Shares in the global review platform saw a notable increase following the announcement of higher-than-expected earnings for the first half of 2024 and the introduction of a new share buyback programme.
The FTSE 250 company experienced an impressive rise of up to 9.3 per cent in early trading on Wednesday, with its stock price surging by 157 per cent over the past year. The company reported adjusted earnings before tax (EBITDA) of $10.6m (£8.1m), marking an 86 per cent increase from $5.7m (£4.4m) the previous year. In addition, the firm reported a pre-tax profit of $2.6m (£2m) for the six-month period, compared to a loss of $4m (£3.1m) during the same period in 2023.
Revenue increased by 18 per cent to $99.8m (£76.3m), and bookings rose by 20 per cent to $117.5m (£89.8m). This growth was driven by a 23 per cent increase in North America, 19 per cent in the UK, and 16 per cent in other regions. The company announced a share buyback of up to £20m to reward investors, stating it could commence as early as Wednesday. Monthly unique users increased by 28 per cent to surpass 67,000.
CEO Adrian Blair, who joined the company last September, highlighted the positive reception of new products providing insights into consumer behaviour and market dynamics. “When I joined a year ago, I aimed to bring greater strategic clarity, rigorous execution, and increasing profitability. We have made good progress across these areas,” he stated. “There is still plenty to do, and we are excited by the significant growth opportunities available in our focus markets and beyond. We remain confident in delivering sustainable growth and improving operating leverage over the long term.”
The company reiterated its forecast for “mid-teens” constant currency revenue growth in 2024, with expectations for adjusted EBITDA to hit the “top end” of company-compiled analyst predictions ranging from $18m (£13.8m) to $22m (£16.8m). “In our view, the above-consensus first-half results announced this morning further indicate that the strategy under CEO Adrian Blair is generating significant earnings momentum,” JP Morgan analysts remarked in a briefing note.
The company’s financial results demonstrate robust growth and effective strategic execution, positioning it for sustainable future performance and enhanced investor confidence.