Cimpress Reports Second Quarter Fiscal Year 2015 Financial Results

  • Second quarter 2015 results:
    • Revenue grew 19 percent year over year to $439.9 million
    • Revenue grew 7 percent year over year excluding the impact of currency exchange rate fluctuations and revenue from businesses acquired during the past twelve months
    • GAAP net income per diluted share increased to $1.89, compared with $1.18 in the same quarter last year
    • Non-GAAP adjusted net income per diluted share increased 41 percent year over year to $2.12

VENLO, The Netherlands--()--Cimpress N.V. (Nasdaq: CMPR), the world leader in mass customization, today announced financial results for the three month period ended December 31, 2014, the second quarter of its 2015 fiscal year.

“We delivered good results across the business in our second quarter,” said Robert Keane, president and chief executive officer. “Quarterly revenue reflected continued improvement in the growth of our Vistaprint brand as a result of our investments in our customer value proposition, as well as continued strong growth of our recent acquisitions. Profitability, operating cash flow and free cash flow were also strong. In November, our shareholders overwhelmingly supported the name change of our corporate parent company to Cimpress, as a clear reflection of our strategy to extend our mass customization capabilities well beyond our traditional Vistaprint-branded business. In pursuit of this vision we have embarked on a major multi-year investment to engineer a shared platform of software-driven mass customization capabilities that we can leverage across multiple customer-facing brands.”

Consolidated Financial Metrics:

  • Revenue for the second quarter of fiscal year 2015 was $439.9 million, a 19 percent increase compared to revenue of $370.8 million reported in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations and revenue from businesses acquired during the past twelve months, total revenue grew 7 percent year over year in the second quarter.
  • Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the second quarter was 64.4 percent, down from 67.4 percent in the same quarter a year ago. The year-over-year reduction in gross margin was primarily due to our recent acquisitions of Printdeal (formerly named People & Print Group) and Pixartprinting, which have lower gross margins than our Vistaprint-branded business. Excluding the businesses we acquired during the past twelve months, our gross margin increased slightly year over year.
  • Operating income in the second quarter was $59.9 million, or 13.6 percent of revenue, an increase in absolute dollars but a decrease as a percent of revenue compared to $52.5 million, or 14.2 percent of revenue, in the same quarter a year ago. This operating margin compression is driven by increased amortization expense for acquisition-related intangible assets, as well as the change in fair-value of our acquisition-related earn-outs.
  • GAAP net income for the second quarter was $63.6 million, or 14.5 percent of revenue, compared to $40.9 million, or 11.0 percent of revenue in the same quarter a year ago. Part of the significant year-over-year growth in GAAP net income is due to below-the-line currency movements that created losses in the year-ago period but gains in the current period.
  • GAAP net income per diluted share for the second quarter was $1.89, versus $1.18 in the same quarter a year ago, due in part to the currency movements described above.
  • Non-GAAP adjusted net income for the second quarter, which excludes amortization expense for acquisition-related intangible assets, tax charges related to the alignment of acquisition-related intellectual property with our operational structure, the change in the fair-value estimate of our acquisition-related earn-outs, unrealized currency gains and losses on currency hedges and intercompany financing arrangements included in net income, share-based compensation expense, and the related income tax effect of these items, was $72.1 million, or 16.4 percent of revenue, representing a 37 percent increase compared to $52.7 million, or 14.2 percent of revenue, in the same quarter a year ago.
  • Non-GAAP adjusted net income per diluted share for the second quarter, as defined above, was $2.12, versus $1.50 in the same quarter a year ago.
  • Capital expenditures in the second quarter were $18.3 million, or 4.2 percent of revenue.
  • During the second quarter, the company generated $138.2 million of cash from operations and $116.0 million in free cash flow, defined as cash from operations less purchases of property, plant and equipment, purchases of intangible assets not related to acquisitions, and capitalization of software and website development costs.
  • As of December 31, 2014, the company had $77.9 million in cash and cash equivalents and $346.9 million of debt. After considering debt covenant limitations, as of December 31, 2014 the company had $399.1 million available for borrowing under its committed credit facility.

