Trustpilot Group PLC (LSE:TRST) founder Peter Holten Mühlmann is stepping down from his role as chief executive as the online review platform reported a loss for 2022 but managed to break even in the second half.
Annual revenues rose 23% to US$149mln on a constant currency basis, while bookings rose 20% to US$165mln, but an increased discretionary marketing spend and investing in growth hit the bottom line.
The company swung to an underlying loss of US$4.4mln on an EBITDA basis from a US$3.9mln profit the year before.
Net cash balances were US$73.5mln at the end of December, flat year on year.
Holten Mühlmann announced his intention to step down from his role, moving into the role of founder and non-executive director.
The second-half break was “encouraging”, he said, in spite of the uncertain macroeconomic backdrop and cost-of-living crisis.
Strategic highlights included a 27% increase in cumulative reviews to 213mln, with active domains reaching 100,000 for the first time, up from 84,000 in 2021.
The firm also reported that fewer fake reviews needed to be removed in the period, due to additional measures implemented to protect the integrity of content on the platform.
Looking forward, Trustpilot expects to move to adjusted EBITDA profitability and positive adjusted free cash flow in 2023.
Founder Mühlmann to retire as chief executive
After Holten Mühlmann informed the board of his intention to take a non-executive role and "be an evangelist and brand ambassador", the board said it will commence a search process for a new chief executive.
Mühlmann commented: “I am truly thrilled to have the chance to focus my efforts and skills on promoting our brand and helping to drive the Trust agenda around the world.
“I have felt for some time that this is where I can make the greatest contribution and add the most value to Trustpilot in the years to come."