In the past week, shares in Trustpilot (TRST) have gained almost 25% to hit a three-year high after the online review and analytics platform said full year EBITDA (earnings before interest, tax, depreciation and amortisation) would be ahead of market expectations.

The Denmark-based firm has seen strong bookings momentum, particularly from its North American region which is up 26%, although other areas have also performed well, including the UK where bookings up 22% and Europe where bookings are 18% ahead.

The company expects to report a 23% year-on-year rise in bookings to $239 million for the full year 2024 and an 18% increase in revenue on a constant-currency basis.

Analysts at Panmure Liberum have expressed caution on the stock due to a softer macro environment and the strengthening of the US dollar, which recently hit a 12-month high against the pound and which they argue could be a headwind to the firm’s margins.

‘Trustpilot justifiably keeps regional operations naturally hedged by operating predominately in local currencies. Yet as a dollar reporter with higher margin businesses in non-dollar currencies, the sharp move in the pound against the dollar and the euro against the dollar will therefore have an impact on group margin.’

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