Shares in Trustpilot Group PLC (LSE:TRST) hit a two-year high after the online reviews gatherer posted annual results in line with expectations and continued green shoots in North America.
In line with a trading update in January, revenue for 2023 of US$176 million was up 18% on the prior year and adjusted earnings (EBITDA) came in at US$15.5 million compared to a loss of US$4.4 million last time, beating analyst expectations.
Net cash grew to US$91 million from US$73 million as the company turned free cash flow positive.
The retention rate remained high at 99% over the last 12 months, while Europe and the Rest of the World regions delivered the strongest bookings growth of 18%, followed by the UK at 17% and North America at 12%.
"We delivered a strong performance in 2023, as we accelerated our move into profitability," the company said.
"The bookings growth we achieved in 2023 and the ongoing momentum in the business underpins our confidence in continuing to deliver mid-teens constant currency revenue growth, and we also expect to achieve further operating leverage in the current financial year."
The shares jumped more than 11% to over 234p in early trading, their highest since January 2022, before easing off to 210p later in the morning, still up 127% over the past 12 months.
Analyst Jessica Pok at Peel Hunt said: "At first glance, we are likely to change our FY24E EBITDA by US$2m and we expect consensus to move by a similar amount.
"Trustpilot has continued to deliver solid growth with further margin expansion. While still green shoots, the improvement in North America is encouraging and holds strong potential for the future."
Revenue was in line with the broker's forecast and EBITDA was a 4% beat.