08.01.16
Cimpress N.V. announced financial results for the fourth quarter and fiscal year ended June 30, 2016.
Revenue for the fourth quarter of fiscal year 2016 was $479.2 million, a 26% increase compared to revenue of $380.5 million in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations and revenue from businesses acquired during the past 12 months, revenue grew 11% year over year in the fourth quarter.
For the full year, total consolidated revenue grew 20% year over year. The year-over-year strengthening of the US dollar negatively impacted the company’s revenue growth rate for the full year. Excluding the estimated impact from currency exchange rate fluctuations revenue growth was 24%. Excluding the estimated impact from both currency exchange rate fluctuations and revenue from businesses acquired during the past 12 months, revenue for the full year grew 11%.
“In fiscal year 2016 we made significant progress against our strategic initiatives outlined at the beginning of the year,” explained Robert Keane, president and CEO. “We are entering the new fiscal year with strong momentum and optimism for our business. In light of this, we have established plans to increase our level of organic investment in fiscal 2017.
“Turning to our financial results, top-line growth for the fourth quarter was 26% in both reported and constant currency terms, reflecting an acceleration of growth in the Vistaprint business unit, solid performance from our faster growing Upload and Print portfolio of brands, and a decline in our All Other business units segment which was impacted by the previously described wind-down of two partnerships,” Sean Quinn, CFO added. “Excluding the impacts of currency and acquisitions made in the trailing 12 months, our fourth quarter organic revenue grew 11% versus a tough comparison in the fourth quarter of 2015, as the net year-over-year revenue impacts of the release of deferred revenue related to group buying activities for Vistaprint was a headwind of $3.7 million. We are starting to see the financial benefit of years of past investments in our Vistaprint value proposition.
Gross margin (revenue minus the cost of revenue as a% of total revenue) in the fourth quarter was 53.5%, down from 58.9% in the same quarter a year ago due primarily to the increased weighting of its Upload and Print business units. For the full fiscal year, gross margin was 56.7% compared to 61.9% in fiscal year 2015, due to the weighting of the company’s Upload and Print business units, as well as impairment charges of $11.0 million related to write-downs of proprietary technology investments during the year.
Operating income in the fourth quarter was $16.0 million, or 3.3% of revenue, an increase in absolute dollars but a decrease as 1% of revenue compared to operating income of $15.2 million, or 4.0% of revenue, in the same quarter a year ago. For the full fiscal year, operating income was $78.2 million, or 4.4% of revenue, down from operating income of $96.3 million, or 6.4% of revenue, in the prior fiscal year.
During the fourth quarter, the company generated $52.1 million of cash from operations and $34.8 million in free cash flow, a non-GAAP measure. During the full fiscal year, the company generated $247.4 million of cash from operations and $152.4 million in free cash flow.
Revenue for the fourth quarter of fiscal year 2016 was $479.2 million, a 26% increase compared to revenue of $380.5 million in the same quarter a year ago. Excluding the estimated impact from currency exchange rate fluctuations and revenue from businesses acquired during the past 12 months, revenue grew 11% year over year in the fourth quarter.
For the full year, total consolidated revenue grew 20% year over year. The year-over-year strengthening of the US dollar negatively impacted the company’s revenue growth rate for the full year. Excluding the estimated impact from currency exchange rate fluctuations revenue growth was 24%. Excluding the estimated impact from both currency exchange rate fluctuations and revenue from businesses acquired during the past 12 months, revenue for the full year grew 11%.
“In fiscal year 2016 we made significant progress against our strategic initiatives outlined at the beginning of the year,” explained Robert Keane, president and CEO. “We are entering the new fiscal year with strong momentum and optimism for our business. In light of this, we have established plans to increase our level of organic investment in fiscal 2017.
“Turning to our financial results, top-line growth for the fourth quarter was 26% in both reported and constant currency terms, reflecting an acceleration of growth in the Vistaprint business unit, solid performance from our faster growing Upload and Print portfolio of brands, and a decline in our All Other business units segment which was impacted by the previously described wind-down of two partnerships,” Sean Quinn, CFO added. “Excluding the impacts of currency and acquisitions made in the trailing 12 months, our fourth quarter organic revenue grew 11% versus a tough comparison in the fourth quarter of 2015, as the net year-over-year revenue impacts of the release of deferred revenue related to group buying activities for Vistaprint was a headwind of $3.7 million. We are starting to see the financial benefit of years of past investments in our Vistaprint value proposition.
Gross margin (revenue minus the cost of revenue as a% of total revenue) in the fourth quarter was 53.5%, down from 58.9% in the same quarter a year ago due primarily to the increased weighting of its Upload and Print business units. For the full fiscal year, gross margin was 56.7% compared to 61.9% in fiscal year 2015, due to the weighting of the company’s Upload and Print business units, as well as impairment charges of $11.0 million related to write-downs of proprietary technology investments during the year.
Operating income in the fourth quarter was $16.0 million, or 3.3% of revenue, an increase in absolute dollars but a decrease as 1% of revenue compared to operating income of $15.2 million, or 4.0% of revenue, in the same quarter a year ago. For the full fiscal year, operating income was $78.2 million, or 4.4% of revenue, down from operating income of $96.3 million, or 6.4% of revenue, in the prior fiscal year.
During the fourth quarter, the company generated $52.1 million of cash from operations and $34.8 million in free cash flow, a non-GAAP measure. During the full fiscal year, the company generated $247.4 million of cash from operations and $152.4 million in free cash flow.