Cimpress plc (CMPR) is benefiting from strength across its Vista, National Pen and Upload & Print segments. The company's investment in technology and product innovation, along with increased orders and higher average order values, bodes well. Improvements in customer experience and new product introductions are aiding its Vista segment. Also, an increase in the customer count, along with the continued increase in revenue per customer, bodes well for the segment. Significant growth in the e-commerce channel ...

Financial Performance - Revenue for fiscal year 2024 increased by 7% to $3,291.9 million compared to $3,079.6 million in fiscal year 2023[142] - Organic constant-currency revenue growth was 5% for fiscal year 2024[142] - Operating income rose by $190.0 million to $247.4 million, driven by a $157.8 million increase in gross profit and operating expense efficiencies[143] - Adjusted EBITDA increased by $128.9 million to $468.7 million for fiscal year 2024[142] - Diluted net income per share attributable to Cimpress plc improved to $6.43 from a loss of $7.08 in the prior fiscal year[142] - Cash provided by operating activities increased by $220.4 million to $350.7 million[142] - Adjusted free cash flow rose by $237.7 million to $261.1 million, supported by increased operating cash flow and higher proceeds from asset sales[146] Revenue Breakdown - Revenue growth was observed across all segments, with Vista business revenue driven by new and repeat customers[142] - Vista's reported revenue grew by 8% to $1.742 billion, with segment EBITDA increasing by 47% to $328.472 million, representing 19% of revenue[166][168] - PrintBrothers reported revenue increased by 10% to $638.036 million, with segment EBITDA growing by 27% to $89.876 million, representing 14% of revenue[169][171] - The Print Group reported revenue of $358,918,000 for the year ended June 30, 2024, representing a 3% increase compared to $346,949,000 in 2023[173] - National Pen's revenue increased by 7% to $391,192,000 for the year ended June 30, 2024, compared to $366,294,000 in 2023[176] - All Other Businesses reported revenue of $215,807,000, a slight increase of 1% from $213,455,000 in 2023[179] Expenses and Costs - Cost of revenue increased by $54.4 million year over year, with cost of revenue as a percentage of revenue decreasing to 51.5% from 53.3%[150] - Technology and development expenses increased by $19.7 million to $321.968 million for the year ended June 30, 2024, representing 9.8% of revenue, unchanged from the prior year[151][153] - Marketing and selling expenses rose by $15.9 million to $789.872 million, accounting for 24.0% of revenue, down from 25.1% in the previous year[156] - General and administrative expenses decreased by $3.5 million to $205.737 million, representing 6.2% of revenue, down from 6.8%[158] - Central and corporate costs increased by $11.8 million in 2024, primarily due to a $20.5 million rise in share-based compensation expenses[184] Tax and Other Income - The company recognized $204.9 million of lower income tax expense, primarily due to a partial reversal of a valuation allowance on Swiss deferred tax assets[145] - The effective tax rate improved to -38.4% for the year ended June 30, 2024, compared to -514.5% in the prior year, due to a partial release of the valuation allowance on Swiss deferred tax assets[162][163] - Other income, net decreased to $1.583 million from $18.498 million, primarily due to currency exchange rate volatility impacting derivatives not designated as hedging instruments[159][160] Cash Flow and Debt - Net cash provided by operating activities was $350,722,000 in 2024, significantly up from $130,289,000 in 2023[185] - The company had $203.8 million in cash and cash equivalents and $1,616.6 million in debt as of June 30, 2024[186] - Total contractual obligations amounted to $2,356,025,000, with significant commitments in operating leases and purchase commitments[191] - The company repurchased 1,723,393 ordinary shares for $157 million during the year ended June 30, 2024[187] - As of June 30, 2024, the company has borrowings of $1,084.6 million under its senior secured credit agreement, with a final maturity date of May 17, 2028[193] - The company has a $250.0 million senior secured revolving credit facility, with $238.0 million unused as of June 30, 2024[193] Interest Rate and Currency Risk - The company had $1,084.6 million of variable-rate debt, exposing it to market risk from interest rate changes[222] - A hypothetical 100 basis point increase in interest rates would result in an $8.8 million increase in interest expense over the next 12 months[222] - The company manages currency exchange rate risk through normal operating activities and derivative financial instruments, with significant exposures in the Euro and British Pound[223] - A hypothetical 10% decrease in exchange rates against the functional currency would have resulted in an $8.8 million change in income (loss) before income taxes for the year ended June 30, 2024[227] Goodwill and Intangible Assets - The company evaluates goodwill and indefinite-lived intangible assets for impairment annually, with no impairments recognized for the year ended June 30, 2024[219] - The fair value of identifiable intangible assets acquired in business combinations is based on detailed cash flow valuations, which may differ materially from actual results[215] - The company has not experienced significant impairments of capitalized software and website development costs historically[214] - Costs related to business acquisitions are expensed as incurred, while any excess purchase price over fair value is allocated to goodwill[216] Financial Instruments - The company utilizes interest rate swap contracts to mitigate exposure to interest rate changes related to its variable-rate debt[222] - The company revised its adjusted free cash flow definition to include proceeds from the sale of assets, providing a clearer picture of cash flow generation[199]

