Moonpig reported its full-year earnings on Wednesday, which saw a rise in pretax profit and Moonpig remaining confident in its fiscal 2023 guidance.
However, Moonpig shares fell 7%. Not the outcome Moonpig investors were hoping for.
Revenue fell 17.3% year on year to £304.3 million from £368.2 million a year earlier. The company stated a fall in revenue represented periods of severe lockdown restrictions. In addition, Adjusted EBITDA of £74.9 million, was 18.7% below the £92.1 million reported the previous year.
However, revenue did grow 75.8% on a two-year basis, which Moonpig said reflects significant growth in customer base and higher customer purchase frequency.
Meanwhile, pre-tax profit rose 21.6% to £40 million—something to keep investors satisfied.
“Our first full year as a listed company has been another transformational period for Moonpig Group – financially, operationally and strategically,” said Moonpig CEO Nickyl Raithatha.
As for Moonpigs’ outlook, the company remains confident about the new financial year. They expect revenue in FY23 to be approximately £350 million.
However, an upbeat forecast was not enough to prevent Moonpig shares from tumbling.
Moonpig has lost a significant amount of traffic to its website over the last three months. However, a small recovery in numbers was made from April to May.
Meanwhile, comparing organing traffic over the last two years, we can see Moonpig soared to its highest heights during 2021. Although traffic has fallen significantly in 2022 and must be watched closely.