Trustpilot Group PLC (LSE:TRST) said full-year profits are set to beat market forecasts as it announced that it will kick off an up to £20 million share buyback programme from today.
The buyback forms parts of the Danish review website’s plans made in September to return excess capital to shareholders.
Trustpilot said it expects to report adjusted underlying earnings (EBITDA) for 2023 “above the top end” of market expectations.
Chief executive officer Adrian Blair said: "Building on a solid performance in the first half of the year, we achieved further growth and margin improvement in the second half, with profitability and positive free cash flow ahead of expectations for the year.
"In addition to our focus on delivering sustainable operating leverage, we achieved robust growth in new business and a resilient retention rate across all regions.
"Following our commitment to return excess capital to shareholders, we announced today a share buyback programme of up to £20m."
In a preliminary trading update, the company indicated that its annual revenue rose 18% to US$176 million in 2023, representing a 17% increase at constant currency.
Bookings increased by 16% year over year to US$195 million at constant currency and the net dollar retention rate for the period was 99%, compared to 100% in 2022.
The company said it closed the year with US$91 million of cash and no debt.
Trustpilot also announced the departure of Ben Johnson, a non-executive director, who is retiring from the board after eight years.
The London branch of German merchant bank Joh. Berenberg, Gossler & Co. KG will run the buyback of Trustpilot's ordinary shares on the London Stock Exchange, which could start as early as today.
Trustpilot's share price surged 16.76% in early trades today to 170p per share.