Why Trustpilot is a stock to keep an eye on in order to gain exposure to the online market

According to James Mackreides, Trustpilot has established a strong position in the infrastructure of trust, one of the most important aspects of the internet

On the UK stock market, Trustpilot (LSE: TRST) is a distinctive company. By enabling people to make more informed decisions and lending businesses credibility, it sits at the nexus of technology and consumer confidence. Its platform creates a feedback loop that is advantageous to both parties by enabling users to rate and review companies they have purchased from. Selling subscriptions to companies that wish to access review data and use Trustpilots' marketing tools to improve their reputation is how the company makes a living.

How Trustpilot became worldwide.

Peter Holten Mhlmann, a university student at the time, started Trustpilot in Copenhagen in 2007. He got the idea after seeing his parents find it difficult to trust online retailers. His startup aimed to increase online commerce's transparency by allowing clients to evaluate the businesses they interacted with. The idea took off, and Trustpilot became well-known throughout the world in a matter of years. In 2021, it debuted on the London Stock Exchange. Adrian Blair, who had previously served as Just Eat's chief operating officer, took over as CEO in 2022 after Mhlmann resigned.

The "freemium" model forms the foundation of the company's strategy. Although more sophisticated features are restricted to paid tiers, any business can create a profile for free. While pushing users to upgrade, this strategy promotes adoption. Over time, the brand has grown to be a useful resource. A high rating on the platform gives the service immediate credibility, making it an almost necessary expense for any online business. Because of this, Trustpilot has a significant amount of pricing power. More than 330 million reviews had been posted by users by the middle of 2025, solidifying Trustpilots' standing as one of the most reliable sources of customer feedback.

Trustpilot creates a ladder of values.

There are four primary tiers in Trustpilots' subscription model. Businesses have basic visibility in the free tier, but serious users usually advance quickly. At £299 a month, the Premium plan comes with marketing tools and verified reviews. Data analytics like competitive benchmarking and TrustScore forecasting are added to the £629 Advanced plan. For deeper analysis and system integration, the Enterprise plan starts at £1,099. This level of bespoke pricing keeps going up to enable customization.

The most costly plans offer advanced business intelligence that is hard to find elsewhere. Customers are encouraged to upgrade over time by this structured pricing. The average annual contract value increased by 17% in the first half of 2025, indicating that the company's strategy is effective.

Getting current customers into these premium tiers is currently Trustpilot's greatest opportunity. Despite starting from a small base, enterprise clients, who pay more than £20,000 annually, have grown at a rate of 38 percent over the last two years. Due to their high profitability and deep integration of the platform into their clients' operations, these accounts lower the likelihood that they will cancel their subscriptions.

Additionally, the company is working on a new product line called TrustLayer with the goal of finding new ways to monetize its enormous data set. TrustLayer will offer analytics and insights based on verified review data to assist companies in making more informed decisions. It is anticipated that this year's launch will create a significant new source of income with significant profit potential. The average yearly contract value for the company is currently £9,781, demonstrating the success of its upmarket move.

How the technology of Trustpilot is fostering trust.

The authenticity of Trustpilot's content is the only factor that determines its reputation. Regulators like the UK Competition and Markets Authority are very interested in making sure the platform is transparent because fake or manipulated reviews are a constant threat.

As a result, upholding integrity is a never-ending struggle, and the business heavily invests in detection technology to uncover fraud.

Another risk is competition. Local searches are dominated by Google Reviews, and specialized websites serve niche markets like travel or dining. Trustpilot's growth outside of its e-commerce hub may be constrained by this fragmentation.

AI developments, meanwhile, raise the bar for Trustpilots' moderation systems by making it simpler to produce realistic-looking fake reviews. However, smaller competitors find it challenging to compete on trust and authenticity due to the company's scale and investment in detection technology.

Is investing in Trustpilot a good idea?

With a market value of about 800 million, Trustpilot trades on about three times forward sales, which is modest when compared to high-growth US competitors but a premium to the majority of UK-listed software companies. Revenue is predicted to increase by mid-teen percent over the coming years, and as more customers advance to higher tiers, margins will increase.

Although Trustpilot's global reach and business-to-business focus set it apart, Yelp is the closest comparable model in the US. Although Google is the leading generalist, Trustpilot has an advantage over companies looking to break away from large tech platforms because of its impartiality and openness. Its scale and brand recognition are unmatched in Europe. The market's propensity to price in additional growth is explained by this combination of traits.

Although the company is not yet very profitable or risk-free, its significance to the operation of digital commerce is expanding.

Trustpilot has established a strong position in the infrastructure of trust, one of the most important aspects of the internet. It continues to be a company worth keeping an eye on for investors seeking exposure to the core of e-commerce.

LSE stock price of Trustpilot.