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 and by 8% for FY24 but the average forecast for Adjusted EBITDA has increased by $5.1m for FY23 and by $3.5m for FY24 with a consensus average forecast for adjusted EBITDA of $2.9m for FY23 and of $6.8m for FY24. Newly introduced forecasts for FY25 put average adjusted EBITDA at $14.4m. There was also a significant increase in expectations for FCF generation.
