Trading update for the year to 31 Dec 2022

RNS Number : 4511M

Trustpilot Group PLC

12 January 2023

 

Trustpilot Group PLC

12 January 2023

Trading update - FY22 ARR +20% YoY at constant currency with net dollar retention rate of 100%; adj. EBITDA^* ahead of expectations

Trustpilot Group PLC ("Trustpilot"), a leading global review platform, provides an update on trading for the financial year ended 31 December 2022 (FY22)

Highlights

● Revenue +c.+23% and ARR c.+20% YoY at constant currency in line with expectations

● Adjusted EBITDA result ahead of expectations

● Net dollar retention rate of 100%, up YoY and the same as at the half-year

● Strong closing balance sheet with $73.5m of net cash and no debt, with zero cash-burn since 30 June 2022

USD	FY22 expected	FY21 actual	(+/-) % actual	(+/-) % constant currency
Total revenue	$149m	$131m	c.+13%	c.+23%
ARR1	$162m	$144m	c.+12%	c.+20%
Total bookings2	$165m	$150m	c.+11%	c.+20%

¹ Annual Recurring Revenue = Monthly Recurring Revenue x 12 translated at period closing spot rate

² The annual contract value of contracts signed in a given period translated at monthly average rates

For FY22, Trustpilot expects to report total revenue of $149m, representing c.+13% growth over the prior-year period, after significant FX headwinds, or c.+23% at constant currency. We expect to report FY22 annual recurring revenue (ARR) of $162m, compared to $144m in the prior year, representing c.+20% constant currency growth. Total bookings increased to $165m, up c.+11% compared to the prior year, or c.+20% at constant currency and the LTM net dollar retention rate of 100% increased YoY and remained in line with the half-year.

We benefit from a flexible operating model and given the uncertain market backdrop we have actively managed our business to deliver operating leverage in H2 and consequently anticipate that the adjusted EBITDA result for the year will be ahead of the range of expectations. As a result, we ended the year with a strong balance sheet and $73.5m of cash and no debt (compared to $73.5m net cash on 30 June 2022).

CEO Peter Holten Mühlmann commented:

"Despite the uncertain economic backdrop in the second half of the year we have continued to see robust growth in annual recurring revenue and our subscription model has been resilient, enabling us to maintain a 100 per cent net dollar retention rate. This demonstrates the stickiness of our product offering and the measurable value we deliver to our business customers. We are pleased with our performance in 2022, continue to make clear progress on our path to profitability and the Board remains confident in our strategy and the significant and growing long-term market opportunity."

Board update

Zillah Byng-Thorne, Deputy Chair of the Company, assumed the role of Chair Designate from 11 January 2023, in anticipation of succeeding Tim Weller as Chair of the Company in the future. Tim Weller has been Chair of Trustpilot since February 2013.

Notice of results

Trustpilot is scheduled to report results for the financial year ended 31 December 2022 on Tuesday 21 March 2023. On that day, a webcast and conference call for analysts and investors will take place at 09:00. For registration and access to the webcast please visit https://investors.trustpilot.com.

^* Adjusted EBITDA is defined as EBITDA adjusted to exclude share-based compensation, including associated cash settled social security costs, non-recurring transaction costs such as restructuring costs

Enquiries

Trustpilot Investor Relations

Derek Brown

[phone]

Tulchan Communications

James Macey White

Matt Low

Ed Cropley

[phone]

About Trustpilot

Trustpilot was founded in 2007 with a vision to create an independent currency of trust. A digital platform

that brings businesses and consumers together to foster trust and inspire collaboration. We are free to use, open to everybody and built on transparency.

Trustpilot hosts reviews to help consumers shop with confidence and deliver rich insights to help businesses improve the experience they offer. The more consumers use our platform and share their own opinions; the richer the insights we offer businesses; and the more opportunities they have to earn the trust of consumers, from all around the world.

Trustpilot has over 950 employees and is headquartered in Copenhagen, with operations in London,

Edinburgh, New York, Denver, Melbourne, Berlin, Amsterdam, Milan, and Vilnius.

 

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