Operating metrics are provided as a table-based supplement to this press release. The recent acquisitions of Printdeal, Pixartprinting, FotoKnudsen and the recent investment in Printi are not yet incorporated into our customer metrics.

Fiscal 2015 Outlook as of January 28, 2015:

Ernst Teunissen, executive vice president and chief financial officer, said, “Now that we are halfway through our fiscal year, we are adjusting our guidance to reflect, on the one hand currency headwinds but, on the other hand, solid year-to-date operational results."

Financial Guidance as of January 28, 2015:

The company provides revenue and earnings guidance on only a fiscal year basis, not quarterly. Our guidance incorporates completed acquisitions and share repurchases, and outstanding debt obligations, as of January 28, 2015. Based on current and anticipated levels of demand, the company expects the following financial results:

Fiscal Year 2015 Revenue

  • The company expects revenue of approximately $1,430 million to $1,470 million, or 13 percent to 16 percent growth year over year in reported terms and 17 percent to 20 percent growth on a constant-currency basis. Constant-currency growth expectations assume a recent 30-day currency exchange rate for all currencies.
  • This constant-currency growth expectation remains the same as the guidance we last gave on October 29, 2014 at the top end of the range. We have increased the low end of the range.
  • Our reported revenue outlook has been lowered at the high end of the range by about $30 million due to recent weakening of currencies against the US dollar, particularly European currencies.

Fiscal Year 2015 GAAP Net Income Per Diluted Share

  • The company expects GAAP net income per diluted share of approximately $2.00 to $2.30, which assumes 33.6 million weighted average diluted shares outstanding.
  • We expect our fiscal 2015 GAAP net income to benefit from strong year-to-date operational performance.
  • Based on a recent 30-day currency exchange rate for relevant currencies, we estimate that realized gains and losses on currency forward contracts as well as natural hedges will largely offset the currency impact to revenue in our full-year net income results.
  • However, we are decreasing our GAAP EPS guidance range versus the guidance we last gave on October 29, 2014 because of a large projected GAAP loss in the third quarter resulting from the recent appreciation of the Swiss Franc, which has a non-cash, non-operational impact on a US dollar denominated intercompany loan. If the USD to CHF exchange rates remain the same as late January rates, we expect this loss will more than offset the year-to-date currency gains on the intercompany loan we have recorded in our GAAP net income. This projected loss is excluded from our non-GAAP EPS expectation.

Fiscal Year 2015 Non-GAAP Adjusted Net Income Per Diluted Share

  • The company expects non-GAAP adjusted net income per diluted share of approximately $3.80 to $4.10, which excludes our expectations for the following items inclusive of their tax effects:
    • Acquisition-related amortization of intangible assets of approximately $22.2 million or approximately $0.65 per diluted share
    • Share-based compensation expense of approximately $21.7 million or approximately $0.64 per diluted share
    • The change in fair-value estimate of our acquisition-related earn-outs of approximately $7.4 million or approximately $0.22 per diluted share
    • Tax charges related to the alignment of acquisition-related intellectual property with global operations of approximately $2.2 million, or $0.06 per diluted share.
    • An unrealized currency loss of $(11.0) million, or $(0.32) per diluted share, based on a recent spot rate of relevant currencies (USD to Swiss Franc).
    • Changes in unrealized gains on currency forward contracts of $2.3 million, or $0.07 per diluted share, based on a recent 30-day currency exchange rate for relevant currencies.
  • This guidance assumes a non-GAAP weighted average diluted share count of approximately 34.0 million shares.
  • This non-GAAP EPS guidance is higher than the guidance we last gave on October 29, 2014 to reflect our strong performance to date.

Fiscal Year 2015 Depreciation and Amortization and Capital Expenditures

  • The company expects depreciation and amortization expense to be approximately $95 million to $100 million. This includes the amortization of acquisition-related intangible assets described above in our non-GAAP earnings per share expectations, as well as our expectations for capitalized software development costs.
  • The company expects to make capital expenditures of approximately $85 million to $95 million. The majority of planned capital investments are designed to support the planned long-term growth of the business. This fiscal year, we expect to invest about $20 million to build a new manufacturing facility in Japan as part of our joint venture there and about $20 million in the expansion of our product lines and other new manufacturing capabilities.

