Investors in London’s market were taken aback on Tuesday when Trustpilot plc’s shares fell as much as 20%, settling 14.2% lower at 224.2p per share by 9:30 GMT. The decline followed the company’s decision to keep its full‑year outlook unchanged, a move that disappointed market participants who had been hoping for an upgrade after recent strong performance.
Guidance and performance
Trustpilot reaffirmed its forecast for high‑teens constant‑currency revenue growth for the full year and signaled an adjusted EBITDA margin improvement of two to three percentage points. The company’s revenue for the first half of the year rose 23% to $151.4 million, while bookings increased 22%, both slightly ahead of analyst expectations.
Adjusted core profit surged 46% to $26.3 million for the six months ended June 30, though this fell short of the company‑compiled estimate of $27 million. The platform also reported a statutory net loss of $1.1 million, driven by one‑off charges including an Italian antitrust fine and a provision for historic U.S. sales‑tax liabilities.
Market reaction
Analyst Angeline Ong of IG trading platform summed up the sentiment: “This shows you the market wants upgrades from Trustpilot, not confirmations.” J.P. Morgan analysts described the results as “noisier than usual,” noting the core profit miss, the one‑off charges and the lack of a guidance upgrade as factors that weighed on the stock.
Despite the dip, Trustpilot’s shares had climbed roughly 60% through Monday’s close, reflecting optimism that AI‑driven initiatives and robust U.S. growth would translate into higher earnings. The recent pullback underscores how sensitive investors remain to any hint that a company may not exceed its own projections.
Outlook
While the company did not raise its outlook, it maintained confidence in its growth trajectory, pointing to continued expansion of AI‑enabled services and international market penetration. The firm’s management emphasized that the unchanged guidance reflects a disciplined approach to forecasting, aiming to avoid overpromising in a volatile economic environment.
Investors will be watching upcoming quarterly reports closely for signs that the AI‑led revenue streams can sustain the high‑teens growth rate and deliver the promised margin improvements. Any future upgrade could reignite the bullish sentiment that propelled the stock higher earlier in the week.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
