Ladies and gentlemen, welcome to Trustpilot FY 2022 Results. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session through the phone lines. Instructions will follow at that time. I would like to remind everyone that this call is being recorded. I will now hand over to Peter Holten Mühlmann, Chief Executive Officer and founder of Trustpilot Group PLC. Please go ahead.
Thank you very much. Hey, good morning, everyone. I'm Peter Mühlmann. I'm the founder and CEO of Trustpilot, joining me on the call today is our CFO, Hanno Damm. I'd like to welcome to all of you to join us on this webcast and teleconference, where we shall be discussing Trustpilot's full year 2022 results, as well as the RNS we sent out this morning about my transition to a new role at Trustpilot. We made good strategic progress in the year with robust growth in consumer and business adoption, we enhanced our platform and processes, extending our leading trust and transparency. Our strong momentum is underpinned by network effects, our value proposition for consumers and businesses has never been stronger.
Later, I'll provide a more detailed update on the strategic progress we made in 2022 and the strength of our value proposition. First, Hanno, if you'll take us through the detailed financials.
Thank you, Peter, and good morning, everyone. I'm Hanno Damm, Trustpilot's Chief Financial Officer, and will discuss last year's financial performance and our current trading and outlook. As Peter said, 2022 was another year of strong growth, albeit against an increasingly challenging macroeconomic backdrop. Trustpilot delivered revenue of $149 million, an increase of 23% year-over-year at constant currency, with 13% on a reported basis, demonstrating the significant FX headwinds we faced. Bookings increased to $165 million, up by 20% at constant currency. Within this, the continued strong bookings growth in the U.K., Europe and the rest of the world was offset by lower, albeit improving growth in North America. Our performance in the U.S. was aided in the second half of the year as our refined go-to-market strategy began to deliver encouraging early results.
We ended December with annual recurring revenue or ARR of $162 million, up 20% at constant currency or 12% as reported. ARR was nominally lower than bookings mainly due to year-end exchange rates being lower than average rates throughout the year. For the 12 months ended December 2022, our LTM net dollar retention rate improved by 100 basis points year over year to 100%. Whilst that represented an increase year on year, you will recall that we reported an LTM net dollar retention rate of 100% for the first half of the year. For the full year, we maintained that. We are taking a cautious view on retention in our planning as we head through these very uncertain times, and I'll pick up on this when we discuss the outlook.
Our Adjusted EBITDA loss of $4.4 million compared to a profit of $3.9 million a year ago, as we saw the impact of the first full year of the annual expenses taken on as we became a public company, as well as investments into our people and tech function. We also engaged in more marketing spending, which tends to have a lead lag impact on profitability. We ended December with a strong balance sheet and a net cash balance of $73.5 million, the same closing position as at the end of the half year in June, which demonstrates we achieved break-even cash flow in H2. As we previously announced to the market, we have not experienced any liquidity concerns as a result of Silicon Valley Bank's failure.
We have regained full access to our cash deposits and our revolving credit facility remains available. In the meantime, we intend to review and diversify our banking arrangements to mitigate future risk. Today, we're raising our guidance and now expect a positive result for Adjusted EBITDA and adjusted free cash flow in the current financial year, 12 months ahead of our previous commitment. This is due partly to the successful actions we already had underway in the second half, as we discussed in September, and we will continue to take a prudent approach to cost in the current year. Let me now review our 2022 performance in more detail. As you can see from this summary of our regional performance in 2022, we achieved double-digit bookings, ARR and revenue growth in all regions.
Note, going forward in this presentation, when I refer to growth rates, I'll be referencing year-on-year constant currency growth. In the U.K., we saw another period of strong growth with bookings and revenue up by 20% and 26% respectively. The U.K. continued to achieve net dollar retention rates above the group average, and we saw a further improvement in contribution margin. This market continues to be the great example of the strong network effects and margins that our business can achieve at scale. Bookings and revenue in Europe and the rest of the World region grew by 28% and 30% respectively. The scale and growth in this region was principally driven by certain countries in continental Europe, namely Denmark, the Netherlands, France, Italy and Germany, which combined contributed to about 60% of the region's bookings.
Bookings and revenue growth in North America continued to be slower than other regions at 10% and 12% respectively. This is partly due to the retention rate, which is on an upward trend but still catching up with the group average. The initial results from our more focused approach to the US go-to-market has been exciting, helping us to achieve an acceleration in bookings growth in the second half of 2022. We saw an increase on average contract values, less need for discounting and shorter sales cycles. Upon the first anniversary of the launch of the strategy in late H1 2023, we should also observe improving retention rates, which are currently still lower than we would like. The visibility we have over future revenue is supported by our ability to retain customers over many years.
