Trustpilot Reports Strong H1 2025 Results, Raises Full-Year Guidance
Why we think this is very good
The H1 2025 results for Trustpilot are overwhelmingly positive. They've delivered strong top-line growth with revenue up 21% to $117.1m, and even more impressive bottom-line improvements. The adjusted EBITDA increased by 25% to $32.1m, while the operating loss significantly reduced. Cash generation has been robust, with free cash flow up 40% to $24.1m. The company's customer base is growing, with paying customers up 11% and average revenue per customer up 9%. Most importantly, they've raised their full-year guidance, now expecting 19-21% revenue growth and improved EBITDA margins. This combination of strong current performance and improved future outlook is very encouraging for investors.
Key Points
- Revenue up 21% to $117.1m
- Adjusted EBITDA increased 25% to $32.1m
- Operating loss reduced to $1.1m from $5.9m
- Free cash flow up 40% to $24.1m
- Paying customers up 11% to 97k
- Average revenue per customer up 9% to $2,430
- Full-year guidance raised for revenue growth and EBITDA margin
- Annual recurring revenue (ARR) up 20% to $236m
- Bookings growth of 19% to $127m
- Cash balance increased to $131.1m from $97.3m at year-end 2024
Summary
Trustpilot's H1 2025 results show strong performance across key metrics. Revenue increased by 21% to $117.1m, while adjusted EBITDA grew by 25% to $32.1m. The company significantly reduced its operating loss to $1.1m from $5.9m in H1 2024. Free cash flow saw an impressive 40% increase to $24.1m. The customer base expanded with paying customers up 11% to 97k and average revenue per customer increasing by 9%. Notably, Trustpilot has raised its full-year guidance, now expecting 19-21% constant currency revenue growth (up from 18-20%) and adjusted EBITDA margin of 26-28% (up from 25-27%). This positive performance and outlook suggest strong potential for future growth and profitability.