The foregoing guidance supersedes any guidance previously issued by the company. All such previous guidance should no longer be relied upon.

Cimpress has posted at ir.cimpress.com an end-of-quarter presentation with accompanying prepared remarks. On Thursday, January 29, 2015 at 7:30 a.m. (EST) the company will host a live Q&A conference call with management to discuss the financial results, which will be available via web cast at ir.cimpress.com and via dial-in at +1 (877) 703-6108, access code 90951641. A replay of the Q&A session will be available on the company’s Web site following the call on January 29, 2015.

About non-GAAP financial measures

To supplement Cimpress’ consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Cimpress has used the following measures defined as non-GAAP financial measures by Securities and Exchange Commission, or SEC, rules: non-GAAP adjusted net income, non-GAAP adjusted net income per diluted share, free cash flow, constant-currency revenue growth and constant-currency revenue growth excluding revenue from acquisitions made during the past year. The items excluded from the non-GAAP adjusted net income measurements are share-based compensation expense, amortization of acquisition-related intangibles, tax charges related to the alignment of acquisition-related intellectual property with global operations, changes in unrealized gains and losses on currency forward contracts, unrealized currency gains and losses on intercompany financing arrangements, the charge for the disposal of our minority investment in China, the change in fair-value estimate of our acquisition-related earn-outs, and the related income tax effect of these items. Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment, purchases of intangible assets not related to acquisitions, and capitalization of software and website development costs. Constant-currency revenue growth is estimated by translating all non-U.S. dollar denominated revenue generated in the current period using the prior year period’s average exchange rate for each currency to the U.S. dollar and excludes the impact of gains and losses on effective currency hedges recognized in revenue in the prior year periods. Constant-currency revenue growth excluding revenue from acquisitions during the past year excludes the impact of currency as defined above and revenue from Printdeal, Pixartprinting and FotoKnudsen.

The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of Non-GAAP Financial Measures” included at the end of this release. The tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliation between these financial measures.

Cimpress’ management believes that these non-GAAP financial measures provide meaningful supplemental information in assessing our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, which could be non-cash charges or discrete cash charges that are infrequent in nature. These non-GAAP financial measures also have facilitated management’s internal comparisons to Cimpress’ historical performance and our competitors’ operating results.

About Cimpress

Cimpress N.V. (Nasdaq: CMPR) is the world leader in mass customization. For 20 years, the company has focused on developing software and manufacturing capabilities that transform traditional markets in order to make customized products accessible and affordable to everyone. Cimpress’ portfolio of brands that includes Vistaprint, Albelli, Drukwerkdeal, Pixartprinting and others serves many customer segments across many applications for mass customization. The company produces more than 80 million unique products a year via its network of computer integrated manufacturing facilities. To learn more, visit http://www.cimpress.com.

Cimpress and the Cimpress logo are trademarks of Cimpress N.V. or its subsidiaries. All other brand and product names appearing on this announcement may be trademarks or registered trademarks of their respective holders.