We have materially improved our retention rates over time through a focused approach to improving our gross retention and expanding further within existing accounts. As discussed, in 2022, our LTM net dollar retention rate reached 100%, up 100 basis points compared to a year ago. You will recall that in our more developed markets like the U.K. and Denmark, for example, we have already exceeded 100% net dollar retention, whereas in markets where we have lower brand awareness, the retention rate is also lower. More recently, against a tougher macroeconomic backdrop, we have seen some pressure on both gross churn and expansion across the markets. This is reflected in our outlook statement. At the Capital Markets Day in June last year, we introduced this detail around the level of profitability in the U.K. and how it has trended over time.
The UK is our most developed market at scale and serves as a guide to where we believe other regions will trend in due course. As you can see, each year, the incremental revenue from prior years' bookings covers more and more of the sales and marketing expenses incurred to acquire new customers, and this drives a steady increase in the contribution margin over time. In 2022, the contribution margin in the UK increased to 61%, up from 57% in the prior year. In summary, we have a highly profitable underlying business in the UK and expect each of our markets to follow similar trajectories over time. Let's turn our attention to the summary income statement. As previously discussed, group revenue grew by 23% to $149 million.
We improved our gross margin by 100 basis points to 82%, which underpins our ability to drive long-term operating leverage. We invest upfront into customer acquisition to drive bookings, which flow through the income statement as high margin revenue over time. Our customer acquisition cost expense increased principally as a result of investments into additional headcount as well as marketing spend. We also invested in platform enhancement within our tech and content function. Among the more notable areas here included the development and release of a new iOS app, the successful introduction of Consumer Verification, improved categorization, which drove meaningful SEO improvements in late 2022. We carried out a major rebranding exercise. G&A, as a proportion of revenue, remained flat year-over-year.
Some of the incremental costs were due to planned investments, for example, into our people function, but we also saw the impact of inflation and the first full annualization of our public company costs. Note that this presentation here is adjusted to exclude depreciation, amortization, and stock-based compensation. A reconciliation to the IFRS income statement can be found in the appendix to this presentation. You may have surmised that in the second half of 2022, we had positive Adjusted EBITDA of $1 million. This was achieved by delivering an acceleration of bookings growth, as well as revenue growth of 22% on a constant currency basis, while slowing down hiring and using a disciplined approach to our customer acquisition costs, which is underpinning our guidance for positive Adjusted EBITDA and cash flow in 2023. Let's look at underlying cash flow.
As a result of the nature of our customer contracts, which tend to be annually, and on average, get paid five to six months in advance, Trustpilot operates a very capital-efficient business. In 2022, we saw a net cash outflow from operating activities of $2.7 million compared to a $5.4 million outflow in 2021. Working capital was lower, driven by lower accrued social contributions, outflow of employee withholding taxes, and timing of customer collections. In 2021, the cash flow was somewhat inflated by holding almost $2 million in withholding taxes related to stock option exercises, which occurred in December 2021, which were then paid out in early 2022. Going forward, we would expect a more normalized level of positive cash contribution from working capital.
We did not have non-recurring transaction expenses in 2022, but we incurred additional costs related to office build-outs in New York, Edinburgh, and Copenhagen. We don't expect any major office-related CapEx in 2023. The other main cash outflows were related to principal lease payments as well as CapEx, which consists largely of capitalized software development costs and costs relating to facilities. In 2023, both these items should be at broadly similar levels as 2022. As you think about cash flow seasonality, note that H one tends to have more working capital outflows, mainly due to the annual bonus, which gets paid out in March, as well as annual software prepayments. Again, a reconciliation to the IFRS cash flow can be found in the appendix. Before we get to the outlook, let me remind you that we have a very diverse global customer base.
Our top 10 customers by annual contract value correspond to less than 1% of total ACV. In fact, the top 500 customers account for only 15% of total bookings. We are also diversified geographically, with 40% of bookings coming from customers in the UK, 22% from North America, and the remaining 38% from Europe and the rest of the world. Our customers are also of many different sizes, ranging from small businesses to businesses with well over $50 million in revenue. This is true in all of our regions. This broad diversification has helped with predictability and resilience in times of economic uncertainty. For 2023, we're expecting to move to Adjusted EBITDA profitability and positive adjusted free cash flow.
