Analysts Expect Breakeven For Trustpilot Group plc (LON:TRST) Before Long

Trustpilot Group plc (LON:TRST) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Trustpilot Group plc engages in the development and hosting of an online review platform for businesses and consumers in the United Kingdom, North America, Europe, and internationally. With the latest financial year loss of US$15m and a trailing-twelve-month loss of US$7.9m, the UK£493m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Trustpilot Group's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Trustpilot Group

According to the 6 industry analysts covering Trustpilot Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$3.8m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 91% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Trustpilot Group given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Trustpilot Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Trustpilot Group, so if you are interested in understanding the company at a deeper level, take a look at Trustpilot Group's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Valuation: What is Trustpilot Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Trustpilot Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Trustpilot Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.