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Trustpilot Group PLC (LSE:TRST) saw its shares surge by over 8% following the announcement of a new $23 million (£20 million) share repurchase program, driven by stronger-than-anticipated profitability in the first half of the year.
The company's adjusted pre-tax earnings reached $10.6 million, surpassing expectations and representing an 86% increase from the previous $5.7 million. This notable growth was supported by a 20% rise in bookings, totaling $117.5 million. The uptick was fueled by a 23% increase in North American bookings, a 19% rise in the UK, and a 16% growth in other regions.
Trustpilot also reported a positive operating profit of $1.8 million, reversing last year's $2.1 million loss. Post-tax profit saw a substantial increase, climbing to $7.7 million from a $2.5 million deficit.
Adrian Blair, chief executive, remarked on the progress made since his appointment a year ago. “When I joined Trustpilot, my focus was on providing strategic clarity, rigorous execution, and enhancing profitability,” Blair stated. “We have made significant strides in these areas.”
Blair highlighted that the company experienced a 28% increase in monthly users during the first half of the year. Additionally, new products aimed at offering insights into consumer behavior and market dynamics have been well-received by businesses.
The new share buyback plan follows a similar repurchase executed earlier in the year. As of June, Trustpilot reported a strong cash position of $76 million. The company also provided guidance for adjusted pre-tax earnings, anticipating figures at the upper end of market expectations, which range between $18 million and $22 million.
The positive financial results and the share repurchase announcement contributed to an 8.3% increase in Trustpilot’s share price on Wednesday.
