s positive performance this year.
- A £20 million share buyback program was announced to further drive share value.
- Trustpilot’s shares increased by approximately 10% after the profit announcement.
Trustpilot, the online review platform headquartered in Copenhagen, reported impressive financial results for the first half of 2024, showcasing a profit of £7.3 million. This marks a remarkable contrast to its modest profit of £117,000 during the same period in the previous year. The substantial increase in profitability has significantly exceeded market expectations.
The company’s recent success is largely attributed to the strategic implementation of artificial intelligence. Trustpilot’s AI feature, launched this year, provides premium users with valuable insights into customer behavior and market dynamics. Adrian Blair, who became Trustpilot’s CEO in 2023 after his tenure as COO at Just Eat, acknowledged the role of AI in driving the company’s robust performance. He stated, “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 also emphasized the company’s commitment to sustainable growth and the exploration of significant development opportunities in various markets.
In addition to the profit boost, Trustpilot announced a substantial £20 million share buyback program. This marks the second share buyback initiative this year, following the reported profit of £5.6 million for the year ending December 2023. The buyback is expected to enhance shareholder value and further stabilize the company’s financial standing.
The positive financial news was well received by the market, resulting in a 10% rise in Trustpilot’s share value from the close of trading on the previous Tuesday. This surge in share price reflects investor confidence in the company’s strategic direction and growth potential.
Trustpilot’s strong financial performance and strategic initiatives underline its promising growth trajectory and investor appeal.
