Online greeting card company Moonpig experiences a surge in stock prices following the milestone achievement of 1 million subscribers and the successful integration of AI- generated stickers.
Moonpig Plots Growth Strategy Amidst CEO Departure
In a significant development, Moonpig's CEO, Raithatha, announced his intention to step down after seven years at the helm, effective from June. Despite this change, Moonpig remains optimistic about its future, with plans for the launch of trusted brand partnerships in the flower and gifting sectors, including Laura Ashley Flowers, Next Flowers, and JoJo Maman Bebe.
These new partnerships are expected to bolster Moonpig's attach rate growth during key trading periods such as Christmas, Valentine's Day, and Mother's Day. Market analyst, Adam Vettese, recently stated that Moonpig is benefiting from resilient online demand, scalable technology, and strong brands in its key markets. This has resulted in solid growth in overall revenue and average order value.
Moonpig's growth in orders has been bolstered by an expanding active customer base. The subscription services Moonpig Plus and Greetz Plus have surpassed the 1 million member mark. One of Moonpig's most widely adopted innovations, AI-generated Stickers, now sees customers creating two million personalised images every month.
Moonpig's shares rose over 8% early on Wednesday, later edging back to around 208.50p, up 5.2%. The company's trading in the first few months of its financial year has been in line with forecasts, despite slower top-line growth. Moonpig's adjusted pre-tax annual profit for the same period rose 16% to £67.5million.
Moonpig's Dutch business, Greetz, has shown signs of recovery, returning to modest year-on-year growth on both a reported and constant currency basis. However, Moonpig's sales growth for the year ended 30 April 2025 fell short of market expectations, as revealed in the group's annual results published in June.
Despite these challenges, Moonpig's unique combination of leading market positions, strong customer retention, good profit margins, and robust cash generation positions the company to capitalize on the long-term structural shift to online. The Moonpig brand delivered approximately 10% year-on-year revenue growth.
Moonpig plans to invest up to £60 million in share buybacks during the year. The company expects brands that focus on personalized gifting, greeting cards, and unique seasonal products to drive growth during the upcoming Christmas, Valentine’s Day, and Mother’s Day seasons. Recent months have seen an increase in average order values, attributed to guaranteed delivery and gift attachment trends.
Around half of all Moonpig cards now include optional add-ons such as AI-generated stickers, audio or video messages, or personalised handwriting. Moonpig expects adjusted EBITDA to grow at a mid-single digit rate for the year, with adjusted earnings per share growth of between 8% and 12%.
As Moonpig moves forward, it remains committed to its mission of making sending greetings and gifts more personal, convenient, and enjoyable for its customers.
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