This press release contains statements about our future expectations, plans and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, including but not limited to our expectations for the growth, development, and profitability of our business and our recent acquisitions and our financial outlook and guidance set forth under the headings “Fiscal 2015 Outlook as of January 28, 2015” and “Financial Guidance as of January 28, 2015.” Forward-looking projections and expectations are inherently uncertain, are based on assumptions and judgments by management, and may turn out to be wrong. Our actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including but not limited to flaws in the assumptions and judgments upon which our forecasts are based; our failure to execute our strategy; our inability to make the investments in our business that we plan to make; the failure of our strategy, investments, and efforts to reposition the Vistaprint brand to have the effects that we expect; our failure to promote and strengthen our brands; our failure to acquire new customers and enter new markets, retain our current customers and sell more products to current and new customers; our failure to identify and address the causes of our revenue weakness in some of our markets; our failure to manage the growth and complexity of our business and expand our operations; costs and disruptions caused by acquisitions and strategic investments; the failure of the businesses we acquire or invest in, including Printdeal, Pixartprinting, FotoKnudsen, and Printi to perform as expected; the willingness of purchasers of marketing services and products to shop online; the failure of our current and new marketing channels to attract customers; currency fluctuations that affect our revenues and costs including the impact of currency hedging strategies and intercompany transactions; unanticipated changes in our markets, customers, or business; competitive pressures; interruptions in or failures of our websites, network infrastructure or manufacturing operations; our failure to retain key employees; our failure to maintain compliance with the financial covenants in our revolving credit facility or to pay our debts when due; costs and judgments resulting from litigation; changes in the laws and regulations or in the interpretations of laws or regulations to which we are subject, including tax laws, or the institution of new laws or regulations that affect our business; general economic conditions; and other factors described in our Form 10-Q for the fiscal quarter ended September 30, 2014 and the other documents we periodically file with the U.S. Securities and Exchange Commission.

In addition, the statements and projections in this press release represent our expectations and beliefs as of the date of this press release, and subsequent events and developments may cause these expectations, beliefs, and projections to change. We specifically disclaim any obligation to update any forward-looking statements. These forward-looking statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to the date of this press release.

Operational Metrics & Financial Tables to Follow

           

CIMPRESS N.V.

CONSOLIDATED BALANCE SHEETS

(Unaudited in thousands, except share and per share data)

 

December 31,
2014

June 30,
2014

Assets
Current assets:
Cash and cash equivalents $ 77,881 $ 62,508
Marketable securities 8,557 13,857
Accounts receivable, net of allowances of $286 and $212, respectively 30,733 23,515
Inventory 15,246 12,138
Prepaid expenses and other current assets 46,648   45,923  
Total current assets 179,065 157,941
Property, plant and equipment, net 391,016 352,221
Software and web site development costs, net 16,091 14,016
Deferred tax assets 12,987 8,762
Goodwill 305,013 317,187
Intangible assets, net 94,887 110,214
Other assets 27,438   28,644  
Total assets $ 1,026,497   $ 988,985  
Liabilities, noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable $ 72,065 $ 52,770
Accrued expenses 181,581 121,177
Deferred revenue 25,584 26,913
Deferred tax liabilities 1,219 2,178
Short-term debt 14,884 37,575
Other current liabilities 518   888  
Total current liabilities 295,851 241,501
Deferred tax liabilities 27,031 30,846
Lease financing obligation 55,870 18,117
Long-term debt 332,065 410,484
Other liabilities 48,379   44,420  
Total liabilities 759,196   745,368  
 
Redeemable noncontrolling interests 9,466 11,160
Shareholders’ equity:
Preferred shares, par value €0.01 per share, 100,000,000 shares authorized; none issued and outstanding
Ordinary shares, par value €0.01 per share, 100,000,000 shares authorized; 44,080,627 shares issued; and 32,603,954 and 32,329,244 shares outstanding, respectively 615 615
Treasury shares, at cost, 11,476,673 and 11,751,383 shares, respectively (414,104 ) (423,101 )
Additional paid-in capital 314,954 309,990
Retained earnings 430,143 342,840
Accumulated other comprehensive (loss) income (75,416 ) 2,113  
Total shareholders’ equity attributable to Cimpress N.V. 256,192 232,457
Noncontrolling interest 1,643    
Total shareholders' equity 257,835   232,457  
Total liabilities, noncontrolling interests and shareholders’ equity $ 1,026,497   $ 988,985  
 
           

CIMPRESS N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited in thousands, except share and per share data)

 

Three Months Ended
December 31,

Six Months Ended
December 31,
2014   2013 2014   2013
Revenue

$

439,905

$

370,807

$

773,837

$

645,896

Cost of revenue (1) 156,620 120,789 286,840 216,579
Technology and development expense (1) 46,625 42,874 90,530 85,121
Marketing and selling expense (1) 139,058 124,128 250,885 226,561
General and administrative expense (1) 37,714   30,494   68,835   56,704  
Income from operations 59,888 52,522 76,747 60,931
Other income (expense), net 9,855 (3,209 ) 21,991 (8,035 )
Interest income (expense), net (3,031 ) (1,566 ) (6,377 ) (3,143 )
Income before income taxes and loss in equity interests 66,712 47,747 92,361 49,753
Income tax provision 3,850 6,005 6,082 6,820
Loss in equity interests   867     1,646  
Net income 62,862 40,875 86,279 41,287
Add: Net loss attributable to noncontrolling interests 747     1,024    
Net income attributable to Cimpress N.V.

