Trustpilot - FY23 results – Consensus beat, confirms momentum

Trustpilot delivered an excellent set of results for FY23. The company beat already increased expectations for adjusted EBITDA, reported its first ever net profit and was powerfully net cash generative. That was driven by a strong performance in operating metrics, a bounce back in the growth rate of bookings and other customer metrics, together with a greater focus on delivering bottom line performance. To date, the company has completed more than half of the £20m share buyback which commenced i

Trustpilot - FY23 trading update – Another beat, £20m SBB

Trustpilot has announced another beat to expectations and the implementation of a £20m share buyback programme. The company has guided to full year revenue of US$176m, with annual recurring revenue of US$197m and total bookings of US$195m. Trustpilot expects to report adjusted EBITDA above the US$14.1m top end of the range of market expectations. This was another strong performance from Trustpilot with revenue growth coming in a little better than guidance at the interims and further operational

Trustpilot - Post 1H23 Consensus Update

At its 1H23 results, published a month ago, Trustpilot maintained current guidance for mid-teens constant currency revenue growth YoY for FY23 but again forecast adjusted EBITDA to be above then consensus expectations. That has flowed into revised forecasts with the consensus mean forecast for adjusted EBITDA increased by c25% for 2023-25, a hike in forecasts for free cash flow and with minor changes to expectations for bookings and revenue. Estimates for EPS have turned positive for FY23 and in

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: AZN, PFC, GRG, ECOR, TRST, & IHC.

Trustpilot - 1H23 Results Update

Trustpilot reported results in line with the interim update apart from a further beat to expectations for adjusted EBITDA, notwithstanding the increase in consensus estimates following the update. Guidance for mid-teens constant currency revenue growth for FY23 was maintained but Trustpilot again expects adjusted EBITDA for FY23 to exceed recent upwardly revised expectations which are for a mean of US$6.2m with a high of US$6.6m. For the first time, the company flagged the potential for a return

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: KGF, HL., OCDO, FGP, RSW, TRST, AVCT, ACSO, & SQZ.

Trustpilot - Post 1H23 trading statement consensus update

Further to the positive 1H23 trading update published a month ago, most brokers have now revised their forecasts. With the update, Trustpilot reiterated guidance of mid-teens constant currency revenue growth but advised like-for-like full year adjusted EBITDA would be above the top end of the range of market expectations which then stood at US$4.0m with a mean of US$2.9m. That has prompted modest percentage increases in forecasts for mean bookings and revenue but a more than doubling in the mean

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: ENT, DEC, LXI, TRST, SERE, RQIH, & AAZ.

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: BDEV, EXPN, DCC, DOM, DOCS, WOSG, DPLM, SPT, TRST, ARIX, RWI, AAZ, POLR, & FCAP.

Trustpilot - Post FY22 results consensus update

Trustpilot recently reported a strong set of FY22 results, comfortably bettering consensus expectations for Adjusted EBITDA. However, in the outlook management guided to YoY revenue growth in the mid-teens percentage at constant currency but with the company moving to Adjusted EBITDA profitability and positive adjusted free cash flow (FCF) in FY23. Following the results, this guidance has been reflected in amendments to broker forecasts. The average revenue forecast has been cut by 5% for FY23 a

Trustpilot - Strong FY22 results, positive guidance; CEO transition

Following the positive trading update published in January, Trustpilot reported a near halving of the EBITDA deficit YoY to $8.6m for the year to December 2022. Adjusted EBITDA was a $(4.4)m loss although the company generated positive Adjusted EBITDA in 2H22 of $1m. Reported financials were negatively impacted by the strength of the dollar but operating metrics were strong, as previously disclosed. Management expects to move to adjusted EBITDA profitability and positive adjusted free cash flow

Trustpilot - FY22 Trading Update Note

On 12th January Trustpilot released a brief trading update for the year to 31st December 2022, which showed 20% growth in annual recurring revenue and 100% net dollar retention – as well as adjusted EBITDA that came in ahead of consensus and zero cash burn in H2. This is impressive and demonstrates resilience in the face of uncertainty and the imminence of breakeven adjusted EBITDA and cash flow. It was well received by the market, and deservedly so.

