Shares in Trustpilot soared 22% to 76p this morning after the consumer review service posted a jump in revenues and sounded a note of optimism over sales prospects as consumers prioritise trusted brands amid tightening household budgets.
“Trust is also a valuable commodity in times of financial constraint and we remain confident in our ability to deliver continued growth,” the company said in a trading update.
Trustpilot founder and chief executive Peter Holten Mühlmann told the Standard: “As the prices go up and our real purchasing power is decreasing, we simply have to manage our spend more carefully then I think it’s natural that as a consumer you’re more invested into ensuring you’re getting what you want and that purchase isn’t in vain.”
The company posted sales of $73 million (£62 million) for the first six months of 2022, a 25% increase on the previous year at constant currencies, while bookings, a measure of expected future revenues, grew 22%, led by 27% growth in the UK. Bookings growth in the North America was more muted, at 8%.
The company edged closer to profitability, posting a $9 million loss, down from $17 million the previous year.
The firm, which has attracted scrutiny over its handling of fake reviews posted to its platform, said it saw a decline in the number of fake reviews, down from 2.7 million reviews removed using its AI algorithms in 2021.
“We’ve invested a lot in deterrence, we’ve taken companies to court that have grossly manipulated the system and we think that has a deterrent effect,” Holten Mühlmann said.
“We’ve really ramped up our efforts on review sellers, people who buy and sell reviews online. You’re seeing some of the review sellers comment on these sites that we’ve become so good at it that their efforts are in vain.”
Trustpilot shares remain down 71% since the company’s flotation on the London Stock Exchange in March 2021.