AI / MACHINE LEARNING

Moonpig Credits AI and Personalisation for Strong Start to the Year

In a recent trading update, Moonpig Group plc has revealed that it is beginning its financial year on a strong footing, with growth driven largely by its investments in AI-powered features and increased product personalisation. The company says that these innovations are helping it win more customers, increase order volumes, and deepen engagement.

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GLO

In a recent trading update, Moonpig Group plc has revealed that it is beginning its financial year on a strong footing, with growth driven largely by its investments in AI-powered features and increased product personalisation. The company says that these innovations are helping it win more customers, increase order volumes, and deepen engagement.

Key Highlights

1. Revenue Growth & Order Momentum
   Moonpig reports around 10% revenue growth year-on-year in the early part of the new financial year. The company says this growth is underpinned by rising order volumes and an expanding active customer base. The Dutch arm, Greetz, has shown a return to modest year-on-year growth as well.

2. Adoption of Personalisation Features
   Personalisation is proving popular: approximately 50% of all cards sold now include extra creative options such as AI-generated stickers, audio or video messages, or personalised handwriting. These features are increasingly used by customers looking to make greetings more meaningful or expressive.

3. Expansion of Subscription and Membership
   Moonpig and Greetz’s subscription offering, Plus, has now surpassed one million members, with numbers still growing each month. This suggests not just acquisition of new customers, but also retention through recurring value.

4. Strong Free Cash Flow & Financial Targets
   The company expects free cash flow generation to remain strong, enabling it both to invest in its technology roadmap and return value to shareholders (including via share buybacks). Moonpig reaffirmed its full-year guidance: mid-single digit percentage growth in adjusted EBITDA, and 8-12% growth in adjusted earnings per share.

5. AI Innovations at the Forefront
   Among the new features, Moonpig highlights AI-generated stickers as a fast-adopted innovation, with customers creating two million personalised images each month. Other tools such as AI handwriting, message-suggestion tools, and richer media options (audio/video) are also part of its personalisation suite.

Strategic Implications

• Differentiation in a Saturated E-Commerce Arena: Personalisation and creative freedom are helping Moonpig distinguish itself among rivals in online gifting and cards, particularly as many competitors offer standard offerings.

• Higher Engagement, More Frequent Purchases: With interactive or creative features (stickers, audio/video messages etc.), Moonpig is increasing “gift attach rates” (the tendency of customers to buy gifts in addition to cards) and boosting customer retention.

• Leveraging Technology & Data: Moonpig’s results point to successful use of AI and data-driven features not only for customer experience but also in recommendations and personalisation logic, driving meaningful revenue impact.

• Resilience against Macro-Economic Headwinds: Even with consumer spending pressures, Moonpig seems to be maintaining momentum. Its subscription base, free cash flow, and innovation pipeline give it some insulation. However, certain parts of its business remain more volatile.

Challenges & What to Watch

• Experience-Business Weakness: The “Experiences” side of Moonpig (such as gifting experiences) has been under pressure. These tend to be more discretionary and sensitive to economic cycles. Continued turnaround there is necessary for fully balanced growth.

• Maintaining Innovation Pace: As more personalisation and AI-features are introduced, keeping quality high, avoiding overcomplexity, and ensuring features are actually used will be critical.

• Cost & Investment: Innovation does come with cost. Moonpig’s ability to generate free cash flow is key, but it must carefully balance spending on technology and R&D with returns to shareholders.

• Consumer Behavior & Competition: If consumer sentiment worsens, even differentiated products may see reduced demand. Also, competitors may replicate some of Moonpig’s AI and personalisation features, reducing differentiation over time.

CEO Perspective

Nickyl Raithatha, Moonpig’s CEO, has emphasised that the company is witnessing strong customer response to its proposition: the personalisation innovations are resonating, and momentum in the core card and gifting business (especially the Moonpig brand) is evident. He also stressed that the technology platform is scalable, and innovations like AI-stickers are already producing millions of user interactions each month, showing the potential reach of the company’s investment in AI and data.

Outlook

Looking ahead, Moonpig is maintaining its FY26 guidance. The company expects:

• Adjusted EBITDA to grow at mid-single digit rates year-on-year.

• Adjusted earnings per share to increase by 8-12%.

• Continued investment in technology, with AI and personalisation remaining central to its growth strategy.

• Strong free cash flow to support both investments and shareholder returns, including a share buyback programme of around £60 million.

Moonpig’s recent update suggests a company in its growth phase with a clear playbook: harness AI and personalisation to drive customer satisfaction, repeat usage, and revenue growth. Whether it can sustain that momentum—especially in volatile macro conditions and amid rising expectations for AI-driven features—will be the key story to follow in the rest of the year.

Source: Moonpig / GLO