Vistaprint Again Reports Double-Digital Gains
VENLO, NETHERLANDS—Jan. 27, 2011—Vistaprint N.V. announced its financial results for the three month period ended Dec. 31, 2010, the second quarter of its 2011 fiscal year.
“Vistaprint delivered very good second quarter results,” said Robert Keane, president and CEO. “Revenue strength was largely driven by our seasonal holiday business, particularly in Europe. Earnings exceeded our expectations due to the higher-than-anticipated revenue and volume-related gross margin improvements. Overall, I am very pleased that we were able to deliver these results in the near term, while at the same time reorganizing the management reporting structures in our business to help us achieve our growth objectives over the longer term.”
Revenue for the second quarter of fiscal year 2011 grew to $234.1 million, a 20 percent increase over revenue of $194.6 million reported in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations, total revenue grew 23 percent from the same quarter a year ago.
Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the second quarter was 66.3 percent, compared to 65.1 percent in the same quarter a year ago.
Operating income in the second quarter was $38.2 million, or 16.3 percent of revenue, and reflected a 24 percent increase compared to $30.7 million, or 15.8 percent of revenue in the same quarter a year ago.
GAAP net income for the second quarter was $34.0 million, or 14.5 percent of revenue, representing a 26 percent increase compared to $26.9 million, or 13.8 percent of revenue in the same quarter a year ago.
Non-GAAP adjusted net income for the second quarter, which excludes share-based compensation expense and its related tax effect, was $40.4 million, or 17.3 percent of revenue, representing a 20 percent increase compared to $33.6 million, or 17.3 percent of revenue in the same quarter a year ago.
During the second quarter, the company generated $73.9 million in cash from operations and $61.6 million in free cash flow, defined as cash from operations less purchases of property, plant and equipment, purchases of intangible assets, and capitalization of software and Website development costs.
The company had $177.6 million in cash, cash equivalents, and short-term marketable securities as of Dec. 31, 2010.
Vistaprint acquired approximately 2.2 million new customers in the second fiscal quarter ended Dec. 31, 2010, compared with 1.8 million in the same quarter a year ago.
Repeat customers generated approximately 67 percent of total quarterly bookings in the second quarter, compared with 66 percent in the same quarter a year ago.
Average daily order volume in the second quarter of fiscal year 2011 was approximately 71,000, reflecting an increase of approximately 25 percent over an average of approximately 57,000 orders per day in the same quarter a year ago.
Advertising and commissions expense was $52.2 million, or 22.3 percent of revenue in the second quarter, compared to $39.4 million, or 20.2 percent of revenue in the same quarter a year ago.
The U.S. market contributed 47 percent of total revenue in the second quarter, down from 49 percent in the same quarter a year ago, representing a 15 percent increase in revenue year over year. Non-U.S. markets contributed 53 percent of total revenue in the second quarter, up from 51 percent in the same quarter a year ago, representing a 26 percent increase in revenue year over year and 32 percent in constant currency.
North American, European and Asia-Pacific revenue contributions in the second quarter of the fiscal year 2011 were 50, 45, and 5 percent of total revenue, respectively.
Average order value in the second quarter, including revenue from shipping and processing, was $36.17, compared with $36.63 in the same quarter a year ago.
Website sessions in the second quarter were 87.7 million, a 9 percent increase over 80.5 million in the same quarter a year ago.
Conversion rates were 7.5 percent in the second quarter of fiscal 2011, compared to 6.6 percent in the same quarter a year ago.
“Year to date, we have made good progress toward our fiscal 2011 goals,” said Mike Giannetto, CFO. “We are executing to our financial strategy to invest for higher revenue and scale within the boundaries of our earnings per share targets for the year. Now that we are halfway through the year, with our seasonally driven and largest revenue and earnings quarter behind us, we feel comfortable raising our fiscal 2011 revenue guidance to reflect our recent performance, and narrowing our EPS range toward the high end of the previously established range.”
Financial Guidance as of January 27, 2011:
Based on current and anticipated levels of demand, the company expects the following financial results:
For the third quarter of fiscal year 2011, ending March 31, 2011, the company expects revenue of approximately $190 million to $196 million.
For the full fiscal year ending June 30, 2011, the company expects revenue of approximately $785 million to $800 million.
For the full fiscal year ending June 30, 2011, the company expects to make capital expenditures of approximately $45 million to $55 million. Planned capital investments are designed to support the planned growth of the business.
Vistaprint N.V. (Nasdaq:VPRT) empowers more than 9 million micro businesses and consumers annually with affordable, professional options to make an impression. With a unique business model supported by proprietary technologies, high-volume production facilities, and direct marketing expertise, Vistaprint offers a wide variety of products and services that micro businesses can use to expand their business. A global company, Vistaprint employs over 2,700 people, operates 24 localized websites globally and ships to more than 120 countries around the world. Vistaprint's broad range of products and services are easy to access online, 24 hours a day at www.vistaprint.com.
Source: Financial release.