We already made good progress during the second half of last year in adapting to a more challenging environment, proactively managing our business to deliver improved operating leverage. We will remain disciplined in our investments in 2023, with customer acquisition costs expected to grow in line with revenue growth over the medium term. We are seeing evidence of the challenging macro climate reflected in Q1 2023 bookings. This will lead to lower revenue from in-period bookings in the current year, and hence we're guiding towards mid-teens constant currency revenue growth as a result, albeit at EBITDA profitability ahead of previous guidance. We are confident in our ability to achieve this on the back of the $160 million in ARR we just reported as a starting point for this year's revenue.
Given the uncertain environment, we're taking a cautious approach to the assumptions around new business and retention in our outlook. With that, let me hand it back over to Peter for his strategic review.
Hey, thanks, Hanno. Now I'll take you through the strategic highlights. These are some of the key metrics we use to help us assess the progress we're making against our strategic goals to be the most used and trusted online review brand globally. To begin with, let's look at our progress in driving adoption and usage. The total number of cumulative reviews grew to 213 million, an increase of 27% year-on-year. We now have almost 900,000 reviewed business web domains on our platform, and it's exciting to see that the number of these businesses who are inviting reviews, displaying their TrustScores, and engaging with their customers has now surpassed 100,000.
These businesses sent an average of 58 million review invitations each month last year, and we reached another important milestone, exceeding 100 billion TrustBox impressions for the first time. With all this activity from our business customers inviting reviews, displaying their TrustBoxes, integrating their TrustScores into the marketing channels, it's understandable that many people don't actually visit our website and instead they encounter Trustpilot through online search results, television, radio, in magazines, newspapers, or on billboard advertisements. Of course, this type of traffic is difficult for us to measure, but incredibly powerful. That said, we are now one of the top ranked websites by traffic globally, and each month we saw an average of 44 million unique visitors to our website.
We're focused on driving even more consumer engagement on our website by encouraging more people to leave and consult reviews, as well as experiencing additional features and content. Content integrity is fundamental to our success if we want to be the most trusted review platform. This is a significant competitive differentiator for us. I'm excited about the progress we made in 2022 in furthering our lead in trust and transparency. At the start of the year, we launched Consumer Verification. By the end of the year, more than 198,000 consumers around the world had verified their Trustpilot accounts. We also introduced a step between review submission and posting that allows our automated fraud detection systems to analyze all reviews before they're published live. As a consequence, we're detecting and removing the majority of fake reviews before they're ever viewed by anyone.
In 2022, we removed 2.6 million fake reviews. This is 4% fewer than the prior year. We're hopeful that this is a sign that creating fake reviews becomes ever more difficult. 68% of fake reviews that were removed were done so automatically, and 65% of the removed reviews were four or five stars. We plan on continuing to invest in best-in-class people and technology to further improve the trust and transparency of the platform. At Trustpilot, it is the virality that exists between the consumer and the business sides of our platform, where each side drives and reinforces the other, that underpins our organic growth. The charts here show this in action with the exciting growth sustained over many years in the number of reviews and the number of reviewed business web domains on our platform.
It's really interesting to note that over 40% of all Trustpilot reviews have been posted to our platform in the past two years alone. Ultimately, it's this dynamic that drives our future financial performance, which is why we're so encouraged by the continued growth in adoption by both businesses and consumers over the past 12 months. We're also really encouraged by the growth we're seeing across the funnel and the significant pipeline of opportunity it provides for us to monetize over time. This slide shows the very substantial momentum in our business and the additional scale we've achieved even in just the past two years. At the top, you can see the 213 million total cumulative reviews at the end of December.
Over 680,000 of these businesses have now claimed their Trustpilot domain and taken that first step toward engaging with their customers and building their trusted online presence on Trustpilot. We lean into our strong value proposition with demonstrable ROI as we look to accelerate the time it takes for us to move businesses through the funnel, taking them from free active users to paying subscribers. Our value proposition for consumers and businesses has never been more relevant and has never been stronger. For consumers, the clear value is to be better informed about important purchase decisions. For all of us, reading Trustpilot reviews becomes indispensable, for example, when making a major purchase, like buying a car. We recently undertook some market research focused on the automotive vertical in the U.S.
For businesses, the study finds that Trustpilot consent can help create ads that are more persuasive, more likely to be clicked, and ads that can even offset the fact that you might be selling a product at a higher price than competitors. U.S. consumers were found to be 10 times more likely to click an ad with a full suite of Trustpilot assets than one without. Trust is powerful. Now, before we head into the Q&A, a quick summary. 2022 was an exciting year. We had encouraging financial results, and we also made good strategic progress with measurably strong growth and adoption. Through the investments we made to enhance our platform, we extended our leading trust. Our organic growth and momentum are underpinned by strong network effects. We are excited by our 2023 outlook.
