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Cimpress Q2 Earnings & Revenues Miss Estimates, Increase Y/Y
CMPRCimpress(CMPR) ZACKS·2025-01-31 17:51

Core Viewpoint - Cimpress plc (CMPR) reported second-quarter fiscal 2025 adjusted earnings of 2.36pershare,missingtheZacksConsensusEstimateof2.36 per share, missing the Zacks Consensus Estimate of 2.40, but showing an increase from 2.14pershareinthesamequarterlastyear[1]FinancialPerformance−Totalrevenuesforthequarterwere2.14 per share in the same quarter last year [1] Financial Performance - Total revenues for the quarter were 939.2 million, a 1.9% increase from 921.4millionintheyear−agoquarter,butbelowtheZacksConsensusEstimateof921.4 million in the year-ago quarter, but below the Zacks Consensus Estimate of 964 million [2] - Organic constant-currency revenue growth was 2% year over year, driven by growth across all business segments [2] Segmental Information - The National Pen segment generated revenues of 131.4million,upfrom131.4 million, up from 130.1 million in the year-ago quarter, but below the estimate of 133.6million[3]−Vista,thelargestrevenue−generatingsegment,reportedrevenuesof133.6 million [3] - Vista, the largest revenue-generating segment, reported revenues of 497.7 million compared to 485.4millionintheyear−agoquarter,missingtheestimateof485.4 million in the year-ago quarter, missing the estimate of 517.9 million [3] - The Upload and Print segment's revenues increased to 273.1millionfrom273.1 million from 257.7 million in the year-ago quarter, slightly below the estimate of 175.7millionforPrintBrothersand175.7 million for PrintBrothers and 93.8 million for The Print Group [4] - Revenues from All Other Businesses were 60.3millioncomparedto60.3 million compared to 59.8 million reported a year ago, missing the estimate of 61.7million[5]MarginandCostAnalysis−Costofrevenueswas61.7 million [5] Margin and Cost Analysis - Cost of revenues was 489.3 million, up 5.6% year over year, while marketing and selling expenses totaled 223.9million,up5.7223.9 million, up 5.7% year over year [6] - Gross profit decreased 1.7% year over year to 450 million, with a margin of 48%, down 200 basis points year over year [7] - Adjusted EBITDA fell 20.7% year over year to 132.3million[7]BalanceSheetandCashFlow−AsofDecember31,2024,Cimpresshad132.3 million [7] Balance Sheet and Cash Flow - As of December 31, 2024, Cimpress had 224.4 million in cash and cash equivalents, up from 203.8millionattheendofthepreviousquarter[8]−Long−termdebtwas203.8 million at the end of the previous quarter [8] - Long-term debt was 1.58 billion, slightly down from the previous quarter [8] - Net cash provided by operating activities was 176.5millioncomparedto176.5 million compared to 175 million in the year-ago quarter, with share repurchases worth 42.4millionduringthequarter[9]Outlook−Forfiscal2025,Cimpressexpectsrevenuestoincreaseatleast342.4 million during the quarter [9] Outlook - For fiscal 2025, Cimpress expects revenues to increase at least 3% on a reported basis and 4% on an organic constant-currency basis [10] - Operating income is expected to be at least 233.9 million, indicating about a 5% decrease year over year [10] - Adjusted EBITDA is projected to be at least 440million,withanticipatedcashfromoperatingactivitiesofaminimumof440 million, with anticipated cash from operating activities of a minimum of 289 million and free cash flow (adjusted) of at least $157 million [11] - The company aims to reduce net leverage, hoping to exit fiscal 2025 with a net leverage of 3.0x trailing-12-month EBITDA [11]