$

63,609

 

$

40,875

 

$

87,303

 

$

41,287

 
Basic net income per share attributable to Cimpress N.V.

$

1.96

 

$

1.24

 

$

2.69

 

$

1.26

 
Diluted net income per share attributable to Cimpress N.V.

$

1.89

 

$

1.18

 

$

2.62

 

$

1.20

 
Weighted average shares outstanding — basic 32,536,046   32,861,393   32,461,432   32,760,384  
Weighted average shares outstanding — diluted 33,581,100   34,552,194   33,367,767   34,463,006  
 

(1) Share-based compensation is allocated as follows:

 

Three Months Ended
December 31,

Six Months Ended
December 31,

2014

2013

2014

2013

Cost of revenue

$

14

$

72

 

$

45

 

$

138

Technology and development expense

1,002

2,418

1,929

4,878

Marketing and selling expense

58

1,588

972

3,277

General and administrative expense

5,310

3,795

9,180

7,965

 
           

CIMPRESS N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited in thousands)

 

Three Months Ended
December 31,

Six Months Ended
December 31,

2014   2013 2014   2013
Operating activities
Net income $ 62,862 $ 40,875 $ 86,279 $ 41,287
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 22,895 16,840 47,354 32,465
Share-based compensation expense 6,384 7,873 12,126 16,258
Excess tax benefits derived from share-based compensation awards (1,023 ) (493 ) (1,342 ) (1,987 )
Deferred taxes (4,085 ) (5,370 ) (8,242 ) (7,594 )
Loss in equity interests 867 1,646
Unrealized (gain) loss on derivative instruments included in net income (14 ) (1,155 ) (3,482 ) 3,701
Change in fair value of contingent consideration 3,701 7,378
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency (8,485 ) 3,036 (18,597 ) 2,868
Other non-cash items 1,231 90 1,772 323
Changes in operating assets and liabilities excluding the effect of business acquisitions:
Accounts receivable (4,375 ) 1,403 (6,941 ) (1,414 )
Inventory (2,759 ) (687 ) (3,256 ) (563 )
Prepaid expenses and other assets (2,049 ) (8,757 ) 14,738 (12,865 )
Accounts payable 15,159 7,587 21,611 4,751
Accrued expenses and other liabilities 48,782   32,918   41,446   16,028  
Net cash provided by operating activities 138,224   95,027   190,844   94,904  
Investing activities
Purchases of property, plant and equipment (18,268 ) (24,592 ) (34,952 ) (42,169 )
Business acquisitions, net of cash acquired 2,910 (22,997 )
Proceeds from sale of intangible assets 137
Purchases of intangible assets (60 ) (44 ) (145 ) (119 )
Capitalization of software and website development costs (3,910 ) (2,605 ) (7,449 ) (4,419 )
Investment in equity interests   (4,894 )   (4,994 )
Net cash used in investing activities (19,328 ) (32,135 ) (65,543 ) (51,564 )
Financing activities
Proceeds from borrowings of debt 39,500 23,500 139,500 67,000
Payments of debt and debt issuance costs (140,254 ) (88,967 ) (243,266 ) (101,604 )
Payments of withholding taxes in connection with share awards (1,253 ) (1,279 ) (2,764 ) (3,941 )
Payments of capital lease obligations (1,581 ) (2,842 )
Excess tax benefits derived from share-based compensation awards 1,023 493 1,342 1,987
Proceeds from issuance of ordinary shares 3,937 667 4,782 4,163
Payment of dividend to noncontrolling interest (92 )   (92 )  
Net cash used in financing activities (98,720 ) (65,586 ) (103,340 ) (32,395 )
Effect of exchange rate changes on cash (3,216 ) 353   (6,588 ) 1,300  
Net increase (decrease) in cash and cash equivalents 16,960 (2,341 ) 15,373 12,245
Cash and cash equivalents at beginning of period 60,921   64,651   62,508   50,065  
Cash and cash equivalents at end of period $ 77,881   $ 62,310   $ 77,881   $ 62,310  
 
