Trustpilot (TRST) 220p

Gain to date: 27% 

On 18 January, Shares suggested Trustpilot (TRST) shares ‘could easily surge past 200p this year and far higher over time.’

Fast-forward six months and shares in the online review platform have already topped the 200p mark despite a short bout of profit-taking after a positive set of first-half results.

WHAT HAS HAPPENED SINCE WE SAID BUY?

So far, it has been another great year for Trustpilot with its review platform now hosting more than 213 million consumer reviews of businesses and products across more than 893,000 websites.

The company estimates posts are growing by more than one review per second and the platform generates almost nine billion monthly online impressions.

The online review platform said recently it had notched up 19% growth in first-half bookings to $118 million.

WHAT SHOULD INVESTORS DO NOW?

We remain positive. The online review platform is innovative and progressive, releasing new product features which provide businesses with AI (artificial intelligence) driven insights into customer behaviour and market dynamics, and feedback has been positive.

The company expects first half revenue to grow 17% in constant currencies to $100 million and to achieve strong cash generation, with net cash sitting at $76 million after completing an initial $20 million share buyback.

This strong cash position obviously means there is potential for further share repurchases, although management hasn’t so far hinted it is looking at a new buyback programme.

Trustpilot chief executive Adrian Blair is sticking with his earnings guidance though: ‘As we look ahead, we remain confident in the significant growth opportunities available to us in our focus markets of the UK, US, Germany and Italy, and beyond. 

‘The combination of new sales and an improvement in net dollar retention, supported by product innovation, underpins our confidence to reiterate our guidance of mid-teens constant currency revenue growth and margin improvement for the full year.’

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