Stock has lost 78% since 2021 highs as investors ditch ‘jam tomorrow’ equities
Thursday 23 Jun 2022 Author: Steven Frazer

Online reviews and analytics platform Trustpilot (TRST) believes it will hit breakeven in 2024, on an EBITDA basis (earnings before interest, tax, depreciation and amortisation), sooner than most analysts are forecasting.

The Danish company which listed in London in March 2021, revealed its intentions to analysts at a capital market day on 16 June, during which it also broke out standalone sales and marketing costs for the UK. The UK has significantly better economic unit metrics, say analysts, including a net dollar retention rate of 103% and long-term value to cost of capital of 5.1 times for 2021, compared to 99% and 3.7 times for the wider group.

‘These metrics are important, as the UK is a posterchild of what other regions could achieve over time,’ said Peel Hunt. This would support Trustpilot’s ambitions for approximate 30% EBITDA margins down the line.

Trustpilot has customers in 65 countries around the globe, including the UK, US, across Europe, India and Australia.

Analysts at Peel Hunt and Berenberg are currently forecasting EBITDA losses of between $4 million and $5 million for 2024, although Peel Hunt said it expects consensus to rise following the investor day. Liberum, which started covering Trustpilot in May, estimates positive EBITDA of $4.1 million by 2024.

Trustpilot shares, at 100p, have lost 69% this year and 78% since peaking at 460p in November 2021.

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