         

CIMPRESS N.V.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

(Unaudited in thousands, except share and per share data)

 

Three Months Ended
December 31,

Six Months Ended
December 31,

2014   2013 2014   2013
Non-GAAP adjusted net income reconciliation:
Net income attributable to Cimpress N.V. 63,609 $ 40,875 $ 87,303 $ 41,287
 
Add back inclusive of tax effect:
Share-based compensation expense 5,397 8,062 11,166 16,638
Amortization of acquisition-related intangible assets 5,375 2,249 11,914 4,449
Tax cost of transfer of intellectual property 1,235 1,468 1,781 1,531
Change in fair value of contingent consideration 3,701 7,378
Changes in unrealized (gain) loss on currency forward contracts included in net income (14 ) (1,155 ) (3,482 ) 3,701
Unrealized currency (gain) loss on intercompany loans (7,205 ) 1,163   (15,191 ) 1,163
Non-GAAP adjusted net income $ 72,098   $ 52,662   $ 100,869   $ 68,769
 
Non-GAAP adjusted net income per diluted share reconciliation:
Net income per diluted share $ 1.89 $ 1.18 $ 2.62 $ 1.20
 
Add back inclusive of tax effect:
Share-based compensation expense 0.16 0.22 0.32 0.47
Amortization of acquisition-related intangible assets 0.15 0.06 0.34 0.12
Tax cost of transfer of intellectual property 0.03 0.04 0.04 0.04
Change in fair value of contingent consideration 0.10 0.21
Changes in unrealized (gain) loss on currency forward contracts included in net income (0.03 ) (0.10 ) 0.10
Unrealized currency transaction (gain) loss on intercompany loan (0.21 ) 0.03   (0.45 ) 0.03
Non-GAAP adjusted net income per diluted share $ 2.12   $ 1.50   $ 2.98   $ 1.96
 
Non-GAAP adjusted weighted average shares reconciliation:
GAAP weighted average shares outstanding - diluted 33,581,100 34,552,194 33,367,767 34,463,006
Add:
Additional shares due to unamortized share-based compensation 503,120   566,199   477,216   598,923
Non-GAAP adjusted weighted average shares outstanding - diluted 34,084,220   35,118,393   33,844,983   35,061,929
 
           

CIMPRESS N.V.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)

(Unaudited in thousands, except share and per share data)

 

Three Months Ended
December 31,

Six Months Ended
December 31,

2014   2013 2014   2013
Free cash flow reconciliation:
Net cash provided by (used in) operating activities $ 138,224 $ 95,027 $ 190,844 $ 94,904
Purchases of property, plant and equipment (18,268 ) (24,592 ) (34,952 ) (42,169 )
Purchases of intangible assets not related to acquisitions (60 ) (44 ) (145 ) (119 )
Capitalization of software and website development costs (3,910 ) (2,605 ) (7,449 ) (4,419 )
Free cash flow $ 115,986   $ 67,786   $ 148,298   $ 48,197  
 
                           
GAAP Revenue

Constant -
currency
excluding
acquisitions

Three Months Ended
December 31,

Currency
Impact:

Constant-
Currency

Impact of
Acquisitions

2014   2013 % Change

(Favorable)/
Unfavorable

Revenue
Growth

(Favorable)/
Unfavorable

Revenue
Growth

Revenue growth reconciliation by region:
North America $ 206,497 $ 189,447 9% 1% 10% —% 10%
Europe 208,606 161,031 30% 11% 41% (37)% 4%
Other 24,802 20,329   22% 5% 27% (17)% 10%
Total revenue $ 439,905 $ 370,807   19% 4% 23% (16)% 7%
 