Trustpilot Initiation Note - Sep 2022

We are delighted to initiate coverage of Trustpilot today. Trustpilot is a market leader in the high-growth global online review market: it's an open, high-trust, consumer-led review platform that's free for consumers and freemium for businesses. The market opportunity is significant, at an estimated $50bn TAM (ex. China). Crucially, businesses can't choose which reviews to publish or hide, and thus Trustpilot provides the most complete picture of consumer experiences. It has renewed its commi

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: SHEL, RSW, WIX, THG, AVAP, TRST, INCE, UOG, & GRE.

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: OCDO, FUTR, TRST, PDL, HEIQ, KAV, DELT, MTW, TRR & TM17.

Audioboom Group - Q1 24 revenue growth of +11%, FY24E forecasts reiterated

Audioboom’s FY23 results and Q1 trading update show Q1 24 revenue growth of +11% yoy, $6.7m of March 2024 revenue marking the platform’s highest revenue month since May 2022, and a confident outlook that leads us to reiterate our FY24E forecasts. Following the focus on new initiatives through FY23, the platform is now in its strongest ever operational position, with a record 1.1bn monthly ad impressions created in March 2024, record global audience reach of 38.6m unique global listeners in Janua

Alphawave Semi: FY23 trading update, amended forward guidance

Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H

Crimson Tide - FY23 reports +15% revenue; investment phase complete

Crimson Tide has reported FY23 results to December in line with expectations, with additional operating leverage benefitting updated FY24 and maiden FY25 and FY26 forecasts. FY23 delivered +15% revenue growth to £6.2m at 86% GM, of which over 90% is recurring, and maintained £5.8m ARR even after unexpected customer churn in the year as we previously noted. Crucially, the Group achieved milestone adj EBITDA profitability of £0.4m at 7% EBITDA margin, and edges closer to adj PBT profitability expe

Morning Note – 16 April 2024

Devolver Digital (DEVO LN) - Rebuild year

Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce

Morning Note – 15 April 2024

Checkit - New product launch and contract wins

Checkit has won contracts with two customers worth at least £417k over the three-year lives of the contracts, confirming its ability to upsell to its existing customer base and supporting our forecasts. Having trialled the new technology with multiple customers, Checkit has launched its Asset Intelligence module, which uses advanced analytics and machine learning to enhance customer sustainability, reduce costs and increase revenue.

Soft growth patch

Auction Technology Group - H1/24 Trading update

ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).

Morning Note – 17 April 2024

Touchstar - Full year results: Recurring revenue strategy delivers further profit growth

Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning's full year results reflect the outcome of a multi-year strategy coming to fruition for the group, with recurring revenue growth of 8.7% delivering overall revenue growth of 7.1% and in turn a 60% increase in PBT to £0.7m. Over the past few years, Touchstar has focused on enhancing the returns from their product offering through a shift towards recurring software licen

It’s not what you sell, it’s the way that you sell it

This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored.  We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.

Engage XR Holdings - Expanding from FY23, FY24E forecasts reiterated

ENGAGE XR’s FY23 results show revenue and net cash in line with the February trading update, EBITDA ahead at -€4.0m vs -€4.5m due to the split of cash outflow between opex and working capital, and a confident outlook that leads us to reiterate our FY24E forecasts. FY23 revenue for the core ENGAGE platform was unchanged vs FY22 at €3.3m, as H2 23 revenue was impacted by the record seven-figure contract announced in February shifting to 2024, and several enterprise customers scaling back renewals

LIBERUM: Cirata plc: Cirata from the flames

Initial Equity Trading Comments - 19 February 2024