Vistaprint Releases Its Five-Year Plan
Life Time Value Based Marketing—invest more deeply into traditional Vistaprint marketing channels and expand in relatively new channels such as broadcast and direct mail in order to accelerate new customer acquisition and seek to reach offline audiences that are not currently looking to online suppliers for their marketing needs.
World Class Manufacturing—accelerate investment in production process improvements, employee training, supply chain management and manufacturing-related engineering to make a step-function improvement in product quality and reliability and to significantly lower unit manufacturing costs.
Market Adjacencies—lay foundations for continued rapid growth five and more years in the future by seeking to expand on initial successes in the four market adjacencies of home and family personalized products, digital marketing services, geographic expansion outside North America and Europe, and higher-value small business customers.
Vistaprint believes that if it executes this strategy well, by fiscal 2016 it will grow organically to $2 billion or more in annual revenue and to annual GAAP earnings per share of approximately $5.00. Success in meeting these objectives would reflect five-year compound annual growth rates of 20 percent or better from the results achieved in fiscal 2011.
In addition to requiring solid execution by Vistaprint on its operational strategy, hitting those targets by fiscal 2016 requires a new investment approach: namely heavier up-front investments in fiscal 2012 and fiscal 2013. The company expects this will cause earnings per share to decline significantly from fiscal 2011 to fiscal 2012, and to grow only modestly from fiscal 2012 to fiscal 2013.
The company does not expect to achieve annual GAAP earnings per share above its fiscal 2011 results until fiscal 2014. Organic constant currency revenue growth is expected to accelerate from the company’s fiscal 2011 growth rate of 22% beginning as early as fiscal 2012, and to average 20% or better over the next five years.