Financial Data and Key Metrics Changes - In Q4 FY 2024, consolidated revenue grew 6% on both a reported basis and organic constant currency basis [3] - For the full year, revenue grew 7% on a reported basis and over 5% on an organic constant currency basis [3] - Adjusted EBITDA increased by $5 million year-over-year in Q4 to $119 million, despite currency headwinds of over $3 million [3][4] - Full year adjusted EBITDA grew $129 million year-over-year to $469 million, representing a 38% increase [4] - Adjusted EBITDA margins improved by over 300 basis points to 14.2% in FY 2024 [4] Business Segment Data and Key Metrics Changes - Every segment accelerated revenue growth sequentially in Q4, except for National Pen, which reduced advertising spend impacting revenue growth but improved profitability [4] - Vista experienced growth in per customer value and had its sixth consecutive quarter of growth in the number of customers served [5] Market Data and Key Metrics Changes - The company noted a shift towards direct-to-customer e-commerce models, impacting reseller dynamics in the Print Group [12][13] - Revenue growth in Upload and Print has been primarily driven by volume, with a muted growth in businesses serving resellers [14] Company Strategy and Development Direction - The company plans to increase capital expenditures to enhance manufacturing and supply chain advantages, focusing on operational execution [16][18] - Investments will target production efficiency, new product introductions, and quality improvements [18][19] - The multiyear outlook remains positive, with expectations for mid-single-digit organic constant currency revenue growth and adjusted EBITDA growth slightly faster than revenue [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and operational capabilities, attributing it to significant investments made over the past six years [31] - The company is focused on leveraging scale-based advantages and improving customer value [31] Other Important Information - Adjusted free cash flow was $117 million for Q4 and $261 million for the full year, marking the highest cash flow results for both periods [5][6] - The company repurchased 1.7 million shares for $157 million in FY 2024, reducing shares outstanding by 7% [6] Q&A Session Summary Question: Can you provide an apples-to-apples breakdown of run rate EBITDA growth for Q4 FY '24 versus Q4 FY '23? - Management highlighted that currency negatively impacted EBITDA by over $3 million and noted onetime benefits from the previous year that did not repeat [9][10] Question: Can you talk about the reseller challenges in Print Group? - Management clarified that they do not see competitors "eating their lunch" and emphasized the shift towards direct-to-customer models [12][13] Question: What makes now the time to accelerate capital expenditures? - Management indicated that the focus on operational execution and the financial strength achieved over the past years justify the increase in capital expenditures [16][18] Question: Any new thinking about refinancing the 2026 bonds? - Management stated there are no new developments but confirmed they are regularly considering refinancing options [20] Question: What are the plans for the small EUR 46 million TLB tranche? - Management confirmed the plan is to hold the tranche until maturity unless circumstances change [21] Question: How do we increase the likelihood that organic investments in Vista are attractive? - Management discussed improvements in data analytics, organizational changes, and regular progress reviews to enhance investment outcomes [22][24][27]

Cimpress plc (CMPR) reported fourth-quarter fiscal 2024 (ended Jun 30, 2024) adjusted earnings of $4.33 per share, which beat the Zacks Consensus Estimate of 77 cents. The company reported adjusted earnings of $1.08 per share in the year-ago quarter. Top-Line Details Total revenues were $832.6 million, reflecting an increase of 5.6% from $788.8 million in the year-ago quarter. The organic constant-currency revenue growth was 6% year over year, driven by growth in each of its businesses. The top line was in ...

For the quarter ended June 2024, Cimpress (CMPR) reported revenue of $832.61 million, up 5.6% over the same period last year. EPS came in at $4.33, compared to $1.08 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $832.9 million, representing a surprise of -0.04%. The company delivered an EPS surprise of +462.34%, with the consensus EPS estimate being $0.77. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Cimpress (CMPR) came out with quarterly earnings of $4.33 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 462.34%. A quarter ago, it was expected that this marketing materials maker would post earnings of $0.14 per share when it actually produced a loss of $0.15, delivering a surprise of -207.14%. Over the last four quarters, ...

| --- | --- | --- | |-------|-------|-------| | | | | | | | | JULY 31, 2024 LETTER FROM ROBERT Dear Investor, Cimpress delivered strong financial results in our fourth quarter, topping off a strong FY2024 in which we posted our highest-ever fiscal year results for revenue, adjusted EBITDA and adjusted free cash flow. Throughout FY2024 we drove customer value improvements, steady revenue growth, gross margin expansion, and operating expense fficiencies, leading to significant profit expansion. From a balance ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower. This marketing materials maker is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of -28.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering an ...

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Some better-ranked companies are discussed below: Significant growth in the e-commerce and telesales channels is driving the National Pen segment. The segment's revenues grew 8% year over year in the first nine months of fiscal 2024. In the same period, the Upload & Print segment's revenues rose 8.5% year over year, supported by increasing order rates. Driven by business strength, Cimpress expects total sales to increase at least 7%. Cimpress' effective cost-control measures are supporting its margin perfor ...