This is a business with a strong balance sheet, we're committed to profitability and cash generation this year. Now, before starting the Q&A, I'd just like to use this opportunity to share some important news about my own future role at Trustpilot. I've come to the decision that I want to dedicate myself fully to being an evangelist, a brand ambassador of Trustpilot, as I believe that's where I can add the most value. That means that we need to find a new CEO as I will transition into a role of founder and non-executive director. I started a conversation with the board about what this could look like. I'm sure you can imagine, this was quite a big decision for me and one I've only taken after a lot of consideration. Ultimately, I have conviction that it's the right thing for Trustpilot.
I'd like to take a moment to explain more about why and how I came to my decision. The topic of trust online is more relevant than ever. Technology keeps evolving and poses new challenges to society. The rise of AI can mean that the world is potentially facing a flood of misinformation. I think that trust online is going to be one of the topics that define the times we live in. I believe that Trustpilot has an important role to play, and I believe I can be a key contributor as a voice in that conversation. I think the biggest contribution I can give to the Trustpilot is in the capacity of founder, evangelist, brand ambassador, positioning Trustpilot front and center on the world stage as a universal symbol of trust.
My passion comes from the mission we're on, our impact in the world, the people I work with. In my heart, I'm an entrepreneur and an evangelist. There's never a perfect time for a transition like this, but I think now is pretty close to a good time. When I reflect on what we've achieved as a company, I think we are in a remarkable position. We have more than 100,000 businesses that are actively inviting their customers to review them, proudly displaying their reviews. We have over 200 million reviews. Our TrustBoxes are shown more than 100 billion times. Trustpilot really is now on the way to becoming that universal symbol of trust that I set out to establish. We've been a listed company for two years. We have a strong, established leadership team in place.
The economic backdrop is not ideal, but we have identified the right strategy to navigate through the turbulent waters, and we're expecting this year to continue to deliver double-digit revenue growth while also becoming a profitable cash generative business. Trustpilot is robust. We're relevant. We have a healthy financial profile, turning a profit since last September. I still believe that Trustpilot is only 1% of what it can become. We have a strong foundation, and we're ready for the next step in the journey.
I don't think there exists a person that cares as much about Trustpilot as I do. During this transition, I'll naturally be 200%, as I always am, until we find and onboard our new leader, and then I'll do everything I can to make sure they and Trustpilot are set up for success. Once we have a new person that takes the role of CEO, I will step into my new role, and I will do everything I can to be the best possible ambassador for Trustpilot, for our values, and for our mission. I'd like to open the call for questions. Operator, if you'll kindly begin the Q&A.
Thank you. We will now begin the question and answer session of the event. To ask a question on the phone line, please press star one. We will pause for a moment to assemble the queue. Our first question is coming from Mark Hyatt with Morgan Stanley. Please go ahead.
Hi. Good morning. Thanks for taking my question. I've got two, please. Firstly, on the mid- to mid-teen revenue growth guidance, how are you thinking about the macroeconomic impact that you have baked into that guidance flowing through the year, and what sort of scenarios are you modeling, and which regions do you expect to hold up relatively better? Just in the second question, the guidance on cost was better than expected, and you're back to Adjusted EBITDA break even in the second half. Where do you expect to see further leverage in 2023, and where are your priority areas of spend for this year? Thanks.
Yeah. Thanks. I'll take that. As with respect to the guidance, I mean, we basically, as I said in the prepared remarks, we have seen some macroeconomic impact on trading in the first couple of months of the year. With the uncertain outlook that we're having right now and a potentially banking crisis unfolding, we've just taken a very cautious outlook in sort of extrapolating the trend which gets you then to the mid-teens revenue growth. It's not sort of regionally differentiated much. It's more sort of every region, and we're largely operating sort of in Western economies, are similarly impacted with slightly lower retention rate and slightly lower new business bookings. That then educates the forecast.
On the cost side, I think if you look at the H2 performance in particular, you can see the operating leverage flow through on G&A and then also I think we'll become more efficient in our customer acquisition costs throughout this year, and sort of in our investments into tech and product and just take a very phased and cautious approach and manage the business prudently through these more challenging times.
Thanks very much.
Our next question is coming from Joe George with JP Morgan. Please go ahead.
