In the lead up to Trustpilot’s interim results due on Tuesday September 13, investors are weighing up if the London-listed consumer reviews business presents an undervalued proposition.
The Danish company expects to report total revenues of US$73mln (£62.7mln) according to guidance given in June, representing growth of 25%.
“While noting the rapidly changing and uncertain macroeconomic environment, we continue to expect to deliver constant-currency revenue growth for financial year 22 in line with previous expectations,” the company said.
An EBITDA breakeven is expected to occur in the 2024 financial year.
Though more recent guidance is pending, Peet Hunt analysts on July 27 said: “Despite the turbulent share price performance since IPO, we believe Trustpilot is one of the most attractive propositions on the market.
“In this note, we remind investors of the attractive characteristics of its model and discuss the potential for future growth and the path to profitability.”
Peel Hunt noted a 60% trading discount compared to Trustpilot)’s software-as-a-service peer set.
TRST shares are down over 80% year to date and approximately 77% since going public in March 2021, although bull-market conditions at time of IPO should be taken into account.