Online review aggregator and marketing platform Trustpilot Group PLC (LSE:TRST) is expected to show strong top-line growth in the North American market when it reports its interims on Wednesday, 11 September.
The FTSE 250-listed company has guided towards 23% bookings growth in the region, with group-wide revenue growth capped at 20%.
Trustpilot has only turned a net annual profit once, in 2023 due to deferred tax assets, since going public in March 2021.
It has never turned an operating profit due to extensive sales, marketing and technology expenses, and has only once delivered a positive free cash flow (also in 2023).
However, annual recurring revenue growth has been consistent as have total cumulative reviews, which recently exceeded 300 million.
In its annual report published in July, Trustpilot expressed “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”.
Trustpilot shares took a hit in July after a major shareholder sold down its stake, though they remain nearly 50% higher year to date thanks to the March profit beat.
Strong retention rates and the above-mentioned bullish performance in North America supported that profit beat, so investors will be eager to see continued growth of these metrics in next week’s report.