                           
GAAP Revenue

Constant -
currency
excluding
acquisitions

Six Months Ended
December 31,

Currency
Impact:

Constant-
Currency

Impact of
Acquisitions

2014   2013 % Change

(Favorable)/
Unfavorable

Revenue
Growth

(Favorable)/
Unfavorable

Revenue
Growth

Revenue growth reconciliation by region:
North America $ 384,239 $ 354,221 8% 1% 9% —% 9%
Europe 346,968 255,735 36% 6% 42% (40)% 2%
Other 42,630 35,940   19% 2% 21% (12)% 9%
Total revenue $ 773,837 $ 645,896   20% 2% 22% (16)% 6%
 
        GAAP Revenue                    

Constant -
Currency
revenue
growth

Three months ended
December 31,

Currency
Impact:

Constant-
Currency

Impact of
Acquisitions

2014   2013 %
Change

(Favorable)/
Unfavorable

Revenue
Growth

(Favorable)/
Unfavorable

Excluding
acquisitions

Revenue growth reconciliation by reportable segment:
Vistaprint Business Unit $ 356,259 $ 344,865 3% 4% 7% —% 7%
All Other Business Units 83,646 25,942   222% 7% 229% (222)% 7%
Total revenue $ 439,905 $ 370,807   19% 4% 23% (16)% 7%
                           
GAAP Revenue

Constant -
Currency
revenue
growth

Six months ended
December 31,

Currency
Impact:

Constant-
Currency

Impact of
Acquisitions

2014   2013 %
Change

(Favorable)/
Unfavorable

Revenue
Growth

(Favorable)/
Unfavorable

Excluding
acquisitions

Revenue growth reconciliation by reportable segment:
Vistaprint Business Unit $ 627,944 $ 600,645 5% 2% 7% —% 7%
All Other Business Units 145,893 45,251   222% 4% 226% (221)% 5%
Total revenue $ 773,837 $ 645,896   20% 2% 22% (16)% 6%
 
 
CIMPRESS N.V.
Supplemental Financial Information and Operating Metrics
          Q2 FY2014     Q3 FY2014     Q4 FY2014     FY2014     Q1 FY2015     Q2 FY2015
 
1 New Customer Orders (millions) - excludes acquisitions made since Q4 FY 2014 2.9 2.4 2.2 9.7 2.1 2.7
y/y growth (12 )% (8 )% % (8 )% (5 )% (7 )%
 
2 Total Order Volume (millions) - excludes acquisitions made since Q4 2014 9.1 7.3 7.0 30.5 6.8 8.8
y/y growth (7 )% (6 )% (1 )% (4 )% (4 )% (3 )%
 
3 Average Order Value - excludes acquisitions made since Q4 2014 ($USD) $ 40.92 $ 40.14 $ 42.50 $ 40.74 $ 43.32 $ 43.55
y/y growth 15 % 7 % 9 % 10 % 10 % 6 %
 
4 TTM Unique Active Customer Count - excludes acquisitions made since Q4 2014 (millions) 16.9 16.8 16.7 16.7 16.6
y/y growth 2 % (1 )% (2 )% (2 )% (2 )%
TTM new customer count (millions) 10.0 9.8 9.7 9.6 9.4
TTM repeat customer count (millions) 6.9 7.0 7.0 7.1 7.2
 
5 TTM Average Bookings per Unique Active Customer - excludes acquisitions made since Q4 2014 $ 72 $ 73 $ 74 $ 75 $ 76
y/y growth 7 % 7 % 7 % 7 % 6 %
TTM average bookings per new customer (approx.) $ 53 $ 53 $ 54 $ 55 $ 56
TTM average bookings per repeat customer (approx.) $ 100 $ 101 $ 102 $ 103 $ 103
 
6 Advertising & Commissions Expense - excluding acquisitions made since Q4 2014 (millions) $ 81.6 $ 65.9 55.7 $ 266.4 $ 62.2 $ 83.1
as % of revenue 22.0 % 23.0 % 18.9 % 21.7 % 21.3 % 21.8 %
 