Yes. Hi, good morning, guys, and thanks very much for taking my questions. I have three, please. The first one is just on the success of the new go-to-market strategy in the US and the shorter sales cycles you're seeing as a result. Can you just talk about specifically what's worked for you, maybe what's not worked as well, and what are the learnings that will be taken forward towards the new other regions? Then secondly, just in terms of the Q1, top line trends, what trends are you seeing here with regards to typical contract size and contract duration? Any deviations from the norm fit to flag at all?
Just finally, in terms of Q1 trading again, in your more established markets where you've really driven penetration, so namely the U.K. and Denmark, are you seeing the same pressure on churn and net retention here, or has there been this greater footprint, has it helped to sort of soften the blow at all? Thank you, guys.
You want me to take the U.S. question as well? Yeah. Thank you. On the U.S., I think, it's overall really encouraging. If we're selling to customers in these identified verticals, so the high lifetime customer value segments, overall, the deals tend to be larger, than on average, in the past. We're able to close these deals more quickly. I think the learning from this is definitely that a more segmented go-to-market strategy is the right approach, in particular in a market like the U.S. where we don't have as much brand awareness to really tackle it vertical by vertical rather than, less focused.
This also then educates our advertising and marketing efforts going forward, as we think about designing specific campaigns, for example, in each of the markets, to augment our go-to-market. I think you'll see us sort of take the similar approach in other markets over time as well. On the Q1 top line, we haven't seen any changes on length of the contract. We typically tend to stick to annual contracts with very rare exceptions. In terms of contract size, I think what we've seen is rather than changing size, especially on the, on the larger customer segment, we internally call it enterprise, but I think it's sort of large SMBs and large customers that pay us more. Those take longer to close in this environment.
I think especially on the new business side, it's more challenging. Overall in trading, as I mentioned in the prepared remarks, we are in the first couple of months, we have seen a little bit more pressure on churn. That's probably more focused on the smaller customer segment, but also the ability to upsell has been more limited or people take just longer to make that decision. Obviously in the UK and Denmark, as more established markets with great brand awareness, this is sort of happening at a different level, but we've seen it basically across the board. Each of the market has taken a sort of a slight reduction in retention rate with sort of a couple points.
Perfect. Thanks very much, guys.
Our next question is coming from Jessica Buck with Berenberg. Please go ahead.
Hi. Morning, everyone. I've got three questions, please. The first is, can you give a bit more give a bit of color on how the brand marketing activity went in Italy last year? Any results, anything that you've learned that you're gonna apply to other regions would be helpful. The second question is on your sales and marketing effort in the U.S. Given your guidance this year, are you aiming to reduce and be a bit more cautious on the spend over in the U.S., or do we expect actually to go all in in the U.S., but reduce in other regions? The final one is just on retention rates.
Am I right to assume that you're expecting retention rates to possibly improve in North America, offset by weakness in other regions? Thanks.
Thanks, Jessica. Italy, as you recall, the campaign we talked about this last year was a B2C to B campaign. What I mean by this is basically it's, it was mainly campaign targeted at consumers to drive brand awareness with the idea that that would then over time, drive more top of the funnel activities, more consumers reviewing businesses in Italy, more consumers being aware of the brand Trustpilot, then ultimately those businesses wanting to work with us. I think the initial results we've seen in driving consumer activity and consumer engagements were certainly there. I think the flow through the funnel and the impact on commercial results is gonna take a while, and in this current macro environment, probably less, less pronounced than we would have hoped initially.
This was a test also, to be very clear. We said we've never done this before. We wanna try whether we can drive commercial results through a campaign like this. In this current environment, I don't think we were planning to do a similar thing in other markets at this point in time. We'll have to monitor how this plays out over the long term and how the network effects in Italy change. With respect to your question around sales and marketing spend in the US and efforts, we're not looking to cut back spends or to meaningfully accelerate spend in the US until in this current market environment.
I think we're gonna be measured and controlled throughout the year and see what we're sort of observing on new business and retention rates to ensure that we have good payback and good ROI on our spend, that we track sort of what we're spending and how it converts into leads and the conversion rates. Once we feel comfortable with the results and the returns, then we will sort of dial up the spend accordingly. I think all of that is kind of reflected in the guidance around revenue growth and profitability for this year.
