London-listed review platform Trustpilot has said it expects revenue for the 2023 financial year of $176m (£137m), which would represent a 17% year-on-year increase.
Trustpilot, which is headquartered in Copenhagen, Denmark, said it profitability is ahead of expectations for the year and has commenced a £20m share buyback programme.
It has entered into an agreement with Berenberg Bank to purchase Trustpilot’s ordinary shares of £0.01 each, with the goal of reducing Trustpilot’s share capital.
The share buyback will commence as soon as today and is expected to be completed during the first half of the year.
Shares surged by as much as 26% on Thursday morning.
Annual recurring revenue for the year ended 31 December 2023 is expected to be $197m, the company said in a trading update.
The review platform listed on the London Stock Exchange in 2021. Shares are trading 35% down from their IPO price.
Last summer Trustpilot pointed former Just Eat executive Adrian Blair as its new CEO, replacing Peter Holten Mühlmann, who was part of the original founding team that created Trustpilot in 2007.
“Building on a solid performance in the first half of the year, we achieved further growth and margin improvement in the second half, with profitability and positive free cash flow ahead of expectations for the year,” said Blair.
“In addition to our focus on delivering sustainable operating leverage, we achieved robust growth in new business and a resilient retention rate across all regions.”
Trustpilot will report full results for the 2023 financial year on 19 March.