Trustpilot Group PLC's (LSE:TRST) better-than-expected profits in the first half are a sign of things to come, analysts said.
The results showed a first swing into operating profitability and have heightened expectations for the full year, JP Morgan said, noting that Trustpilot was enjoying improvement under new chief executive Adrian Blair.
“Trustpilot’s strategy under [...] Blair is generating significant earnings momentum,” the bank said, following his appointment in July last year.
This included a focus on driving US growth over the first half of the year, the group said Wednesday, alongside releasing artificial intelligence-powered consumer insight tools for businesses.
Such offerings helped to increase retention rates to 101%, Trustpilot added, after new customers such as Coinbase and Verizon were also recently picked up.
Peel Hunt analysts added the “strong” set of results would prompt upgrades to consensus expectations for earnings this year, with Trustpilot having signalled the figure would be at the top end of the range of expectations for US$18 to US$22 million.
Those at Berenberg echoed the sentiment and lifted their share price target for Trustpilot from 260p to 270p, implying a 40% increase on Tuesday’s closing price.
Trustpilot had commented that the “viral nature” of its business left the company in line for further “market penetration” both in the UK and elsewhere.
In the US, where bookings growth jumped 23% over the half year, this includes a focus on the likes of the financial services and education sectors, Trustpilot said, as existing customers also move onto the higher AI-supported plans.
Shares climbed 15% to 222p on Wednesday.