With respect to the retention rate, I would hope that in the back half of the year, we're seeing a better retention rate in the US than we have seen in last year on the back of anniversarying the sale to a different customer profile with a high lifetime value customer, a more segmented and more targeted customers that tend to pay us more and that tend to be more engaged and more using the product more. How that's gonna play out in mix shift, it's really tough to say. I think, the guidance currently is a very cautious outlook given the current macroeconomic environment, there's definitely upside to it from things like improvements in the US and overall the economic environment changing to the better. Does that answer your question, Jessica?
Yeah. Thank you very much.
The next one is coming from Kieran Donnelly with Liberum. Please go ahead.
Hi, guys. Thanks for taking my questions. three from myself as well. One, what is your confidence or I guess how committed are you to delivering the Adjusted EBITDA profitability in an environment where revenue growth is lower than the mid-teens you've pointed to in the outlook? two, just in terms of the U.K. profitability, how should we think about the potential ceiling with respect to what the contribution margin could get to in that business and kind of a sense of what those less mature regions could get to over time? Finally, just one for Peter. I guess what are the key attributes you would like to see in the new CEO?
Would you like to see an external candidate appointed to bring in a fresh set of eyes, or do you think there's someone on the board currently who could step into that role?
You wanna go first, Peter?
Yeah, yeah. I'll go first. Well, we are open both for internal and external candidates. I think the shortest way to describe the ideal profile is someone who is a fantastic CEO for a great listed company in the consumer B2B SaaS space. We are of course, we haven't even kicked off a search yet, so we are just at the very beginnings. I am excited personally about getting someone who's a really strong, well-rounded CEO and someone that allows me to really focus where I can add the most value.
Let me pick up the other two questions. On the confidence, look, I think as we look to the guidance and the cautious outlook that we gave here, we feel very confident that we're gonna land in the mid-teens revenue growth on the back of our ARR of $162 million. I think take that as sort of a starting point for the discussion. Having said that, we have operating leverage and levers to pull and control the cost, and I think you saw that in the back half of last year as we saw the macroeconomic environment becoming tougher, and we're being concerned about investing aggressively into a potential recession. We pulled back, and we became profitable in the second half of the year.
We're absolutely committed to delivering positive Adjusted EBITDA this year. With respect to the UK profitability and the contribution margin ceiling, I mean, flippantly, I could say once we stop spending sales and marketing, you'd get to 80% plus contribution margin. Obviously, I think long term, it's in the 60% range, and this still gives us plenty of room to invest into continued growth into the sales and marketing on new customer acquisition. The business has above a 100% retention rate in the UK, so you have your revenue that is renewing and expanding every year, and then you layer on top of that growth from sales and marketing that is more than covered by the by the gross margin that is pretty high.
We believe sort of in the sixties is certainly a reasonable target near term.
Okay, brilliant. Thanks a million. Best of luck, Peter, in the new role.
Thank you.
Our next question is coming from Bharath Nagaraj with Berenberg. Please go ahead.
Thank you. Good morning. Thanks for the presentation. I just have two questions. Given your huge free user base, have you perhaps experimented with lowering of the features that you offer for a free user so that you can potentially drive higher conversion into a paying subscriber? Second question is, for the Consumer Verification, do you use a third-party software, or is it an in-built solution? Also, is it the case that if a consumer just uploads an ID, it is enough for you to provide the, you know, the so-called tick mark, or do you need to carry out like a proper identity verification? Thank you.
If I take the first question on the verification, we use a third-party software that we've meshed into our own system. Without going into too many details about how it works, we have a very good confidence that they do a really good job in verifying the identities of the people. We have good confidence there. Hanno, would you.
Yeah. On the free, definitely something we're looking at. I think that's on the roadmap for this year to at least experiment around it and understand the impact of what that could drive and would drive and whether that's the right strategy. It's obviously a fine balance because as an open platform, we need to have a minimum feature set for businesses to be able to always respond to reviews and invite the customers. It's very clear this is not a sort of paid, pay-to-play offering. At the same time, it's something we're looking at, and we'll need to see and experiment and make a data-driven decision at the end of the day.
Thank you.
I think I could add to the pricing that we do think we have significant potential in the larger company segment for price increases.
Thank you. That's very clear.
The next question is coming from Callum Heaps with Goodbody. Please go ahead. Callum, your line is open. Please go ahead. There is no response from the line, there are no further questions in the queue. That concludes the question and answer session. I will now hand back to Peter Holten Mühlmann for his closing remarks.
Well, thank you for joining our webcast and thank you for all your questions. We are looking forward to meeting all our many investors in the one-to-one session following this. We're excited about the results. I'm personally excited about my new role. I think it's going to be fantastic for the company. With that, thanks for joining.
Thank you.