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Vistaprint reports 27% increase in revenue

Friday, October 30, 2009

Press release from the issuing company

VENLO, The Netherlands -- Vistaprint N.V., the company that provides high-impact personalized products and services for small businesses and the home, today announced financial results for the first quarter of the fiscal year ending June 30, 2010.

"Vistaprint continued our track record of strong execution with these first quarter results," said Robert Keane, president and chief executive officer. "Our earnings exceeded expectations due to higher than anticipated revenue and strong gross margins. During the quarter, we began to execute against the fiscal year 2010 investment acceleration that we discussed in our last earnings call. We believe these investments will help us capitalize on our large market opportunity and fuel long-term growth."

Financial Metrics:

* Revenue for the first quarter of fiscal year 2010 grew to $145.1 million, a 27 percent increase over revenue of $114.2 million reported in the same quarter a year ago.

* Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the first quarter was 63.6 percent, compared to 60.7 percent in the same quarter a year ago.

* Operating income in the first quarter was $14.4 million, or 9.9 percent of revenue, and reflected a 47 percent increase compared to $9.8 million, or 8.6 percent of revenue in the same quarter a year ago.

* GAAP net income for the first quarter was $13.0 million, or 8.9 percent of revenue, representing a 57 percent increase compared to $8.3 million, or 7.2 percent of revenue in the same quarter a year ago.

* GAAP net income per diluted share for the first quarter was $0.29, versus $0.18 in the same quarter a year ago.

* Non-GAAP adjusted net income for the first quarter, which excludes share-based compensation expense and its related tax effect, was $18.5 million, or 12.7 percent of revenue, representing a 32 percent increase compared to $14.0 million, or 12.2 percent of revenue in the same quarter a year ago.

* Non-GAAP adjusted net income per diluted share for the first quarter, which excludes share-based compensation expense and its related tax effect, was $0.41, versus $0.30 in the same quarter a year ago.

* Capital expenditures in the first quarter were $20.1 million or 13.8 percent of revenue.

* During the first quarter, the Company generated $32.4 million in cash from operations and $10.7 million in free cash flow, defined as cash from operations less purchases of property, plant and equipment, and capitalization of software and website development costs.

* The Company had $141.4 million in cash and cash equivalents as of September 30, 2009.

Operating Metrics:

* Vistaprint acquired approximately 1.4 million new customers in the first fiscal quarter ended September 30, 2009.

* Repeat customers generated approximately 67 percent of total quarterly bookings in the first quarter, compared with 66 percent in the same quarter a year ago.

* Average daily order volume in the first quarter of fiscal 2010 was approximately 45,000, reflecting an increase of approximately 29 percent over an average of approximately 35,000 orders per day in the same quarter a year ago.

* Advertising and commissions expense was $29.1 million, or 20.0 percent of revenue in the first quarter, compared to $20.3 million, or 17.8 percent of revenue in the same quarter a year ago.

* Non-U.S. markets contributed 41 percent of total revenue in the first quarter, up from 38 percent in the same quarter a year ago.

* Average order value in the first quarter including revenue from shipping and processing was $34.23, up from $33.79 in the same quarter a year ago.

* Web site sessions in the first quarter were 65.1 million, a 39 percent increase over 46.7 million in the same quarter a year ago.

* Conversion rates were 6.4 percent in the first quarter of fiscal 2010, compared to 6.9 percent in the same quarter a year ago.

During the quarter, Vistaprint broadened its product offering with personalized notebooks, photo books and mugs.

"While we are off to a good start in our fiscal year 2010 with our first quarter performance, we remain at the very early stages of our holiday-related seasonal peak that is critical to our full fiscal year results," said Mike Giannetto, chief financial officer. "We are updating our full-year guidance to reflect recent currency movements, which we anticipate will have a positive impact on full-year revenue, but a negative impact on costs and expenses. This results in increased revenue guidance but EPS guidance that is largely unchanged. We remain confident in our ability to execute against our fiscal year 2010 operating plan and our long-term investment strategy."
Financial Guidance as of October 29, 2009:
Based on current and anticipated levels of demand, the Company expects the following financial results:

 Revenue

* For the second quarter of fiscal year 2010, ending December 31, 2009, the Company expects revenue of approximately $167 million to $175 million.

* For the full fiscal year ending June 30, 2010, the Company expects revenue of approximately $615 million to $645 million.


 GAAP Diluted Earnings Per Share

 * For the second quarter of fiscal year 2010, ending December 31, 2009, the Company expects GAAP diluted earnings per share of approximately $0.43 to $0.48, which assumes 44.9 million weighted average shares outstanding.

* For the full fiscal year ending June 30, 2010, the Company expects GAAP diluted earnings per share of approximately $1.39 to $1.49, which assumes 45.0 million weighted average shares outstanding.


 Non-GAAP Adjusted Net Income Per Diluted Share

* For the second quarter of fiscal year 2010, ending December 31, 2009, the Company expects non-GAAP adjusted net income per diluted share of approximately $0.55 to $0.60, which excludes expected share-based compensation expense and its related tax effect of approximately $5.4 million, and assumes a non-GAAP diluted weighted average share count of approximately 45.6 million shares.

* For the full fiscal year ending June 30, 2010, the Company expects non-GAAP adjusted net income per diluted share of approximately $1.85 to $1.95, which excludes expected share-based compensation expense and its related tax effect of approximately $22.0 million, and assumes a non-GAAP diluted weighted average share count of approximately 45.7 million shares.

Capital Expenditures
For the full fiscal year ending June 30, 2010, the Company expects to make capital expenditures of approximately $80 million to $95 million. Planned capital investments include the expansion of the Company's Canadian manufacturing facility which is expected to be completed toward the end of fiscal year 2010, new manufacturing equipment to support the growth of the business, and a new manufacturing facility in Australia which is expected to be operational in the first quarter of fiscal year 2011.

The foregoing guidance supersedes any guidance previously issued by the Company. All such previous guidance should no longer be relied upon. At approximately 4:20 p.m. (EDT) on October 29, 2009, Vistaprint will post, on the Investor Relations section of www.vistaprint.com, a link to a pre-recorded audio visual end-of-quarter presentation along with a downloadable transcript of the prepared remarks that accompany that presentation. At 5:15 p.m. (EDT) the company will host a live Q&A conference call with management, which will be available via web cast on the Investor Relations section of www.vistaprint.com and via dial-in at (866) 515-2913, access code 88588277. A replay of the Q&A session will be available on the Company's Web site following the call on October 29, 2009.

 

 

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