7 Advertising & Commissions Expense - Consolidated (millions) $ 81.6 $ 65.9 $ 57.1 $ 267.7 $ 63.9 $ 85.6
as % of revenue 22.0 % 23.0 % 16.9 % 21.1 % 19.1 % 19.5 %
 
Revenue - Consolidated as Reported ($ millions) $ 370.8 $ 286.2 $ 338.2 $ 1,270.2 $ 333.9 $ 439.9
y/y growth 6 % (1 )% 21 % 9 % 21 % 19 %
y/y growth in constant currency 6 % (1 )% 19 % 8 % 21 % 23 %
 
North America ($ millions) $ 189.4   $ 166.1   $ 179.9   $ 700.2   $ 177.7   $ 206.5  
y/y growth 13 % 2 % 6 % 9 % 8 % 9 %
y/y growth in constant currency 14 % 3 % 7 % 9 % 8 % 10 %
as % of revenue 51 % 58 % 53 % 55 % 53 % 47 %
Europe ($ millions) $ 161.0   $ 104.2   $ 142.2   $ 502.1   $ 138.4   $ 208.6  
y/y growth 1 % (4 )% 50 % 11 % 46 % 30 %
y/y growth in constant currency (2 )% (7 )% 43 % 7 % 45 % 41 %
as % of revenue 43 % 36 % 42 % 40 % 42 % 47 %
Other Regions ($ millions) $ 20.3   $ 15.9   $ 16.1   $ 67.9   $ 17.8   $ 24.8  
y/y growth (5 )% (3 )% 3 % (4 )% 14 % 22 %
y/y growth in constant currency 6 % 10 % 8 % 6 % 13 % 27 %
as % of revenue 6 % 6 % 5 % 5 % 5 % 6 %
 
8 Physical printed products and other ($ millions) $ 350.5 266.4 $ 318.7 $ 1,189.9 $ 315.1 $ 422.1
Digital products/services ($ millions) $ 20.3 19.7 $ 19.5 $ 80.3 $ 18.8 $ 17.8
 
Headcount at end of period 4,642 4,494 5,127 5,336 5,859
Full-time employees 4,217 4,370 4,901 5,040 5,203
  Temporary employees         425       124       226               296       656  
Notes: Some numbers may not add due to rounding. Metrics are unaudited and where noted, approximate.
Starting in Q3 Fiscal 2012, Albumprinter and Webs results have been included in customer metrics. Printi, Printdeal, Pixartprinting and FotoKnudsen are not included in the customer metrics above. Also starting in the same period, a minor calculation methodology change was made in order to accommodate the consolidation.

 

 

1 Orders from first-time customers in period, excluding Printi, Printdeal, Pixartprinting and FotoKnudsen

2 Total order volume in period, excluding Printi, Printdeal, Pixartprinting and FotoKnudsen

3 Total bookings, including shipping and processing, divided by total orders, excluding Printi, Printdeal, Pixartprinting and FotoKnudsen

4 Number of individual customers who purchased from us in a given period, with no regard to frequency of purchase, excluding Printi, Printdeal, Pixartprinting and FotoKnudsen

5 Total bookings for a trailing twelve month period, including shipping and processing, divided by number of unique customers in the same period, excluding Printi, Printdeal, Pixartprinting and FotoKnudsen

6 External advertising and commissions expense, excluding Printi, Printdeal, Pixartprinting and FotoKnudsen

7 External advertising and commissions expense for the consolidated business

8 Other revenue includes miscellaneous items which account for less than 1% of revenue

Contacts

Cimpress N.V.
Investor Relations:
Meredith Burns, +1-781-652-6480
ir@cimpress.com
or
Media Relations:
Cheryl Wadsworth
mediarelations@cimpress.com

Release Summary

Cimpress' Q2 2015 earnings announcement.

Contacts

Cimpress N.V.
Investor Relations:
Meredith Burns, +1-781-652-6480
ir@cimpress.com
or
Media Relations:
Cheryl Wadsworth
mediarelations@cimpress.com